Questions and answers
What is the purpose of the legislation?
The legislation will simplify and streamline the relationship between tertiary education organisations and the government. Tertiary education organisations will no longer need to produce a charter or annual profiles. Instead they will produce a single three-year plan aligned with national and regional priorities.
The new investment system will align planning, funding, and monitoring in a way which will ensure the system delivers for stakeholders - especially students, employers, local councils and communities - and produces skilled graduates in areas of need, with taxpayers getting greater value for their investment in tertiary education.
What are the major changes from the current system?
The major change is the shift to funding based on providing outcomes which meet a variety of stakeholder needs, from funding based on participation levels. The Bill legislates for the new three-year planning process, setting out how funding will be approved, and providing for the monitoring of tertiary education organisations by the TEC.
Will the changes to the Bill recommended by select committee affect the reforms?
Most of the recommended changes are designed to clarify and improve the process set out in the reforms. For example, the select committee has recommended a change to the Bill to make it clear that tertiary education organisations will be able to decide which of its stakeholders ought to be consulted in relation to a plan. This will ensure that the consultation process does not become unwieldy.
How will the plan process work?
Currently, most tertiary education organisations produce a charter and annual profiles in response to the Government's Tertiary Education Strategy and Statement of Tertiary Education Priorities 2007 -2012.
Under the new system:
- the government will produce one strategic document: a tertiary education strategy that sets out the longer-term strategic direction and the current and medium-term priorities;
- the TEC provides guidance for tertiary education organisations to use in developing plans;
- tertiary education organisations prepare a plan, consulting with their stakeholders - students, local industry, local councils and communities (including iwi /Māori) - on how they intend to contribute to the tertiary education strategy. Tertiary education organisations will also work collaboratively with the TEC on their plans (the TEC may exempt some smaller organisations from some or all plan requirements); and
- the TEC Board assesses and approves plans.
This new process will significantly reduce compliance costs for tertiary education organisations. It will also reduce the administrative load on the TEC and the Minister, by enabling a more flexible approach to specifying the contents of plans, and removing the need for the Minister to assess and approve charters in addition to TEC approval of profiles.
What will plans need to contain?
Plans will need to contain a high level description of:
- how the tertiary education organisation will give effect to the government's current and medium-term priorities as set out in the tertiary education strategy;
- how the organisation will address the needs of its stakeholders;
- the organisation's mission and role over the three year period that the plan covers;
- the tertiary education programmes and activities for which the organisation is seeking funding, together with the amount of funding sought from the TEC;
- an indication of what else the organisation is involved in; and
- the organisation's proposed outcomes and performance measures in relation to its programmes and activities.
Who approves the plans for funding purposes?
The TEC Board will decide which, if any, programmes and activities will receive funding approval and whether to fund those programmes and activities in whole or in part. Tertiary education organisations will have worked with TEC investment managers in developing their plans so there should be no surprises at the approval stage.
What happens if tertiary education organisations find a sudden and unplanned surge in demand for places?
A key feature of the new planning process is its flexibility. Once a plan has been approved for funding purposes, it does not necessarily remain static over the next three years. The Bill contains a number of provisions allowing for the amendment of, or review and replacement of, plans. It is envisaged that tertiary education organisations will continue to work with the TEC as required, to deal with any situations which may arise over the three-year period (including any unplanned surges or shifts in demand).
What does the new system mean for tertiary education institutions?
No changes are being made to the traditional freedoms and independence of tertiary education institutions.
Universities
Universities retain their broad role of providing a wide range of research-led degree and postgraduate education of international quality and undertaking research in a variety of fields.
The reforms place new emphasis on meeting the needs of external stakeholders. As before, universities will engage with communities and industries to promote learning and disseminate and apply knowledge. However, universities will also be expected to consult with those stakeholders to understand and address their needs in plans.
Wānanga
As with other parts of the sector, wānanga will be expected to maintain close relationships with stakeholders: their founding iwi, other iwi, and Māori with an interest in their area of provision. The new system recognises the unique character and aspirations of the three wānanga. They all retain their particular responsibility to provide a range of courses in accordance with kaupapa Māori medium, with a core commitment to āhuatanga Māori.
Like all tertiary education organisations, wānanga will face fewer compliance costs through the new simpler, streamlined process.
Institutes of technology and polytechnics
The reforms will require tertiary education organisations to consult with and be responsive to the needs of their communities, their regional industries, and their environment. This reinforces the role of institutes of technology and polytechnics - to work with their region to help prepare and provide a skilled workforce to meet local needs.
The reforms are intended, over the medium term, to result in a high quality, sustainable network of provision, which will mean a viable network of providers. Capability funding and a more stable funding system will mean a more sustainable future for institutes of technology and polytechnics.
What does the new system mean for industry training organisations?
The three-year planning and funding cycle will provide more certainty for industry training organisations, enabling them to focus on sector leadership and meeting the needs of their stakeholders.
The industry training sector should see relatively little change as the funding and planning model they are based on is very closely aligned with the model intended under the Bill. The only legislative change is that industry training organisations will prepare a plan rather than a profile. Other changes for industry training organisations will arise from the new quality assurance framework and the three-year planning cycle.
What does the new system mean for private training establishments?
The legislation and wider reforms will make things simpler for private training establishments, particularly smaller ones, which are often funded for only one or two activities. Under the current Act, the Minister can exempt tertiary education organisations from charters and the TEC can exempt them from profiles. The Bill's single steering instrument and one direct line of accountability will streamline the exemption process.
The TEC will also be able to specify what private training establishments will have to produce in terms of actual plan content. It is intended that the plans of small private training establishments will be simple, focusing on the qualifications and courses to be provided, the outcomes which can be expected, and the monitoring which will be undertaken. Being a three-yearly process, it will reduce compliance costs considerably.
How will the Bill affect adult and community education?
The changes in the Bill formalise the New Zealand Qualifications Authority's quality assurance for adult education and community education providers. Adult and community education providers and students should notice no changes, as the Bill merely formalises the process already in place.
What benefits will students see from this?
Students will know that their engagement with tertiary education is relevant to them as individuals, and to community and business needs: whether they engage by studying courses, undertaking research, or learning skills. They will be more likely to undertake a qualification if they have greater confidence that their new skills, and knowledge will be valued and support their career choices.
Does the new system mean that the government is directing how tertiary education will be provided, reducing student choice?
The government wants to maintain access to a broad and inclusive tertiary education sector, and to ensure that tertiary education organisations identify and meet the needs of their stakeholders. The tertiary reforms are about improving the quality, relevance, and value for money of tertiary education both for the government and students.