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David Pisoni MP
Shadow Minister for Employment, Skills & Training
Friday 27 March 2015
Crown Law advice places Labors skills program at
risk
Crown Law advice has cast a shadow over the legality of the funding model the State Labor
Government is using for the Skills for All training program.
The Crown Law advice shows the Department of State Development sought legal guidance
on its Skills for All funding model as it considered reducing the amount of funding available to
Registered Training Organizations (RTO’s) as part of the Skills for All program.
The Crown Law advice warns that because TAFE SA does not sufficiently separate its
community service obligations from its commercial operation and funds TAFE courses at 2.5
higher than private RTO’s it is legally exposed.
In particular Crown Law advised:
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Skills for All funding appears to be contrary to the principles of competitive neutrality,
exposing TAFE SA to possible investigation by the Australian Competition and
Consumer Commission;
TAFE SA and the Minister are potentially at risk of prosecution and penalties under
the Competition and Consumer Act as well as enforcement action by the ACCC; and
TAFE SA is directly at risk of a competitor(s) taking legal actions for damages
“This raises some very serious questions about Labor’s Skills for All funding model,” said
Shadow Training Minister David Pisoni.
“Crown Law has warned the Weatherill Government that TAFE SA’s ability to access greater
levels of funding than private competitors may be assisting it to price its training courses at
below cost and warns this is potentially an abuse of market power which is prohibited under
the Competition and Consumer Act
“Labor’s lack of due diligence and poor management of Skills for All funding now threatens
South Australia’s entire training system and has exposed TAFE and taxpayers to more costs
and financial penalties.”
Last month the Labor dominated Economic and Finance Committee rejected a Liberal Party
motion to investigate the Weatherill Government’s Skills for All funding model.
Contact: David Pisoni 0412 844 384