Joyce on TEC funding recovery from ITOs

Tertiary Education Minister Steven Joyce says the recovery of funds from industry training organisations that are not meeting the reporting requirements for that funding is about ensuring value for taxpayers’ money.

He is commenting on an announcement today from the Tertiary Education Commission that it is recovering up to $4.3 million from 18 ITOs which have claimed more funds than they are entitled to in 2009, based on numbers of trainees and the status of trainees.

“The money that is being recovered relates to funding claimed for trainees where there is no clear record of eligibility for government funding,” says Mr Joyce.

“These include issues where trainees have not actually been engaged in training, incomplete or missing training agreements, trainees who had ceased their involvement in training or employment, and eleven trainees who were deceased.

“As I said last year, monitoring by some of the ITOs of their trainees has been inadequate. This reflects poorly on the relevant ITOs and on the TEC.  TEC’s move to recover some funding for the 2009 year is appropriate.

“If organisations are receiving money from the taxpayer then they must meet the requirements of that funding and deliver results.

“The funds that are being recovered as part of this exercise will be redistributed within the tertiary sector to meet other demands.

“New monitoring systems together with changes in funding rules implemented late last year will ensure that money spent on future industry training delivers meaningful results for taxpayers, trainees and the economy.”

“While the recession has impacted on the number of trainees in work who are seeking industry training, we still expect ITOs to arrange good quality training.

“I expect ITOs to ensure they are spending taxpayer’s money for the purposes it was provided, and I expect the TEC to ensure that is being effectively monitored,” says Mr Joyce.