Tertiary sector unimpressed with Budget funding offer

4.40pm

Universities say the Government's tertiary education funding offer in today's Budget is "woefully inadequate" and polytechnics accused the Government of being misleading in the way it presented the offer.

The Government today confirmed it wants tertiary institutions to freeze their fees in return for an extra $36.9 million.

The package is being sold as a 5.1 per cent increase on 2000 funding but 2.3 per cent of that, or $31.8 million, was allocated last year.

"The Government's claim that it is increasing tertiary funding by 5.1 per cent is grossly misleading," the Association of Polytechnics in New Zealand said in a statement.

"For the average polytechnic, the budget 'offer' represents an increase of 1.5 per cent on its 2001 income; not 5.1 per cent."

The association said the offer increased Ministry of Education funding between this year and next by only 2.6 per cent.

As ministry funding was on average just over half an institution's total income, this amounted to an average increase in funding for next year of 1.5 per cent of total income.

That was not enough even to meet inflation.

New Zealand Vice-Chancellors' Committee chairman James McWha said the funding increase for universities was actually just 1.7 per cent across subsidies and tuition feeds.

"Why the Government expects universities to accept such a paltry offer in return for holding 2002 tuition fees at this year's level defies the imagination," Professor McWha said in a statement.

"Universities stand united in their opposition to the funding 'deal', acceptance of which would lead to a quality decline in university education."

Prof McWha said if universities rejected the offer they would lose not only the offer for 2002 but this year's as well. They would also be shut out of access to the centres of excellence funding announced in the budget.

But acceptance of the offer would mean universities face further cost-cutting measures, which would affect staff levels, library resources and their international reputation.

He called for further dialogue with the Government over the issue.

But the New Zealand University Students' Association reiterated its call on institutions to accept the Government's offer.

"We think it's outrageous that eight (university) managers think that they can dismiss the public support for stabilising fees and their own legal obligations to have university councils make decisions on setting fees," NZUSA co-president Andrew Campbell said.

The Budget committed $40.6 million over four years to a contestable centres of research excellence fund.

"To have access to the fund, an institution will have to agree to stabilise its fees," Associate Education Minister Steve Maharey said.

- NZPA

www.nzherald.co.nz/budget

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