The New South Wales Skills Minister says he is considering scrapping TAFE's structure of separate institutes in different geographic areas.

John Barilaro yesterday released a report by the Boston Consulting Group, which argued there was too much duplication in TAFE administration because each institute was a separate entity.

There are 10 TAFE institutes in NSW, and the report said three of the regional facilities did not have the scale to be efficient.

Mr Barilaro said the government was considering whether to bring the separate organisations under one umbrella.

"Clearly there are a number of models we could look to, but definitely we can save in that duplication cost," Mr Barilaro said.

"We know that if we can do that, for every million dollars in savings it'll actually open up another 250 opportunities for students in NSW," he said.

"We have made no decision on this [and] this report will be part of a number of reports, information and data we're looking at in framing the TAFE of the future."

He said regional institutes like TAFE Western, New England and Riverina often did not have the numbers to be sustainable, and that the findings would feed into future reforms.

"What we want to see is an adaption to innovation and technology," he said.

"Having video conferencing, web conferencing, where [students] will have access to greater course offerings but not having to leave their communities.

"This actually highlights an opportunity in delivering training in a very different way."

Minister accused of trying to undermine regional TAFEs

The Teachers Federation of NSW has accused the government of trying to undermine regional TAFE institutes by releasing the report.

The report labelled some regional institutes as "sub-scale", and uncompetitive with private providers.

Teachers Federation organiser Kathy Nicholson said TAFE facilities in the bush should not be expected to be competitive.

"There aren't competitors, and there certainly aren't credible competitors, and economies of scale don't allow that," she said.

"If they can't support and invest in TAFE in the bush so that our kids out here in the bush can continue to get a chance to actually get a job, then we should throw them out."

She questioned the timing of the report, which was released the morning after enterprise bargaining negotiations broke down between TAFE and the union.

Ms Nicholson said the proposal would have removed entitlements for teachers.

"If voted yes, it would make it very hard for us to attract the industry specialists and professionals," she said.

Mr Barilaro said the timing was not deliberate and that there were no plans to cut services in country areas.

"My commitment has always been that we will not be withdrawing TAFE from any regional and rural areas," he said.

"If you apply a pure business case and an economic perspective to regional NSW, you'd shut regional NSW down.

"In this case [the Boston Consulting Group] looked at it through that lens."