Roger Field: More professionals, better recovery

University leaders have committed to working with the Government to assist the economic recovery by utilising the depth of expertise available in their sector.

However, to make that contribution, universities' role in the development of professional skills needs to be recognised alongside the appropriate public investment in key areas of the university system.

If that is done, the professional skill shortages that have dogged the economy in recent years could be largely overcome.

The recent Jobs Summit placed an emphasis on "workers, skills, transition and adjustment" and Business New Zealand's recommendations included expanding tertiary education linked to employer and industry needs.

Universities' role in educating professionals is critical in addressing the shortage in such occupations - 88 per cent suffer shortages while the remaining 12 per cent suffer from extreme shortages.

The Department of Labour reports severe shortages of physical, mathematical and engineering science professionals, while architects, engineers and related professionals are extremely short.

The department describes shortages for structural engineers as particularly bad with extreme shortages extending to "other civil engineering" professionals and surveyors.

Skill shortages for computing professionals have also deepened considerably. These are the professional occupations for which the universities provide the most graduates through their research-based teaching.

So the obvious question is - why aren't enough people undertaking university education in the relevant disciplines?

The need to address this issue is underlined by the fact that input from many of these professions will be required if the Government's infrastructure investment programme is to succeed.

New Zealand remains a land-based economy and professionals in the relevant fields of agriculture and horticulture are also in short supply.

Business NZ's recommendations also call for a review of student numbers and emerging tertiary education participation patterns, and reconsideration of the system that penalises tertiary education organisations for taking on unfunded students.

The universities welcome this support for the contribution they can make to the recovery.

Business and the universities are not the only ones seeking an increase in tertiary education investment. IPENZ, the professional association representing engineers, has asked the Government to ensure the student component of tertiary education funding in economically-critical disciplines in short supply matches the cost, thereby enabling tertiary providers to maintain a viable national network of provision.

Increases in per student funding rates to match the cost of provision in such disciplines as science and engineering would be one facet of a public investment plan that recognises universities as a vital element of the nation's infrastructure.

In its call to unblock the skills pipeline, IPENZ notes that increased national productivity involves the creation of higher value through enhanced skill levels in parallel with capital investment.

Current obstacles include a dearth of management resources in knowledge-rich businesses.

This is an area in which universities can obviously assist the economic recovery as they provide the bulk of basic research capability. Not only do they train the researchers and professionals, but they are also at the forefront of research commercialisation.

University research and research-based teaching drive the country's innovation process so progressive investment in universities should increase the supply of entrepreneurial managers capable of developing businesses based on knowledge, new ideas and research breakthroughs.

With bank lending and credit creation declining, a compelling argument exists for government to boost the recovery through a programme of credit for investment.

Among the potential investments in the university sector would be an initiative to further enhance the employment of students and graduates.

Australian universities recently published a paper advocating the establishment of a national internship scheme, including a body to advise government on the appropriate regulatory and tax regime for work-integrated learning.

If a similar idea was adopted here, it could see government meeting some of the cost of placing science and engineering graduates in businesses where their skills could add real value.

The global recession does not obviate the need for a continual process to increase national productivity through the application of enhanced skills and knowledge.

What is required is the widest possible definition of skills and public investment in those areas and disciplines with the greatest potential for economic gain.

Professional skills gained through a university education benefit the individual and the country as a whole. Direct public investment in universities as an essential component of national infrastructure would clearly act as an economic stimulus.