College collapses spark fresh probe

VICTORIA'S education regulation agency is under investigation over its ability to do its job properly following a spate of college collapses that have affected thousands of international students.

With crackdowns on so-called dodgy colleges under way, Victoria's Auditor-General, Des Pearson, is examining whether the government body that approves private trades colleges to operate is regulating them properly. The agency, the Victorian Registration and Qualifications Authority, is responsible for registering, monitoring and regulating all education providers in Victoria, including private trades colleges that cater to international students.

In the past five years unscrupulous college operators, corrupt education agents and immigration rorts have grown at an unprecedented rate as colleges, particularly in the training sector, have flourished to meet demand from visa-seeking foreign students. Exploitation of international students by college operators who have put profits ahead of education and welfare has undermined the viability of Australia's $17 billion international education industry.
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Since its inception in 2007 the registration authority has attracted intense criticism from bureaucrats, college operators and education industry insiders who argue the under-resourced regulator has been unable to keep pace with the growth of the international education industry in Victoria.

Critics have argued the regulator failed to crackdown on sham colleges, did not enforce regulations rigorously and used ill-equipped auditors to inspect colleges. The authority's director, Lynn Glover, has previously denied the agency is under-resourced or unable to do its job effectively.

Last year state and federal authorities, which share jurisdiction over international education, moved to crack down on unscrupulous college operators, with the Victorian government boosting the authority's power to close bad colleges.

At least 11 private trades colleges catering to international students have closed since July last year, affecting an estimated 5500 foreign students. It is unclear how many trades colleges with only domestic students have been closed in the same period. The Auditor-General's report is expected to be tabled by October.

Meanwhile, his website says: ''In recent times a number of organisations registered to provide vocational education and training have gone out of business. Issues have also been raised about the integrity of operators. The audit will assess the effectiveness of the VRQA in meeting its legislative responsibilities for regulating vocational education and training providers.''

The Council of Australian Governments has agreed to establish a national regulator for the vocational education and training sector. The new regulator will be a Commonwealth statutory authority responsible for registration and audit of trades colleges.

Victoria and Western Australia are the only jurisdictions that have refused to sign over their powers to the federal government. They have instead agreed to enact legislation that mirrors new Commonwealth legislation.

The Australian Council for Private Education and Training, a national industry body, yesterday declined to comment.

Source:http://www.smh.com.au/victoria/college-collapses-spark-fresh-probe-20100816-126xy.html