He rejected both the Liberal government's Smart and Skilled and the Labor Party's proposed 30 per cent cap on public funding for private institutions.

"While I applaud Labor for addressing privatisation of education, a cap doesn't go far enough - we need a complete overhaul," Mr Rorris said.

A return to Whitlam-era free education would stem skills shortages and youth unemployment.

"Generations of people benefited from this policy, we have seen what it can do," he said.

Mr Rorris was particularly critical of the Baird government's Smart and Skilled, which raised TAFE fees and discontinued TAFE courses in the Illawarra.

"We should not be erecting barriers to education in an area of high youth unemployment," he said.

The former South Coast Labour Council leader said the costs of reducing and possibly eliminating TAFE fees would be offset by the benefits to the economy.

"The $300 million to 400 million the government collects in TAFE fees compared to the billions lost in skill shortages in the country makes it worth it," he said.

"When you consider the economic impact of more people employed and paying tax as a result of vocational training, arguing to raise fees is a false economy," he said.