Tertiary education policy aims for more scientists, fewer lawyers

Tertiary education faces its biggest shake-up in years if changes unveiled yesterday go ahead. Education reporter LIBBY MIDDLEBROOK looks at the plans.

Tertiary students will have fewer courses to choose from if the Government goes ahead with changes outlined yesterday.

The aim is to direct students towards qualifications the country needs and reduce an oversupply of graduates in some areas. That means the Government will encourage students to choose science and maths rather than subjects such as law.

Why has the Government decided to review the shape of tertiary education?


The Government believes tertiary institutions are incapable of producing the research and the graduates needed to ensure New Zealand's economic future.

It also wants to take a greater role in determining what students study in order to promote the knowledge economy.

That means taking away some options available to 18-year-olds beginning tertiary education.

At present, students determine what courses institutions offer because of the way the Ministry of Education allocates funds. The more students whom institutions can enrol, the more money they get for courses.

The number of tertiary enrolments has increased overall under that system, but the Government says it has caused serious problems.

Competition has flourished as institutions fight one another for students in order to gain more funds. Courses which are popular with students, such as law, have consequently been duplicated around the country, causing Government education spending to be spread more thinly.

Tertiary Education Minister Steve Maharey said the duplication of courses meant institutions were churning out too many graduates in some areas, causing an oversupply in the market and creating employment problems for some students, such as law graduates.

Meanwhile, there was a huge shortage of graduates in growth industries such as maths and science research, which were the "future" of New Zealand's primary-based economy.

Mr Maharey said the increased competition for students had also caused enormous spending on advertising.

Competition had caused financial difficulties for many institutions and compromised the quality of education.

So what is the Government doing with tertiary education?


Last year the Government commissioned the Tertiary Education Advisory Commission (Teac) to examine the sector and recommend how to improve it.

Yesterday, Teac released the second of four reports to be completed by the end of the year. Together they will map the future, covering everything from funding systems to policy changes.

Yesterday's report, Shaping the System, recommends setting up a new crown organisation to manage the entire tertiary system, including community education and private tertiary education providers.

If approved by the Government in the next two months, the Tertiary Education Commission (Tec) would have a board of 12, employ 100 to 150 staff and take on the tertiary funding and operational responsibilities of the Ministry of Education.

Skill New Zealand, which purchases education and training on behalf of the Government, would also be closed and its functions passed to the Tec. Skill NZ, which has 11 offices around the country, focuses on workplace training, managing apprenticeships and paying for industry training organisations.

It is not known if there would be job losses.

The Tec would be behind a greater focus on research and development, possibly through financial incentives. Business and the community could have greater involvement in determining what students study, through joint ventures and other collaborations.

The Tec would discourage competition between institutions and would encourage mergers and collaboration. It would also liaise on policy between Government and tertiary institutions, while maintaining autonomy.

The Qualifications Authority would continue to monitor the performance of tertiary education providers.

How will the overhaul affect students?


Students will be steered away from subjects such as law and accounting as the Government tries to increase the number of science and maths graduates.

Under the proposed model, there are likely to be limits on the number of students allowed to enrol in courses where graduate numbers exceed industry demand.

Students may also have less choice about where they study in the future, as the Tec attempts to reduce duplication of courses. More mergers between tertiary institutions are also expected.

Mr Maharey said he expected a shift over the next five to 10 years from arts to knowledge economy subjects, such as science and maths.

The Government is not promising lower fees, but instead a higher quality of education on offer throughout the whole sector.

How will universities, polytechnics and other providers be affected?


Tertiary institutions will be required to submit a profile to the Tec outlining what they want to teach and specialise in.

The Tec would distribute funds based on those profiles and the programmes offered, rather than the number of students enrolled. Profiles would be flexible, allowing institutions to introduce new courses and respond to the changing market.

The country's eight universities, which will be the focus of research-based funding, are likely to gain in this area.

Meanwhile, a range of institutions, especially privately owned education providers, are likely to lose funds in a Government move to reduce competition and wasteful duplication of courses.

Mr Maharey said private tertiary institutions would lose the most, as the Government wanted to build on the $3.6 billion of assets in the public tertiary sector.

Colleges of Education will be reclassified as Specialist Institutes as part of the proposal because they do not constitute their own separate form of tertiary educational institute, according to the report.

Do the changes mean the Tec will dictate what courses tertiary institutions can and can't provide?


No. Education providers will decide which courses to offer students, but some may not receive Government funds and will have to rely on student fees and industry contributions.

Do industry stakeholders have any major concerns?


Industry and business largely support the move to reduce competition in the sector and promote growth industries.

But they are nervous about how the Tec plans to carve up the funding between providers. There is little else they can do but wait until the final report, which addresses funding and governance issues.

When will the industry shakeup be complete?


Teac will accept submissions on its second report until April 7, after which the Government will vote on the proposals.

A draft of the third report, which will address how and what the tertiary sector will deliver in terms of education, will go to Mr Maharey in June. A draft copy of the final report will arrive in August.

The Tec will be established by the end of next year, and the new funding structure will affect tertiary institutes in the 2003 year.

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