Top graduates could hold key to coffers

By LIBBY MIDDLEBROOK education reporter

Polytechnics and universities producing a large number of graduates with good jobs could receive Government funding bonuses in the future.

A confidential report obtained by the Herald details new funding options being considered by Government advisers as part of an overhaul of the tertiary sector.

The report, written by education management consultant Vince Catherwood, says that any changes to the funding system should include incentives to reward institutions that perform well.

One way to measure the performance of an institution is to consider the number of graduates who gain "successful employment outcomes".

The report, written for the Tertiary Education Advisory Commission, also says the number of "successful course graduates" could be another way of measuring an institution's performance, and is worthy of further investigation.

The two options have been floated as part of a review of the tertiary sector by the commission, set up by the Government last year to investigate ways to improve tertiary education.

The Government wants financial problems within institutions eased and the quality of education bettered.

Ministers are unlikely to substantially increase the annual $1.4 billion taxpayer spend on tertiary education, but they want to find a better way of dividing the money up.

Unitec chief executive John Webster said it would be difficult to measure the performance of an institution by graduate numbers or their employment outcomes.

Association of Polytechnics executive director Jim Doyle agreed.

"If you have students who leave during their course for good jobs, is that course a failure or a huge success?"

It is understood other options being considered by the commission include recommending that the Government review the $150 million spent on wiping student loan interest each year and the estimated $405 million spent on allowances.

There has been some consensus within the commission that the Government, which promised to cut the cost of tertiary education to students as part of its election campaign, could deliver greater gains by spending the money on reducing tuition fees.

University Students' Association co-president Andrew Campbell said any moves to cut student allowances or increase student debt would be unacceptable.

Mr Campbell has written to the commission asking that it give no more consideration to the options.

Other ideas the commission has discussed with industry players over the past month have included the introduction of entry bars to undergraduate degree courses, to reduce or stabilise the number of students taking part in courses.

Entry bars, which could toughen course entry criteria at the beginning of stage one or stage two of a degree, could allow institutions to spread their funding over fewer students and improve the quality of education.

A spokesman for Tertiary Education Minister Steve Maharey declined to comment.

The commission is expected to make draft recommendations to the Government on funding restructuring within six weeks. The report will be published by the end of the year.

The Herald understands the report will recommend moderate adjustments rather than radical changes to the funding system.

Detailed issues such as funding incentives may not be discussed openly until next year.

But the report is likely to suggest changes to the timing of funding allocation to institutions, which at present is calculated at four-month intervals based on the number of students enrolled.

In the future, institutions could receive an indication of their funding spanning periods of up to three years.

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