Universities need bold investment not tinkering or faddist thinking

New Zealanders are being urged to keep a close watch on the current review of the tertiary education system to ensure it doesn’t reduce the current quality or range of choices available to New Zealanders.

The review is being carried out by the New Zealand Productivity Commission over 2016 at the request of Ministers English and Joyce. 

Chris Whelan, the Executive Director of Universities New Zealand, warns the review has the potential to lead to significant changes to universities that may undermine the quality of teaching and range of programme choices available to New Zealanders planning on studying at university.

He is concerned by the inquiry’s heavy emphasis on technology.  “The review is currently trying to find ways that tertiary education could do more to lift national productivity.  It has started by asserting, incorrectly in the case of universities, that tertiary providers are not adopting technology fast enough.  But it hasn’t asked; what are the ways that young people learn best?  And how can universities produce the most capable graduates possible?

“Evidence here and overseas clearly shows that technology enriches and supports learning - but it doesn’t replace the current system.  Imagine producing engineers or science graduates without hands-on experience in workshops and laboratories.

“We want to send a clear message to Ministers that New Zealand’s university system is one of the best in the world. New Zealand is unique in having all universities ranked in the top 3% in the world.  Our graduates also enjoy excellent outcomes with the best completion rates, highest employment rates, and lowest levels of underemployment compared with every other country for which we have data.

“And we do this at 70% of the funding per student compared with countries like Australia.

“What universities really need from government is future thinking and bold investment in infrastructure. What universities don’t need is short-term tinkering and faddist thinking,” says Chris Whelan.

Chris Whelan says New Zealand’s productivity and economy are in fact buoyed up by our graduates.

“Universities make a significant contribution to New Zealand’s productivity by developing nearly 36,000 capable, innovative graduates each year.  Not only have they completed curriculum that has typically been developed with input by employers, they have been through programmes that prepare them for life by developing capabilities such as critical thinking, problem solving, working in teams, communicating and organising themselves.”

“The job of a university is to provide an environment and curriculum that will help graduates eventually become our future leaders, thinkers, and innovators as well as becoming good employees, parents and citizens.”

Australian research released this week confirms the “graduate effect”.  It found that having more graduates in the economy boosts the wages of workers without a degree through workplace productivity gains that make Australia's industries more competitive, as well as higher spending that flows into the economy.

Canada has recognised the importance of a strong university sector.  In March the government invested NZ$2.3 Billion into university infrastructure including research and innovation facilities to drive prosperity and enhance the quality of life for all Canadians.

Chris Whelan warns that the main challenge to the quality of New Zealand’s high quality university system is the current funding model. “Considerable funding pressures are limiting universities ability to maintain quality and invest in new business models. 

“We suggest the government makes bold strategic and financial initiatives to strengthen the high-performing university sector.  While our universities are not perfect they are well managed, innovative and adaptive, and deliver excellent outcomes for graduates.  The inquiry needs to focus on the parts of the tertiary sector that do not provide world-class education or value for New Zealanders.

“In short, we have a world-class university system.  Our message is invest in it.  Don’t tinker with it. And don’t break it.”

Universities New Zealand’s Submission to the Productivity Commission is on their website here.

Here's a link to the Executive Summary.

Background

 - The Government contributes 51% of university funding; of the remainder 28% is from student fees including from international students, and 21% is income from research contracts and trading income.

UNZ’s recommendations 

We suggest that different settings would produce greater outcomes for New Zealand in the following areas:

1. Rethink funding settings for areas of strategic importance

Where Government believes particular policy objectives are not being met (for example, lifting Māori and Pasifika participation, growing STEM numbers and improving graduate work-readiness) they must consider ways to lift funding levels to allow universities the opportunity to continue to advance successful initiatives in these areas.  

2. Tertiary Education Strategy – sub-sector plan

The tertiary education sector is not homogeneous.  Universities, institutes of technology and polytechnics, wānanga and private training providers all have different roles and business models.  The university sector would benefit from clearer sub-sector specific strategies and objectives.  A TES sub-sector plan would be useful for the university sector as long as it was not so prescriptive as to inhibit appropriate levels of innovation and differentiation.

3. Early involvement in design of new initiatives

Where universities are going to play a part in implementing or supporting government policy, they should be involved in early framing, scoping and design.

4. Better management of transitions from compulsory to post-compulsory education

Transitions from compulsory to post-compulsory education need better ownership, funding support, strategies and capability.  The lessons from successful initiatives such as the Auckland Starpath Project[1] should be taken up nationally and the traditional guidance counselling and careers planning functions in schools should be replaced by nationally supported academic and vocational pathway planning functions.

5. Consider supplementing existing funding where more differentiation is sought

All New Zealand universities receive a similar amount of funding (fee and tuition subsidies) for courses offered under particular Student Achievement Component (SAC) cost categories.  This constrains the amount of differentiation and innovation that is possible in New Zealand universities.  Government should consider supplementing SAC funding where it wants to see more differentiation or innovation – for example, in getting all students degree-relevant work experience as a part of the academic curriculum, or where particular programmes to support Māori students has been shown to be effective.

6. Develop a more coherent approach to advising young people on study and career options

Government is seeking to improve the information available to potential students and their advisors.  This advice is being developed in a largely uncoordinated and inefficient manner across at least five different agencies through at least eight different initiatives.  We recommend having a national strategy and overall programme management plan to ensure this is designed and implemented to best meet the needs of students and their advisors.

7. Formalise employer involvement in graduate profiles and curriculum design

 All New Zealand university qualifications now have a graduate profile, but not all are being developed with employer input and many qualifications are being delivered without employer input into curriculum design.  Formalising employer involvement in programmes where graduate employment outcomes are below average would contribute to lifting graduate work-readiness and productivity.

8. Take a more holistic approach to international education objectives.

 Government should think about international education in a more holistic way and link export education objectives with wider trade, diplomatic, security and internationalisation objectives with a number of New Zealand’s key trading partners – all of whom are increasingly adopting strategies based on reciprocity.

[1] http://www.education.auckland.ac.nz/en/about/research/starpath-home.html