The Budget 2004 Releases

The press releases issued to coincide with the delivery of the Budget on 27 May 2004

Building excellence in tertiary education

Budget 2004 allocates $149 million to the government's drive for greater levels of excellence in the tertiary education sector and to connect teaching, training and research with New Zealand's economic and social needs, says Associate Education (Tertiary Education) Minister Steve Maharey.

"In last year's budget, we set out indicative triennial Student Component funding rates through to 2006. These will be rolled out a further year by allocating $99.4 million for academic year 2007.

"In addition, ahead of the implementation of a review of funding categories, we have agreed to a further one-off increase of 0.9 per cent for 2005 only, bringing the total increase for that year to 3.2 per cent. This one-off increase has not been carried through into rates for 2006 as it is intended that these will reflect the results of the funding category review.

"Several key measures support moves to better anticipate and meet the skill needs of business (funding over four years unless otherwise indicated):

• $25.3 million to introduce a single funding rate of $3,200 for all industry training organisations over the period 2005 to 2007 (7.7 per cent above the current average rate of $2,972). The government wants to provide certainty so that the sector can focus on its new role of planning for the current and future skill needs of industry.
• a $21.5 million fund for polytechnics to develop industry engagement plans setting out how they intend to meet the needs of business and industry stakeholders. Polytechnics will draw down funding as they achieve agreed milestones set out in the plans.
• $1.1 million to expand the tripartite Skill New Zealand campaign partnership with Business New Zealand and the Council of Trade Unions. The funding will support a two year pilot programme to train Learning Champions who will promote and support fellow workers to undertake work-based learning.

"Funding of $1.5 million has been allocated to build greater tertiary education sector capability. It will support:

• a national conference early next year for managers, council members and stakeholders to showcase New Zealand and international best practice examples of how the sector can and is evolving;
• an expanded induction and training seminar programme for public tertiary institution council members and senior managers;
• the second phase of a strategic review and development of a plan for the tertiary education workforce, as promised in Labour's 2002 tertiary education manifesto.

"Later this year I will also be announcing funding details for two further projects: a response to the results of the first Performance-Based Research assessment and support to build greater levels of excellence in tertiary teaching.

"The project to enhance the professional development of the tertiary teaching workforce will focus on sharing excellent teaching practices and assisting teachers to adapt to new technologies and to a wider diversity of learning needs," Steve Maharey said.

He said the pursuit of excellence in the tertiary education sector would also be assisted by the $40 million international education package announced by Education Minister Trevor Mallard earlier this month. Components include scholarships for top overseas students to conduct research here, "study abroad" awards for New Zealand tertiary and secondary students and funding to promote New Zealand education overseas.