Racing NSW bids to buy TAFE site
Racing NSW is offering to buy a TAFE site and turn it into a premier training centre for people working in the horse industry.
Racing NSW chief executive officer Peter V’landys said he has offered the state government more than the $3.2 million it cost to build Scone TAFE in the Hunter Valley more than 25 years ago.
Racing NSW chief Peter V’landys said it wanted to buy the site to provide training for the industry in the Hunter.Credit:Dominic Lorrimer
A parliamentary inquiry heard on Monday that Minister for Skills and Tertiary Education Geoff Lee met with Racing NSW on August 6 last year to discuss “TAFE matters”.
“Racing NSW has certainly put in a bid for the Scone TAFE property, and we can confirm that it is higher than the historic replacement cost, so the government will do well out of the sale,” Mr V’landys said.
“More importantly, if Racing NSW are successful in purchasing the property we will utilise it as an educational facility offering a range of courses for the thoroughbred industry which is so vital to the Hunter region as a major employer.
“It will certainly be a greater usage as an educational facility as TAFE had difficulties in procuring students, meaning the facility for the past five years was significantly underutilised”.
Mr Lee also met with property development company Trifalga Pty Ltd on July 14.
Asked if the sale of Scone TAFE was discussed with them, Mr Lee said he had no recollection: “I could have, but I don’t remember,” he said.
The hearing heard Mr Lee told the committee last year the government had no plans to sell the 17.9 hectare site.
Coalition government ministers George Souris and John Fahey announced in 1991 that Scone TAFE would cost $3.2 million to build. It was officially opened in 1996 and operates as a specialist equine training facility.
NSW Labor raised the issue in a budget estimates hearing on Monday after obtaining internal TAFE NSW documents in a parliamentary call for papers which show the Scone site has been independently valued at up to $3.5 million. The market valuation put the reserve price at $3 million.
The advertisement for the sale says TAFE will lease back part of the property for one year with an option for two more 12-month period.
The Herald understands that Racing NSW was not satisfied with the training TAFE NSW was providing as part of its joint venture with it that ended about two years ago.
Mr Lee said the suggestion to sell Scone TAFE was put to him by TAFE NSW and rejected suggestions the government was privatising TAFE.
TAFE NSW managing director Steffen Faurby told the committee hearing it had recommended selling the facility because it was under utilised.
TAFE NSW has said it will continue delivering training at Scone using a combination of the “multimillion-dollar Connected Learning Centre, Mobile Training Units, and the negotiated leaseback of part of the property with the site’s successful purchase”.
Mr Lee also told the committee that in hindsight, universities including The University of Sydney and University of NSW had taken a “highly risky strategy” in their heavy reliance on revenue from international student enrolments.
Mr Lee agreed universities needed to diversify their revenue base adding that the coronavirus pandemic had been a “good wake-up call” for vice-chancellors and their university boards.
“Diversifying your markets seems to be a wiser strategy,” he said.
Catch all the day’s breaking news
At the end of each day, we’ll send you the most important breaking news headlines, evening entertainment ideas and a long read to enjoy. Sign up here.
Anna Patty is a Senior Writer for The Sydney Morning Herald with a focus on higher education. She is a former Workplace Editor, Education Editor, State Political Reporter and Health Reporter.