Improvements to tertiary courses outlined

The Government has outlined moves it hopes will improve the quality of tertiary education.

Tertiary Education Minister Michael Cullen today announced that from January 2008 the Government would tie the funding of universities, polytechs and wananga to three-year plans.

Under the current system institutions are funded on the number of students they attract.

Critics say that "bums on seats" approach has lead to a proliferation of low quality courses with little focus on outcomes.

High profile examples that have come under political attack are twilight golf and Maori sing-along courses.

Some institutions have also been caught offering inducements for students to sign up to low-quality courses.

Dr Cullen today said the new system would enable the Government to better match funding to skill gaps.

It would also enable rigorous monitoring to establish whether providers were fulfilling their plans and achieving quality results.

Dr Cullen said the changes would mean funding would be more predictable, making it easier for the Government to budget for the sector, which has ballooned in the past seven years.

"We want a sector that produces higher numbers of skilled graduates in areas the economy needs and that the government gets greater value for its investment in tertiary education."

Dr Cullen said the Tertiary Education Commission (TEC) would provide an investment strategy outlining the areas it was looking to increase funding in.

These would usually be areas where there were skill shortages or a strategic economic need.

Three-year plans would then be agreed between TEC and providers.

Student numbers would be a component of overall funding.

Once a plan was agreed and funding was in place, TEC would monitor providers to ensure they were living up to their plans.

Dr Cullen said providers would be expected to consult with industry and communities in their regions in formulating their plans.

He said the changes were also aimed at ensuring providers concentrated on their specialist areas of expertise, hopefully eliminating unnecessary overlaps and competition.

There had already been wide consultation on the moves, which had the "broad support" of the sector.

"The reforms are an attempt to refocus the tertiary education system so that it is more driven by stakeholders, by quality outcomes and by national goals and priorities," Dr Cullen said in notes for a speech today.

"Planning is the key concept here. The demand-led system placed trust in (economist) Adam Smith's 'invisible hand' to build a quality tertiary education system.

"That has given us higher participation, but along with that a measure of wastage, a lack of overall focus and question marks around quality in some areas."

- NZPA