31 July 2001 Speech Notes
Towards a strategy
The challenge for New Zealand tertiary education
Opening remarks at the launch of Shaping the Strategy, third report of the Tertiary Education Advisory Commission.
Government Caucus Room, Parliament Buildings, Wellington.
I would like to welcome you here this afternoon for the launch of Shaping the Strategy, the third report of the Tertiary
Education Advisory Commission.
I also want to warmly welcome the report itself -- and acknowledge the considerable debate and discussion with
businesses, educators, researchers, and Mäori and Pacific communities that has informed its development.
THE ROLE OF TEAC
As you know, the Tertiary Education Advisory Commission (TEAC) was established by the Labour/Alliance Government in
April 2000. It was tasked to provide advice on the future strategic direction of the New Zealand tertiary education
Their first report set out a broad vision that has informed their work ever since. Their second report, Shaping the
System, gave us the steering mechanisms we will need to use our tertiary education capability strategically. These are:
Charters for publicly-funded providers that are meaningful and set out their special mission and contribution to the
system as a whole;
Provider profiles to avoid duplication and focus each provider on their specialties and the needs of their
A Centres of Research Excellence Fund to foster excellence in areas of strategic importance; and
A Tertiary Education Commission to bring the administration of the whole system together under one agency, with strong
involvement from business and other stakeholders in its governance.
Over the next months, further decisions regarding the structure of the TEC, the nature and form of Profiles and
Charters, and the funding system will be taken.
The Government has also agreed to develop a Tertiary Education Strategy. This means we will need to set out priorities
for strategic investment in the system.
Shaping the Strategy addresses this very subject. It recommends a set of strategic priorities for the tertiary system,
in order that it contributes to the national goals for economic and social development.
This is necessary if New Zealand is to compete successfully in a global environment. This marks a new phase for tertiary
education policy in this country.
THE CURRENT SITUATION AND THE CHALLENGE
Since the education reforms based on the Learning for Life reports in 1989-1990, the New Zealand tertiary education
system has made significant gains in terms of responsiveness to student needs, and in terms of increasing national
The intent of those reforms was to create a balance – with institutions getting the autonomy they had been seeking and
that autonomy being constrained by carefully drawn up Charters setting out complementary institutional missions.
In implementing those reforms, however, instead of the proposed co-operative model, the National government developed a
market-place model. This has placed some institutions at risk and resulted in a fragmented system lacking in clear
Our challenge now is to provide future-focussed leadership to the tertiary education system.
New Zealand now faces new and demanding challenges in a period of rapid global change – in technology, in
communications, and in labour market dynamics. The tertiary sector has a key role to play in equipping New Zealand to
meet these challenges and to take advantage of the opportunities they create.
It also has a fundamental role to play in promoting a vibrant cultural identity, which places value on diversity,
achievement and innovation.
Tertiary education is one of this country’s major public investments in building the skills and capability needed for
the future. To maximise the benefits of this important investment, a paradigm shift is required.
The tertiary education system will no longer be solely driven by the choices of consumers as it was during the 1990s,
when it was too narrowly focussed on student demand as the primary determinant of resource allocation.
Rather, the focus of the tertiary education system will now be to produce the skills, knowledge and innovation that New
Zealand needs to:
transform our economy;
promote social and cultural development; and
meet the rapidly changing requirements of national and international labour markets.
Of course, responsiveness to students will nonetheless remain a critical part of the system.
This Labour/Alliance Government will lead a shift to a co-operative and collaborative sector, unified by a clear vision
for the future, which contributes effectively to New Zealand’s development as a knowledge nation.
While maintaining strong levels of participation, the tertiary education system needs to be more explicitly aligned with
wider government goals for economic and social development.
The key message is that the tertiary education system can no longer be seen in isolation from the Government’s wider
social and economic development initiatives and strategies.
THE TERTIARY EDUCATION STRATEGY
The tertiary education system is diverse and complex. To achieve the paradigm shift we need, across all areas of the
system, it will require a well-designed Tertiary Education Strategy
The tertiary system includes learning in workplaces as well as classrooms and laboratories. It includes long-established
universities and polytechnics and new training and research establishments. It includes full-time and part-time
learners, adults and school leavers, learning in lecture theatres and learning by distance.
The Tertiary Education Strategy will cover the whole tertiary education system, and will have linkages with the
compulsory education system and the labour market.
All elements of the system need to be performing to the highest standards to ensure we develop the skills, capabilities
and knowledge that New Zealand requires for the future.
The Tertiary Education Strategy will outline how the tertiary education system will achieve the paradigm shift from
looking inwards at consumers, to looking outwards at how it can:
contribute to New Zealand’s goals for economic and social development;
produce the knowledge that New Zealand needs to be a world leader in innovation;
produce the skills and competencies that New Zealanders need in order to fuel our economic growth; and
develop the capabilities within the sector to meet the needs and expectations of enterprise and communities.
The Strategy will outline priorities and milestones for the next three to five years and inform policy direction,
purchasing decisions and capability building by the TEC, as well as provide a framework within which the tertiary
education system can develop.
A NATIONAL DEBATE
The development of new strategies for the tertiary system cannot be undertaken without continued dialogue with the
sector and the public. We put forward TEAC’s recommendations today in the hope of encouraging wide-ranging debate.
This process will inform the final shape of the strategic plan for the tertiary education system that the Government
adopts. These are the steps we are taking:
release of TEAC Shaping the Strategy report;
discussion on priorities with public (enterprises, communities, tertiary sector, Mäori, Pacific peoples);
draft Tertiary Education Strategy developed (building on public consultation and Shaping the Strategy) and circulated;
final Tertiary Education Strategy approved by Government;
implementation by the TEC, Ministry of Education, New Zealand Qualifications Authority, the tertiary sector, industry/
enterprises, research communities etc.
Tertiary education is key to all sectors of New Zealand – businesses, industries, schools, community organisations,
research institutes, iwi and Mäori organisations, and Pacific communities. That’s why we want to know what the tertiary
education priorities are for every sector.
The Government invites your feedback, questions and suggestions on the priorities recommended in TEAC’s report -- as
well as your own priorities for tertiary education -- by 31 October 2001.
You can write, fax or email. We have also set up a consultation website, at www.talktertiarystrategy.minedu.govt.nz
We intend to release a draft Tertiary Education Strategy, based on the discussion and consultation process, in December
this year, and to finalise the Strategy by March 2002.
In deciding what our requirements for tertiary education are, we need to think about our needs, not only as a knowledge
nation, but also as a particular kind of knowledge nation.
Identifying our particular path in the knowledge age will be a key task for this Government, and I hope it will be our
lasting legacy. I look forward to the Knowledge Wave conference later this week, and hope that it will be a timely
addition to these deliberations.
Between the Knowledge Wave, the forthcoming report of the Prime Minister’s Science and Innovation Advisory Council, and
the contribution of Shaping the System, I am hoping for a period of intellectual ferment.
I want to see people becoming impassioned about what our best path to a knowledge society is. It’s a subject that should
provoke strong feelings, because it’s so important to our future as a nation.
I want to say to all of you, get behind the cause of the knowledge society in general. Argue about the nature of the New
Zealand knowledge society in particular! Government needs to forge a strategic partnership with business to work through
this, and come up with a sustainable answer.
Because what we have to do is settle on this. We do finally have to come to a point where we are starting to say that we
all agree. Otherwise we’ll be back here in ten years time with a nice list of things that we’ve done but there will have
been no real push in any particular direction.
Thank you for your future engagement on these issues.