NORTHERN Melbourne Institute of TAFE recorded a 63 per cent drop in surplus from 2011 to 2012, according to an auditor-general’s report on tertiary education.
NMIT generated a $5.1 million surplus in 2012 compared with $13.7 million in 2011.
The report found that funding changes, increased employee costs and structured redundancy programs have meant Victorian TAFEs generated 39.1 per cent less surplus in 2012 than in the previous year.
In September 2012 the Victorian state government cut about $290 million from the TAFE sector, causing widespread protests by TAFE staff.
NMIT’s financial sustainability risk was classified as medium in 2012, along with nine Victorian TAFEs.
Opposition skills spokesman Steve Herbert said the report “showed a declining financial viability for Victorian TAFEs”. He said the state government was driving TAFE institutions to the wall.
But Higher Education and Skills Minister Peter Hall said TAFEs were in a strong financial position.
“[We] have put the system back on track to be sustainable and to actually deliver courses that lead to jobs,” he said.
NMIT spokesman James Gardener said NMIT “continues to be the leading TAFE in Melbourne’s north” despite the reduced surplus.
He hinted at a 2013 deficit, but said NMIT was working on a business transition plan and anticipated returning to surplus in 2014-15.
“It represents a positive way forward for NMIT and seeks to turn challenges into opportunities.”
The plan will work towards a new teaching and learning facility at the Preston campus, a bid to acquire the former Swinburne Prahran campus, and an attempt to achieve polytechnic university status.
