Budget focuses on success in tertiary education

Budget 2011 continues the Government’s drive for high performance, value for money and the flexibility to respond to demand in the tertiary education sector, Tertiary Education Minister Steven Joyce says.

“We are looking for better performance from students and tertiary education organisations, and a simpler funding system, while we are responding to areas of high demand,” he says.

“This Budget provides an increase in the funding rate for degree and post-graduate study, an increase in funded places at new or high-performing private training establishments, increased funding to raise the profile of New Zealand education overseas, increased funding to help refugees and migrants learn English, and a further 40 medical school places.

“Increases in funding for university and polytechnic places in the past two years have resulted in a record number of core places in these sectors in 2011 – about 186,400 funded core places, which is over 11,600 more than in 2008. In this year’s Budget, we are moving to increase the funding for places in private training establishments.

“The funding will be available only to those providers who perform well, and can show they are meeting the tertiary priorities.

“This year’s Budget also continues our focus on getting the best value for our spending in tertiary education. That is why we are continuing to move funding from areas of low demand currently, such as industry training, and looking to improve our investment in pilot training.

“We’ve also recognised that there will be some costs associated with the re-build of Christchurch. That is why we have set aside up to $42 million for increased trades training. This will make sure we can train the people when and where they are needed,” Mr Joyce says.

Key initiatives announced as part of Budget 2011 include:

• Up to 750 additional funded places in new and high performing private training establishments.
• Specific funding of $17.5 million over four years for English as a second language courses for refugees and migrants.
• Improving the value for money of pilot training, by setting a limit on the fees providers can charge students and excluding solo flight hours from the student loan scheme.
• A 2 per cent increase in the funding rate for all degree and post-graduate courses.
• Equalising the funding rate for post-graduate courses across universities polytechnics and wānanga.
• Increased funding of $40 million over four years to raise the profile of New Zealand education overseas.
• 40 additional medical places from 2012.

“These initiatives will ensure we have the right incentives to keep our tertiary education system internationally competitive,” Mr Joyce says.

“This Budget sets the right course for tertiary education in New Zealand, and it offers the right incentives for both students and organisations to continue their drive for excellence.”