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Tertiary Education Minister Michael Cullen says an international review of the sector is an endorsement of the Government's reforms in the area.
A report released by the Organisation for Economic Co-operation and Development makes a number of positive comments about the tertiary education system as well as a number of minor recommendations.
The review said the scale of change in the sector had been "huge and there is still a way to go" until the new system was bedded down, but there were signs of significant advances.
It also said some of the features of the system - such as New Zealand's high participation rates - could be due to past policy settings as much as the reforms.
Among other things, the OECD said the funding system needed a greater focus on quality and value for money and the predictability of funding had to be improved. It also recommended developing policies to promote specialisation, critical mass and reduce unnecessary duplication.
Dr Cullen said many of the comments and issues raised in the report supported and reinforced the changes made in April 2006. "The review found a system that is well positioned for further development.
"The review report notes that its recommendations relate well to Government's recent development in tertiary education policy. The report is a positive endorsement of our policy direction."
- NZPA