KEY POINTS:
New Zealanders are being promised better tertiary education and more value for money under a new funding plan signed off yesterday.
The Tertiary Education Commission announced its approval for the first investment plans of 110 tertiary education organisations, under a scheme that will constrain growth and see the funding focus move from a "bums on seats" model to one focused on meeting economic and social goals.
The plan was slammed by Invercargill's mayor Tim Shadbolt yesterday, with the Southern Institute of Technology - credited with attracting young workers to the region - facing a $6.2 million drop in funding next year.
It was also a factor in the University of Auckland's controversial push to limit entry to all courses from 2009, as it aims to drive up its post graduate numbers.
TEC chair David Shand said universities had been told to improve participation and achievement by under-represented groups, particularly students of Maori and Pacific Island descent.
The proportion of postgraduate students would also be on the rise generally, especially in "key areas" such as science and engineering.
Universities were to focus more on self-selected niches, Mr Shand said.
Institutes of technology and polytechnics were told to raise the number of higher level qualifications offered and improve student retention and completion rates.
The focus on servicing their home region - the reason many faced funding cuts - aimed to reduce duplication and better support students to progress onto further education.
But Institutes of Technology & Polytechnics of New Zealand said the sector's forecast 1.2 per cent funding rise next year was half the rate of inflation and left providers well short.
The University of Auckland said the confirmed funding for next year was in line with earlier indications.
Association of University Staff national president Professor Nigel Haworth said the focus on under-represented groups was heartening.
Winners and losers
Forecast changes to Government funding levels for tertiary teaching, learning and research between 2007 and 2008:
BIG HIKES
$18.42m more for University of Auckland - a 6.3 per cent rise
$11.61m more for University of Otago - a 5.4 per cent rise
$7.33m more for Victoria University of Wellington - a 5.7 per cent rise
BIG FALLS
$2.95m less for Telford Rural Polytechnic Farm (Balclutha) - a 20 per cent drop
$1.81m less for Open Polytechnic - a 4.5 per cent drop
$6.2m less for Southern Institute of Technology - a 18.5 per cent drop
