14 December 2007
TEC announces $2.2 billion of tertiary education investment decisions for 2008 today
The Tertiary Education Commission (TEC) has announced more than $2.2 billion of the approximately $3.3 billion a year
that it invests in tertiary education on behalf of the taxpayer.
“Today the TEC announced its approval of the Investment Plans of 110 tertiary education organisations* for up to three
years,” said TEC Chair, David Shand. (*Universities, institutes of technology and polytechnics, wānanga, industry
training organisations, and some private training establishments and other tertiary education providers).
“Approval of these Plans and announcement of the associated funding decisions marks a significant milestone in the
implementation of the new way of investing in tertiary education.
“The new way of investing will ensure tertiary education organisations are funded to deliver quality education and
training that is relevant to students, their potential employers, and the communities that they live in. How they will
do this is outlined in each organisation’s Investment Plan.
“This rigour around planning is a significant change from the past when organisations were funded by the number of
students they attracted, regardless of whether the education they were offering was relevant to students and of high
quality.
“Importantly, the new approach gives tertiary students added confidence that what they are studying will provide them
with knowledge and skills that they can use in their lives – knowledge and skills that are also important to New
Zealand’s economic and social development.”
The $2.2 billion announced today is a significant proportion of the approximately $3.3 billion that the government
invests in tertiary education and training a year, through its direct funding of tertiary education organisations.
“In its Investment Plan, each organisation has outlined how it will meet the education and training needs of students,
employers, iwi, and community groups, and deliver on the country’s development priorities,” said Mr Shand.
“Each organisation has also outlined how the education and training it is planning to offer will complement what other
organisations are going to offer, both locally and as part of the national network of tertiary education organisations.
“In addition, each organisation has included information on how it will continuously improve the quality of its teaching
and learning.”
Mr Shand said tertiary education organisations would receive almost $290 million more in government funding next year
than they did in 2006, and more than they are forecast to receive in 2007. Around $190 million of this extra funding is
being directed towards universities.
“One of the focuses of universities next year is to improve participation and achievement by under-represented groups,
particularly Māori and Pacific students.
“Another is to increase the proportion of postgraduate students, particularly in key areas such as science and
engineering.
“Institutes of technology and polytechnics (ITPs) are also increasing the number of higher level qualifications they
offer – some in collaboration with other organisations including universities – so students have more opportunities to
study at higher levels.
“ITPs are also looking at how to improve student retention and completion rates, while increasing their focus on the
region in which they are based.
“This will ensure that the education and training needs of local students, employers and community groups are better met
and the skills of people in the workforce are improved.”
Mr Shand said it was good to see the progress that the wānanga sector has made in the past two years.
“Wānanga will continue to focus on meeting the education and training needs of Māori, and improving participation and
achievement levels among Māori people.
“Industry Training Organisations (ITOs) are focused on understanding more about industry skill and training needs. They
are also building collaborative relationships with other tertiary education organisations – in particular, with ITPs –
to fulfil local and national skill and training needs.
“Thirty one private training establishments (PTEs) and 10 other tertiary education providers (OTEPs) have moved onto one
year Investment Plans for 2008. The rest of the PTEs – more than 300 – will move onto Investment Plans in 2009.”
Mr Shand thanked the many people in tertiary education organisations around the country who had worked collaboratively
with the TEC to reach the milestone passed today. He also thanked the staff of the TEC for their commitment and effort.
“The tertiary education sector is supportive of the change. However, approval of these plans is just a start. There is
still work to do – for example, to refine the funding system – but important progress has been made and will continue to
be made on the development of a tertiary education sector that more fully contributes to New Zealand’s economic and
social development.”
ENDS