Illawarra TAFE teachers have been told students must be enrolled by Friday or government funding will be cut, the teachers' union claims.
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NSW Teachers Federation representatives met Illawarra state election candidates outside Wollongong TAFE on Wednesday, urging them to immediately ask questions about the Coalition's Smart and Skilled reforms.
Five months after a new computer enrolment system was implemented, Teachers Federation TAFE organiser Rob Long said it still wasn't working.
"The pressure on our teachers is now impacting on their health," Mr Long said.
"They've been told that by March 20, this Friday, they must have the system working.
"It's beyond their control - the system is not working, it's collapsing ... and students will not be enrolled. If they're not enrolled, they won't be funded for their Smart and Skilled students.
"I'm not sure exactly of the level of funding that is in relation to the total TAFE budget, but I've been anecdotally told it's about 30 per cent."
Mr Long said the move was politically motivated.
"They've rushed it through because they wanted to privatise TAFE before the state election," he said.
In response, a spokesman for Education Minister Adrian Piccoli said: "TAFE NSW Institutes are on track to report student enrolment data by 31 March, as required under the Smart and Skilled contract."
The Labor candidate for Heathcote, Maryanne Stuart, said the situation was "disgraceful".
"The NSW Liberals are ripping the heart out of TAFE," Ms Stuart said.
"At a time when we have skills shortages and population growth we clearly need to invest in training and education."
Also present to hear the concerns were Greens Shellharbour candidate Peter Moran, Wollongong independent candidate Arthur Rorris and representatives from Wollongong MP Noreen Hay's office.
"We have a first-class system of training here at TAFE that is being either deliberately, or inadvertently, run down - to the stage where the teachers involved simply cannot do the jobs the community expects them to do," Mr Moran said.
Late on Wednesday, Ms Hay said claims that the new system was unworkable had "fallen on deaf ears".
She urged Mr Piccoli to explain why it was implemented and what would be done to fix it.