A report to State Parliament showed statewide last financial year TAFE posted a $16 million deficit, a far cry from the $59 million operating surplus the previous year.

The report, released on Wednesday, brought out politicians on both sides to defend their positions.

Labor opposition skills spokesman Steve Herbert accused the Napthine government of ripping the heart out of TAFE and claimed tough changes made to budgets had forced the sector into a financial free-fall.

But Skills Minister Nick Wakeling blamed the previous Brumby government for opening up the market in training to private providers but did not give the TAFE sector time to adjust.

The truth is that both things have played a significant role in forcing TAFE into a painful readjustment process that is not over yet.

It was already fighting for market share with the private operators when the Coalition government tightened the purse strings when Ted Baillieu was premier.

The Auditor-General found that 13 of the 14 stand-alone TAFEs faced financial risk, including our own South West TAFE.

Here there have been job losses and a restructuring of some courses, but despite storm clouds over much of the sector South West TAFE contends that its brand will not only survive but stay strong and relevant.

CEO Peter Heilbuth is confident that his business renewal program is on the right track and during  the next two years will secure South West TAFE’s future in the region.

There will be many who wish him well, not least those who rely on the excellent service that TAFE provides in education, training and skills.

Mr Heilbuth has a tough job ahead as the sector works through a radical shake-up, but there is an encouraging strength of purpose at South West TAFE that should end well.

The institute plays a crucial role in the education and development pathways for people in this region and long may it continue to do so.