Government gives $40 million more for foreign students

4.00pm

The Government will pour an additional $40 million into the international education industry over the next four years, Education Minister Trevor Mallard said in a pre-budget announcement today.

The investment -- which will put an education counsellor in Beijing, China -- represented a five-fold increase in spending on international education, Mr Mallard said.

"The new money will increase progressively -- from just over $5 million next financial year to an on-going total of $12.5 million for the 2006-2007 year, and each year beyond that," he said.

Now bigger than the wool and wine industries, the foreign student industry is predicted to generate annual earnings of $4 billion to $5 billion within the decade.

It contributes more than $2 billion each year to the New Zealand economy at present.

The industry was set back by the collapse of providers Carich and Modern Age last year.

Private computer trainer Carich closed campuses across the country, leaving 2000 students and 400 teachers out in the cold.

Christchurch-based Modern Age, New Zealand's largest English language school, catered for about 600 students, most of whom were placed with other providers.

Mr Mallard said the investment recognised the importance of international education to New Zealand socially and economically.

The new initiatives include:

* up to four offshore education counsellor positions set up in key overseas markets. The first will open in Beijing by August 1, 2004. Other locations are yet to be decided;

* examining the best ways to improve the achievement of international students, including the development of good practice examples and quality assurance indicators, and extending the scope of New Zealand quality assurance systems to cover off-shore programmes by New Zealand providers;

* scholarships to attract top international students to carry out research in New Zealand. From 2005, 33 scholarships will be available at post-graduate level, and another 33 at under-graduate level. By 2007, 200 scholarships will be available;

* awards to help New Zealanders undertake overseas study. By 2007, 100 awards will be available at secondary and tertiary level. The first 33 tertiary awards will be available in 2005, with secondary awards introduced progressively from 2006;

* funding to help New Zealand providers research risk factors, build capability, access seed funding for new products and partnerships, and undertake feasibility studies on expansion options;

* promotion and marketing to support the promotion of New Zealand education overseas.

Details relating to the package -- such as selection criteria for scholarships and study awards -- would be released later in the year, Mr Mallard said.

Other key priorities were increasing diversity of educational products, to foster greater skills, knowledge and talent transfer, and to develop long-term international education relationships.

But ACT tertiary education spokeswoman Deborah Coddington said the package was all spin and no substance.

Education providers had proven in the past they were more than capable of marketing themselves to foreign students, she said.

Government attempts to improve quality smacked of hypocrisy, given that it did nothing to save Modern Age "until it was too late".

"Study abroad awards appear to be an extravagant way to retain our best teachers and prevent them from heading overseas," she said.

"Why not devolve funding for schools and allow them to pay good teachers more.

"Today's announcement is all spin and no substance. I confidently predict it won't make one iota of difference to the international education industry."

- NZPA