Our report Tertiary education institutions: 2019 audit results and what we saw in 2020 was presented to the House of Representatives today.
Covid-19 was a sudden and significant shock to the operations of all tertiary education institutions (TEIs). There have
been significant revenue implications for TEIs whose international students were not in the country when the border was
closed. Universities generally ended 2019 in a better financial position than 2018. However, Covid-19 has brought
significant financial challenges for universities. In 2020, universities have had lower revenue from international
students, research, commercial operations, and charitable donations.
Many institutes of technology and polytechnics had been experiencing increased financial difficulty for several years
before Covid-19. This is because domestic student enrolments had declined from the levels they had been at after the
global financial crisis in 2008. Although they are still uncertain, the immediate effects of Covid-19 on wānanga are
less obvious. The border closure did not affect their revenue in 2020 because wānanga do not have many, or any,
international students. However, other economic factors related to Covid-19 might affect enrolments at wānanga in the
future.
The response phase to Covid-19 was, and continues to be, important. Many TEIs are still in a “get-through” phase. They
are focusing on short-term measures to address immediate issues, such as revenue shortfalls. When responding to
Covid-19, TEIs must remember to maintain a focus on the long term. There is a risk that tactical response decisions
being made now might be detrimental to successful outcomes in the long term.
The reforms of vocational education are progressing, but there is still a way to go. In future years, we will look at
whether the reforms have delivered the anticipated benefits, including building a financially stable network of
vocational education. The Government intends further actions to achieve its policies of strengthening the sector and
transforming to a more sustainable future state.