$35m carrot a relief for students

By LIBBY MIDDLEBROOK and VERNON SMALL

Tertiary students are unlikely to face tuition fee increases next year following a breakthrough in the funding deadlock between the Government and tertiary institutions.

For the past 10 weeks the institutions have been protesting over a funding deal offered in exchange for a freeze on student fees next year.

The country's eight vice-chancellors rejected the deal, saying it would cost universities millions, but yesterday the Government announced a one-off $35 million grant, available from July next year.

The funding sweetener, on offer as a result of lobbying by the tertiary sector, will go only to public institutions such as universities and polytechnics.

Vice Chancellors Committee chairman James McWha, who is also head of Massey University, said the country's eight vice-chancellors were now likely to recommend that their university councils accept the fees freeze.

"I don't think we would believe it is overly generous but we think it probably recognises the issues we've raised and I think it would be acceptable to all of the institutions."

The Government said in its May 24 Budget that institutions would receive a 2.6 per cent increase in Government finance ($36.9 million shared between 37 public institutions), which with interest would total 2.8 per cent, on the condition that student fees would be frozen for the second year running.

Despite protests the Government has refused to renegotiate the deal but yesterday it offered institutions access to a $35 million Strategic Change Fund to assist them in adapting to major Government reforms that begin next year.

Institutions will be able to use the money for a wide set of activities, including restructuring and developments associated with reforms recommended by the Tertiary Education Advisory Commission.

The commission was set up last year to investigate how New Zealand could achieve a knowledge economy through the higher education sector.

Tertiary Education Minister Steve Maharey denied the grant had been a trade-off to get support for the 2.6 per cent increase in funding.

But he was confident all institutions would now accept the deal before the August 31 deadline.

"As I understand it all institutions over the next month will be moving to signal to the Government that they will be accepting the fee stabilisation offer," he said.

National's spokesman on tertiary education, Maurice Williamson, called the $35 million package a "face-saving gesture".

He said the money did nothing to improve the quality of education and would have a minimal impact on student debt.

University Students Association co-president Andrew Campbell said the payment meant institutions now had no excuse but to accept the Government's deal and give students another break from fee rises.

Waikato University vice-chancellor Bryan Gould and Auckland University registrar Warwick Nicoll said no decisions or recommendations had been made.

Auckland University of Technology vice-chancellor John Hinchcliff said he would recommend that the institution's council accept the deal.

Jim Doyle, the executive director of the Association of Polytechnics, said institutions would be more comfortable accepting the fees deal with the promise of extra funds next year.