Media Release 10 September 2008
OECD Report Highlights Need To Invest In Universities
The OECD publication Education at a Glance 2008 released today contains content which highlights the need for increased
investment in the New Zealand university system, according to New Zealand Vice-Chancellors’ Committee chair Professor
Roger Field.
The publication contains an editorial by the OECD’s Director for Education Barbara Ischinger which notes that in the
decade to 2005 spending per tertiary student shrank in some countries as expenditure failed to keep up with expanding
student numbers.
Professor Field says research carried out by the NZVCC confirms that New Zealand was among those countries. Government
funding per university full-time equivalent student in this country fell by $1834 during the 15-year period to 2006 when
adjusted for inflation and measured in constant dollars.
Ministry of Education commentary on the OECD report points out that a comparison of annual expenditure per student on
tertiary institutions shows that New Zealand ranks 19th out of 27 OECD countries. That puts New Zealand below the United
States, Australia and the United Kingdom.
The editorial in the OECD report notes that the Nordic countries have achieved expansion by providing massive public
spending on tertiary education, including both institutional and student support, “as an investment that pays high
dividends to individuals and society”.
New Zealand is used as an example where “loans on advantageous terms are available to all students” with means tested
income support for living expenses and scholarships that target students from lower socio-economic backgrounds.
NZVCC research shows that student financial support in the form of allowances is almost 50 per cent higher in this
country than the OECD average in terms of expenditure as a proportion of GDP. Furthermore, student financial support in
the form of loans is four times higher than the OECD average.
Professor Field says this situation suggests an imbalance between public investment in tertiary institutions and the
students who attend them. “For New Zealand universities, the underlying issue is the balance between quality and
affordability. If the pendulum swings too far one way, university education will be affordable for students but the
quality of that education will be compromised.”
The editorial in Education at a Glance 2008 notes that strengthening public subsidies and achieving a good balance
between financial aid in the form of student loans and scholarships can be a way to improve equity in access to tertiary
education.
“For New Zealand universities that means increased levels of public investment are the key to unlocking the
institutions’ full potential to deliver economic, social and cultural gains. It seems clear from the OECD data that the
provision of student financial support in this country is more than adequate in terms of both tertiary education
participation and equity of access.
“As the trainers of our professional workforce, New Zealand universities play a crucial role in society. Investment in
them must be at a level that allows universities to continue to produce high quality graduates, pay competitive salaries
to academic staff, invest in infrastructure, develop research and teaching capability and provide services and
facilities for students,” Professor Field says.
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