Universities offered extra 36.9m for fee freeze

3.25pm

The Government today confirmed what was perhaps the worst-kept Budget secret - that it wants tertiary institutions to freeze their fees in return for an extra $36.9 million.

The package is being sold as a 5.1 per cent increase on 2000 funding but 2.3 per cent of that, or $31.8 million, was allocated last year.

Tertiary institutions have already said they are unhappy with the proposal, with vice-chancellors of eight universities saying they face a $17 million funding shortfall for this year.

Canterbury University plans to close for half a day tomorrow in protest at the fee freeze offer.

Associate Education Minister (Tertiary Education) Steve Maharey said the Government was also establishing a contestable centres of research excellence fund worth $40.6 million in operating expenditure over four years.

"To have access to the fund, an institution will have to agree to stabilise its fees," Mr Maharey said in a statement.

It had also reallocated $2.13 million to establish a transition Tertiary Education Commission (TEC) to improve the quality, relevance and cost effectiveness of the tertiary education sector.

The move was in response to the Shaping the System report the Government received earlier this year.

"Clearly tertiary education has a fundamental role to play in the development of a knowledge society," Mr Maharey said.

"But the present system is fragmented, suffers from a lack of differentiation and does not produce sufficient graduates with the skills the economy needs."

The transition TEC would be set up as a unit within the Ministry of Education and legislation to establish it permanently would be introduced before the end of the year.

Other tertiary initiatives funded in the budget:

* Four new tertiary teaching awards, worth $50,000 each, to be awarded annually to outstanding tertiary teachers.

* The publication of an annual awards book to promote best practice across the sector.

* Funding for the Office of the Ombudsman to investigate tertiary education complaints and to work more closely with institutions in addressing complaints.

* A new training programme to strengthen governance in public tertiary institutions.

* The creation of another 4000 places annually to allow low-income New Zealanders to receive free, comprehensive career guidance.

Meanwhile, the Government would put an extra $56 million over four years into buying about 17,400 additional industry training places, Mr Maharey said.

The funding boost would ease the skills shortage in the economy and contribute to the Government's goal of developing an inclusive knowledge society, he said.

New funding of $2.025 million had been allocated to increase to 14,750 the number of youth training placements, with emphasis on basic literacy, numeracy and communication skills to long-term unemployed 16-17 year olds.

- NZPA

www.nzherald.co.nz/budget

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