The Australian Emergency Management Institute (AEMI) is to become a “virtual institute”, saving the Federal Government about $900,000.

The site, based in Victoria’s Mt Macedon, was axed in last week’s Federal Budget, when the move was overshadowed by other more contentious decisions.

Formed in 1956 as the Australian Civil Defence School, the institute – which includes accommodation, a conference centre and training facilities – sits on one of Australia’s most beautiful campuses, a 7.5-acre heritage garden.

Its management courses include business continuity, risk management, managing in uncertainty and disaster recovery, and are highly regarded by the risk and insurance sectors.

Nationally recognised training courses and professional training programs will now be run as online courses from Canberra and client premises.

Budget papers say the savings “will be redirected by the Government to repair the budget and fund policy priorities”.

They add the AEMI, which is part of the Attorney-General’s Department, will continue to be a centre of excellence for the national emergency management sector.

“The transition will allow the AEMI greater flexibility to deliver emergency management training.”

The Insurance Council of Australia says it is prepared to give the Government the benefit of the doubt, noting the move “does not disband the institute but involves moving it from a physical campus to becoming a virtual institute”.

The council told insuranceNEWS.com.au the measure “represents a prudent use of technology to reduce operating costs. There will remain a need for emergency services to continue to have face-to-face forums and exchanges.

“However, this could potentially be achieved in any location, rather than having a permanent campus maintained year-round, without significantly compromising the intent.”