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A $129 million funding boost for universities over four years will help bring academic salaries up to international levels, but some say it's not enough.
Tertiary Education Minister Michael Cullen yesterday announced $89 million will be spent on recruitment and retention strategies and $40 million to help pay for tertiary reforms.
From next year, tertiary institutions negotiate a three-year plan and funding with the Tertiary Education Commission. Previously the payment was based on student numbers.
The vice-chancellor of Victoria University, Pat Walsh, welcomed the funding announcements as lower academic salaries made it harder to attract top international lecturers.
"Although there is some way to go, [this] will help," said Professor Walsh. "The minister won't be surprised to hear we still think the full price is higher than what he's doing."
University of Auckland vice-chancellor Stuart McCutcheon said he expected further funds for the performance-based research coffer to be announced in next week's Budget.
The Association of University Staff said the announcement was a step forward.
NZ Vice-Chancellors Committee chairman Roy Sharp said universities had been under intense financial pressure for many years.
He said under the tertiary reforms the challenge for New Zealand's eight universities would be managing enrolments to align them with the three-year term of their investment plan.
Dr Cullen said the new system was not expected to create a threat to access for students. "The purpose is not to reduce the numbers of students in tertiary education. It is to address growth in some areas."
He said if there was a surge in numbers at university, the Government could be flexible and revisit the funding given under three-year plans of affected institutions.
Professor Walsh said the bulge in the population over some year groups was working its way through schools and universities were expecting higher enrolments than normal.
Other factors, such as a change in the labour market, could lead to a surge in enrolments as more school leavers opted for tertiary study.
