$214 million boost for tertiary education

3.15pm

Tertiary education received a $392 million shot in the arm from the Government in today's budget, more than any other sector apart from health.

For the third consecutive budget, the Government increased the amount of money allocated to tertiary institutions per enrolled student.

But Finance Minister Michael Cullen said funding would be steered to courses and institutions of "strategic relevance", with funding to private training establishments capped next year.

An additional $214.3 million would be spent over four years on the tuition subsidy, Associate Education Minister Steve Maharey said.

A 4.5 per cent funding rise followed increases of 2.3 per cent in 2000, and 2.6 per cent last year. It was also above Treasury's 2.1 per cent inflation estimate for 2003.

The fine print was that universities, polytechnics, colleges of education and wananga -- Maori tertiary institutions -- would get the subsidy, provided they kept their average fees at this year's levels.

A new integrated funding network, phased in from next year, intends to shift the focus for funding away from simply attracting students and towards rewarding excellence and the contribution institutions make to New Zealand's economic and social development.

Budget funding would replace the current funding system, based on equivalent fulltime student numbers.

The $392 million of new funding was split as follows (all figures over four years):

* Tertiary tuition subsidies -- $214.3 million;

* Modern apprenticeships programme -- $41 million;

* Gateway programme -- $7.2 million;

* Industry Training Fund -- $14 million;

* Performance Based Research Fund -- $36.272 million;

* Centres of Research Excellence, operating funding -- $38 million;

* Centres of Research Excellence, one-off capital expenditure allocation -- $20 million;

* contestable fund in 2003 for Tertiary Education Strategy initiatives -- $10 million;

* e-learning capacity operating fund -- $6.277 million;

* polytechnic regional economic fund -- $5 million.

Mr Maharey said the budget amounts were closely tied to the strategic direction for the tertiary sector outlined by the Government on May 14.

The budget released details of how the system of funding would drive the transformation of tertiary education, he said.

An integrated tertiary education system would meet the needs of students, business, and regional communities, and the Government's strategic goals.

"New Zealand requires a tertiary education and training system that supports the government's broader vision for the nation's economic and social development," he said.

Expansion of funding for the modern apprenticeships scheme would allow the scheme to more than double, from 2500 to 6000 apprenticeships by December 2003, Mr Maharey said.

The Gateway programme -- which gives senior secondary school students work place experience -- would now be allocated $15.2 million over the next four years, once today's money was added in.

Investment in the Industry training fund had increased more than 50 per cent in the government's term.

- NZPA

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