ITI Articles

Budget 2009 – Tertiary Education Package

Comment from Independent Tertiary Institutions (ITI) for the Education Review

Tim Cullinane, Chair of ITI 

Because of the global economic crisis, Budget 2009 was always going to be tough.  Across all appropriations, the Government was willing to make hard decisions and prepared to reduce or cut funding for programmes that were seen as ineffective or low-priority.  In this tight fiscal context, ITI was heartened that private tertiary education kept its allocation and secured a CPI adjustment for funding and fee maxima next year.  The sector will have to work hard ensure this effective vote of confidence is justified and to secure inflation adjustments in out-years.  ITI believes this decision reflects the value the Government places on the contribution that private providers can make and we particularly welcome Minister of Tertiary Education’s explicit support for PTEs at the Budget Day sector briefing.

Extending equity funding to support Maori and Pasifika students who have chosen to study at private providers is an excellent move.  It is one step towards fulfilling the National Party’s pre-election commitment of a more level playing field but, more importantly, it was the right thing to do.  ITI hopes it is symbolic of a broader move towards a tertiary system where student choice is valued and results, not ownership, are the key.  

Minister Anne Tolley has signalled that work on eliminating unnecessary discrimination against private providers will continue and ITI welcomes that commitment.  ITI kick-started the equity funding issue as the initial review was prompted by questions in the House, which we helped develop.  We acknowledge the work of Te Ururoa Flavell who first raised the issue in Parliament, Hon Pete Hodgson as the Minister who ordered the review, Hon Maryan Street for her support as Minister and Hon Anne Tolley who succeeded in pushing through this change in a fiscal environment that was not receptive to new spending initiatives.

Post-budget, attention turns to the new Tertiary Education Strategy, which the Government is promising to announce later this year.  In the Budget announcements the Minister has clearly signalled she wants to see a funding arrangement simplified and a stronger link between funding and performance.  ITI supports both priorities.  Our understanding is that TEC is currently working on changes to the funding system that will see some funding able to move from low performance to high performance.  This has the potential to be one of the most significant developments in years and will build on the foundations established by Budget 2009.