A Programme for New Zealand Universities

Victoria University of Wellington Vice-Chancellor Professor Pat Walsh outlined at a media briefing the universities' intention to work with the new government, as follows:

The universities want the new government to work with them on a programme that will ensure New Zealand fully benefits from its universities.

More specifically, the eight universities seek support from the new government for a programme that will advance their ability to contribute to national development.

The programme’s first point is, of course, increased public investment in universities. I don’t need to tell you that sector interests asking government for more money is nothing new. What you need to consider is that the current tertiary education investment system is out of balance.

Simply put the financial interests of students have been placed ahead of the institutions they attend. Looking at OECD countries, the average amount of government funding devoted to institutions is 82 per cent while 18 per cent goes to student financial support. In New Zealand only 58 per cent goes to the institutions while students receive 42 per cent for their financial support.

There is no point in reducing the cost of university study to students if the quality of university education declines through under-investment.

Point two of the plan is indexation of government investment in universities. Simply put, the Consumer Price Index does not reflect the annual cost increases universities face yet it is used to adjust their funding rates to compensate for inflation. CPI adjustments are clearly inadequate as the aggregate loss of revenue to the universities since 1991 is 230 million dollars.

Universities want to negotiate an indexation policy with government which recognises and reflects their real cost drivers.

Point three is the need for greater flexibility around student tuition fees. The current fees maxima policy is overdue for review. Universities want a reconsideration of that policy so fees can be further differentiated to reflect the cost of delivering the programmes involved.

In point of fact, our current tuition fees are not high on an international basis. The annual average tuition fee for New Zealand universities is two thousand six hundred and seventy US dollars compared to three thousand eight hundred and fifty US dollars for Australia. The Canadian figure is comparable to Australia while US tuition fees are higher still.

Reduced compliance costs is the basis for point four. The new investment system for tertiary education has numerous funding envelopes which have to be separately negotiated and reported. The associated compliance costs are exacerbated by the overlap of responsibilities between the Tertiary Education Commission and the Ministry of Education.

Their respective roles need to be clarified. While universities accept they are accountable for achieving investment process outcomes, they want the reporting requirements streamlined.

Point five concerns the differentiation of government investment. Universities want the tertiary education investment system differentiated to recognise their distinctive contributions. Universities need an investment system which recognises the investment level required to sustain their research-led teaching.

While universities support the current policy emphasis on the distinctive contributions of the different types of tertiary education institution, it is time to adopt a simpler way of achieving that.

Now to increased and accessible research funding – that’s point six. Universities want policy change to restore their access to contestable research funding. The current stable funding policy favours the Crown Research Institutes at the expense of universities.

Universities are the country’s most significant research institutions and yet only one university was eligible for support in the first round of negotiated funding.

Contestable funds managed by the Foundation for Research, Science and Technology and Health Research Council need to increase. Further, a vital part of the innovation process is basic research and universities are pivotal to that. Universities want the Marsden Fund which supports basic research doubled over the three-year term of the new government.

I’ve mentioned CRIs and improved relationships with other research bodies is the basis for point seven of the plan. Universities want closer relationships with other research organisations and policy changes which facilitate that would be welcomed.

Increased co-operation around Centres of Research Excellence and contestably-funded research programmes would be a good place to start.

Point eight is a step change for Māori and Pacifika. All universities have strategies in place to strengthen the engagement of Māori and Pacifika communities with university education. My colleague Derek McCormack will expand on this point.

The final point of the plan is a commitment to universities’ distinctive contribution. New Zealand has a unified system of universities delivering research-led teaching under a common quality assurance process. That should not change.

Universities want the new government to accept its obligation to safeguard university autonomy and academic freedom. Any they want recognition of the unique ownership position surrounding universities.