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Shaping the STRATEGY QUALITY ACCESS FEBRUARY 2001 Tertiary Education Advisory Commission Te Ako Pae Tawhiti Shaping the Tertiary Education Advisory Commission Te Ako Pae Tawhiti SECOND REPORT OF THE TERTIARY EDUCATION ADVISORY COMMISSION SECOND REPORT OF THE TERTIARY EDUCATION ADVISORY COMMISSION

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Page 1: 2. Sistema de Educaciòn Superior Nueva Zelanda

Shaping the

STRATEGY

QUALITY

ACCESS

FEBRUARY 2001

Tertiary Education Advisory Commission

Te Ako Pae TawhitiShaping the Tertiary Education Advisory Commission

Te Ako Pae Tawhiti

SECOND REPORT OF THE TERTIARY EDUCATION ADVISORY COMMISSIONSECOND REPORT OF THE TERTIARY EDUCATION ADVISORY COMMISSION

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The cover of Shaping the System features the world’s largest kauri tree, Tane

Mahuta (or Lord of the Forest), which is located in the Waipoua Forest in

Northland, New Zealand.

According to Maori traditions, it is Tane Mahuta who procured Nga Kete o

Te Wananga (the three baskets of sacred and secular knowledge) from the

heavenly realm and brought them to the earthly realm.

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STRATEGY • QUALITY • ACCESS

Shaping the Tertiary Education Advisory Commission

Te Ako Pae Tawhiti

SYSTEM

ISBN 0 – 477 – 01934 – X

FEBRUARY 2001

SECOND REPORT OF THE TERTIARY EDUCATION ADVISORY COMMISSION

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Tertiary Education Advisory Commission

Te Ako Pae Tawhiti

Minister’s Foreword

Shaping a Shared Vision, the Commission’s first report, set out new directions for the tertiary education sector.

It argued that the challenge of ensuring all New Zealanders have access to lifelong learning in a knowledge

society would require new ways of organising, delivering and recognising tertiary education and learning.

This Report, Shaping the System, is the first of three to be produced this year that will map out in detail the

policies which will bring about change towards that vision. This Report makes clear that if we are to be a

knowledge society we need mechanisms, policy instruments and structures that will allow the tertiary education

system to be ‘steered’ more effectively.

The changes proposed will place our tertiary education system at the very centre of our nation’s drive to be a

knowledge society. It will be the focus of our hopes and ambitions. This is an enormous responsibility. I am

confident the tertiary education community will meet this challenge.

The future mapped out for our tertiary education and training providers is to become part of a nation-

building programme that will see New Zealanders live in a prosperous and socially just society. I am delighted

to see that the Commission’s approach provides a way of retaining appropriate autonomy while encouraging

innovative learning environments. I also welcome the Commission’s commitment to a broad and inclusive

vision of lifelong learning. The knowledge society must ensure that the potential of all New Zealanders is

realised.

The Shaping the System Report is impressive in its breadth and vision. Its recommendations are far-reaching.

The Government wants to hear feedback on all of the recommendations, particularly those that may lie at the

heart of the new system: the Tertiary Education Commission, expanded charters, profiles and functional

classifications.

The Government is keen to move as rapidly as possible to set a new direction in the tertiary education sector.

We are equally committed to working with the sector and other key stakeholders to reach agreement on what

needs to be done. A great deal of discussion took place during 2000. We are poised for change this year.

The recommendations of Shaping the System will soon be reinforced by work on what the priorities and

objectives for tertiary education should be, and then how those priorities and objectives are best accomplished.

I am very enthusiastic about the direction and detail of the Commission’s work. Education is the key to the

future. It is time to unlock that potential.

Hon Steve Maharey

Associate Minister of Education (Tertiary Education)

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Tertiary Education Advisory Commission

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Table of Contents

Minister’s Foreword i

Executive Summary vi

Recommendations xiv

Preface 1The Role of the Tertiary Education Advisory Commission 1An Integrated Set of Reports 1The Commission’s Approach to the Report 2

A Focus on both the Short and Long Term 2An Integrated Package 2

Purpose of the Report 2Report Structure 3

Chapter 1: Introduction 4

Chapter 2: Critical Issues and Problems 72.1: Achievements 72.2: Problems with the Current System 8

2.2.1 Demand-driven and Competitive Pressures 82.2.2 Lack of Adequate Steering Mechanisms 92.2.3 Coherence 102.2.4 Failure to Fulfil Treaty of Waitangi Obligations 112.2.5 Inequitable Access 112.2.6 Scarcity of Resources 12

Chapter 3: Context for a Tertiary Education Strategy 143.1: Key Influences 14

3.1.1 The Development of a Knowledge Society 143.1.2 Changing Technology 153.1.3 Globalisation 153.1.4 Changing Demographics 16

3.2: Broad Objectives 173.2.1 Strategic and Effective Use of Resources 173.2.2 National and Local Responsiveness 193.2.3 Excellence in Knowledge Production and Application 213.2.4 Equitable Access and Recognition of Learning for Life 213.2.5 Treaty of Waitangi 24

3.3: The Approach to Shaping the System 253.3.1 International Examples 25

3.4: An Integrated Approach 263.4.1 A Systems Approach 263.4.2 A Partnership Approach 263.4.3 Management by Exception 26

3.5: The Tertiary Education Strategy 27

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Chapter 4: The Steering Framework 284.1: Options for Improved Steering Instruments 28

4.1.1 Functional Classification 284.1.2 Charters 294.1.3 Profiles 30

4.2: Options for Central Structures 314.2.1 The Status Quo 324.2.2 International Experience 324.2.3 Integrated or Multiple Central Structures 33

Chapter 5: The Tertiary Education Commission 345.1: Specific Options 34

5.1.1 Evaluating the Options 345.2: Structure and Function of the Tertiary Education Commission 39

5.2.1 Aims and Purposes 395.2.2 Functions and Powers 395.2.3 Accountability of the TEC 425.2.4 Structure and Operations 42

5.3: Implications for Other Central Structures 455.3.1 Minister 455.3.2 Ministry of Education 465.3.3 Skill New Zealand 465.3.4 Quality-Assurance Bodies 465.3.5 Career Services 475.3.6 Tertiary Education Advisory Commission 47

Chapter 6: The Steering Instruments 486.1: Functional Classifications 48

6.1.1 Learning and Assessment Support 486.1.2 Community Education and Training 486.1.3 Industry or Professional Education and Training 496.1.4 Comprehensive Teaching 496.1.5 Specialist Teaching 496.1.6 Comprehensive Teaching and Research 506.1.7 Specialist Teaching and Research 506.1.8 Akoranga Maori 506.1.9 Further Classifications 506.1.10 Process of Functional Classification 53

6.2: Charters 536.2.1 Content of Charters 54

6.3: Profiles 556.3.1 Profiles to Have Two Parts 566.3.2 General Content of Profiles – All Providers 576.3.3 Additional Content of Profiles – Chartered Providers Only 576.3.4 The Process of Negotiating Profiles 606.3.5 Legislative Issues 60

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Chapter 7: Legal Form and Protected Terms 617.1: Legal Form 61

7.1.1 Public Tertiary Education Institutions 617.1.2 Private or Community Tertiary Education Providers 627.1.3 Industry Training Organisations 637.1.4 Government Training Establishments 64

7.2: Application of Protected Terms 647.2.1 ‘University’ 667.2.2 ‘Polytechnic’/‘Institute of Technology’ 677.2.3 ‘Whare Wananga’ 69

Chapter 8: Using the Steering Framework to Shape the System 718.1: Allocating Funding 71

8.1.1 Possible Statutory Criteria 718.1.2 Implications for the Funding System 72

8.2: Assuring Quality 728.3: Establishment, Recognition, and Change of Provider Status 738.4: Accountability and Governance 74

8.4.1 Accountability 748.4.2 Governance 74

8.5: Examples of the Application of the Steering Framework 758.5.1 The Role of Colleges of Education 758.5.2 Possible New Forms of Universities 778.5.3 Other Options for Addressing the Parity-of-Esteem Issue 80

Chapter 9: Objections to the Commission’s Proposals 819.1: Academic Freedom 819.2: Autonomy 819.3: Constraints on Political Action 829.4: Effectiveness 839.5: The Impact on Innovation, Responsiveness and Productive Efficiency 839.6: The Impact on Administrative and Compliance Costs 839.7: Determining What to Fund 839.8: Simpler, Cheaper Solutions 849.9: The Need for Urgent Action 84

Chapter 10: Transition Arrangements 8510.1: TEC Establishment Unit 8510.2: Introduction of Interim Profiles 8510.3: Re-Negotiation of Existing TEI Charters 8610.4: Introduction of ‘Charters’ for Non-TEIs 8610.5: Identification of Centres or Networks of Research Excellence 8610.6: Skill New Zealand’s Documents of Accountability 8610.7: Legislative Review 87

Concluding Note: Need for Ongoing Review 88

Glossary of Education Terms and Acronyms 89

Glossary of Maori Terms 91

Glossary of Government Organisations 93

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Appendix 1: Guiding Principles 94

Appendix 2: Summary of Issues in the Submissions 95Introduction 95Differentiation and Parity of Esteem 95PTEs and their Funding 96Colleges of Education as ‘Specialist Institutes’ 98Wananga 98ITOs as Part of the Tertiary Education System 99Intermediary Body 99Charters and Profiles 100Learning and Technology 101Maori and Pacific Peoples’ Issues 101

Appendix 3: Groups and Individuals Consulted 105Tertiary Education Institutions 105Industry Training Organisations 105Maori 105Pacific Peoples 106Private Training Establishments 106International 106Business and Industry 106Sector Groups 106Other Organisations 107Working Groups 107

Appendix 4: Current Arrangements 108Forms of Provision 108

Tertiary Education Institutions 108Other Forms of Provision 111

Central Steering Mechanisms 112Establishment and Recognition of Providers 112Governance and Accountability 112Charters 113Statements of Objectives 113Statements of Service Performance and Annual Reports 114Quality Assurance 114Funding 114

Central Structures 115The Minister and the Government 115Ministry of Education 115Skill New Zealand 116Department of Work and Income 116New Zealand Qualifications Authority 116Career Services 117Teacher Registration Board 117

Appendix 5: The Provision of Teacher Education 118Background 118Proliferation of Teacher Education Programmes 118

Bibliography 124

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Executive Summary

Key Proposals

The Commission recommends the following changes to the central structures and

policy instruments used to ‘shape’ the tertiary education system:

• the creation of a new intermediary body, the Tertiary Education Commission (TEC),

with responsibility for the whole tertiary education system;

• the application of a system of functional classifications of tertiary education

activities;

• the strengthening and expansion of the application of charters; and

• the introduction of profiles of the activities of providers, as the basis for funding.

These recommended changes are an integrated package of measures designed to

address the serious problems and challenges facing the tertiary education system:

• the TEC would enable an integrated and strategic approach to tertiary education;

• functional classifications would enable greater differentiation, specialisation, and

clarity of roles for providers within the tertiary education system;

• strengthened charters would enable the recognition of the particular distinctive

character and responsibilities of individual providers; and

• profiles would enable the steering of funding in a manner that reflects both

national and local priorities and demands, and promotes focus and specialisation.

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Problems and Challenges

Current structures and policy instruments in tertiary education are largely

predicated upon demand-driven bulk funding systems, with little opportunity (and

few powers) for the exercise of discretion in the allocation of funding. Conversely,

in some areas, funding is highly prescriptive and restricted, and is not well

integrated with other aspects of the system. While demand-driven funding has

supported increased levels of participation, in a climate of scarce resources it has

contributed to financial difficulties for many providers, promoted intense

competition and duplication of programmes, and threatened the quality of

provision and research.

The current system’s weak central-steering mechanisms, its lack of regulatory

coherence, the difficulties it has faced in meeting Treaty of Waitangi obligations,

and the inequity of access to it, make it poorly suited to respond to the challenges

that it faces. These include the development of a knowledge society, changing

technology, globalisation and demographic changes.

Approach and Strategy

The Commission concluded in its first report, and reaffirmed in this Report, that

there should be a more integrated and strategic approach to the funding and

regulation of tertiary education. This is necessary to safeguard and improve the

quality and accessibility of the tertiary education system, and its relevance to New

Zealand’s national interests.

Such an approach should be designed to promote the strategic and effective use of

resources, enable both national and local responsiveness, promote excellence in

knowledge production and application, enable equitable access and recognition of

learning throughout life, and enable the tertiary education system to operate in a

manner consistent with the principles of the Treaty of Waitangi. These broad

objectives recognise the importance of a wide range of issues for the future of

tertiary education, including public tertiary education provision, research, Maori

education, industry training, community education, second-chance education, and

regional responsiveness, amongst other critical issues.

These various objectives can be addressed through an integrated approach which

draws upon the concepts of systemic analysis, partnership, and management by

exception. The Commission has concluded that this integrated and strategic

approach should involve the following elements:

• a comprehensive and coherent approach to policy and regulation for the whole

tertiary education system, which recognises the distinctive roles of the diverse

parts of the system;

• proactive steering of the tertiary education system, in a manner that engages

stakeholders and balances the need for national and local responsiveness;

• the facilitation of greater specialisation and concentration to promote excellence;

• the facilitation of greater linkages to enable access, recognition, and efficiency; and

• the facilitation of partnership in the delivery of education for Maori.

See Chapter 2: CriticalIssues and Problems

See 3.1: Key Influences

See Shaping a SharedVision

See 3.2: Broad Objectives

See 3.3: Approach toShaping the System

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In its forthcoming reports, the Commission will further explore the content of a strategy for

tertiary education in New Zealand, and the way in which the various policy instruments,

particularly funding, can be used to advance such a strategy.

Implications of an Integrated and Strategic Approach

A more integrated and strategic approach implies greater intervention by Government and

greater focus and specialisation by tertiary providers. It also emphasises the importance of

partnership between providers and with stakeholders. These imperatives must be carefully

balanced with the important principles of provider autonomy, academic freedom, and

responsiveness to local and regional needs.

The Commission believes that achieving this balance requires the establishment of an

intermediary body to steer the tertiary education system in a proactive manner. The purpose

of this body should be to steer the system in the direction specified by the Government, but

in a manner consistent with the principles of provider autonomy, academic freedom and

responsiveness; and to foster stakeholder partnerships at national and local levels. Such a

body would itself require a measure of autonomy for it to be effective.

A Tertiary Education Commission

The Commission recommends that a Tertiary Education Commission be established as an

Autonomous Crown Entity, with the following functions:

• strategic policy advice;

• regulatory advice;

• allocation of funding within agreed policy parameters;

• monitoring of performance; and

• research, facilitation and leadership.

The TEC should provide advice on the strategic direction of the tertiary education system,

including advising the Minister on the nature, form and spread of provision. It should advise

the Minister on the exercise of a range of powers, including the establishment of institutions

and the approval of charters.

The TEC should be responsible for the allocation of funding to providers, within agreed

policy parameters. This would include negotiating profiles, and determining which profiled

activities would be funded.

While the TEC should be responsible for monitoring the financial performance of

providers, this should be a separate function from assuring the quality of tertiary education.

The TEC should play a key role in facilitating greater co-operation and collaboration within

and beyond the tertiary education system, and provide leadership based on research and

evaluation of the system as a whole.

The TEC should be accountable to the Minister for the performance of its functions,

through a clear and transparent document of accountability.

Structure and Operations of the TEC

The Commission believes that the TEC should have responsibility for policy advice and

funding allocation for the whole tertiary education system, including community education,

See 4.2: Options for Central Structures

See Chapter 5: TheTertiary EducationCommission

See 5.2.2: Functions and Powers

See 5.2.3: Accountability of the TEC

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second-chance education and industry training. The structure and operations of

the TEC should reflect the distinctive roles of the diverse parts of the system,

while enabling greater linkages between them.

The Commission’s view is that a single coherent and comprehensive central

structure would better facilitate the desired differentiation and complementarity

of the tertiary education system, because its scope of coverage would mean that it

would be able to steer all forms of provision. It would, however, be essential that

the distinctive interests and concerns of particular sectors within the tertiary

education system are safeguarded and addressed – particularly research, industry

training, community education, second-chance education, and Maori tertiary

education.

The board of the TEC would need to be composed of persons of high calibre,

with a breadth of experience and expertise sufficient to enable the proactive

steering of the tertiary education system in a manner that contributes to, and

supports, national strategies. The Commission believes that achieving this would

require a board of up to twelve members, including a chair. A minimum of two

members should be Maori, reflecting the importance of the Treaty and the needs

of Maori in the tertiary education system.

Implications for Other Agencies

The majority of the operational functions of the Ministry of Education with respect

to tertiary education would become the responsibility of the TEC. The Ministry of

Education would be responsible for monitoring the performance of the TEC, on

behalf of the Minister. The Ministry would need to retain a policy-advice function

in respect of tertiary education, within the context of wider education policy.

The TEC would assume the responsibilities and functions currently performed

by Skill New Zealand, including industry training and second-chance education.

Careful transition would be required to ensure that there is minimal disruption

to the services provided, but also that the opportunities provided by the new

arrangements are realised.

There would need to be close co-operation between NZQA and the TEC on

matters of tertiary qualifications policy and quality assurance in tertiary

education. There should, however, remain a clear distinction between funding

allocation and quality-assurance processes and decisions.

Career Services would have an important role to play in the new steering framework.

The Commission plans to give further consideration to how Career Services can best

contribute to the achievement of the co-ordinated and strategic approach it has

outlined, including consideration of a possible central admissions system.

Steering the Tertiary Education System

The TEC would require a range of policy instruments to enable it to steer the

system. The Commission believes that a combination of functional

classification of providers, charters, and profiles would provide the basis for

decision making in respect of funding allocation and assist in the facilitation of

greater specialisation, co-operation and collaboration (both within the system

and with those outside it).

See 5.2.4: Structure andOperations

See 5.3: Implications forOther Central Structures

See 4.1: Options forImproved SteeringInstruments

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Functional classifications, expanded charters and profiles would enable the specification of

information about the programmes and activities of providers:

• at different levels of detail (from very broadly with functional classifications to precisely with

profiles);

• over different time periods (including the medium to long term with charters, and the short

term with profiles); and

• for different purposes (including the steering of the tertiary education system as a whole

and the allocation of funding).

Together these policy instruments would facilitate greater specialisation, while retaining an

important element of flexibility. They would provide Government with tools for distinguishing

the services offered by different providers to ensure coverage around the country and

discourage unnecessary duplication, but also allow providers to respond to local needs.

Functional Classifications

Functional classifications focus on the activities of providers and other tertiary education

organisations, rather than their legal form or the terms used to describe them. The Commission

has proposed a possible set of classifications for consideration, with the intention of developing

a coherent and integrated set of classifications that allows greater differentiation, specialisation

and clarity of roles for providers within the tertiary education system. Functional classifications

would underpin and support the system of charters and profiles.

Charters

The Commission’s view is that charters need to be strengthened in both content and application.

Charters would focus on the medium to long term, and would be used to define the broad scope

of activities that the Government would fund. In this respect, they should apply to all publicly

funded providers. They should include a greater focus on the special character or specialisation

of the provider, and more clearly identify the contribution the provider makes to the tertiary

education system as a whole. This would involve charters identifying how the provider would

contribute to the achievement of the tertiary education strategy.

Functional classifications would enable differentiation in the nature and content of charters for

different providers. This would mean that, while all publicly funded providers would have charters,

a community-education provider would not be subject to the same requirements as a university.

Profiles

Profiles build upon current mechanisms, including statements of objectives and funding

contracts. They would specify providers’ programmes and activities over a three-year period.

The Commission proposes that profiles apply to all quality-assured providers, whether they

have a charter or not. For chartered providers, profiles would specify which programmes and

activities the Government would fund. Programmes and activities that fall within the scope of

activities outlined in the provider’s charter would generally be funded, while other activities

would require a special case to be made.

Together, charters and profiles would provide a means for focusing providers on their mission,

and encouraging specialisation and differentiation. This could involve deciding not to fund,

or to limit funding for, certain programmes and activities, as well as focusing funding in

priority areas.

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See 6.1: Functional Classifications

See 6.2: Charters

See 6.3: Profiles

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Shaping the System

The ‘shape’ of the tertiary education system will need to continue to evolve in an

organic manner, in response to a range of challenges. The steering framework

would provide the means to shape that organic change in a manner that ensures it

continues to meet the nation’s needs.

Funding would continue to be a key tool in the shaping of the system. Two key

tests – desirability and quality – would underpin funding allocation. Charters and

profiles would be key tools for determining desirability. The Commission will

address the issue of funding allocation in depth in forthcoming reports, including

issues of distinctions in the funding of public and private providers.

The assurance of quality would continue to be a separate function from funding

allocation, but would be a necessary prerequisite to eligibility for funding.

The organic growth and development of the system will need to provide for the

establishment of new providers, and the change in status of existing providers. The

tests of desirability and quality would underpin these decisions.

Legal form is another means of providing shape to the tertiary education system.

The Commission believes that, in addition to current forms of Tertiary Education

Institutes (TEIs), there would be benefit in providing for ‘specialist institutes’. The

Commission believes that colleges of education would be better classified as

specialist institutes. The Commission also believes that there are benefits in

streamlining the form of recognition for private and community providers.

Additionally, the specific roles of industry training organisations (ITOs) and

government training establishments (GTEs) need to continue to be recognised.

The use of the terms ‘university’ and ‘polytechnic’ should continue to be protected.

To these should be added ‘institute of technology’ and ‘whare wananga’. The

Commission does not believe it is necessary to continue to protect the term ‘college

of education’, given the changes in the nature of teacher education.

The shaping of the system will require robust monitoring and accountability, based

upon reporting against charters and profiles.

The Commission has considered two examples of the application of the steering

framework in detail. It has concluded that colleges of education should no longer

constitute their own separate form of TEI, and that on balance the arguments

against the establishment of an additional type of university, a ‘university of

technology’, are stronger than those for it.

Centres and Networks of Research Excellence

The tertiary education system plays a crucial role in achieving a productive and

innovative research community. The system must therefore be designed to promote

and sustain world-class research capacity and capability, including that of Maori and

Pacific peoples. This will require greater specialisation and concentration of

research activity within the tertiary education system.

The Commission recommends the establishment or recognition of national centres

or networks of research excellence within the tertiary education system, with

linkages to a national strategy and the international research community. They will

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See Chapter 8: Using the SteeringFramework to Shape the System

See 8.1: AllocatingFunding

See 8.2: Assuring Quality

See 8.3: Establishment,Recognition, and Changeof Provider Status

See 7.1: Legal Form

See 7.2: Application ofProtected Terms

See 8.4: Accountabilityand Governance

See 8.5: Examples of theApplication of the SteeringFramework

See 3.2.3: Excellence inKnowledge Productionand Application

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also need strong linkages with other parts of the tertiary education system

and with those outside it.

Researchers in the tertiary sector must not only be the leaders in producing

fundamental knowledge, but must also be instrumental in disseminating

new knowledge to the community and training the research workforce of

the future. The latter two roles, in particular, must be undertaken in

partnership with the wider research and business communities.

Objections

The Commission has carefully considered a wide range of possible

concerns and objections with respect to its proposals. These included

concerns relating to academic freedom, provider autonomy, constraints

on political action, effectiveness, impact on innovation and

responsiveness, administrative and compliance costs, the difficulty of

determining what to fund, the possibility of simpler, cheaper solutions,

and the need for urgent action. The Commission has not identified any

major concerns that require modification to its proposals.

Transition

The implementation of the Commission’s recommendations will

require a careful transition strategy. The Commission believes that, if

the Government agrees to a Tertiary Education Commission being

instituted, a TEC establishment unit should be created in 2001 to begin

the process of establishing the TEC. The TEC establishment unit

should work with the Commission and the Ministry of Education to

ensure the rapid and effective implementation of the Government’s

decisions in relation to the Commission’s recommendations.

The Commission believes that work should begin in 2001 on:

• the introduction of interim profiles for 2002 (including identifying

processes for rationalising existing programmes and activities which

fall outside of interim profiles);

• the re-negotiation of existing TEI charters to reflect the directions

outlined in this Report;

• the introduction of charters for non-TEIs as a pre-requisite for public

funding in 2002; and

• the identification, as a matter of priority, of national centres or

networks of excellence, linked to national strategies and the

international research community.

Careful planning would also be required to ensure a smooth transition

from current central government arrangements to the TEC. Finally, a

range of legislative provisions would require amendment to give effect

to the Commission’s recommendations.

See Chapter 9: Objectionsto the Commission’sProposals

See Chapter 10:Transition

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Future Reports and Review

The Commission has reviewed its workplan in the light of its experience over the

last nine months. It has determined a need to focus more clearly on the priorities

and objectives for tertiary education, as a key guide to determining what should be

funded. It will then address in more detail how the steering framework, outlined in

this Report, should be used to achieve these objectives. This will include a detailed

set of recommendations relating to the funding of tertiary education, but will also

address important matters such as the promotion of co-operation and collaboration

and ensuring that courses and learning opportunities are relevant to the needs of

individuals, employers and the nation as a whole.

The Commission believes that in this Report it has identified the key components of

a steering framework that will enable the tertiary education system to meet the

nation’s needs. There will, however, be the need for ongoing review. The TEC

should have, as a central part of its role, responsibility for managing intentional

change within the tertiary education system.

The successful implementation of the Commission’s recommendations will require

an ongoing commitment by all parties to participative leadership and careful

judgement in policy making, implementation, and evaluation. In the Commission’s

view, this can only happen if the Government and other stakeholders are willing to

engage in continuing and iterative review of the tertiary education system.

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Recommendations

Recommendation 1 page 6

To achieve an inclusive knowledge society, the Government should pursue policies that are:

• open, outward looking, internationally oriented and engaged;

• vibrant, diverse, innovative and imaginative;

• fair, inclusive and democratic;

• informed by the Treaty of Waitangi;

• enriched by our natural and cultural heritage; and

• sustainably prosperous.

Recommendation 2 page 17

The Commission recommends the following broad objectives for a tertiary education strategy that supports the

development and maintenance of a wealthy society:

• strategic and effective use of resources;

• national and local responsiveness;

• excellence in knowledge production, integration and dissemination;

• equitable access to, and recognition of, learning throughout life; and

• fulfilment of obligations under the Treaty of Waitangi.

Recommendation 3 page 19

The Commission recommends private providers be classified using the same system as that used for public

providers to ensure that provider classification is coherent across the whole tertiary education system.

Recommendation 4 page 19

The Commission recommends that the regulatory framework for the tertiary education system balance the

need for a common approach to the regulation and accountability of public and private providers with

recognition of the important differences between them. Therefore:

a) both public and private provision need to be ‘profiled’ to promote collaboration and to avoid unnecessary

duplication of effort and expense; and

b) while funding systems should be transparent and coherent across both public and private sectors, this does

not mean that public and private providers should necessarily be funded on the same basis.

Recommendation 5 page 19

The Commission recommends that independent research be commissioned on the roles and functions of

organisations at present classified as private training establishments (including an examination of the extent to

which they are complementary to, or in competition with, public providers), to inform the Commission’s

future reports.

Recommendation 6 page 19

The Commission recommends that all trans-national providers who wish to provide programmes of learning in

New Zealand be subject to the same regulatory requirements as New Zealand providers, including any

proposed changes to those requirements as a result of this Report.

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Recommendation 7 page 21

The Commission recommends that the central steering structures, in partnership with other government

agencies with responsibility for research, ensure that the tertiary education system provides:

• focused and specialised fundamental and applied research; and

• genuine commitment to research-led teaching as the basis of all degree and post-graduate education.

Recommendation 8 page 21

The Commission recommends the establishment or recognition of national centres or networks of research

excellence within the tertiary education system, with linkages to a national strategy and the international

research community.

Recommendation 9 page 22

The Commission recommends that the review of industry training clarify the role of industry training

organisations (ITOs) within the overall tertiary education system as described in this Report.

Recommendation 10 page 23

The Commission recommends that the review of adult and community education clarify the role of adult and

community learning organisations, structures and systems within the overall tertiary education system

described in this Report.

Recommendation 11 page 23

The Commission recommends that the Government fund research on the development of e-learning

technology in New Zealand, to assist the whole tertiary education system to capitalise on the potential of

information and communications technology for effective delivery of learning.

Recommendation 12 page 25

The Commission recommends that the following be put in place, in order for Maori to participate fully in the

tertiary education system and raise their level of achievement:

• support for types of tertiary education providers who are capable of meeting the needs of Maori;

• meaningful mechanisms for enabling Maori participation in governance and decision making; and

• systems for measuring the performance of providers and the wider tertiary education system in meeting

Treaty of Waitangi obligations.

Recommendation 13 page 27

The Commission recommends that, to achieve the broad objectives identified in this Report, the following

elements be recognised as an essential part of a high-level tertiary education strategy:

• a comprehensive and coherent approach to policy and regulation for the entire tertiary education system,

which recognises the distinctive roles of the diverse parts of the system;

• proactive steering of the tertiary education system, in a way that engages stakeholders and is also responsive

to national and local needs;

• greater specialisation and concentration to promote excellence;

• better linkages to improve issues relating to access, recognition, and efficiency; and

• partnership in the delivery of education for Maori.

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Recommendation 14 page 27

The Commission recommends that the following be put in place, to achieve its proposed tertiary education

strategy:

• an improved framework for the steering of the tertiary education system; and

• improved central structures and capability to manage the steering framework.

Recommendation 15 page 29

The Commission recommends that all providers and quality-assured learning environments be classified by:

a) the functional classification of the activities undertaken; and

b) the legal form of the provider or body responsible for the quality assurance of the learning environment;

and

c) the protected term used to describe the provider (where relevant).

Recommendation 16 page 29

The Commission recommends that, for the purposes of describing their special character and function,

providers and all quality-assured learning environments be classified in a manner that reflects their functions

and activities.

Recommendation 17 page 30

The Commission recommends that all non-TEI providers who wish to receive public funding be required to

negotiate and agree a charter with the Minister, on the advice of the TEC.

Recommendation 18 page 30

The Commission recommends that charters describe the broad mission and activities of each provider, with a

focus on the medium-to-long term (5-10 years).

Recommendation 19 page 31

The Commission recommends that each quality-assured tertiary education provider be required to negotiate a

profile on a rolling-triennial basis.

Recommendation 20 page 31

The Commission recommends that a profile provide information on the provider’s distinctive mission and the

nature and level of the programmes and activities that the provider plans to offer over a three-year timeframe.

Recommendation 21 page 31

The Commission recommends that finalised profiles be public documents.

Recommendation 22 page 33

The Commission recommends that there be a single comprehensive central steering body for the whole

tertiary education system.

Recommendation 23 page 38

The Commission recommends that a new intermediary body, to be known as the Tertiary Education

Commission (TEC), be established with responsibility for the whole tertiary education system.

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Recommendation 24 page 39

The Commission recommends that the aims and purposes of the TEC be:

i) to ensure the development of a diverse, innovative, responsive, and accountable tertiary education system;

ii) to ensure that the tertiary education system provides the basis for sustainable wealth creation;

iii) to ensure life-long, equitable, and affordable access to tertiary education and training of an international

standard of excellence;

iv) to ensure that the tertiary education system is properly informed by and operates in conformity with the

principles of the Treaty of Waitangi; and

v) to protect academic freedom and to ensure a level of institutional autonomy consistent with the efficient

use of resources, the national interest, and the demands of public accountability.

Recommendation 25 page 41

The Commission recommends that the TEC have the following statutory functions, powers and responsibilities:

a) to advise the Minister, providers, and other stakeholders on the strategic direction of the tertiary education system;

b) to advise the Minister on policy in relation to:

i) the nature, form and spread of provision within the tertiary education system;

ii) the allocation of tertiary education funding, including funding to support research within the tertiary

education system; and

iii) tertiary education qualifications, in conjunction with NZQA (cf. s253(b) of the Education Act 1989);

c) to advise the Minister on exercising the following powers:

i) the establishment of TEIs (cf. s162 of the Education Act 1989);

ii) the disestablishment or merger of TEIs (cf. s164 of the Education Act 1989);

iii) the use of protected terms (cf. s264 of the Education Act 1989);

iv) the recognition of ITOs (cf. s6 of the Industry Training Act 1992);

v) the recognition of GTEs (cf. s159 of the Education Act 1989);

vi) the setting of mandatory requirements for charters (cf. s190 of the Education Act 1989);

vii) the approval of TEI charters (cf. s184 of the Education Act 1989);

viii) the approval of non-TEI charters;

ix) the withdrawal of non-TEI charters; and

x) the appointment of TEI council members (cf. s171 of the Education Act 1989);

d) to negotiate and approve profiles (cf. s203 of the Education Act 1989);

e) to allocate funding to tertiary education providers, including:

i) funding grants to TEIs (cf. s199 of the Education Act 1989);

ii) funding grants to non-TEIs with approved charters (cf. s238A);

iii) administration of other funding schemes (cf. s271 of the Education Act 1989);

iv) funding to ITOs (cf. s10 of the Industry Training Act 1992);

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f) to monitor tertiary education provider performance, including:

i) monitoring of TEI financial performance (cf. s203 of the Education Act 1989);

ii) monitoring of non-TEI financial performance (cf. s238A of the Education Act 1989);

iii) obtaining information from providers (cf. s255 of the Education Act 1989);

g) to provide advice to providers, learners, and those with an interest in the tertiary education system; and

h) to research and evaluate the performance of the tertiary education system.

Recommendation 26 page 42

The Commission recommends that the Minister have the following powers in relation to the TEC:

a) to appoint the chair of the board;

b) to appoint the members of the board (but not the chief executive);

c) to approve, with the board, a document of accountability;

d) to determine overall tertiary education funding levels, policy, and parameters; and

e) to direct the TEC to provide advice or conduct research on any matters within its areas of responsibility.

Recommendation 27 page 43

The Commission recommends that:

a) the board of the TEC have up to twelve members, including a chair;

b) board members be persons of the highest calibre with a breadth of expertise and experience sufficient to

enable the proactive steering of the tertiary education system in a manner that contributes to and supports

national strategies;

c) no member represent a particular organisation;

d) at least two members be Maori;

e) remuneration for the chair and other board members be sufficient to attract the highest calibre of persons

who have experience and knowledge relevant to the TEC’s work;

f) all members be appointed for three-year terms, ideally overlapping, with a maximum of three consecutive

terms for each board member; and

g) the board members be required to work in the interests of the tertiary education system and the nation as a

whole.

Recommendation 28 page 44

The Commission recommends that:

a) meetings of the board be held on a regular basis;

b) the board have advisory bodies, with additional members from the relevant parts of the tertiary education

system (and from outside the tertiary education system, if required);

c) the advisory bodies of the board be responsible for areas such as post-graduate education and research,

degree-level education, vocational and industry training, community education, and Maori tertiary

education; and

d) the board be able to establish permanent or temporary reference groups for cross-sectoral issues such as

second-chance education, workplace learning, e-learning, access, equity, literacy, or Pacific peoples’ education.

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Recommendation 29 page 45

The Commission recommends that:

a) the TEC’s secretariat be sufficiently large to undertake the functions, powers and responsibilities of the

TEC;

b) the secretariat have the expertise and the organisational structure necessary to meet the needs of all the

parts of the system;

c) there be a unit within the secretariat with the specific competence required to address issues relating to the

Treaty of Waitangi;

d) there be a head of the secretariat, appointed by the TEC board, and accountable to the board for the

performance of the secretariat;

e) at any given time, a reasonable percentage of secretariat members be on secondment from the tertiary

education system; and

f) the secretariat have the means to ensure that the Board is in a position to understand and respond to the

interests and concerns of regional providers and communities.

Recommendation 30 page 46

The Commission recommends that the Minister have the following new powers:

a) granting the right to use protected terms (c.f. s264 Education Act 1989);

b) recognising industry training organisations (c.f. s6 of the Industry Training Act 1992);

c) approving non-TEI charters; and

d) withdrawing non-TEI charters.

Recommendation 31 page 46

The Commission recommends that primary responsibility for tertiary education policy, tertiary education

resourcing, and the monitoring of tertiary education be transferred to the TEC, but that the Ministry of

Education retain responsibility for education policy as a whole (including tertiary-education-policy capability at

a strategic level) and for monitoring the performance of the TEC.

Recommendation 32 page 46

The Commission recommends that the responsibilities of Skill New Zealand (for the Industry Training Strategy

and for the funding of second-chance education) be transferred to the TEC, and that Skill New Zealand be

disestablished.

Recommendation 33 page 46

The Commission recommends that NZQA and other quality-assurance agencies continue to have responsibility

for the quality assurance of tertiary education providers.

Recommendation 34 page 47

The Commission recommends that the TEC have responsibility for providing input into the process of

negotiating the document of accountability between NZQA and the Minister, and for providing advice on the

appointment of NZQA board members, in conjunction with the Ministry of Education.

Recommendation 35 page 47

The Commission recommends that Career Services work in conjunction with the TEC, and that further

consideration be given to the manner in which this can best be achieved.

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Recommendation 36 page 47

The Commission recommends that TEAC be disestablished once the TEC is fully established.

Recommendation 37 page 50

The Commission recommends that consideration be given to the following functional classifications of provider

and quality-assured learning environments as a basis for preparing and negotiating charters and profiles:

a) learning and assessment support;

b) community education and training;

c) industry or professional education and training;

d) comprehensive teaching;

e) specialist teaching;

f) comprehensive teaching and research;

g) specialist teaching and research; and

h) akoranga Maori (Maori learning).

Recommendation 38 page 53

The Commission recommends that some or all of the activities of providers and quality-assured learning

environments be classified within more than one functional classification, where this is agreed with the TEC.

Recommendation 39 page 53

The Commission recommends that processes be established by the TEC to enable Maori to play a central role

in determining which providers should be classified within the functional classification of ‘akoranga Maori’.

Recommendation 40 page 54

The Commission recommends that, in approving charters, the Minister be advised by the TEC.

Recommendation 41 page 55

The Commission recommends that all charters include the following general types of information, although

the exact content of charters will vary with the provider’s functional classification:

• mission and special character;

• contribution to New Zealand’s identity and economic, social and cultural development;

• contribution to the tertiary education system as a whole;

• approach to collaboration and co-operation with other tertiary education providers and those outside the

tertiary education system;

• approach to fulfilling its obligations under the Treaty of Waitangi;

• contribution to improving equity of access;

• approach to supporting credit transfer and the recognition of prior learning;

• approach to meeting the educational needs of learners;

• approach to ensuring the professional development of its staff;

• approach to strategic planning;

• approach to ensuring that its activities are undertaken in an environmentally sustainable manner; and

• approach to ensuring its long-term financial viability, including capital investment and management.

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Recommendation 42 page 56

The Commission recommends that profiles be used as a basis for determining the allocation of public funding

to eligible tertiary education providers, but not for determining which programmes and activities they may

carry out, and that consequently s223(2) of the Education Act 1989 be repealed.

Recommendation 43 page 57

The Commission recommends that profiles contain two main parts: the first containing general information

on the programmes and activities of the provider; and the second identifying, for providers with approved

charters, the funding requested by the provider for its anticipated activities over the forthcoming triennium.

Recommendation 44 page 58

The Commission recommends that all profiles include the following general types of information, although

the exact content of profiles will vary according to the provider’s functional classification:

a) the provider’s mission and special character;

b) the provider’s strategic direction;

c) the provider’s contribution to the tertiary education system; and

d) the provider’s planned activities and programmes over a three-year timeframe.

In addition, the profiles of chartered providers should include:

e) forecasts of demand for currently funded programmes and activities;

f) planned new programmes or activities;

g) planned rationalisation of programmes or activities;

h) performance indicators in relation to relevant outputs and objectives (in relation to the charter provisions

of the provider); and

i) financial forecasts for the provider.

Recommendation 45 page 60

The Commission recommends that providers be required to undertake consultation with relevant stakeholders

in the development of their profiles.

Recommendation 46 page 60

The Commission recommends that, where appropriate, the TEC initiate meetings between providers to discuss

their respective profiles.

Recommendation 47 page 60

The Commission recommends that profiles be given a statutory basis, replacing and incorporating the current

requirements in relation to statements of objectives, Skill New Zealand contracts, and special purpose grants.

Recommendation 48 page 61

The Commission recommends that the following legal forms be recognised for tertiary education providers:

a) public tertiary education institutions;

b) private or community tertiary education providers;

c) industry training organisations; and

d) government training enterprises.

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Recommendation 49 page 61

The Commission recommends that s162 of the Education Act 1989 be amended to add a new type of TEI,

namely a ‘specialist institute or college’ with the following statutory characteristics:

‘A specialist institute or college is characterised by teaching (and, where relevant, research of a specialist

nature) that maintains, enhances, disseminates, and assists in the applications of knowledge and expertise’.

Recommendation 50 page 62

The Commission recommends that, in terms of the suggested functional classifications, a ‘specialist institute or

college’ be classified using any of the functional classifications except for ‘comprehensive teaching’ or

‘comprehensive teaching and research’.

Recommendation 51 page 62

The Commission recommends that those TEIs currently established as a ‘college of education’ under s162 of

the Education Act 1989 be re-established as a ‘specialist institute or college’.

Recommendation 52 page 63

The Commission recommends that private and community tertiary education providers be recognised under

s236 of the Education Act 1989; and that the term ‘private training establishment’ be replaced with ‘private or

community tertiary education provider’.

Recommendation 53 page 63

The Commission recommends that, before an ITO is recognised:

a) it be demonstrated to the Minister, on the advice of the TEC, that the recognition of such an ITO is

desirable in the interests of the industries involved and the tertiary education system; and

b) it be demonstrated to NZQA that the proposed ITO would meet the requisite quality standards.

Recommendation 54 page 63

The Commission recommends that, for any ITO to alter the scope of its recognition or merge with another

ITO, a three-part process be instituted:

a) the TEC be consulted, and provide a preliminary view on the desirability of a particular proposal, prior to

an application for quality assessment being lodged with NZQA;

b) it be demonstrated to NZQA that the ITO (or the proposed merged entity) would meet the requisite

quality standards for the new scope of recognition; and

c) it be demonstrated to the Minister, on the advice of the TEC, that the proposed change is in the interests

of the industries involved and the tertiary education system.

Recommendation 55 page 64

The Commission recommends that current legislative limits on the funding of the delivery of training by ITOs

(as opposed to the development of arrangements for the delivery of training) continue.

Recommendation 56 page 64

The Commission recommends that, in terms of the proposed functional classifications, an ITO have its activities

classified as ‘industry or professional education and training’ for the purposes of negotiating charters and profiles.

Recommendation 57 page 64

The Commission recommends a review be undertaken of the role and function of government training

establishments (GTEs), to better integrate them with the rest of the tertiary education system.

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Recommendation 58 page 65

The Commission recommends that, before the right to use a protected term is granted by the Minister on the

advice of the TEC, the provider in question demonstrate not only that it meets the requisite quality standards,

but also that such action is in the best interests of the tertiary education system as a whole.

Recommendation 59 page 65

The Commission recommends that those providers which have been granted the right to use protected terms

(including both TEIs and non-TEIs) be able to demonstrate that they are continuing to meet the requisite

quality standards, as a part of existing quality-assurance processes.

Recommendation 60 page 65

The Commission recommends that the following terms continue to be protected in legislation:

• ‘university’; and

• ‘polytechnic’.

Recommendation 61 page 65

The Commission recommends that two new terms be protected in legislation:

• ‘institute of technology’ as a synonym for ‘polytechnic’; and

• ‘whare wananga’.

Recommendation 62 page 66

The Commission recommends that a ‘university’ be required to meet the requirements currently specified in

s162(4)(a) & (b)(iii) of the Education Act 1989.

Recommendation 63 page 66

The Commission recommends that, in terms of the proposed functional classifications, a provider using the

protected term ‘university’ have its activities classified as ‘comprehensive teaching and research’. In addition, a

‘university’ might have some of its activities classified as:

• specialist teaching and research;

• industry or professional education; and/or

• community education and training.

Recommendation 64 page 67

The Commission recommends that universities remain the primary providers of post-graduate education; and

that universities be encouraged, through the profiling system, to co-operate and collaborate in the overall

provision of post-graduate education and in the conduct of research.

Recommendation 65 page 67

The Commission recommends that where providers, other than universities, can demonstrate that they have

the expertise, critical mass, and intensity of research required to support post-graduate programmes they be

permitted to offer these programmes; and that the profiling system be used to encourage them to co-operate

with universities (nationally or internationally).

Recommendation 66 page 67

The Commission recommends that universities be encouraged, through the profiling system, to concentrate

on their core mission, namely the delivery of degree programmes and the conduct of research; and that they

be discouraged from offering programmes which unnecessarily duplicate those of other providers.

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Recommendation 67 page 67

The Commission recommends that the profiling system be used to encourage universities to co-operate and

collaborate with non-university providers in the regional provision of education and training, particularly at

degree level.

Recommendation 68 page 67

The Commission recommends that a ‘polytechnic’ or ‘institute of technology’ be required to meet the

requirements currently specified in s162(4)(b)(ii) of the Education Act 1989.

Recommendation 69 page 68

The Commission recommends that, in terms of the suggested functional classifications, a provider using the

protected term ‘polytechnic’ or ‘institute of technology’ have its activities classified as:

• comprehensive teaching;

• community education and training; and/or

• industry or professional education and training (in at least four fields).

In addition, a polytechnic or institute of technology might also have some of its activities classified as:

• learning and assessment support;

• specialist teaching; and/or

• specialist teaching and research (in areas where the polytechnic or institute of technology offers post-

graduate programmes).

Recommendation 70 page 68

The Commission recommends that polytechnics be encouraged, through the profiling system, to concentrate

on their mission, namely vocational education (including relevant degree-level education), community

education, second-chance education, and research with an applied or technological focus; and that they be

discouraged from offering programmes which unnecessarily duplicate those of other providers.

Recommendation 71 page 68

The Commission recommends that polytechnics be encouraged to focus their degree offerings in areas where

they have a specific concentration of expertise and intensity of research, and where there are particular

industry needs.

Recommendation 72 page 68

The Commission recommends that the profiling system be used to encourage polytechnics to offer post-

graduate programmes only in collaboration with a university or research institute (nationally or

internationally).

Recommendation 73 page 69

The Commission recommends that the profiling system be used to encourage polytechnics with a regional

focus to base most of their programmes on the needs of their particular region, and to co-operate and

collaborate with other providers to enable access to education and training for those in their region.

Recommendation 74 page 69

The Commission recommends that a ‘whare wananga’ be required to meet the requirements currently

specified in s162(4)(b)(iv) of the Education Act 1989.

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Recommendation 75 page 69

The Commission recommends that, in terms of the suggested functional classifications, a provider using the

protected term ‘whare wananga’ have its activities classified principally as ‘akoranga Maori’. In addition, a

‘whare wananga’ may have some of its activities classified within other relevant classifications.

Recommendation 76 page 69

The Commission recommends that processes be established by the TEC to enable Maori to play a central role

in determining which providers meet the statutory criteria for being defined as a ‘whare wananga’.

Recommendation 77 page 70

The Commission recommends that the protected term ‘whare wananga’ may be applied to either a TEI or a

private/community tertiary education provider.

Recommendation 78 page 70

The Commission recommends that priority be given to a review of the role of ‘whare wananga’ in meeting

national, local, hapu and iwi needs, including a consideration of the adequacy of current provision.

Recommendation 79 page 72

The Commission recommends that the TEC base its determination of whether or not to fund particular

programmes and activities (as stated in the profiles of chartered providers) on clear statutory criteria.

Recommendation 80 page 73

The Commission recommends that progress continue on the harmonisation of processes operated by NZQA

and other quality-assurance bodies, to improve the consistency of quality assurance across the tertiary

education system.

Recommendation 81 page 73

The Commission recommends that the validation of providers’ performance in relation to their charters

and/or profiles form a key component of the quality-assurance processes of NZQA and other quality-assurance

agencies.

Recommendation 82 page 73

The Commission recommends that there be no a priori limit on the number of providers of a particular type;

and that decisions on particular proposals for the establishment of new TEIs, changes in TEI status, or the

funding of non-TEIs be made on a case-by-case basis that takes into account the relevant statutory criteria.

Recommendation 83 page 73

The Commission recommends that the TEC initiate reviews of provision within the tertiary education system in

priority areas; and that it make recommendations to the Minister and to providers on any actions necessary to

alter the nature or amount of provision.

Recommendation 84 page 74

The Commission recommends that, before any new TEI is established by the Government:

a) it be demonstrated to the Minister, on the advice of the TEC, that the addition of such a provider is

desirable (that is, it is in the best interests of the tertiary education system and the nation as a whole); and

b) it be demonstrated to NZQA that the proposed TEI would meet the requisite quality standards.

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Recommendation 85 page 74

The Commission recommends that, for any TEI to change its institutional type (or merge with another

institution of a different type), a three-part process be instituted:

a) the TEC be consulted, and provide a preliminary view on the desirability of a particular proposal, before an

application for quality assessment can be lodged with NZQA;

b) it be demonstrated to NZQA that the TEI (or the proposed merged institution) would meet the requisite

quality standards for the proposed institutional type; and

c) it be demonstrated to the Minister, on the advice of the TEC, that the proposed change is in the best

interests of the tertiary education system and the nation as a whole.

Recommendation 86 page 74

The Commission recommends that the recognition of non-TEI providers continue to be based upon the provider

meeting the requisite quality standards; and that decisions on public funding (for all or any of their activities) be

at the discretion of the TEC, once a charter for the organisation has been approved by the Minister.

Recommendation 87 page 76

The Commission recommends that the existing colleges of education consider the full range of options for co-

operation, collaboration, or merger with other providers, particularly universities.

Recommendation 88 page 76

The Commission recommends that a review be undertaken of the future shape of pre-service teacher

education provision, taking into account international literature on teacher education, the role of the

proposed Education Council, and the long-term needs of the school and early childhood education systems.

Recommendation 89 page 76

The Commission recommends that all providers of teacher education programmes be encouraged, through the

profiling system, to co-operate with each other in the development and review of teacher education programmes.

Recommendation 90 page 78

The Commission recommends that a university might be termed a ‘university of technology’ provided it meets

the requirements of a university as set out in the Education Act 1989 and has a particular focus on industry or

professional education and training. The Commission does not recommend that a separate legal category of

‘university of technology’ be introduced.

Recommendation 91 page 80

The Commission recommends that further analysis be undertaken of the options for the validation of degree

programmes offered by providers other than universities. The Commission does not recommend the

establishment of a ‘New Zealand University of Technology’ in the form currently proposed by the Association

of Polytechnics in New Zealand.

Recommendation 92 page 85

The Commission recommends that a establishment unit be set up in early 2001 to begin the process of

establishing the TEC; and that this unit work in conjunction with TEAC, the Ministry of Education, and the

State Services Commission in implementing the recommendations in this Report.

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Recommendation 93 page 86

The Commission recommends that interim profiles be introduced for 2002, with support from the TEC

establishment unit in an integrating and monitoring capacity.

Recommendation 94 page 86

The Commission recommends that the process of re-negotiating TEI charters to implement the

recommendations in this Report commence in 2001, with support from the TEC establishment unit.

Recommendation 95 page 86

The Commission recommends that the process of negotiating charters for non-TEIs begin in 2001, with

support from the TEC establishment unit.

Recommendation 96 page 87

The Commission recommends that the Skill New Zealand documents of accountability be reviewed in early

2001, with input from the TEC establishment unit, to enable the transition to the new central structures

recommended in this Report.

Recommendation 97 page 87

The Commission recommends that, as part of the examination of legislative changes necessary to implement

the recommendations in this Report, a substantive review be undertaken of the tertiary education provisions of

the Education Act 1989 (Parts XIII to XXV, and XXVII) and of the Industry Training Act 1992, with the

objective of improving the coherence and comprehensibility of these provisions.

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Preface

The Role of the Tertiary Education Advisory Commission

The Tertiary Education Advisory Commission1 was established by the Government in April 2000 to devise a long-

term strategic direction for the tertiary education system. The overall aim of the strategy is to make New Zealand

a world-leading knowledge society by providing all New Zealanders with opportunities for lifelong learning.

Its current members are:

• Russell Marshall (Chairperson)

• Jonathan Boston

• Hugh Fletcher

• Tony Hall

• Patricia Harris

• John Ruru

• Linda Sissons

• Linda Tuhiwai Smith

• Ivan Snook.

Dr Norman Kingsbury was Chair of the Commission from its establishment until November 2000. Dr

Kingsbury played an important part in the development of this Report. Sir Colin Maiden, Special Advisor to

the Chair, provided additional advice and input into the Commission’s deliberations.

An Integrated Set of Reports

The Commission intends to publish four reports on the tertiary education system, of which Shaping the System is

the second. The four reports will form an integrated set that provides a comprehensive strategic direction for

tertiary education in New Zealand.

Shaping a Shared Vision, the Commission’s first report, sets out the Commission’s overall approach to its task

and has formed the basis of its future work programme. The vision and initial conclusions from that report

have been built on in Shaping the System to provide a framework for shaping the tertiary education system.

Shaping the System is concerned with the necessary mechanisms, policy instruments and structures to help the

Government and other stakeholders work together in steering the development of the tertiary education

system more effectively.

The Commission has reviewed its workplan in the light of the reports it has produced to date. It has

determined a need to focus more clearly on the priorities and objectives for tertiary education, as a key guide

to determining what should be funded. It will then address in more detail how the steering framework

outlined in this Report should be used to achieve these objectives. This will include a detailed set of

recommendations relating to the funding of tertiary education, but will also address important matters such as

the promotion of co-operation and collaboration and ensuring that courses and learning opportunities are

relevant to the needs of individuals, employers and the nation as a whole.

The Commission’s third report will address the form and content of the tertiary education strategy, and will be

submitted to the Associate Minister of Education (Tertiary Education) in June 2001. The fourth report will deal

with the implementation of this strategy, including funding issues. This report will be submitted in August 2001.

1 The acronym ‘TEAC’ and the term ‘the Commission’ are used to describe the Tertiary Education Advisory Commission throughout this report.

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The Commission’s Approach to the Report

The Commission has used an open and consultative process in preparing this Report. It received formal

written submissions, entered into formal consultations, held informal discussions, attended conferences and

workshops, and visited providers. It also established two formal working groups to provide further input into

the process, an International Reference Group and a Research Working Group.

Information and evidence from these various streams has been carefully considered by the Commission and

are reflected in its proposals for a new steering framework. Because it has consulted so widely within the

tertiary education system, the Commission believes that its proposals and recommendations will attract a

strong measure of support from those most directly involved in providing tertiary education. The Report’s

recommendations have been necessarily detailed, as the Commission has wanted to provide sufficient

specificity about its proposals so that readers will be in no doubt about what is intended. Much needs to be

done at an implementation level, but Shaping the System provides the template for a more responsive and

effective tertiary education system.

A Focus on both the Short and Long Term

The Commission’s terms of reference2 direct it towards the long term, to provide strategic advice rather than

short-term solutions. The Commission is also aware that the achievement of long-term aims must begin with

short-term action. Therefore, while this Report sets out the Commission’s advice on the long-term strategy for

the tertiary education system, it also addresses the implications of that strategy for the short-to-medium term.

An Integrated Package

The Commission’s proposals are intended to form an integrated and mutually reinforcing package.

Accordingly, the rejection of one or more elements of the package will threaten the integrity and effectiveness

of the recommended approach. This is not to suggest that there is no scope for improvements to specific

elements – but the Commission would need to reconsider its overall approach, and some of its

recommendations, if a major part of the package were to be rejected by the Government.

Purpose of the Report

Shaping the System develops an outline of a proposed tertiary education strategy and the steering mechanisms,

policy instruments and structures required to implement some of the 14 conclusions reached by the

Commission in its first report. In particular, this Report concentrates on the following conclusions:

• …designing the tertiary education system in a manner that responds to the challenge of lifelong learning in a

knowledge society, which may require new ways of organising, delivering and recognising tertiary education

and learning (Conclusion 5);

• …viewing the tertiary education system comprehensively and as a whole, and the need for the various funding

and regulatory arrangements within it to work together in a clear and coherent manner (Conclusion 6);

• …bringing about more active engagement by the Government with the tertiary education system, to ensure

responsiveness to the needs of society and linkages to a wider national strategy (Conclusions 7 and 8);

• …encouraging greater clarity of roles and responsibilities within the tertiary education system (Conclusion 10);

• …requiring the need for clear and agreed public statements of the distinctive character and contribution to the

tertiary education system of each provider (Conclusion 11); and

• …encouraging and enabling more active engagement with stakeholders and other interested parties outside the

system (Conclusion 12).

2 The Commission’s terms of reference can be found in Shaping a Shared Vision or at the Commission’s website www.teac.govt.nz

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This Report focuses on the high-level strategy, policy instruments and structures necessary to shape the tertiary

education system and sets the context for the remainder of the Commission’s reports.

Report Structure

The Report begins with an Executive Summary, followed by the Commission’s recommendations. Chapters 1 to 3

set the scene and analyse the major influences that affect the shape of the tertiary education system and the

problems that arise from the current administrative arrangements. Chapter 4 outlines the Commission’s proposed

steering framework and the new intermediary body it is recommending. Chapters 5 to 9 describe in more detail

how the proposed framework will operate. Chapter 10 addresses some of the transition arrangements.

Appendix 1 sets out the guiding principles for the design of policy for the tertiary education system, as set out

in Shaping a Shared Vision. Appendix 2 contains a summary and a list of the submissions made to the

Commission. Membership of the Commission’s two working groups can be found in Appendix 3, along with a

list of those groups and individuals the Commission consulted. Appendix 4 provides a description of the

current tertiary education system, including forms of provision, regulatory arrangements and administrative

structures. Appendix 5 contains a case study on the provision of teacher education.

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Chapter 1: Introduction

In its first report, Shaping the System, the Commission described its vision for an inclusive knowledge society and

stated that the tertiary education system has an important role in contributing to the economic growth and

social development of New Zealand, including:

• cultivating the intellect and personal well-being;

• reducing inequality;

• preserving, renewing and transmitting culture;

• building research capability and creating new knowledge;

• responding to the needs of the labour market;

• supporting business, industry development and knowledge transfer; and

• promoting social cohesion.

Such a vision requires a tertiary education system that ensures access for all learners to knowledge and learning,

and also enables excellence in teaching, learning and research.3 The major difficulty the Government faces in

achieving this aim is how to maximise participation rates and equitable access, while, at the same time,

ensuring an adequate quality of provision in the context of ever-constrained budgets.

This is not a new issue. The major review of post-compulsory education and training undertaken in 1988 (the

Hawke report) concentrated on ‘defining the government’s role in securing effective funding and management

systems while ensuring equity in both access and process in the post-compulsory education and training sector’.4

This was within a context of improving access to post-compulsory learning opportunities for all New Zealanders.

The Hawke report considered how to achieve the right mixture of devolution and accountability, and the

appropriate balance between local initiative and national uniformity. It recommended a number of significant

changes to the system as it then existed. Most of these were incorporated in Learning for Life (the Government’s

1989 policy statement) and resulted in significant changes to the tertiary education system.

The changes were designed to improve the administration of tertiary education, increase its flexibility and

responsiveness and ensure the most effective use of resources. They were also designed to improve access and

increase opportunity, develop pathways between institutions, and promote quality education and training.

The Learning for Life reforms substantially changed the tertiary education system. All tertiary education institutes

(TEIs) are now autonomous institutions with their own governing councils (previously this was only true of

universities). They have the freedom to own and make decisions about their assets; and also design and develop

their own courses and programmes. Institutional autonomy and academic freedom are protected in the

Education Act 1989; and public institutions operate under charters negotiated with the Minister of Education.

The New Zealand Qualification Authority (NZQA) was established to oversee the quality of all non-university

qualifications for which public funding was sought. Polytechnics were able to offer degrees and – against

predictions at the time that this change would not have a significant impact on non-university institutions –

there are now 177 degrees offered by polytechnics, colleges of education and private training establishments

(PTEs). The recommendation in Learning for Life that NZQA have a role in monitoring inter-university

moderation and validation processes was not implemented.

The reforms also led to changes in the funding of the tertiary education system. For instance, TEIs are in the

main now bulk funded. The funding formulas used are applied uniformly, so that similar courses receive the

3 Shaping a Shared Vision, p.6. 4 Hawke (1988), p. 3.

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same funding regardless of whether they are provided in polytechnics, universities, or PTEs. As well,

institutions are able to generate income from the sales of services – and students contribute a greater

proportion of the costs of their courses.

The Department of Education became the Ministry of Education, and the Training Support Agency and the

Vocational Guidance and Careers Advisory Agency were both established as stand-alone agencies. These have

since become Skill NZ and Career Services respectively. The Tertiary Research Board proposed in Learning forLife for the administration of tertiary-provider research funds was not established.

Many of the recommendations in Learning for Life have been implemented either fully or partially. Not all of

the changes, however, have resulted in their intended outcomes. The system in 2001 is as much a result of the

unplanned consequences of the changes as the planned-for changes themselves.

Learning for Life recognised that there was a need for continuing review of the tertiary education system and

recommended that ‘the Minister of Education consider establishing a post-compulsory education and training

advisory council. This council would be a national body advising on concerns of national importance in post-

compulsory training and education and would include employer and union representatives. The council would

be compulsorily reviewed at the end of three years’.5 Eleven years later, the Tertiary Education Advisory

Commission has been established to provide what amounts to a review of the tertiary education system. It is

worth noting that many of the issues and recommendations made in both Hawke and Learning for Life are as

equally applicable now as they were in the late 1980s.

This suggests that the changes recommended by the Commission to the tertiary education system will be

evolutionary rather than revolutionary. The Commission in its first report stated that it would ‘seek to build on

the strengths and desirable features of the existing system’.6 Therefore, the Commission’s second Report,

Shaping the System, provides an opportunity to identify what has happened as a result of the earlier policy

changes and to identify further change that builds on the positive developments of the last decade.

Many of the problems identified in Learning for Life – such as lack of equity amongst institutions, uncoordinated

policy advice, and failure to attract a wide range of students7 – still persist within the system to some degree.

Specific issues identified in Learning for Life that are still relevant in the tertiary education system include:

• fragmentation of the system into various unconnected sectors that often do not recognise the achievements

and contributions that each has to offer;

• duplication of courses and services offered by different publicly funded institutions within a given area –

often resulting in unfilled places and a misuse of resources;

• a lack of coherent information about much of the system;

• sectoral infighting and a lack of overall priorities being set for the tertiary education system; and

• few incentives to manage effectively.

Learning for Life stated that these problems were symptomatic of a system that needed a clear sense of direction

and the freedom to manage its resources if it was to become more equitable, more responsive to industry and

the wider community, and a greater source of excellence in our society.8

The Commission’s first report also identified the importance of a clear sense of direction for the tertiary

education system. One of the conclusions from this report stated:

… the tertiary education system requires a clear strategic direction. This direction should be

responsive to the needs of society and the economy, and those of tertiary education providers

themselves, and be able to evolve and adapt to sometimes rapid changes in those needs.9

5 Learning for Life, p. 57. 6 Shaping a Shared Vision, p.12. 7 Learning for Life Two, p.9.8 Learning for Life, p.9. 9 Shaping a Shared Vision, Conclusion 7.

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This conclusion lies at the heart of Shaping the System – and highlights the fact that the tertiary education

system should form part of a wider national strategy. Part of this national strategy should provide a framework

for strategic planning within the tertiary education system. This would then ensure that tertiary education

policies operate in harmony with those for other policy areas, including research, science and technology,

economic development, and the development of human capital in the widest sense.

The current Government has undertaken a number of initiatives that the Commission believes could help

develop a national strategy to drive strategic policy advice. These initiatives include this review of the tertiary

education system by the Commission, a review of the role of science and innovation within the economy by the

Science and Innovation Advisory Council, the holding of various business forums, and the current reviews of

the industry training strategy and community and adult education.

In the Commission’s view, a national strategy should focus on strengthening New Zealand’s identity,

developing New Zealand’s areas of comparative advantage, and enhancing New Zealand’s social well-being,

economic prosperity and environmental sustainability. The tertiary education strategy in turn should focus on

the key issues of access, achievement, and quality. Both strategies should interact in ways that allow them to

shape and influence each other in a continuing dialogue.

A national strategy enables the Government to articulate the kind of society it believes New Zealand should be

aiming for. In Shaping a Shared Vision, the Commission described its vision for an inclusive knowledge society

where all New Zealanders have access to relevant learning opportunities. The Commission believes this vision

should steer the development of the tertiary education system and also the wider national strategy.

Recommendation 1

To achieve an inclusive knowledge society, the Government should pursue policies that are:• open, outward looking, internationally oriented and engaged;• vibrant, diverse, innovative and imaginative;• fair, inclusive and democratic;• informed by the Treaty of Waitangi;• enriched by our natural and cultural heritage; and• sustainably prosperous.

In an environment of scarce resources, the Government needs to make choices on how those resources are

allocated. The Learning for Life reforms introduced charters and corporate plans (now called statements of

objectives) as key tools for allocating resources to individual TEIs. While these have been useful tools, there is

a widely held view that they have not been used as well as they might have been and it is now time to review

the range of current steering mechanisms.

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10 Shaping a Shared Vision, p.9. 11 The departments and Crown agencies with responsibilities in relation to the regulation, funding and monitoring of the tertiary education sector.

The central steering bodies in the current system are the Ministry of Education, Skill New Zealand, the New Zealand Qualifications Authority, and the New Zealand Vice Chancellors Committee.

12 Ministry of Education (2000), p. 28. 13 Ministry of Education (2000). 14 Based on the International Adult Literacy Survey, 1994/95. (The best source of data that provides international comparisons is

Education at a Glance: OECD Indicators 2000 edition, OECD 2000).

Chapter 2: Critical Issues and Problems

In Shaping a Shared Vision, the Commission defined the tertiary education system as:

…learning at all levels within tertiary institutions, programmes provided by private and

government training establishments, business-based education, industry training, and all lifelong

learning beyond the compulsory school system. It thus includes both formal and non-formal

education, and what is termed second-chance education.10

This system is steered and influenced through a range of central structures,11 policy instruments and funding

mechanisms. While a full description of the system as it operated in 1999 can be found in the Ministry of

Education report New Zealand’s Tertiary Education Sector: Profile and Trends 1999, a brief description is given in

Appendix 4. This appendix gives an overview of provider types, current regulatory tools and measures, current

steering mechanisms, and funding.

This chapter briefly summarises some of the key strengths and weaknesses of the tertiary education system as it

has evolved since the Learning for Life reforms of the late 1980s. The intention here is to highlight the issues

that need to be addressed in designing a policy framework for the tertiary education system.

2.1: AchievementsAmong the positive features of the current tertiary education system are the diversity of provision and therelatively high levels of participation. As has been widely documented, participation rates in formal educationhave increased rapidly since the mid 1980s. For instance, participation in tertiary education by those aged 18 –24 has grown from 20.5 per cent of the population in 1990 to 28.9 per cent in 1999. At the same time,participation in tertiary education for those aged over 25 has grown from 2.7 per cent of the population in1990 to 4.5 per cent in 1999.12 These increases in participation since the mid 1980s reflect at least three majortrends: first, a wider range of people are participating in the system; second, more students are returning tostudy later in life; and, third, the average length of study has increased.

A snapshot of New Zealand tertiary education, as reported in 1999,13 shows that there were over a quarter of amillion students enrolled in TEIs (approximately 7 per cent of the total population), and that around 400,000participated in some form of tertiary education during the year.

It is worth noting that the growth in total numbers began to slow in the latter part of the 1990s. It is continuingto show signs of levelling off; most likely because of demographic changes and the increased costs of tertiaryprogrammes. Current levels of participation, however, compare favourably with most other OECD countries.Indeed, in relation to the participation of adults in education and training, New Zealand scores well above theOECD average: third overall, with first and second place going to Sweden and Switzerland respectively.14

Participation rates are only part of the story. Another important indicator of success is improved completionrates. Data from the Ministry of Education for 1999 show that over 60,000 students completed 63,000programmes of study within TEIs – a 31 per cent increase over completions in 1995. More than half thegraduations were at a degree or postgraduate level.

In summary, it is clear that the changes to the tertiary education system in the past decade have brought somesignificant benefits, including wider opportunities for participation and a more flexible pattern of delivery. Butthey have also brought a number of problems, including growing concerns about the overall coherence,responsiveness and effectiveness of the policy framework.

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2.2: Problems with the Current SystemThe problems currently afflicting the tertiary education system figured prominently in submissions to the

Commission. For instance, it was argued by the Association of University Staff in its submission (121) that:

…the current policy framework has resulted in an unplanned and ad hoc expansion of tertiary

education provision that has proved both wasteful and unnecessary for a country with a small population

and limited resources. In particular, it has resulted in: an inefficient and ineffective use of the nation’s

scarce resources; a narrowing of the range of available programmes; the loss of essential polytechnic

trades programmes; the duplication of degree and other programmes; a decline in the quality of

provision … a threat to both the national and international credibility of New Zealand’s university level

education; and, a threat to the viability of some essential public tertiary education institutions.

Whether or not these statements reflect the full picture, the evidence presented to the Commission certainly

suggests that there are some serious weaknesses in the current regulatory arrangements.

In the Commission’s view there are at least six key problems with the current policy arrangements. These are:

• an excessive reliance on a demand-driven funding system and competition between providers;

• weak central-steering mechanisms;

• a lack of regulatory coherence;

• a failure to fulfil Treaty of Waitangi obligations;

• inequitable access; and

• inadequate resources.

2.2.1 Demand-driven and Competitive Pressures

Under the current funding arrangements, the resources received by tertiary providers are largely dependent

upon the numbers of students they can attract. This creates strong pressures for providers to compete with

each other across a wide range of disciplines and activities. While a funding system of this nature encourages

providers to be responsive to the needs and interests of students, it also has a number of well-recognised

negative effects. These include greater difficulties for strategic planning at a provider level, increased risks

associated with investing in infrastructure and expensive equipment, the proliferation of courses and

programmes, an incentive to focus on quantity rather than quality, and expenditure of significant resources on

advertising and marketing. At a macro level, demand-driven funding is unlikely by itself to produce a system

that is able to respond to the changing needs of the economy and society – particularly the kind of niche

economy that New Zealand has.

Compounding the problems associated with the current funding system is the absence of any requirement for

individual providers to consider the potentially negative externalities (that is, third-party effects) of their

behaviour. For instance, there is little to prevent a provider introducing a new programme in direct

competition with an existing provider in the same region. If there is sufficient student demand to sustain two

programmes of a reasonable quality, then there may be no difficulty. But if demand is not adequate, the more

competitive environment may result in both providers struggling to offer quality programmes. Indeed, in some

situations, the added competition may have damaging consequences not merely for the quality of the

programmes in question, but also for the financial viability of one or other of the providers. Establishing new

programmes is expensive, and where it merely duplicates the programmes offered by another provider in the

same region such expenditure is of questionable value.

Furthermore, providers can make substantial changes to the nature and level of the programmes they offer on an

incremental basis without taking into account the cumulative impact of these changes on the wider tertiary

education system. Whilst new programmes cannot be introduced unless they meet the appropriate quality-

assurance standards, there is no provision for a similar test to be applied in relation to the desirability of providers

making major adjustments to their educational ‘character’ through the cumulative impacts of such changes.

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A related issue is that when providers decide to terminate the delivery of particular programmes (for example,

because of inadequate student demand), they are not obliged to consult with the government or to consider

how their decisions may affect the choices and opportunities available to learners. Where there are many other

providers offering similar types of programmes, the decision by one or more providers to terminate their

offerings may have only minimal consequences. If, however, the programme is unique or one of only a few in

the country, decisions by individual providers may have much more serious implications for the tertiary

education system as a whole.

Courses and programmes are not the only aspects of the system subject to demand-driven pressures. New Zealand’s

ability to sustain a world-class research capability is also threatened by an excessively competitive ethos, fragmented

and under-resourced research communities, and a lack of planning and co-operation between providers. These

problems are partly attributable to the fact that current funding incentives do not sufficiently encourage a focus on

excellence, but rather make important research areas vulnerable to volatile student demand.

In addition, the Commission has recognised that research in New Zealand’s tertiary education system is too

often disconnected from the rest of the national innovation system and reflects too little concentration and

focus by individual institutions on their areas of strength.

2.2.2 Lack of Adequate Steering Mechanisms

Many observers of the tertiary education system in recent years have raised concerns about the Government’s

limited capacity to intervene to protect the national interest. Some areas where the Government might wish to

intervene are to improve allocative and productive efficiency, to encourage quality, to ensure the continuance

of priority programmes, and to ensure adequate collaboration and co-ordination between providers.

To start with, the Minister of Education has only limited powers to influence the desired level of provider

diversity or prevent ‘institutional drift’. The powers that are available are largely negative (for example,

preventing mergers or changes of provider ‘type’). In the case of PTEs or industry training organisations

(ITOs), the Minister has little or no involvement in their establishment. Likewise, when a TEI faces severe

financial difficulties – as has occurred with increasing frequency in recent times – the policy options available

to the Minister are extremely limited and tightly prescribed.15

A further problem is that some of the current regulatory powers available to the Government are relatively

‘light’ on statutory criteria. For instance, in the provision of courses above level 3 on the National

Qualifications Framework (NQF), there are few statutory constraints on decisions over which providers or

courses should be publicly funded once quality criteria are met. To take another example, there are

insufficient statutory criteria to guide the Minister in making decisions about the establishment of new TEIs or

changing the classification of institutions.

The Government, however, still has powers of various kinds that it could exercise in certain circumstances. It could:

• refuse to fund a proposed new programme (or even an existing programme);

• restrict the number of student places funded for a particular programme;

• limit the period of time for which a particular programme is funded; or

• reduce the level of funding applied for particular programme or category of programmes.

The Government could also use s199(1)(b) of the Education Act 1989 to provide special supplementary grants

to ensure that a particular programme is maintained in circumstances where a provider no longer deems it to

be financially viable. Potentially, the same provision could also be used to encourage certain kinds of

collaboration or co-operation between providers. Additionally, the Government could employ s321 of the Act

and make grants to ‘other providers’, or employ s97A of the Education Act 1964 and make grants to

‘continuing education organisations’.

15 During the drafting of this Report to Ministers, the Government has introduced legislation that will give the Minister of Education additional powers to intervene in the case of threats to the financial viability of public tertiary institutions (Education Amendment Bill No.2, December 2000).

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There are, however, difficulties with such approaches. Active intervention of this kind would pose an obvious

threat to institutional autonomy and the affected providers might challenge the Government’s actions. Also,

the Government might deny funding for a programme of a particular provider in circumstances where s223(2)

of the Education Act 1989 could not reasonably be invoked. In this case, a provider might seek judicial review

of the Government’s use of its discretionary powers. There could be two grounds for such a challenge: that the

criteria being employed were unclear, unreasonable or inconsistent with the requirements of other sections of

the Education Act 1989; or that the criteria were being applied in an unreasonable or inappropriate fashion.

The lack of comprehensive information about the tertiary education system as a whole also poses a problem if

the Government wishes to steer the system effectively. For instance, activity in the PTE and community and

adult-education parts of the system is not fully documented, making it difficult to get a complete picture of

what educational activities are being funded or the effectiveness of this expenditure.

2.2.3 Coherence

The coherence of the tertiary education policy framework can be challenged on many fronts. Two particular

issues are worth emphasising at this point:

• an inadequate and inflexible system of provider classifications; and

• an inconsistent approach to the regulation of different parts of the tertiary education system.

Recognising difference

While tertiary education is made up of a wide range of providers, the categories used to classify these providers

are extremely broad. There is little differentiation between providers, either within a classification or between

classifications. This leaves the Government with little flexibility for steering individual institutions on the basis

of provider type.

There is, however, a rigid delineation between provider categories that, when coupled with the broad

classifications, makes it hard for institutions to obtain recognition of their specialisation in teaching and

research. It is clear that not all institutions within a classification are the same. Telford Polytechnic, for

example, is very different from UNITEC. Similarly, the University of Auckland is very different from Auckland

University of Technology. Or to take another example, Wai Tech, a Maori16 PTE, is very different from the

Bible College or the Whitcliffe College of Art and Design. Yet all of these institutions are designated as PTEs.

At present these differences – or a specialist institution’s area of expertise – cannot be recognised or rewarded

through differential funding.

Regulatory coherence

Different parts of the tertiary education system are governed by different legislation: the Education Act 1989

and the Industry Training Act 1992. The two Acts establish administrative and funding systems that are not

complementary. The funding systems for industry training and second-chance education (Training

Opportunities Programmes (TOP), Youth Training, and Skill Enhancement) are capped. They use different

contracting processes, a different set of performance measures and are not integrated with the rest of the

tertiary education funding system. Co-ordination between the various structures for administering the different

parts of the system is poor.

The various policies in relation to ‘institutional’ provision, adult and community learning, workplace learning

and or second-chance education are not properly integrated or even well linked. Some of the powers of

intervention depend upon the provider ‘type’ and the source of funding. For example, currently only TEIs are

required to negotiate charters. By contrast, non-TEIs seeking EFTS-based funding are required, as are TEIs, to

negotiate statements of objectives and statements of service performance and report upon these annually.

16 Within this Report, the word Maori is used as a generic term that includes: the whakapapa-based whanau, hapu and iwi constituencies; socio-cultural or ethnically based Maori constituencies; and individuals.

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2.2.4 Failure to Fulfil Treaty of Waitangi Obligations

There has been considerable public debate, scholarship and policy development related to the Treaty of

Waitangi and its significance to New Zealand society. The Commission is well aware of the sensitivities of this

debate and recognises that open and informed discussion about the issues is healthy. However, in the

Commission’s view there has been a clear failure to achieve the following objectives:

• to promote understanding of the Treaty by all New Zealanders;

• to encourage high achievement and success for Maori;

• to build the capability of Maori society, business and industry;

• to develop the capability of Maori education organisations;

• to develop a Maori tertiary-education workforce;

• to provide culturally supportive, empowering learning outcomes; and

• to ensure collaboration across the system to improve outcomes for Maori.

The Commission acknowledges that many tertiary education providers have made innovative and serious

attempts to encourage the participation of Maori and reflect the strengths of Maori in positive ways. There are

some fine examples of innovative Maori programmes across the whole system, including second-chance

education programmes, industry training, student-support and bridging programmes, and post-graduate and

research programmes.

While there is something to celebrate in the diversity of initiatives that have arisen in the last decade, many of

these activities have been ad hoc, highly dependent on the good will and commitment of particular

individuals, and dependent on a very small Maori tertiary-education workforce.

A further impediment to the tertiary education system fulfilling its Treaty obligations has been the barriers to

the development of the three wananga – which were the subject of a report by the Waitangi Tribunal.17 The

Commission received submissions that argued for greater recognition of private and community providers and

the roles they play in addressing Maori educational disparities. Private and community providers of education

have offered specialised programmes and, therefore, catered for many students who would otherwise be

denied access to educational opportunities.

2.2.5 Inequitable Access

Notwithstanding the significant strides that have been made in increasing overall participation rates since the

mid-1980s, both Maori and Pacific peoples remain under-represented in tertiary education. Their pattern of

participation is also different from that of the general population.

Maori and Pacific peoples learners are over-represented in PTEs, where they make up 31 per cent and 10 per

cent respectively of enrolled students. The pattern is the reverse for TEIs: Maori (11.6 per cent) and Pacific

students (3.6 per cent) have much lower participation rates at these institutions than the general population.18

Maori students now make up 15.7 per cent of students enrolled in formal courses, but only one in twelve

Maori who left school in 1998 enrolled at university in 1999. The age pattern of participation for Maori also

differs from the general population: with 57 per cent of Maori in tertiary education being aged 25 or more

compared with 49 per cent for non-Maori.19 This suggests that Maori students are less likely to go directly from

school into some form of tertiary education.

Pacific students are under-represented in formal tertiary education generally, constituting 4.7 per cent of

students. One in eleven Pacific school leavers currently enrol at university.20

17 Waitangi Tribunal (1999). 18 Ministry of Education (2000), p. 10. 19 Ministry of Education (2000), p. 32. 20 Ministry of Education (2000), p. 10.

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Skill New Zealand-based programmes predominate in PTEs, and so PTEs provide an opportunity for those who

would not otherwise attend tertiary education. For Maori, in particular, PTEs appear to be an important

pathway for attaining tertiary qualifications from TEIs later in life.

Patterns in completing qualifications broadly follow enrolment patterns, with Maori and Pacific students being

more likely than others to gain certificates or diplomas rather than degrees. Nevertheless, the number of

Maori gaining first or post-graduate degrees was more than double that in 1995, while there was a 63 per cent

increase in the number of Pacific students doing so.21

People with disabilities also have difficulty in obtaining equitable access to the tertiary education system. The Royal

New Zealand Foundation for the Blind’s submission to the Commission (69) observed that ‘New Zealand continues

to have lower educational outputs for disabled students compared to other countries with a similar ratio of disabled

populations’. The Commission agrees that there is a need to set priorities for improving the access of disabled

students to tertiary education, so that the existing barriers and impediments to increased participation are removed.

2.2.6 Scarcity of Resources

The New Zealand tertiary education system has experienced a progressive reduction in the real level of public

resources per student (on an EFTS basis) for more than 15 years. In nominal terms, total government

spending on EFTS tuition subsidies has increased by an average of 2.2 per cent per annum from $0.99 billion

in 1991 to $1.18 billion in 1999. At the same time, however, there has been an increase in the number of EFTS

places funded, from 114,110 to 169,469, an increase of 48.5 per cent. The actual subsidy per EFTS place in

TEIs has decreased by 13 per cent since 1991 and was $7,260 in 1999.22 This has contributed to the financial

difficulties a number of institutions now find themselves in.

A recent report on university funding23 noted that between 1980 and 1999 real funding from Vote: Education

per EFTS fell by 36 per cent or $3,821. This represented an average annual rate of decline of 3.2 per cent.

While fees have been increased significantly for courses, in many case these have failed to fully compensate for

the reduction in public funding per EFTS. Additionally, the report revealed a substantial deterioration in the

ratio of academic staff to students over the same two decades. In fact, the EFTS-to-staff ratio increased from

12.5 in 1980 to 18.4 in 1998, an increase of 6 students per academic staff member or 48 per cent. These trends

raise serious questions about the capacity of New Zealand’s tertiary system to protect the desired level of

quality in relation to teaching and research.

The total income of TEIs grew by 64 per cent between 1992 and 1999 to reach $2.12 billion. This reflects

increased student numbers, higher fees and increased income from research grants and contracts. The

proportion of funding gained by TEIs from sources other than EFTS-based subsidies and student fees increased

from 12 per cent in 1992 to 23 per cent in 1999. Predictably, universities have the highest proportion of this

kind of income at 29 per cent. Colleges of education and wananga are most heavily reliant on public funding.

One of the notable trends has been a significant increase in the level of public funding received by PTEs. This

is largely a result of the decision in 1998 to fund PTEs on the same basis as TEIs from the beginning of the

year 2000. EFTS-based subsidies for PTEs rose from $7.0 million in 1998, to $17.7 million in 1999, and to an

estimated $91 million in 2000. This now represents around 7.3 per cent of the Government’s estimated

spending on EFTS subsidies of $1,247 million. It is anticipated that PTEs will receive $130 million in EFTS-

based subsidies in 2001 and $155 million for 2002.24

21 Ministry of Education (2000), p. 42. 22 Ministry of Education (2000), p. 13. 23 Scott and Scott (2000). 24 Data from the Ministry of Education: April and August 2000 Single Data Returns.

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The substantial increase in public funding of PTEs has fuelled debate over the place of private providers in the

tertiary education system. Submissions to the Commission (as summarised in Appendix 2) revealed highly

divergent views over the desirability of this development. In the Commission’s view, the issue is not primarily

whether an activity should take place in the ‘public’ or ‘private’ sphere, but the extent to, and the manner by,

which it should be regulated, and the rights and responsibilities associated with it.

Pressure on resources continues to affect the funding from the Government, and industry, for research and

development by institutions within the tertiary education system – although funding from government has

increased recently. New Zealand’s competitors and partners are all pursuing integrated and aggressive policies

to strengthen and accelerate their innovative capacity. These policies include the development of centres of

excellence – such as those in Australia and Canada – which integrate universities with industry. In contrast,

OECD studies of innovation management25 show that New Zealand is close to the bottom of OECD countries,

by most measures of innovation investment.26

The remainder of this Report endeavours to address these problems and present a strategy and steering

framework for shaping the system in ways that will make it more responsive and effective within the current

funding constraints.

25 OECD (2000). The knowledge-based economy: A set of facts and figures, Meeting of the Committee for Scientific and Technological Policy, 22-23 June, (2000).

26 Innovation Summit Implementation Group (2000).

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Chapter 3: Context for a Tertiary Education Strategy

The previous chapter described the major problems confronting the tertiary education system. This chapter

further develops the context for the Commission’s proposed tertiary education strategy. The first section looks

at some major trends and influences that are shaping the system. The next section contains a set of goals or

broad objectives that will underpin the strategy. The concluding section describes the Commission’s integrated

approach to developing a strategy and sets out the strategy’s core elements.

3.1: Key InfluencesThe key influences that are shaping the New Zealand tertiary system include:

• the development of a knowledge society;

• changing technology;

• globalisation; and

• demographic changes.

3.1.1 The Development of a Knowledge Society

Knowledge and learning have always been of central importance to society; and in today’s modern economy

the tertiary education system plays a pivotal role in meeting the nation’s knowledge needs. But changes in the

nature of knowledge production – that is, changes in who ‘creates’ knowledge and where – have the potential

to reshape our society and economy. The ‘knowledge society’ refers to this profound change, similar in scope

to the expansion of literacy in the wake of the printing press.

The knowledge revolution is not fundamentally about information, communications technology, or other high-

tech developments. These are essential to it, but they are the equivalent of the printing press in the spread of

literacy – the vehicle, not the destination. What is fundamentally involved in the knowledge society is the

radical democratisation of knowledge production and use. As a number of writers have identified,27 the focus is

increasingly upon ‘distributed’ forms of knowledge production and dissemination.

The emergence of highly distributed knowledge production systems has important implications for TEIs, as

they can no longer operate as self-contained, isolated institutions if they are to be relevant and effective.

Increasingly important elements of knowledge production are taking place in the application of knowledge, and

TEIs must be involved in these activities if they are to be involved at the cutting-edge of research.

Researchers located within a broad range of institutions and firms can now more easily collaborate across

institutional, national and disciplinary boundaries. In a nation of limited resources such as New Zealand,

harnessing all the resources in a given research field in this way is particularly important.

As well, there are greater expectations in the workplace that all workers can integrate knowledge across

disciplines and areas of work but still retain appropriate specialist knowledge.28 The 3Rs are being superseded

increasingly by the 6Cs: Communication, Computation, Critical thinking, Co-operation, Creativity, and

Computer literacy.

These shifts in the production, application and dissemination of knowledge – and the new sets of skills that are

required in the workforce – account for some of the important changes experienced within the tertiary

education system over the past decade. Tertiary providers will have little option but to adapt further, if they are

to meet the challenges posed by the knowledge society. In some disciplinary areas, the high costs of knowledge

production make it imperative for the Government to set priorities in order to manage and guide the system.

27 See Gibbons (1998); Mathews and Johnston (2000). 28 Harvey (1998).

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3.1.2 Changing Technology

Rapid technological change will continue to influence the shape of the tertiary education system and the way

in which learning takes place. One of the most significant developments in recent times is e-learning – that is,

learning and/or teaching which is delivered through electronic media such as the Internet. Use of the

Internet means that the methods used to deliver education programmes no longer have to be either

synchronous (real time) or asynchronous (independent of time). They can be a mixture of both. This allows a

wider range of learners to access learning and a wider variety of learning styles to be catered for. It also means

that it can be the learner’s choice how they learn rather than the teacher’s choice.

Another feature of e-learning is that the ‘black-box’ of teaching and learning can be unbundled so that its

component parts can be separated out and managed independently of each other. In this way, the content of a

teaching package can be independent of the tutoring and learning support, the pastoral care, the assessment,

the awarding of credit and so on. This means a provider can offer the entire suite of products and services

themselves, or specialise in one area only and contract out the remaining services. The formation of key

strategic alliances between specialist providers will continue to be a feature of the e-learning environment.

E-learning is placing new demands on the tertiary education system in New Zealand. Students can now shop

throughout the world for courses and programmes that meet their learning needs and interests. Students will

want systems that ensure:

• portability of course credit and of qualifications – because they can study where and when they want, a

student may want to study courses with a variety of providers;

• articulation of courses both within New Zealand institutions and also globally – tertiary education providers

will need to work together to develop a system that recognises and awards credit, along with programmes

that allow a wider variety of elective components;

• courses that fit within a global context, while retaining a unique New Zealand perspective; and

• international recognition of New Zealand qualifications – this will provide quality assurance for prospective

students and could be provided through partnerships with international providers, through validation

exercises or through accreditation activities.

3.1.3 Globalisation

Globalisation is a complex, interactive mix of elements spanning political, economic, technological, social and

cultural dimensions. It is beginning to influence all aspects of society.

The growth in e-commerce is an obvious example of how business relationships and distribution channels are

changing: companies no longer need to have to have a physical presence in the country in which they are

operating. People, too, are increasingly mobile and may live in or run their affairs from more than one country.

Tertiary education is no different – it is increasingly becoming a global activity. As in other countries with well-

regarded tertiary education systems, there has been a rapid expansion of the number of international students

coming to New Zealand.

Trans-national education

There has also been a rapid expansion of institutions operating ‘trans-nationally’, either as part of an alliance with

another education provider or, in some cases, as a corporate entity. Australian institutions, in particular, have been

aggressive in establishing off-shore operations to expand their market share. These trends will affect the New

Zealand tertiary education system since this country is now a party to the General Agreement on Trade in Services.

In effect, New Zealand has provided market access for overseas private primary, secondary and tertiary

education services, with no limits on cross-border supply or commercial presence. New Zealand now needs to

consider the implications of this decision:

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• trans-national providers can operate in New Zealand with no restrictions other than those related to allforeign investment;

• no requirements are placed on these providers to meet New Zealand quality standards unless they areseeking public funding for their courses, or their courses and programmes are linked to the NationalQualifications Framework (NQF);

• trans-national provision of education provides opportunities for New Zealand providers to market both theirprogrammes and areas of specialisation off-shore; and

• recognition of learning and transfer of credit arrangements, such as the Mutual Recognition Agreement withAustralia, have to be able to take into account international standards, and social and cultural differences.

Mutual recognition of qualifications

Trans-national recognition is mostly handled on an ad-hoc basis in New Zealand. The Ministerial Declarationof Confidence in the equivalent standing of Australian and New Zealand vocational education and trainingqualifications has begun to provide a framework for the mutual recognition of vocational qualificationsbetween New Zealand and Australia. People from other countries seeking recognition of their qualificationsmust submit their academic transcripts to NZQA for assessment. These types of processes are time consumingand do not assist the easy transfer of learning.

Further afield, the European Union has sought to find ways of unifying the tertiary education system across itsmember countries. The Bologna Declaration29 is one outcome of this process. In this Declaration, the membercountries pledge to find ways to recognise each others’ graduates and qualifications, work to develop a singlecredit-transfer system and to establish mutual-recognition agreements for professional practice.

3.1.4 Changing Demographics

Another major influence upon the future shape of the tertiary education system will be the changing

demography of New Zealand society. In the medium-term significant changes are likely to include:

• rapid growth in the number of 10-16 year olds over the next five years – particularly in Auckland;

• continued increases in ethnic diversity, younger age structures, and accelerated growth of non-Europeanethnic groups, such as Maori, Pacific and Asian peoples;

• a large sustained rise in the proportion of older persons over the next two decades, including the rise innumbers of older persons in the workforce;

• a continuing decline in the predominance of nuclear families (supported by a male breadwinner) andproliferation of other family types, especially those headed by a sole parent;

• a continuing shift in employment away from the goods-producing sector towards the service sector; and

• an increase in demand for skilled workers.

There has been a steady increase in the Maori population and immigration by Pacific and Asian peoples(predominantly in the upper half of the North Island). Statistics NZ projects that the total New Zealandresident population will grow from 3.7 million (1996) to 4.8 million (2051). Statistics NZ also estimate that theMaori population will grow from 548,000 in 1996 to 993,000 by 2051 (an 81 per cent increase). Pacific peoplesare the fastest growing population group in New Zealand (between 1986 and 1996 the population increased by55.2 per cent). In 1996 Pacific peoples made up about 6 per cent of the population and this is projected tomore than double by 2051.30

By 2016, nearly half of all students and an increasing proportion of New Zealand’s working-age population willidentify as being of Maori, Pacific or Asian descent. New Zealand's economic and social success will beinfluenced to a greater degree by their skill level. This highlights the importance of raising achievement levelsand reducing the current disparities between ethnic groups. The tertiary education system is therefore likely toface a continuing shift in the mix of its student population.29 The Bologna Declaration: An explanation – http://www.crue.upm.es/eurec/bolognaexplanation.htm 30 Ministry of Pacific Island Affairs (1999).

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It is expected that the population in the core age group for tertiary education will continue to decrease until

about 2003. However, because of rapid growth in some populations (for example, Maori and Pacific peoples)

this age group will increase from 2003 to 2011. If participation remains at 1999 levels, these population trends

mean that tertiary roll numbers will decline slightly over the next year or two, and then start increasing as the

‘population bubble’ moves into the core tertiary-education age group. The Ministry of Education estimates

that enrolments will be about 5 per cent higher in 2011 than in 1999. This represents a much lower rate of

growth than has occurred since the mid-1980s.

For the medium term, therefore, the tertiary education system as a whole is likely to experience a period of relative

stability in terms of enrolments. Against this, further substantial changes can be expected in relation to the pattern

of demand (for example, fields of study and geographic distribution). This implies that many providers will not be

able to fund new developments from enrolment growth, in contrast to the pattern of the past decade or so.

3.2: Broad ObjectivesTo deal with its current problems and to face the challenges posed by major trends, the tertiary education

system needs to be better steered. In Shaping a Shared Vision, the Commission identified a set of principles31 to

be used to drive policy development and these can be used to develop a number of broad objectives that form

the basis of a tertiary education strategy. These are:

• using the limited resources available to the tertiary education system in a strategic manner and, in so doing,

minimising waste and unnecessary duplication of services;32

• ensuring that the system remains responsive to the demands placed on it by the Government and other

important stakeholders;33

• ensuring that the system meets international standards of excellence in both research and learning;34

• ensuring that the system is accessible to all New Zealanders and provides appropriate recognition of

learning;35 and

• ensuring that the system operates in a manner consistent with the principles of the Treaty of Waitangi.36

Recommendation 2

The Commission recommends the following broad objectives for a tertiary education strategy that supports the developmentand maintenance of a wealthy society:• strategic and effective use of resources;• national and local responsiveness;• excellence in knowledge production, integration and dissemination;• equitable access to, and recognition of, learning throughout life; and• fulfilment of obligations under the Treaty of Waitangi.

The rest of this section shows how these broad objectives can help develop a strategy for the tertiary education system.

3.2.1 Strategic and Effective Use of Resources

While the Commission believes that a more planned approach to policy and regulation of the system is needed

to address the problems identified in Chapter 2, it recognises the importance of balancing both local and

national responsiveness and public and private provision. In the Commission’s view, tight central control isinimical to the achievement of an effective, efficient, high-quality tertiary education system. And it will not

meet the needs of a knowledge society or foster adequate local responsiveness and innovation.

31 Shaping a Shared Vision; p. 12; and also Appendix 1 of this Report. 32 Reflects Guiding Principles covered by bullet points 10, 11 and 12 (See Appendix 1). 33 Reflects Guiding Principles covered by bullet points 3, 4, 5, 7, 8, 9 and 14 (See Appendix 1). 34 Reflects Guiding Principles covered by bullet points 13 and 15 (See Appendix 1). 35 Reflects Guiding Principles covered by bullet points 1 and 2. 36 Reflects Guiding Principle covered by bullet point 6 (See Appendix 1).

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Specialisation and diversity

In the Commission’s view, a greater emphasis on specialisation is required if the tertiary education system is tomeet the challenges outlined earlier in this Report. Modern societies are increasingly diverse socially,politically, and ethnically, requiring a wider range of learner needs to be met, including those with disabilitiesor with special needs. Specialisation enables individuals, groups and providers to focus on what they do bestand encourages the disaggregation of activities so that different parts of an activity can be carried out byspecialists. This in turn can bring about greater efficiency and higher quality (for example, via the creation of‘centres of excellence’). At the same time, increased specialisation and diversity strengthens the need to buildand maintain adequate levels of co-operation and collaboration within the tertiary education system, and withbusiness and industry. In short, the key is to ensure that all those within the system are able to play a role andmake their own distinctive contribution.

Public tertiary education

The Commission endorses the longstanding role of the state as a major provider of tertiary education at alllevels, believing this to be in the interests of ensuring a diverse, equitable, high-quality, and comprehensivetertiary education system.

There are a variety of ways in which the state could organise the provision of tertiary education to make bestuse of the resources available. The first of these is to retain a public system of highly autonomous statutorycorporations, with local governance structures and only a small minority of governors appointed by theGovernment. This enables the Government to focus on establishing national priorities and policy goals andleaves operational management to individual institutions.

An alternative model is that of a national unified system of public education. One such model is provided bythe State of California, which consists of three separate levels (each with multiple campuses) under the co-ordinating umbrella of the California Post-Secondary Commission. In some respects, New Zealand hadelements of the Californian model for university education when it had the University of New Zealand until itwas abolished in the early 1960s.

It is important to note that, even in systems where there is a single co-ordinating body, there is still a degree ofcompetition between the various campuses. For example, the individual campuses of the University ofCalifornia system have a relatively high degree of autonomy.37 It is worth noting that the internal transactioncosts and the bureaucracy involved in such large, unified systems can be significant.

An alternative to creating a single, unified system for public tertiary education (or particular levels of tertiaryeducation) is to seek to rationalise provision on a regional basis through forced mergers, as exemplified by theDawkins reforms in Australia in the late 1980s. The international literature on the desirability of mandatorymergers of institutions is mixed. Where there is a good institutional fit, such mergers may generate savings andimprovements in educational outcomes. Where there is not, there can be serious difficulties.

Private provision

The Commission recognises that private providers of various kinds play an increasingly important role in theprovision of education and training, including a major role in second-chance education. They providepathways so that groups currently under-represented in TEIs can access the system. This is a complementaryrole to that of the public sector, and the Commission believes that both public and private providers shouldwork together to meet the needs of learners and other stakeholders.

At present, PTEs receive the same level of EFTS subsidies as TEIs and this has led to debates about whetherthis is the best use of public money. One response to this could be to remove all public funding from theprivate sector. But given the role private providers fulfil in promoting diversity within, and access to, thesystem, such a move would not be prudent without a good deal more information and analysis.

37 Bowen (1997).

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It should be borne in mind that TEIs, in addition to providing learning opportunities for students, also perform

a public-good role of disseminating knowledge to the community and acting as a critic and conscience of society.

These roles are not required of private institutions, and this is one of the major differences between the two

parts of the system. Given these differences, there is a case for developing a transparent and coherent framework

for funding that recognises the special characteristics of these two parts of the tertiary education system.

Recommendation 3

The Commission recommends private providers be classified using the same system as that used for public providers to ensurethat provider classification is coherent across the whole tertiary education system.

Recommendation 4

The Commission recommends that the regulatory framework for the tertiary education system balance the need for a commonapproach to the regulation and accountability of public and private providers with recognition of the important differencesbetween them. Therefore:a) both public and private provision need to be ‘profiled’ to promote collaboration and to avoid unnecessary duplication of

effort and expense; and b) while funding systems should be transparent and coherent across both public and private sectors, this does not mean that

public and private providers should necessarily be funded on the same basis.

Recommendation 5

The Commission recommends that independent research be commissioned on the roles and functions of organisations atpresent classified as private training establishments (including an examination of the extent to which they are complementaryto, or in competition with, public providers), to inform the Commission’s future reports.

Trans-national education

As noted earlier, the growth of trans-national education, and the potential contribution it can make to an

effective tertiary system, is an emerging issue that must be addressed by any proposed regulatory framework.

Trans-national education adds another element to the public/private mix of education services; in this case,

from outside New Zealand. Once a trans-national provider starts offering or advertising programmes here, it

has, in effect, become part of the New Zealand tertiary education system. The Commission, therefore, believes

that trans-national providers seeking to operate in New Zealand should be subject to the same regulatory

requirements as other providers within New Zealand, including any changes in requirements that are made as

a result of this Report.

Recommendation 6

The Commission recommends that all trans-national providers who wish to provide programmes of learning in New Zealandbe subject to the same regulatory requirements as New Zealand providers, including any proposed changes to thoserequirements as a result of this Report.

3.2.2 National and Local Responsiveness

Complementing the Government’s traditional roles of regulation and funding, are the equally important ones

of leadership, facilitation and stewardship. As with many other issues the Commission has confronted, the way

forward is to find an appropriate balance between the two approaches of either seeking to direct and control

or letting a particular issue resolve itself. Building a knowledge society will require a responsive, innovative

tertiary education system, one that meets the needs of a multiplicity of stakeholders.

Industry and business

The Commission supports the role of vocational and industry training as a core part of the tertiary education

system. Industry and business, therefore, need to have an effective voice in ensuring the system meets their

needs and provides graduates with appropriate standards of skills, knowledge and attributes.

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The system must encourage co-operation and collaboration between specific industries and those providerswith expertise in curriculum design and assessment methodologies. A dialogue between both parties isessential if the tertiary education system is going to be responsive to national priorities.

Regional spread and location

New Zealand is geographically dispersed and, as a consequence, in order to give learners real choice in howand what they learn, providers need to be situated close to where the people are. It is not sufficient to haveone or two providers to serve all New Zealand and to expect learners to travel. Lifelong learning should takeplace close to where people live, work and socialise. Nor is it sufficient to expect everyone to be successful bylearning in an open or distance-learning environment. While these technology-driven learning environmentssuit some, they are not appropriate for all.

Regional tertiary education providers have an important role to play in the development of the regions inwhich they operate and it is vital this role be protected. There are, of course, a range of methods throughwhich tertiary education opportunities can be provided at a regional and local level.

Te Reo Maori and Tikanga Maori

The Commission affirms that Maori language and culture is at the very heart of our national heritage, and sodeserves protection and celebration. As with all languages and cultures, Te Reo Maori and Tikanga Maori havetaken many years to develop; but, if these taonga or treasures are not nurtured and protected, they will be lost.Already, several ancient tongues are no longer in existence, and, as a result, the reo (language) spoken today islargely modern Maori. It is essential that we maintain the wonderful diversity that resonates in the mita(dialects), kawa (protocols) and tikanga (customs) of the many hapu and iwi throughout the country.

In particular, the Commission believes that New Zealand must celebrate and protect:

• Maori heritage and its ‘diversity’;

• localised Maori knowledge bases;

• the uniqueness of Maori within a global context; and

• the place of Maori within New Zealand itself.

In the light of these points, it is essential that the tertiary education system provide for the fostering andpreservation of Te Reo Maori and Tikanga Maori.

Pacific peoples

Many Pacific communities over several decades have sought educational opportunities in New Zealand. Theircurrent social position in New Zealand, however, presents the tertiary education system with major challenges.Across the major social and economic indices, Pacific peoples are facing disproportionate levels of negativeoutcomes. The strengths that exist within Pacific communities cannot be sustained if their educationalaspirations are not met and the opportunities for their participation in society are not radically improved.These are challenges that confront the tertiary education system – firstly, in relation to informing our identityas a Pacific nation and, secondly, in being informed by the contributions of Pacific peoples.

It is therefore equally important that the tertiary education system recognises the contribution, and fosters theparticipation, of Pacific peoples and their cultures. The tertiary education system must enable effectiveengagement with Pacific communities and seek ways to ensure it is responsive to the needs of Pacific peoples.

People with disabilities

The Commission believes that access for people with disabilities should be seen as a priority for tertiaryeducation and that a more effective policy framework for people with disabilities should be developed. Movingaway from the ‘medical’ or ‘deficit’ stereotyping of people with disabilities should be considered as a startingpoint for removing barriers that many people with disabilities face.

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3.2.3 Excellence in Knowledge Production and Application

Research within the tertiary education system

The Commission acknowledges that the tertiary education system plays a crucial role in achieving a productive

and innovative research community. The system must therefore be designed to promote and sustain world-class

research capacity and capability, including that of Maori and Pacific peoples. Researchers in the tertiary

education system must not only be the leaders in producing fundamental knowledge, but must also be

instrumental in disseminating new knowledge to the community and training the research workforce of the

future. The latter two roles, in particular, must be undertaken in partnership with the wider research and

business communities.

Although the Commission will release its major report dealing with funding in the latter part of 2001, it is

already clear that there is a need for:

• greater specialisation and concentration of research activity within the tertiary education system;

• increased collaboration and co-operation in research across the system, as well as improved linkages between

centres and networks of research excellence and other parts of the tertiary education system and with those

outside it, so as to bring about knowledge transfer and application;

• supporting research-led teaching as a prerequisite for degree and post-graduate teaching programmes;

• all parts of the tertiary education system to be involved in knowledge production and dissemination of

research to some extent, even if not all parts of the system have a role at the cutting edge;

• universities to remain the primary providers of post-graduate education;

• more emphasis upon the development of a research workforce, including that of Maori and Pacific peoples;

and

• greater investment in research infrastructure.

One other point is worth highlighting at this juncture. There is increasing evidence that some institutions are

moving to separate research and teaching career pathways. The Commission has some reservations about such

moves, primarily because of the greater risks of academic staff not keeping pace with rapid changes in their

respective fields of knowledge.

Recommendation 7

The Commission recommends that the central steering structures, in partnership with other government agencies withresponsibility for research, ensure that the tertiary education system provides: • focused and specialised fundamental and applied research; and• genuine commitment to research-led teaching as the basis of all degree and post-graduate education.

Recommendation 8

The Commission recommends the establishment or recognition of national centres or networks of research excellence within thetertiary education system, with linkages to a national strategy and the international research community.

3.2.4 Equitable Access and Recognition of Learning for Life

Learning throughout life

A genuine hunger for improvement in individuals for themselves and the communities in which they live can

be a strong impetus for national development. For this to occur, lifelong learning, accessible throughout the

country (in both urban and rural areas), is a necessity.

Lifelong learners will enter formal education environments at many points in their lives. In between these

periods of formal, credentialised learning, their learning experience does not stop. It continues in their

workplaces, their homes and in the activities they undertake in their day-to-day lives. 21

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The system should be able to offer alternative pathways that encourage and foster participation by groupstraditionally under-represented in tertiary education. It can do this by making it easier to gain entry, andproviding appropriate support for continuing participation.

The tertiary education system of the future needs to have these features:

• lifelong learning pathways and environments that recognise the increasingly iterative and non-hierarchicalnature of learning;

• credit transfer and articulation between learning environments;

• systems that allow the development of qualifications for learners which incorporate alternative pathways oflearning; and

• recognition of learning through international delivery systems.

This has some implications for the shape of the system and its ability to be dynamic and flexible enough tochange as new learning environments emerge.

The role of quality-assured learning environments

The Commission is committed to a broad definition of tertiary education, which encompasses the full diversityof learning environments. This does not mean, however, that the Commission believes that all ‘learning’should fall within the scope of the tertiary education system. The focus of this Report, rather, is on learningwhich takes place within a quality-assured environment.

Quality-assured learning environments cover learning environments for which an organisation (such as an ITOor an adult and community education organisation) assumes responsibility for the quality of the learning andassessment of outcomes (where relevant), but does not necessarily ‘provide’ the education and trainingsupport for the learning occurring in that environment. This concept covers workplace learning and semi-structured community-based learning.

Industry training

Rapid changes in society and the nature of work requires people to retrain and acquire new skills in order tocontinue operating effectively in the workplace. Changes in technology and workplace organisation areplacing pressure on people to continue to learn throughout their working lives.

These changes have prompted a review of industry training. The Commission believes that it is essential forthis review to be informed by, and inform, the work of the Commission. The aim of the industry trainingreview is to keep what is successful and working well with the industry training strategy and recommendchanges that are needed to ensure it continues to meet industry’s needs.

Along with the industries that have been supportive of the current industry training strategy to date and otherworkplaces who have established quality-assured learning environments, many professional groups alsorecognise the value of having recognised programmes linked to work and professional practice. Theseinitiatives contribute to the development of a strong learning culture in which ongoing education and trainingare seen as an integral part of working life and an essential characteristic of every successful business.

The Commission believes that it is essential for the tertiary education system to recognise learning that occursin quality-assured learning environments in the workplace as part of a continuum of learning in which peoplemove between formal learning environments and the workplace at many times throughout their lives. Thesystem needs to provide pathways that support people to move easily between workplace learningenvironments and formal learning institutions.

Recommendation 9

The Commission recommends that the review of industry training clarify the role of industry training organisations (ITOs)within the overall tertiary education system as described in this Report.

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Adult and community education

Adult and community education offers a range of educational programmes outside the compulsory school systemand the formal processes of large TEIs. As such, it is an integral element of lifelong learning. While it can involveeither formal or non-formal learning processes, these are not necessarily formally assessed or certified (althoughsome are quality-assured learning environments). Because it occurs within identifiable communities – whetherthey be a geographic area, a common interest, or whanaungatanga – adult and community education is able torespond to regional and community issues such as adult literacy, learning for Maori development, education tosupport social justice, and English-language programmes for speakers of other languages.

Adult and community education happens in a range of environments. These provide a bridge to furtherlearning opportunities and are an important form of educational provision for those who have benefited leastfrom formal education. Adult and community education promotes a culture of lifelong learning, democraticparticipation, cultural development, and increased control over the future for individuals and communities.For such reasons, mechanisms should be available within the tertiary education system to recogniseachievements in this form of learning. These pathways are needed so that people can easily move betweenquality-assured community learning environments and formal learning institutions.

A knowledge society encourages people to continue to learn throughout their lives. Adult and communityeducation is currently being reviewed. The Commission believes it is essential that this review be informed by,and inform, the work of the Commission.

Recommendation 10

The Commission recommends that the review of adult and community education clarify the role of adult and communitylearning organisations, structures and systems within the overall tertiary education system described in this Report.

E-learning

The Commission has concluded that e-learning is an important mode of learning for the whole tertiaryeducation system. It has also identified that the development and implementation of resources andtechnologies related to e-learning needs to be managed and co-ordinated in a manner that ensures it addsvalue to the tertiary education system as a whole, and promotes the effective use of resources.

Recommendation 11

The Commission recommends that the Government fund research on the development of e-learning technology in NewZealand, to assist the whole tertiary education system to capitalise on the potential of information and communicationstechnology for effective delivery of learning.

Recognition of learning

There is a growing demand from both learners and other stakeholders in the tertiary education system torecognise the concept that what is learnt is more important that where it is taught, and to award appropriatecredit for learning on this basis. Qualifications are being developed (such as Foundation degrees in England)that give credit for work-based learning and integrate this learning with traditional institution-based learning.Such programmes encourage application of knowledge and ensure graduates are work-ready.

The tertiary education system must have mechanisms to recognise award and transfer academic credit forlearning gained in non-formal learning environments. This requires a system of recognition that is robust andquality assured, with the ability to recognise the equivalence of qualifications and learning gained from avariety of sources. The system should facilitate the recognition of courses and programmes for articulation andcredit transfer and should ensure such processes are easily understood, both by providers but also by learnersand other stakeholders involved in the system.

This requires the consideration of the role of the current quality assurance bodies, NZQA, CUAP, NZPPC, andCEAC, in a reshaped system and what structures and policies are needed to promote alternative pathways forlearning. One possibility is to align the quality-assurance processes more closely with the central policyand funding systems. 23

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Some of the solutions to the problem of recognising equivalence of degrees, particularly internationalrecognition of polytechnic degrees, have been to make polytechnics into universities. This has happened in manyinternational jurisdictions and has also occurred with the Auckland University of Technology. Another option isto introduce a university entity able to award a ‘university’ degree to polytechnic degrees that meet its standards.

Trans-national learning will bring pressures for a smoother, more transparent, and more coherent system formutual recognition of qualifications.

3.2.5 Treaty of WaitangiThe Commission suggests that the long-term interests of Maori development require a tertiary educationsystem that is better able to deliver effective outcomes for Maori. This needs to happen at every level of thesystem, but particularly at the highest levels. To bring this about, more planning is required across the tertiarysystem – with a principled, planned and accountable approach to issues of provision, equitable access, activeprotection of Te Reo Maori and Tikanga Maori, research, best practices, and educational outcomes.

Treaty of Waitangi obligations

The Treaty provides a symbol of the inclusive society that New Zealanders have sought and continue to seek tobuild. It provides a model for a ‘partnership society’, where the individual and collective rights of self-determination are balanced with the need to govern for the common good, but where the basic and equalhuman rights of all are assured. This model forms the basis for enumerating the Treaty obligations of allstakeholders within the tertiary education system. Accordingly, full and unimpeded Maori participation – bothas self-determining Treaty partners and as equally engaged citizens – is paramount.

In dealing specifically with meeting its obligations under the Treaty of Waitangi, the tertiary education systemmust operate in a manner consistent with the five generally recognised Treaty policy principles. 38 Theseprinciples are described (briefly) below:

• The Kawanatanga Principle (Government Principle) is based on Article 1 of the Treaty and recognises theright – and the solemn obligation39 – of the Crown to govern and to make laws for the common good.

• The Tino Rangatiratanga Principle (self determination) is based on Article 2 of the Treaty and guarantees toMaori their rangatiratanga over all they possess for as long as they wish to retain it.40 It recognises the right ofiwi to manage their own affairs. It affirms the rights of Maori to development in the widest sense.

• The Partnership Principle refers to the notion of good faith and is based on the Treaty as a whole as signedbetween Maori and the Crown. The partnership principle involves developing a greater sense of mutualitybetween the partners.41

• The Protection Principle refers to the sense of active protection for Matauranga Maori, Te Reo Maori andTikanga Maori and other taonga or treasures of the ancestors that have been handed down to, andaugmented by, successive generations. Within this principle is also a principle of redress.42

• The Participation Principle refers to the rights of citizenship and equality.43 In education, generally, thisprinciple means such things as the right to equitable access and educational opportunity.

For Maori to develop fully, there must be proper recognition of Maori aspirations in establishingorganisational types that meet their needs. As such, the Commission recognises and affirms the benefits ofwananga and suggests that there may well be new organisational types, including alliances, centres andnetworks of excellence and quality-assurance entities that will enable Maori to develop in the future.

38 These ubiquitous principles have been utilised, analysed, and interpreted in various published sources over the previous decade. See, for example: Bishop and Graham (1997); Crengle (1993); Durie (1998); and Kawharu (1989).

39 See New Zealand Maori Council v Attorney General, (1987), p 517. 40 See Waitangi Tribunal (1999). 41 New Zealand Maori Council v Attorney General (1995) Privy Council. 42 New Zealand Maori Council v Attorney General (1987) Court of Appeal. 43 New Zealand Maori Council v Attorney General (1987) Court of Appeal.

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The Commission suggests that the tertiary education system, and its central structures, should have a leading roleto play in enabling Maori to participate successfully in the knowledge society and economy. This is particularlyrelevant in terms of the desired level of engagement of Maori within the area of governance in the tertiaryeducation system. Therefore, there must be meaningful mechanisms for consulting and working with Maori.

It is important that Maori achieve at the highest levels of tertiary education. In recent years, there has been animportant emphasis on the provision of enabling or second-chance education and employment-relatedprogrammes for Maori. But for the long term, there must be a commitment to ensure much higher levels ofachievement in advanced-level programmes. This will require action to remove existing institutional barriersand constraints44.

The Commission’s view is that an accountable approach to the Treaty will require transparency about andwithin the system. Crucial in this respect must be the implementation of appropriate performance measures atboth the provider and system-wide level.

Recommendation 12

The Commission recommends that the following be put in place, in order for Maori to participate fully in the tertiaryeducation system and raise their level of achievement:• support for types of tertiary education providers who are capable of meeting the needs of Maori;• meaningful mechanisms for enabling Maori participation in governance and decision making; and • systems for measuring the performance of providers and the wider tertiary education system in meeting Treaty of

Waitangi obligations.

3.3: The Approach to Shaping the SystemIn light of the preceding discussion on the broad objectives for the tertiary education system, there is clearly aneed to develop improved structures and instruments. One of the measures the Commission will recommendis the introduction of a detailed tertiary education strategy to provide a focus for change in the tertiary educationsystem. Taken together, the strategy, the policy instruments, and the central structures make up a steeringframework to be used for shaping the system so that it is responsive to the needs of a knowledge society.

3.3.1 International ExamplesGovernments around the world use many different approaches – and a wide range of policy instruments – tosteer their tertiary education systems and to minimise undesirable competition, avoid inefficient duplication ofservices, encourage specialisation, or achieve related objectives. Some of these approaches have been:

• limiting the number and/or location of particular types of providers (especially the number of universities);

• imposing relatively rigid distinctions between providers of different types (for example, in terms of the leveland/or kind of educational programmes which they are permitted to offer);

• making it difficult, if not impossible, for providers to change their designated type (or to merge with other providers);

• limiting the types of tertiary education providers who are eligible to receive public funding for educational purposes;

• limiting the types of tertiary education providers who are eligible to receive public funding for research purposes;

• controlling and limiting the availability of public funding for capital expenditure (especially investments inexpensive infrastructure); and

• limiting the number of publicly funded student places – whether at the aggregate (system) level, theprovider level, or the level of the particular discipline.45

44 This is supported by research undertaken by Jeffries (1997), and also by a number of submissions made to the Commission. 45 At a broad conceptual level, measures of this kind can be regarded as potential elements of a system of ‘educational profiling’. Each measure

supplies a possible means by which the Government (or the appropriate regulatory/funding agency or agencies) can attempt to shape the distinctivepurpose and mission of each tertiary education provider, and so influence the nature of the educational (and/or research) services they supply. From a survey of the regulatory arrangements in other jurisdictions, it appears that only one country (Australia) employs a policy instrument within the tertiary sector specifically referred to as an ‘educational profile’. But if the terminology is restricted to Australia, the broad concept of profiling most certainly is not. Indeed, the countries for which the Commission has information all employ a profiling regime to one degree or another.

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While the Commission has carefully considered various international examples that it examined, theframework and instruments proposed in this Report have been designed to meet, and respond to, theparticular circumstances and challenges facing the New Zealand tertiary education system.

3.4: An Integrated ApproachThe Commission has developed an integrated approach to the development and application of its tertiaryeducation strategy and steering framework. This integrated approach is a combination of three concepts ormethodologies: a systems approach, a partnership approach, and management by exception.

3.4.1 A Systems ApproachA systems approach46 recognises the reciprocal and causal relationship between the parts and the whole; andthat the resulting inter-relationships need to be considered when making decisions that affect either the wholeor some of the parts of the tertiary education system. Many of the problems that currently exist within tertiaryeducation are a result of component thinking – which sees only the component parts of the system withoutconsidering their inter-dependencies. A systems approach recognises that the tertiary education system is morethan a collection of TEIs, PTEs, ITOs and other providers. The system is also defined by the inter-relationshipsof these providers with one another and, just as importantly, with the wider community, industry, business andthe research community.

A systems approach, when applied to the tertiary education system, means that any planning and decisionmaking must take into account the whole system as well as its parts.

3.4.2 A Partnership Approach Government intervention in the tertiary education system should be ‘intelligent intervention’ that usesknowledge from within the government system; but it should also be carried out in partnership with providers,other stakeholders, and other bodies or individuals who have essential knowledge about particular issues.

There is a need to find an appropriate balance between heavy-handed government approaches that seek todirect and control and more light-handed ones that leave a particular issue to resolve itself. A more explicitpartnership by the Government with providers and other stakeholders has the potential to produce a moresupervisory but co-operative approach to steering the tertiary education system.

Under this partnership approach, the state has a modest regulatory role and is largely concerned withensuring that the system is properly co-ordinated and that adequate quality standards are maintained. Theapproach is also consistent with a relatively high level of institutional autonomy and self-regulation.Considerable emphasis is placed on the promotion of best practice and upon transparent processes toencourage the sharing of ideas and innovations.

3.4.3 Management by ExceptionIn the past, there has been a tendency to seek to either ‘manage’ the whole of an activity in an exhaustivemanner or give up altogether. A more consultative approach to steering the system will allow adoption of theprinciple of management by exception.47 This principle does not seek to manage all activities, but has the abilityto deal with difficulties and respond to challenges to the system as a whole. External intervention or action is,therefore, focused on dealing with problems in a particular case, or with new challenges to the system as a whole.

Combining management by exception with a systems approach means that any exceptions to the rule areconsidered in terms of what impact changes in policy or treatment will have – not merely on individualproviders but on the system as a whole.

46 For detailed information on systems-approach theory see: Grobstein ( 1995); Sauter (2000) 47 Management by exception is based upon the premise that most things will work if the system is well set up, in a manner that includes processes for

correcting problems.

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3.5: The Tertiary Education StrategyThe Commission is working towards specifying a fully developed tertiary education strategy – and that will be

the focus of its next two reports. Here, the Commission uses its five broad objectives, along with the integrated

approach described previously, to determine a high-level tertiary education strategy.

The first element of the strategy is instituting a systems approach to policy and regulation for the whole

tertiary education system, which recognises the distinctive roles of the diverse parts of the system. This means

that policy and regulation must reflect the distinctive roles of the various parts of the system, but in ways that

integrate them into a comprehensive and coherent overall system.

The second element is improving the proactive steering – by the Government, the tertiary education system,

and other stakeholders – of the tertiary education system, in a manner that is responsive to local needs and

priorities. This will mean maintaining a healthy tension between the two important needs of central steering

and institutional autonomy; it will also mean maintaining a balance between light- and heavy-handed

approaches to the central steering of the tertiary education system.

The third element is encouraging greater specialisation and concentration of activities by providers to promote

excellence. Greater specialisation allows the special role and character of providers to be recognised, so that

they can better meet the diverse and distinctive needs of their learners and other stakeholders.

The fourth element is the facilitating of greater linkages to bring about improved access to the tertiary

education system and to make it more efficient. Linkages allow providers to build on their distinctive

characteristics and identify their role in relation to others. This is important when considering the tertiary

education system as a whole and how each individual provider contributes to it.

The fifth and final element is facilitating a partnership approach to meeting the needs of Maori and fulfilling

the principles of the Treaty of Waitangi.

It is clear from the discussion in Chapter 2 of the tertiary education system’s current problems that

implementing the strategy will require modifications to the design and use of existing policy instruments, as

well as the introduction of some additional instruments. The Commission believes that the changes proposed in

this Report are by no means radical; nor are they particularly novel. It should also be emphasised that they are

consistent with the partnership approach described previously and do not mean the imposition of a centralised,

heavy-handed regulatory regime of the kind still found in some European jurisdictions, such as Germany.48

Recommendation 13

The Commission recommends that, to achieve the broad objectives identified in this Report, the following elements berecognised as an essential part of a high-level tertiary education strategy:• a comprehensive and coherent approach to policy and regulation for the entire tertiary education system, which recognises

the distinctive roles of the diverse parts of the system;• proactive steering of the tertiary education system, in a way that engages stakeholders and is also responsive to national

and local needs;• greater specialisation and concentration to promote excellence; • better linkages to improve issues relating to access, recognition, and efficiency; and• partnership in the delivery of education for Maori.

Recommendation 14

The Commission recommends that the following be put in place, to achieve its proposed tertiary education strategy:• an improved framework for the steering of the tertiary education system; and• improved central structures and capability to manage the steering framework.

48 See Frackmann and de Weert (1994).

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Chapter 4: The Steering Framework

The Commission believes that the deficiencies in existing policy tools and the central steering structures

discussed in the previous two chapters are of such magnitude that a new, and more comprehensive, approach

is required. The purpose of this chapter is to give a brief description of each of the steering instruments the

Commission is proposing, as well as the type of central steering structure that the Commission believes is

necessary. The various broad options for steering instruments are discussed first, followed by a range of options

for the central structure.

Detailed discussion of the Commission’s preferred option for a central steering structure occurs in Chapter 5,

while the specific details about the design and use of the new and improved steering instruments are described

in Chapter 6.

4.1: Options for Improved Steering InstrumentsIn considering how to improve the overall management of the tertiary education system, the Commission has

considered four broad options:

1. A more active use of the Government’s existing policy instruments.

2. Legislative changes to strengthen the existing policy instruments.

3. The introduction of new policy mechanisms, such as a requirement for tertiary education providers to

produce annual detailed descriptions of their distinctive character, activities and plans (that is, their ‘profile’).

4. An integrated package of measures from options 1-3.

The Commission’s preferred approach is to adopt option 4: an integrated package involving some new

instruments but also making better use of existing steering instruments. This package consists of:

• a new system for the classification of the roles and functions within the tertiary education system – functional

classification;

• a requirement for all publicly-funded providers to negotiate a charter that reflects not only the provider’s role

but also its place within the system as a whole;

• the introduction of annual profiles for all recognised tertiary education providers, whether or not they are

publicly funded;

• modifications to the current administrative structures at the central government level;

• modifications to some aspects of current governance, monitoring and accountability arrangements; and

• modifications to the current arrangements for funding tertiary education providers.

In this Report, the focus is on the necessary instruments, mechanisms, and central structures for, firstly, more

effective steering of the tertiary education system by the Government and, secondly, for the allocation of funding.

More detailed advice on funding and governance issues will be included in the Commission’s future reports.

And so only brief comments and suggestions are made in this Report on these matters.

4.1.1 Functional Classification

The range of existing methods for classifying or categorising providers – differentiation by type, legal form and

protected term – do not provide a sufficiently precise means of differentiating between the different roles and

functions of providers within the tertiary education system.

The Commission is, therefore, proposing that in addition to the existing means of defining providers

mentioned above that a coherent system of functional classification also be used as a basis for negotiating

charters, profiles and funding. This scheme, which the Commission calls ‘functional classification’, focuses on

the activities carried out by providers rather than on their organisational form or name.

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Functional classifications provide a means of categorising providers explicitly in order to describe their

activities and special characteristics. The purpose of this is to determine the inter-relationships between the

parts and the whole of the tertiary education system, and to assist in the process of determining funding

allocations.

Functional classifications would enable providers to delineate clearly their special role and character and,

therefore, foster the greater specialisation and concentration of activities needed to promote excellence in

learning and research.

The Commission envisages functional classifications being used by the central steering body when it negotiates

charters and profiles with the diverse range of providers within the tertiary education system. As discussed in

Chapter 6 of this Report, the Commission proposes that the form and content of charters and profiles would

vary depending upon the functional classification(s) of the provider concerned.

Other regulatory and funding distinctions could also be made using the system of functional classifications.

This would address concerns raised by a number of submissions over the ‘one-size-fits-all’ approach to the

management and regulation of the tertiary education system during the last decade.

Recommendation 15

The Commission recommends that all providers and quality-assured learning environments be classified by:a) the functional classification of the activities undertaken; andb) the legal form of the provider or body responsible for the quality assurance of the learning environment; andc) the protected term used to describe the provider (where relevant).

Recommendation 16

The Commission recommends that, for the purposes of describing their special character and function, providers and allquality-assured learning environments be classified in a manner that reflects their functions and activities.

4.1.2 Charters

In Shaping a Shared Vision, the Commission stated in Conclusion 11 that all publicly funded providers ‘should

be required to produce an agreed statement of their distinctive mission and contribution to the tertiary

education system as a whole’.

Charters, in their current form, provide an important steering mechanism that balances responsiveness and

autonomy. There are, however, four fundamental problems with the current charter requirements that need to

be addressed.

Firstly, they apply only to TEIs.

Second, there are no established guidelines for their preparation. Therefore, a systematic approach to

developing charters is required. The Tertiary Advisory Monitoring Unit (TAMU) of the Ministry of Education

believes that many charters fall on the side of generality rather than imparting firm and meaningful

commitments to specified outcomes and principles of operation.

Third, they contain inadequate information. The scope of charter requirements will need to be extended to

encompass the elements of the tertiary education strategy given in Recommendation 13. In particular, charters

should include information on how providers will reinforce linkages and meet national and local priorities.

The charter requirements of providers must also demonstrate the ways in which they will avoid negative third-

party effects.

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Finally, the Commission believes that the current processes for ensuring that institutions are accountable for

the commitments in their charter are not reliable and consistent. There are two possible solutions here: either

directly monitoring the compliance of providers against their charters; or monitoring a document that is based

upon and consistent with the charter. The Commission considers that the latter approach is more practical.

With these modifications, the Commission regards the current charter requirements as being generally

appropriate for all publicly funded providers. The Commission regards charters as a vital element of its

proposed steering framework, and, therefore, believes they should apply to all TEIs, PTEs, GTEs (government

training establishments), and OTEPs (other tertiary education providers) that receive public funding.

Charters would, therefore, become the mechanism by which non-TEIs became eligible for public funding.

Quality-assured non-TEIs could continue to provide approved programmes and qualifications without charters,

but would not be able to seek public funding for these programmes.

Recommendation 17

The Commission recommends that all non-TEI providers who wish to receive public funding be required to negotiate andagree a charter with the Minister, on the advice of the TEC.

Purpose of charters

The Commission believes that charters should be used as medium-to-long-term strategic documents, covering a

period of five-to-ten years and should articulate an organisational vision, mission and goals in a manner

consistent with this timeframe. The Commission proposes that charters continue to be documents setting out

the provider’s high-level goals and approach to achieving them, rather than providing detail on the specific

activities: that function will be performed by profiles (see the next section).

Charters will describe the distinctive characteristics of a provider and how these are expected to change and

develop in response to any changes in their operating environment and to changing stakeholder needs.

Charters will also require providers to specify how they contribute to the tertiary education strategy and work

within the tertiary education system as a whole.

Recommendation 18

The Commission recommends that charters describe the broad mission and activities of each provider, with a focus on themedium-to-long term (5-10 years).

4.1.3 Profiles

Purpose of profiles

The purpose of profiles is three-fold. First, they are designed to provide a comprehensive information base on

the range of provision and activities within the tertiary education system. Second, they will provide the basis

upon which action can be taken to steer activities as part of the overall strategy and objectives for the tertiary

education system. Third, they will provide the basis for monitoring and determining the accountability of

providers.

A systems approach to making decisions about a provider’s contribution to the system requires information

about the full range of provision. The Commission, therefore, recommends that profiles apply to all quality-

assured tertiary education providers, whether or not they are eligible for public funding. The content of

profiles for non-publicly funded providers will differ from that of funded providers, but will provide a

consistent information base for strategic planning and decision making in the tertiary education system. The

Commission also intends that profiles incorporate some existing reporting requirements, such as those

contained in statements of service performance.

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Profiles will complement charters. They will specify (in greater detail than a charter) the provider’s proposed

activities – including the distinctive mission and character of the provider, and the nature and level of the

educational programmes that the provider plans to offer over a three-year period. The profile will be

negotiated each year, on a rolling-triennial basis. A rolling-triennial approach will promote longer-term

planning, reduce compliance costs and enhance predictability within the system; it will also encourage

responsiveness on the part of providers.

Profiles will form the basis for the monitoring of provider performance. This will be relevant to publicly

funded and non-funded providers. Profiles will also form an important part of the quality-assurance process, as

they will provide a clear and public statement of a provider’s proposed activities. For this reason, both charters

and profiles should be open to public scrutiny.

Recommendation 19

The Commission recommends that each quality-assured tertiary education provider be required to negotiate a profile on arolling-triennial basis.

Recommendation 20

The Commission recommends that a profile provide information on the provider’s distinctive mission and the nature andlevel of the programmes and activities that the provider plans to offer over a three-year timeframe.

Recommendation 21

The Commission recommends that finalised profiles be public documents.

Form of profiles

The Commission believes that profiles should:

• be consistent with the provider’s classification (including functional classification, legal form and relevant

protected terms);

• identify the distinctive characteristics and mission of the provider;

• contain information on educational and research activities of a kind and quality that will enable the TEC to

operate the tertiary education system in an effective manner, while keeping compliance costs to a minimum;

• build upon existing reporting requirements, in particular statements of objectives; and

• reflect the fact that they apply to all quality-assured tertiary education providers, whether or not the provider

receives public funding.

In the case of publicly funded providers, profiles should reflect and be consistent with the provider’s charter.

4.2: Options for Central StructuresThe Commission’s approach to the central steering of the tertiary education system has two key strands: it

should be based on a partnership between government, providers, industry, the community, and other

stakeholders; and it should incorporate the systems approach.

As well, any central steering body should be capable of implementing the core elements of the Commission’s

strategy.

It is also important, given the increased steering capability being proposed, that the central structures of the

tertiary education system are organised to ensure that the Commission’s key principles49 – for example,

autonomy, responsiveness and academic freedom – are preserved and enhanced.

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49 See Appendix 1.

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4.2.1 The Status Quo The Commission does not believe that the status quo in terms of central structures50 is an option if the tertiaryeducation strategy is to be successfully implemented and the broad objectives for the system achieved. Thereare four reasons for this.

1. Implementing the recommended changes to the regulatory framework, through the current administrative structure, would overemphasise national compared with local needs and could seriously erode institutionalautonomy.

2. The Commission believes that the current problems with the tertiary education system identified in Chapter2 are unlikely to be addressed effectively if the status quo remains in place. Without considerable change,the current administrative arrangements do not have the capacity to steer the tertiary education systemproactively or secure the engagement of stakeholders in that process. These problems are structural ratherthan performance related.

3. The status quo is not consistent with the Commission’s integrated approach; it does not easily provide eithera systems approach or a partnership approach to planning, policy development and decision making.

4. Given the views contained in many submissions received by the Commission, the status quo arrangements

would not be perceived as a credible mechanism for implementing the steering framework proposed by the

Commission.

4.2.2 International ExperienceIn considering the design of new central structures, the Commission gave in-depth consideration tointernational models of intermediary bodies,51 particularly the experience of countries of a similar size to NewZealand or with similar cultural, social or economic affinities.52

In the many overseas examples where Governments have pursued a more active engagement with tertiaryeducation providers, it has been common for the authorities to establish an intermediary body at arms-lengthfrom the Government. It is the responsibility of the intermediary body, rather than a government departmentor ministry, to consult and engage with providers and other stakeholders, to negotiate with providers over theirrespective educational and research roles, and to determine the allocation of public funds.

Currently, there are intermediary bodies operating in a number of countries (whether at a national or sub-national level). These include Canada (for example, Manitoba and Nova Scotia), Hong Kong, India, Ireland,Israel, Kenya, Nigeria, Norway, South Africa, the United Kingdom, and the United States (for example,California).

Two recent reviews of intermediary bodies in the United Kingdom have endorsed both their role and theireffectiveness. The Dearing Report stated:

The independence, responsiveness and effectiveness of UK higher education institutions owesmuch to the well-established tradition of government distancing itself from institutions andentrusting the high-level administration of the public financing to independent bodies ofstanding.53

More recently (March 1999), the Department for Education and Employment reviewed the Higher EducationFunding Council for England (HEFCE). After reviewing a range of available options for delivering the BritishGovernment’s policies for higher education, and evaluating these against the criteria of improved effectiveness,value for money and practicality, the Department concluded that the current arrangements, whereby HEFCEoperates at arms-length from the Government, should continue.

50 The central steering bodies in the current system are the Ministry of Education, Skill New Zealand, New Zealand Qualifications Authority, and the New Zealand Vice Chancellors Committee.

51 See Mosely (2000). 52 See Bjarnason (1998); Goedegebuure et al. (1993). 53 Report of the National Committee of Inquiry into Higher Education(1997) s 22.10.

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It further concluded:

The option of abolishing the HEFCE and arranging for its functions to be exercised by the Secretary

of State through his officials within the Department of Education and Employment … was ruled

out on the grounds that the original case for a buffer body still stands, namely the need to avoid

political involvement in decisions on allocations to autonomous institutions which might involve

issues of academic autonomy.54

4.2.3 Integrated or Multiple Central Structures

Given the Commission’s belief that the status quo is not a realistic option, a further key issue is whether the

steering of the system should be done by a number of central bodies or structures, or just one.

The Commission believes that a single integrated central structure will better achieve the desired differentiation

and complementarity within the tertiary education system. This is because its scope of coverage enables it to

steer all forms of provision. In addition, a single entity will have the potential to promote greater access to

learning throughout life, and to promote improved portability of learning through a more coherent system.

Therefore, the Commission’s preference is for a single central agency to manage the steering of the whole

tertiary education system. This is consistent with the Commission’s tertiary education strategy and its integrated

approach – including the broad definition of tertiary education reached in Shaping a Shared Vision. This central

body will need to be organised so that it recognises the distinctive roles of the diverse parts of the system,

balances the need for national and local responsiveness, and produces proactive steering of the system.

Recommendation 22

The Commission recommends that there be a single comprehensive central steering body for the whole tertiary education system.

The reasons for an integrated body, the options available, its range of responsibilities and functions, and how it

will operate are discussed in more detail in the next chapter.

54 Department for Education and Employment (1999) p. 4.

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Chapter 5: The Tertiary Education Commission

The second element of the high-level strategy for the tertiary education system is the proactive steering of thetertiary education system in a manner that engages stakeholders and balances both national and localresponsiveness. The Commission believes this element is best met by the introduction of an intermediary bodythat is a comprehensive and coherent central structure for the whole tertiary education system. This structurewill also be vital in fulfilling the fifth element of the high-level strategy – facilitating partnership in the deliveryof education for Maori and others in the community.

In this chapter, the Commission considers various options available for establishing a single central steeringstructure. Having chosen an option, the structure and function of this body is discussed in detail. Details ofhow the body will use the proposed steering instruments to guide the tertiary education system are covered inChapter 8.

5.1: Specific OptionsThe Commission gave serious consideration to four structural options for the TEC. These were:

1. Expanding the role of the Ministry of Education.

2. Establishing a Ministry of Tertiary Education.

3. Expanding the role of Skill New Zealand.

4. Establishing a new intermediary body.

Two of the options are based upon departments/ministries, and two are based upon Crown entities. Similarly,two of the options adapt existing agencies, while the other two involve the establishment of new agencies.Plainly, there are other options that could be considered such as expanding the role of the New ZealandQualifications Authority (NZQA).

The Commission has not considered the option of expanding the role of NZQA because it believes that it isimportant to separate quality-assurance activities from the decision making involved in allocating funding. TheCommission believes that decisions in relation to allocating funding within the tertiary education system shouldhave two separate steps: a desirability step and a quality step. To reinforce this approach, the Commissionbelieves that the bodies responsible for quality assurance of tertiary education providers should remain separatedfrom bodies regulating and funding the activities of those providers. This type of separation reduces the risk ofpoor-quality programmes being funded because they are considered to be desirable. Conversely, it enablesfunders to choose not to fund programmes that meet quality standards but which are not considered desirable.The Commission, therefore, believes that the options evaluated here are the ones that are most likely to providea workable solution for the tertiary education system.

Implementing any of these options will inevitably have transition costs and implications for existing agencies. Itis the Commission’s view that none of the options will necessarily incur greater administrative costs than thestatus quo. Indeed, they could result in a reduced overall cost because of the increased efficiency of operatinga single comprehensive central structure for the whole tertiary education system.

Any of these options will inevitably take time to implement. In the Commission’s view, this does not mean thatchange cannot begin until the new structures are fully established. It is possible to avoid undue delays inimplementing the changes proposed in this Report by putting in place the transitional arrangements set out inChapter 10.

5.1.1 Evaluating the OptionsTo determine the best approach to take, the four options were evaluated on their ability to deliver theelements of the tertiary education strategy described in section 3.5. To make the evaluation less cumbersomeand easier to follow, the core elements were collapsed into four evaluative criteria:

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• a systems approach to policy and regulation that balances the need for national and local responsiveness(reflects elements 1 and 2);

• a recognition of the distinctive roles of the diverse parts of the system and the linkages between them(reflects elements 1,3 and 4);

• a facilitation of a proactive approach to the steering of the system which engages stakeholder and providerparticipation (reflects element 2);

• a facilitation of partnership in the delivery of education to Maori (reflects element 5).

Option 1. Expand the role of the Ministry of Education

Under this option, the Ministry of Education would be expanded to incorporate the activities of Skill NewZealand and TEAC. The Ministry would be the body responsible for advising the Government on policy fortertiary education, advising the Minister on specific decisions relating to the steering framework, andmanaging the operational aspects of the funding and regulation of providers and ITOs.

A systems approach to policy and regulation that balances the need for national and local responsiveness

• This option could improve the comprehensiveness and coherence of policy and regulation for the tertiaryeducation system. It would also allow linkages between tertiary education policy and regulation, and broadereducation policy.

• Placing responsibility for the steering of the system with the Ministry of Education would enhance the abilityof the Minister to intervene. This could, however, reduce the stability of the system over time, as changes inpolitical objectives and imperatives could impact negatively on the system.

• The increased steering capability provided by the proposed steering framework could undermine responsivenessto local needs unless the centralised structures provided a measure of balance. The Ministry of Education asa government department does not have the structural form to provide this form of moderation.

• There are potential risks to provider autonomy with the increased powers associated with the steeringframework. Allocating responsibility for the operation of these powers to the Ministry of Educationexacerbates rather than ameliorates this risk.

• The good stewardship of public money could be enhanced by this option. On the other hand, predictabilityof funding could be undermined by this option, given the potential for shifts in allocations on a political basis.

Recognise the distinctive roles of the diverse parts of the system and the linkages between them

• The Ministry of Education’s breadth of responsibility (covering the entire education system), combined withthe nature, scope and complexity of the issues facing the school and early childhood education systems,would make it difficult for the Ministry to give the distinctive needs and problems of the tertiary educationsystem the attention they require.

• The balance between co-operation and competition within the system may be difficult to achieve under thisoption, as the central structure would not inherently contain a mechanism for fostering this balance.

Facilitate a proactive approach to the steering of the system which engages stakeholder and provider participation• Responsiveness could be undermined by this option, as there would be fewer mechanisms to moderate the

application of the steering framework.

• The Ministry of Education, as a government department, is not well suited to engaging stakeholder andprovider participation in steering the system. Departments are designed to respond to the needs of theGovernment and Ministers rather than facilitate input from a range of groups.

• The accountability of providers to the Crown could be enhanced by this option. Accountability to otherstakeholders could be diminished.

• It is unlikely that the requisite level of ‘buy-in’ for the successful implementation of the proposed tertiaryeducation strategy could be obtained if the steering framework were operated by the Ministry of Education.

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Facilitate partnership in the delivery of education to Maori

• The Ministry of Education has staff focused on meeting the obligations of the Treaty of Waitangi, but

processes for facilitating effective partnership have yet to be fully developed.

The Commission’s conclusion in respect of Option 1 is that it would not avert the significant potential threats

to institutional autonomy. Nor would it provide the requisite engagement with stakeholders and providers to

achieve the tertiary education strategy. The Ministry of Education performs many of the operational functions

for schools, and the detailed work required for this means that much of its focus is on the school system. This

is a different focus than would be required for the TEC.

Option 2. Establish a Ministry of Tertiary Education

Under this approach, a new Ministry of Tertiary Education would acquire the Ministry of Education’s

responsibilities for the tertiary education system. It would also take over the roles and functions of Skill New

Zealand and TEAC, and possibly other agencies such as Career Services.

The major difference between this option and Option 1 is that a Ministry of Tertiary Education would focus

exclusively on the tertiary education system, rather than the whole of education.

The majority of the points identified in relation to Option 1 apply to this option. The key differences are:

A systems approach to policy and regulation that balances the need for national and local responsiveness

• This option would undermine the over-arching policy co-ordination and integration role currently

performed by the Ministry of Education for all education policy and regulation.

• On the other hand, it would reduce the span of activities for which the central structure would be

responsible; this might improve coherence within tertiary education policy and regulation.

Recognise the distinctive roles of the diverse parts of the system and the linkages between them

• This option would provide a better focus on the needs of the tertiary education system than Option 1. Given

the considerable problems and challenges facing the system, and the need to implement a new set of

steering systems, this option would achieve this aspect of the strategy more effectively.

• The maintenance of research capability could be enhanced by this option. A Ministry of Tertiary Education

could be given responsibility for integrating research in tertiary education with that of other research sectors.

This might be easier to do with a Ministry of Tertiary Education as it has a narrower and more specialist focus

that the Ministry of Education. This smaller span of control allows new areas of responsibility to be added.

The Commission’s conclusion in respect of Option 2 is that, much as with Option 1, difficulties with regard to

institutional autonomy and stakeholder engagement would not be resolved. In addition, while this option

would improve focus on the tertiary education system, it would undermine policy co-ordination and

integration for education policy overall.

Option 3. Expand the role of Skill New Zealand

This option would involve the retention of the Ministry of Education as the agency with overall responsibility

for tertiary education, but would expand the role of Skill New Zealand – possibly renamed ‘Tertiary Education

New Zealand’. This re-constituted agency would take over the tertiary resourcing responsibilities of the

Ministry of Education. Under this model, TEAC could be retained as an advisory body or merged with the

expanded body.

A systems approach to policy and regulation that balances the need for national and local responsiveness

• Skill New Zealand has had a focus on only one part of the tertiary education system and one mode of

operation. Although this responsibility could be expanded, this would involve a considerable degree of

institutional and operational change.

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• Skill New Zealand’s existing approach to the management of funding would conflict with the integrated

approach recommended in this Report, especially in respect to management by exception and the

partnership approach the Commission proposes for the negotiation and use of profiles. Again, considerable

change would be required.

Recognise the distinctive roles of the diverse parts of the system and the linkages between them

• Skill New Zealand has not been established with the full range of roles and functions of the tertiary

education system in mind. For this option to be effective, considerable change would be required to the

structure, operation and governance of the agency.

Facilitate a proactive approach to the steering of the system which engages stakeholder and provider participation

• Skill New Zealand, as a Crown entity with its own board, has the potential to facilitate a proactive approach,

although its operational focus would require considerable change to enable this to happen.

• If the changes discussed above were implemented, it is possible that this option could produce a proactive

approach to steering the tertiary education system – but, as noted, the changes required would be

substantial.

• Skill New Zealand processes for contracting providers vary greatly from the processes used to determine

EFTS-based funding. This would mean making significant changes to existing processes.

Facilitate partnership in the delivery of education to Maori

• Skill New Zealand is focused on meeting the obligations of the Treaty of Waitangi and processes for

facilitating effective partnership are well developed.

The Commission’s conclusion in respect of Option 3 is that it does, in theory, offer the potential for avoiding

additional pressures on institutional autonomy and could facilitate provider and stakeholder engagement.

Significant changes to the structure and way of operating would, however, be required to realise this potential. This

change would be difficult to accomplish without considerable support from within the tertiary education system.

Option 4. Establish a new intermediary body

The final option considered by the Commission is the establishment of a new body that would carry out the

activities of the tertiary education resourcing and tertiary advisory monitoring units within the Ministry of

Education, all of the activities of Skill New Zealand, and the strategic policy advice function of TEAC.

A systems approach to policy and regulation that balances the need for national and local responsiveness

• This option would both improve the coherence of the approach to tertiary education policy and improve its

comprehensiveness. Bringing together primary responsibility for tertiary education policy and the allocation

of funding for all parts of the system would enhance coherence.

• International experience suggests that intermediary bodies can, if properly constituted and resourced, play a

crucial role in building a vibrant, innovative, efficient, high-quality tertiary education system.

• The Ministry of Education would need to maintain a policy capacity in the tertiary area, thus duplicating (at

least in part) the work of a new intermediary body. On the other hand, this would provide for contestable

advice from two different perspectives. This option could reduce policy coherency, but the extent to which

this would happen would be dependent on the relationship between the intermediary body and the Ministry

of Education and the roles and functions of each body.

• An intermediary body, with a significant element of input from stakeholders outside the tertiary education

system, has the potential to provide a mechanism for balancing local and national responsiveness.

• An intermediary body would stand between the Government and tertiary providers, thereby helping to

ensure an appropriate level of autonomy and academic freedom. At the same time, it would allow a more

co-ordinated and coherent approach to the allocation of public funds, which would improve predictability,

accountability, and the good stewardship of resources.

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Recognise the distinctive roles of the diverse parts of the system and the linkages between them

• By instituting an agency with a primary focus on tertiary education issues, the opportunity would be created

to build an organisation with a detailed understanding of the tertiary education system and capable of

providing high-quality, independent advice to the Government.

• Such a body is likely to make the task of implementing a central steering framework of the kind proposed

more acceptable to tertiary education providers.

Facilitate a proactive approach to the steering of the system which engages stakeholder and provider participation

• A new intermediary body with its own board has the potential to facilitate a pro-active approach, and could

be established with this orientation in mind.

• An intermediary body would be a body with an appropriate level of independence from the Government. It

would be able to engage and facilitate input from providers and other stakeholders, which would enable a

partnership approach to policy development and decision making.

• Such a body would provide the opportunity for building a constructive dialogue and partnership with those

both inside and outside of the tertiary education system. It would also allow some of those with high-level

expertise in tertiary education to serve on the governing board and so contribute more fully to policy

development and implementation.

Facilitate partnership in the delivery of education to Maori

• Such a body could also provide the vehicle for an improved approach to responding to the imperatives of

the Treaty of Waitangi, including building a stronger partnership with Maori in the steering and delivery of

tertiary education.

The Commission’s conclusion in respect of Option 4 is that it is well suited to mitigating additional pressures

on institutional autonomy, while still bringing about provider and stakeholder engagement. The converse of

this, however, is that the Minister of Education’s powers and freedom to manoeuvre in relation to tertiary

education will necessarily be constrained.

Options 1 and 3 point to the difficulty of achieving the Commission’s objectives without substantial change to

the existing central structures. Attempts to adapt existing structures are not likely to achieve the objectives

sought. Neither of these options is likely to secure the engagement of providers and other stakeholders, and

there are risks (of different sorts) to institutional autonomy in respect of these two options.

Option 2 results in significant change, but does not address the need to facilitate engagement by providers and

other stakeholders, is not likely to be sufficiently proactive, and will not adequately protect academic freedom.

Option 4 is the option most likely to allow the Government to increase its engagement with the tertiary

education system, while respecting the principle of autonomy and retaining flexibility in the system. This is

consistent with Conclusion 8 in Shaping a Shared Vision.

On balance, the Commission has decided that the best option for the effective central steering of the tertiary

education system is the establishment of a new intermediary body for the whole tertiary education system. The

Commission suggests that this body should be known as the Tertiary Education Commission.

Recommendation 23

The Commission recommends that a new intermediary body, to be known as the Tertiary Education Commission (TEC), beestablished with responsibility for the whole tertiary education system.

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5.2: Structure and Function of the Tertiary Education CommissionThe formation of the TEC raises two other important sets of issues:

• What functions and powers should the TEC have?

• How should the TEC be structured and organised?

In addressing these questions of institutional design, the Commission has drawn heavily on a review it

commissioned of the international experience of intermediary bodies.55 This review highlights the considerable

variation in the functions, powers and governance of intermediary bodies – between those with limited

statutory responsibilities and those with comprehensive powers (and, therefore, a significant ability to steer the

tertiary education system). While there are valuable lessons to be learned from the experience of other

countries, it is important to appreciate the unique political, administrative, economic and cultural contexts in

which each particular intermediary body operates.

There are also valuable lessons to be drawn from the history of New Zealand’s institutional arrangements for

managing the tertiary education system, including the experience of the University Grants Committee (1961-

90)56 and Skill New Zealand. The Commission has carefully considered all of these issues in its deliberations on

the aims, functions, and structure of the TEC.

5.2.1 Aims and Purposes

The TEC’s central and overriding aim is to steer the tertiary education system in a manner that is consistent

with the tertiary education strategy and that achieves the broad objectives set out in this Report.

Recommendation 24

The Commission recommends that the aims and purposes of the TEC be:i) to ensure the development of a diverse, innovative, responsive, and accountable tertiary education system;ii) to ensure that the tertiary education system provides the basis for sustainable wealth creation;iii) to ensure life-long, equitable, and affordable access to tertiary education and training of an international standard of excellence;iv) to ensure that the tertiary education system is properly informed by and operates in conformity with the principles of the

Treaty of Waitangi; and v) to protect academic freedom and to ensure a level of institutional autonomy consistent with the efficient use of resources,

the national interest, and the demands of public accountability.

5.2.2 Functions and Powers

To enable it to achieve its aims and purposes, the Commission believes that the TEC will need to have the

following broad functions:

• provision of strategic advice;

• advice to the Minister on tertiary education policy;

• advice to the Minister on regulatory matters;

• negotiation and approval of provider profiles;

• allocation of funding;

• monitoring of provider performance;

• facilitating the achievement of the Government’s tertiary education strategy; and

• research and evaluation.

The TEC and the Minister will require a range of powers to give effect to these functions. These are discussed below.

55 Mosely (2000). 56 Gould (1987).

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Strategic advice

The TEC would provide advice on the strategy for the tertiary education system. This advice would be directed

to the Minister, to providers, and to the other stakeholders of the tertiary education system.

The Government would be responsible for determining the strategic direction of the tertiary education system,

and would draw upon the advice of the TEC and the Ministry of Education as well as input from other agencies.

The TEC would then be responsible for giving effect to the Government’s strategic vision in a manner

consistent with the principles of autonomy, academic freedom, and responsiveness to local and regional needs.

Advice on tertiary education policy

The TEC would be responsible in varying degrees for three main streams of advice: provision of services,

funding, and qualifications.

The TEC would have primary responsibility for providing policy advice to the Minister on the nature, form, and

spread of provision within the tertiary education system.

The TEC would have primary responsibility for providing advice on the overall funding needs of the tertiary

education system, in conjunction with the Ministry of Education (which would have responsibility for providing

advice about the tertiary education strategy from the perspective of the overall education system). At a more

detailed level, the TEC would also have primary responsibility for advice on the allocation of funding (including

funding for research) within the tertiary education system.

The TEC would provide advice to the Minister, in conjunction with NZQA, on tertiary education qualifications.

NZQA’s involvement would include ensuring coherence between senior secondary and tertiary qualifications.

Advice on regulation and decision making

The TEC would provide advice to the Minister on the exercise of the Minister’s powers in respect of the

tertiary education system.

This would include advice on:

• the establishment of TEIs (currently covered by s162 of the Education Act 1989);

• the disestablishment or merger of TEIs (cf. s164 of the Education Act 1989);

• the use of protected terms (cf. s264 of the Education Act 1989);

• the recognition of ITOs (cf. s6 of the Industry Training Act 1992);

• the recognition of GTEs;

• the setting of mandatory requirements for charters (currently s190 of the Education Act 1989);

• the approval of TEI charters (cf. s184 of the Education Act 1989);

• the approval of non-TEI charters;

• the withdrawal of non-TEI charters; and

• the appointment of TEI council members (cf. s171 of the Education Act 1989).

The TEC would be expected to act in a proactive manner, with the objective of implementing the tertiary

education strategy. For example, the TEC would be expected to provide advice to the Minister on the

desirability of establishing or changing the status of a provider, based upon its research and evaluation, and

how such a development would support the tertiary education strategy.

Negotiation and approval of profiles

The TEC would have responsibility for negotiating and approving provider profiles (see Section 4.1.3). The

TEC would also negotiate charters on behalf of the Minister (see Section 4.1.2).

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Allocation of funding

The TEC would allocate all funding to providers and other organisations (including ITOs) for the support of

teaching and learning. It would also allocate the funding for research currently included in Vote: Education.

(Further details on funding mechanisms and systems will be provided in the Commission’s future reports.)

Monitoring of provider performance

The TEC would monitor the performance of providers against their charters and profiles.

This monitoring would include financial performance (to ensure financial viability).

It would also include monitoring the performance of TEIs and other publicly funded providers in respect of

their obligations under the Treaty of Waitangi as specified in their charters.

Quality assurance of providers would remain the responsibility of NZQA and the NZVCC, NZPPC, and CEAC.

The TEC will use quality-assurance information from these organisations when it considers providers’ charters,

profiles and functional classifications.

Facilitatory roles

The TEC would have a strong facilitatory role in working with the system’s stakeholders. This could include

facilitating collaboration and co-operation between stakeholders, facilitating and promoting the articulation of

learning and credit transfer, or assisting stakeholders in planning for future developments within the tertiary

education system.

The Commission envisages that the TEC would offer a wide range of advice to the key stakeholders of the

system. This could include providing information to learners on career opportunities (and available courses

and programmes) in partnership with the tertiary education system, industry, and the wider community.

Research and evaluation

The TEC would conduct research and consult widely, so that its advice is based on a credible depth and

breadth of knowledge about the system.

It would also undertake research and evaluation on the performance of the tertiary education system and

promote models of good practice.

Recommendation 25

The Commission recommends that the TEC have the following statutory functions, powers and responsibilities:a) to advise the Minister, providers, and other stakeholders on the strategic direction of the tertiary education system;b) to advise the Minister on policy in relation to:

i) the nature, form and spread of provision within the tertiary education system;ii) the allocation of tertiary education funding, including funding to support research within the tertiary education system; andiii) tertiary education qualifications, in conjunction with NZQA (cf. s253(b) of the Education Act 1989);

c) to advise the Minister on exercising the following powers:i) the establishment of TEIs (cf. s162 of the Education Act 1989);ii) the disestablishment or merger of TEIs (cf. s164 of the Education Act 1989);iii) the use of protected terms (cf. s264 of the Education Act 1989);iv) the recognition of ITOs (cf. s6 of the Industry Training Act 1992);v) the recognition of GTEs (cf. s159 of the Education Act 1989);vi) the setting of mandatory requirements for charters (cf. s190 of the Education Act 1989);vii) the approval of TEI charters (cf. s184 of the Education Act 1989);viii) the approval of non-TEI charters;ix) the withdrawal of non-TEI charters; andx) the appointment of TEI council members (cf. s171 of the Education Act 1989);

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d) to negotiate and approve profiles (cf. s203 of the Education Act 1989);e) to allocate funding to tertiary education providers, including:

i) funding grants to TEIs (cf. s199 of the Education Act 1989);ii) funding grants to non-TEIs with approved charters (cf. s238A);iii) administration of other funding schemes (cf. s271 of the Education Act 1989);iv) funding to ITOs (cf. s10 of the Industry Training Act 1992);

f) to monitor tertiary education provider performance, including:i) monitoring of TEI financial performance (cf. s203 of the Education Act 1989);ii) monitoring of non-TEI financial performance (cf. s238A of the Education Act 1989);iii) obtaining information from providers (cf. s255 of the Education Act 1989);

g) to provide advice to providers, learners, and those with an interest in the tertiary education system; andh) to research and evaluate the performance of the tertiary education system.

5.2.3 Accountability of the TECThe TEC should be an Autonomous Crown Entity (ACE) and be formally accountable to the Minister, whowould appoint the chair and the members of the board.

The TEC would negotiate an annual document of accountability with the Minister, specifying the financial andother parameters within which the TEC would operate.

There would also be a separate specification of the fiscal and policy parameters within which the TEC wouldexercise its funding powers. This would be specified by the Minister.

The Commission believes that the TEC should conduct an annual review of its performance. This review wouldcover its document of accountability, progress in achieving its statutory aims and purposes, and how effective ithas been in the performance of its functions.

It is expected that the TEC would provide reports on its work – including research and analysis of the effects ofthat work – to the Minister. These reports would be published, and would inform both the TEC’s own workand the work of others in the tertiary education system.

Recommendation 26

The Commission recommends that the Minister have the following powers in relation to the TEC:a) to appoint the chair of the board;b) to appoint the members of the board (but not the head of secretariat);c) to approve, with the board, a document of accountability;d) to determine overall tertiary education funding levels, policy, and parameters; ande) to direct the TEC to provide advice or conduct research on any matters within its areas of responsibility.

5.2.4 Structure and Operations

There are two main approaches to the structure and composition of intermediary bodies. In the first, a

governing board is responsible primarily for the policy framework and the strategic direction of the

intermediary body – with functional operations being handled by a chief executive and a relatively large

secretariat. The second approach involves a somewhat smaller secretariat supporting a ‘working commission’,

the members of which would be appointed for their expertise and be expected to have more direct involvement

in day-to-day operations. There are examples of both forms of organisation in the New Zealand public sector.

Internationally, both types of governing bodies exist. In Ireland, for example, the Higher Education Authority

has a board of 18 members and a more hands-on approach to the workings of their tertiary education system.

It is supported by a secretariat of 25. By contrast, the Higher Education Funding Council for England has a

board of 15 who have responsibility for the council’s strategic direction; operational matters are conducted

solely by the executive (which numbers 160).

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On balance, the Commission favours the model of a working commission for the TEC. The Commission

believes that the members of the TEC board should be selected for their expertise and understanding of tertiary

education issues, and for the contribution they can make to the system and its ability to meet the nation’s needs.

The Commission’s view is that the TEC should have a unitary board that has responsibility for the entire

tertiary education system. It should have a broad focus, and should be serviced by a secretariat that can

respond to the diverse interests of the tertiary education system and its stakeholders. Since the TEC will be

responsible for the entire tertiary education system, it will need to employ people who have a detailed

understanding of each constituent part of the tertiary education system and who are capable of building

strong relationships with all the relevant stakeholders. The Commission also expects that the TEC will set up

bodies to provide it with expert advice on different parts of the system.

The rest of Section 5.2 sets out the Commission’s proposals for the TEC’s board and secretariat.

Board membership

The board of the TEC would comprise up to twelve members, including a chair. All members would be working

members and appointed by the Minister. The members of the TEC board would need to be persons of high calibre,

with a breadth of experience and expertise sufficient to enable the proactive steering of the tertiary education

system in a manner that contributes to and supports national strategies. A minimum of two members would be

Maori, reflecting the importance of the Treaty of Waitangi and the needs of Maori in the tertiary education system.

No member would represent any particular organisation; instead, each would be expected to work in the

interests of the tertiary education system and the nation as a whole.

Remuneration for the chair and other board members must be sufficient to attract the highest calibre of persons.

All members would be appointed for three-year terms, with a maximum of three consecutive terms. Ideally, to

preserve institutional memory and create a measure of continuity, there would be overlapping terms of appointment.

Recommendation 27

The Commission recommends that:a) the board of the TEC have up to twelve members, including a chair;b) board members be persons of the highest calibre with a breadth of expertise and experience sufficient to enable the proactive

steering of the tertiary education system in a manner that contributes to and supports national strategies;c) no member represent a particular organisation;d) at least two members be Maori;e) remuneration for the chair and other board members be sufficient to attract the highest calibre of persons who have

experience and knowledge relevant to the TEC’s work;f) all members be appointed for three-year terms, ideally overlapping, with a maximum of three consecutive terms for each

board member; andg) the board members be required to work in the interests of the tertiary education system and the nation as a whole.

Board structure and operation

As noted earlier, the TEC board should be a working body – and so the Commission envisages that the TEC

would hold meetings on a regular basis.

It will be essential that all of the diverse parts of the tertiary education system are reflected in the structure and

operations of the TEC board. This could be achieved by establishing a range of statutory sub-committees, with

either sectoral or issues-based responsibilities. There are some risks in this approach: statutory committees

could reduce the flexibility of the TEC; and sectoral committees might reduce the TEC’s ability to promote a

coherent cross-sectoral approach to tertiary education.

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Outweighing these risks, however, is the need to safeguard interests and issues that are not currently wellintegrated with the rest of the tertiary education system – especially industry training, second-chanceeducation, community education, and Maori tertiary education. Research and post-graduate study are also apriority, given their importance for the development of a ‘knowledge society’.

The Commission’s view is that the board of the TEC should have a range of advisory bodies (whetherestablished by statute or by the board itself), with additional members from within the relevant parts of thetertiary education system (and externally, if required). It would be expected that this would include bodieswith responsibility for advising on areas such as:

• post-graduate education and research;

• degree-level education;

• vocational education and industry training;

• community education; and

• Maori tertiary education.

In addition, the board of the TEC would need to be able to establish permanent or temporary referencegroups for cross-sectoral issues such as second-chance education, workplace learning, e-learning, access, equity,literacy, and Pacific peoples’ education.

Recommendation 28

The Commission recommends that:a)meetings of the board be held on a regular basis;b) the board have advisory bodies, with additional members from the relevant parts of the tertiary education system (and from

outside the tertiary education system, if required);c) the advisory bodies of the board be responsible for areas such as post-graduate education and research, degree-level

education, vocational and industry training, community education, and Maori tertiary education; andd) the board be able to establish permanent or temporary reference groups for cross-sectoral issues such as second-chance

education, workplace learning, e-learning, access, equity, literacy, or Pacific peoples’ education.

Secretariat

The TEC secretariat should be of a sufficient size to carry out the various functions, powers and responsibilitiesof the TEC efficiently and effectively. It should also have relevant expertise, and be organised in such a waythat it can meet the needs of all parts of the system, including those areas identified above requiring particularattention. For instance, the Commission is strongly of the view that there should be a unit within the TECsecretariat that has the specific competence to address Treaty of Waitangi issues (including barriers to Maoriparticipation in tertiary education). There will need to be a head of the secretariat, responsible to the TECboard for the performance of the secretariat.

At any one time, a reasonable percentage of the TEC secretariat should be on secondment from otherorganisations in the tertiary education system. This will ensure that the secretariat understands and reflects thesystem it has been established to serve.

The extent to which the TEC should have a regional presence will require careful consideration. What isessential is that the TEC be in a position to understand and respond to the interests and concerns of regionalproviders and communities. This might be achieved by strategies such as:

• the TEC itself having regional offices;

• requirements on providers (and ITOs) to demonstrate how they are responsive to identified local andregional social and economic needs;

• the establishment of strong linkages between the TEC and local government and other government agencieswith regional networks, such as the Career Services, Te Puni Kokiri, the Ministry of Pacific Island Affairs, theDepartment of Work and Income, and the Ministry of Economic Development.

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The Commission believes that this issue will need to be worked through carefully by its proposed TEC

establishment unit.

Recommendation 29

The Commission recommends that:a) the TEC’s secretariat be sufficiently large to undertake the functions, powers and responsibilities of the TEC;b) the secretariat have the expertise and the organisational structure necessary to meet the needs of all the parts of the system;c) there be a unit within the secretariat with the specific competence required to address issues relating to the Treaty of Waitangi;d) there be a head of the secretariat, appointed by the TEC board, and accountable to the board for the performance of the

secretariat;e) at any given time, a reasonable percentage of secretariat members be on secondment from the tertiary education system; and f) the secretariat have the means to ensure that the board is in a position to understand and respond to the interests and

concerns of regional providers and communities.

5.3: Implications for Other Central StructuresThe establishment of the TEC will have implications for a number of existing central structures. In this section,

the Commission briefly describes some changes to the powers of the Minister of Education; the powers and

functions that will be transferred to the TEC from other agencies (including disestablishing some agencies);

and the relationship of the TEC to other central structures.

5.3.1 Minister

Under the recommendations in this Report, the Minister will retain the majority of his or her current powers –

but the provision of advice to the Minister on the exercise of these powers will become the responsibility of the

TEC. The Minister will also gain a number of new powers, which currently are exercised by other bodies.

The Minister will retain decision-making power on the following matters:

• the establishment of TEIs (cf. s162 of the Education Act 1989);

• the disestablishment or merger of TEIs (cf. s164);

• the recognition of GTEs;

• the setting of mandatory requirements for charters (cf. s190);

• the approval of TEI charters (cf. s184); and

• the appointment of TEI council members (cf. s171).

The Minister will gain the following new powers:

• the use of protected terms (cf. s264);

• the recognition of ITOs (cf. s6 of the Industry Training Act 1992);

• the approval of non-TEI charters; and

• the withdrawal of non-TEI charters.

Two powers will be transferred to the TEC. These are:

• granting of funding to individual TEIs (cf. s199 of the Education Act 1989); and

• granting of funding to non-TEIs (cf. s238A of the Education Act 1989).

The Minister would also retain the power to set the overall level of funding for tertiary education, and to

establish the funding policy framework(which the TEC will implement).

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Recommendation 30

The Commission recommends that the Minister have the following new powers:a) granting the right to use protected terms (c.f. s264 Education Act 1989);b) recognising industry training organisations (c.f. s6 of the Industry Training Act 1992);c) approving non-TEI charters; andd) withdrawing non-TEI charters.

5.3.2 Ministry of Education

The Commission’s proposals will substantially affect the Ministry of Education. Primary responsibility for tertiary

education policy, resourcing, and monitoring the performance of tertiary education providers would transfer to the

TEC. (This means the work of the Ministry’s Tertiary Advisory Monitoring Unit (TAMU) would move to the TEC.)

As part of its responsibility for overall education policy, the Ministry will need to retain a policy capability for

monitoring the performance of the TEC. This capability needs to be sufficient to analyse the performance of

the TEC and to provide, at a strategic level, a measure of independent advice to the Minister and the

Government on tertiary education issues.

Recommendation 31

The Commission recommends that primary responsibility for tertiary education policy, tertiary education resourcing, and themonitoring of tertiary education be transferred to the TEC, but that the Ministry of Education retain responsibility foreducation policy as a whole (including tertiary-education-policy capability at a strategic level) and for monitoring theperformance of the TEC.

5.3.3 Skill New Zealand

The Commission’s recommendation to establish the TEC would mean that the functions currently performed

by Skill New Zealand would be transferred to the TEC. As a result, there would be no need to retain Skill New

Zealand as a separate entity.

The opportunities that the regional structures of Skill New Zealand could provide as the basis of a regional

network to support the work of the TEC need to be considered further. These issues are discussed in Chapter 10.

Recommendation 32

The Commission recommends that the responsibilities of Skill New Zealand (for the Industry Training Strategy and for thefunding of second-chance education) be transferred to the TEC, and that Skill New Zealand be disestablished.

5.3.4 Quality-Assurance Bodies

As discussed previously in Section 5.1, the Commission believes it is essential that the responsibilities for quality

assurance in tertiary education be separated from responsibilities for the allocation of funding. There are

inherent difficulties in having the organisation that approves the quality of courses and programmes also

making decisions about whether those programmes should receive public funding. An organisation carrying

out both roles will find it that much more difficult to resist pressures to fund all quality-assured programmes.

The Commission, therefore, believes that separate organisations should continue to carry out these

responsibilities within the tertiary education system.

Recommendation 33

The Commission recommends that NZQA and other quality-assurance agencies continue to have responsibility for the qualityassurance of tertiary education providers.

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While the Commission believes there should be an operational separation between the functions of quality

assurance and funding allocation, it also recognises the importance of maintaining the coherence of those

tertiary education qualifications that are currently the responsibility of NZQA. The further issue of the

integration between tertiary and school qualifications also needs to be kept in mind, given that NZQA is

responsible for all school-based qualifications. Consequently, the Commission believes that providing

mechanisms for the TEC to have input into the process of developing NZQA’s document of accountability, and

in appointing NZQA board members, would assist in creating the necessary coherence and integration.

Recommendation 34

The Commission recommends that the TEC have responsibility for providing input into the process of negotiating thedocument of accountability between NZQA and the Minister, and for providing advice on the appointment of NZQA boardmembers, in conjunction with the Ministry of Education.

5.3.5 Career Services

The Commission believes that the functions carried out by Career Services are a central part of steering the

system. In fact, the Commission believes that there is a need to expand the level of such services to students,

and to consider options such as brokering and/or central admissions as ways of improving learners’ access to

relevant learning within the tertiary education system.

The Commission has not yet finalised its views on these matters; they will be addressed in its future reports. It is

clear that the TEC, NZQA and Career Services need to work together closely – but it is not clear how this might

best be achieved, given that the Commission has not yet determined the precise functions to be carried out.

Recommendation 35

The Commission recommends that Career Services work in conjunction with the TEC, and that further consideration begiven to the manner in which this can best be achieved.

5.3.6 Tertiary Education Advisory Commission

Once the TEC is fully established, it would take over the functions of TEAC. TEAC would then be disestablished.

Recommendation 36

The Commission recommends that TEAC be disestablished once the TEC is fully established.

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Chapter 6: The Steering Instruments

The first of the five elements in the Commission’s high-level strategy for the tertiary education system is a

comprehensive and coherent approach to policy and regulation that recognises the distinctive roles of each part of

the system in relation to the whole.

To produce a more comprehensive and coherent approach, the Commission has proposed the introduction of

an integrated package of new steering instruments and the better use of existing ones. This integrated package

is referred to as the profiling system.

Chapter 4 gave an overview of how the package is intended to work. This chapter provides details of the operation

of its main features – functional classification, charters, and profiles – and discusses how the TEC will implement

them. How the TEC will use these instruments to ‘shape the system’ will be discussed in Chapter 8.

6.1: Functional ClassificationsFunctional classification is a new instrument developed by the Commission. The proposed classificationsdescribed here are intended to provide the means by which existing activities, and potentially new activities ofproviders, can be managed in a coherent and comprehensive manner.

Consistent with its conclusions in Shaping a Shared Vision, the Commission has also focused on ensuring that allforms of tertiary education are included in the classification system in a coherent and logical manner. Thisdoes not presuppose that all these forms of provision or activity will be regulated or funded in the samemanner or to the same extent – in fact it is the Commission’s intention that these classifications provide thebasis for differentiation. The proposed functional classifications are:

• learning and assessment support;

• community education and training;

• industry or professional education and training;

• comprehensive teaching;

• specialist teaching;

• comprehensive teaching and research;

• specialist teaching and research; and

• akoranga Maori.

6.1.1 Learning and Assessment SupportGiven the importance of lifelong learning, as well as the need for flexible pathways and improved access forthose who have not succeeded in traditional education environments, the Commission believes that learningand assessment support is a vital activity within the tertiary education system.

The activities covered by the functional classification ‘learning and assessment support’ would include:providing advice, guidance, and/or brokerage services that help learners to access learning; and helpinglearners to gain recognition of their achievement. These activities would relate to NQF levels 1 to 6, and wouldfocus on the recognition of learning.

Examples of existing providers whose activities could fall within this functional classification are registered assessors(ITOs), recognition-of-prior-learning (RPL) service providers, career advisory services, libraries, and museums.

6.1.2 Community Education and TrainingThe Commission is committed to providing a means for the recognition of the important role played by adult andcommunity education and, to this end, it proposes a functional classification of ‘community education and training’.

This functional classification would include: assisting community and personal development; providing orsupporting learning environments in areas of general education and training; and helping learners to gain

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recognition of their achievement. These activities would focus on NQF levels 1 to 6, and would include non-formal learning as well as learning leading to certificates and diplomas.

Having this functional classification makes it possible for the regulatory and funding system to recognise thatcommunity education is focused on developing communities and people.

It will also assist in identifying community-education activities that occur within different types of providers andinstitutions, and in linking them across the tertiary education system.

Examples of existing providers whose activities could fall within this functional classification are adult andcommunity education providers, many PTEs, and OTEPs such as Literacy Aotearoa, Workbase Education Trust,and PIERC Education.

6.1.3 Industry or Professional Education and TrainingAn important area of activity requiring specific classification is that of industry or professional education andtraining. The focus here is on workplace learning, but it also encompasses ongoing professional development.Such a functional classification will provide the means to regulate and fund this important part of the systemin ways that are relevant to its needs.

This functional classification would include activities such as: assisting industry in skills acquisition andprofessional development; providing or supporting learning environments, particularly in industry orprofessional education and training; and helping learners to gain recognition of their achievement. It wouldcover the full range of NQF levels from 1 to 8, and would include the recognition of learning through nationalstandards, certificates, and diplomas.

Examples of existing providers whose activities could fall within this functional classification are ITOs,apprenticeship co-ordinators, many PTEs, GTEs such as the New Zealand Police and the New Zealand Army,and professional bodies such as the Institute of Chartered Accountants.

6.1.4 Comprehensive TeachingThis functional classification recognises the benefits of offering a broad range of learning opportunities withina single environment. It reflects the fact that specific requirements, such as economies of scale, are needed tosupport such an environment.

The functional classification of ‘comprehensive teaching’ includes: providing a wide diversity of formaleducation and training (up to and including undergraduate-degree-level programmes); and carrying outresearch that supports undergraduate-degree programmes. These activities would focus on NQF levels 3 to 7,and would lead to the recognition of learning through certificates, diplomas, and undergraduate degrees. Thisclassification includes the conduct of research that supports undergraduate teaching, as this is an essentialcomponent of degree provision.

Examples of existing providers whose activities could fall within this functional classification are polytechnicsand some PTEs.

6.1.5 Specialist TeachingIn some areas specialisation and focus is essential, although the costs of providing this specialisation may behigh. It is therefore important to be able to classify certain activities as ‘specialist teaching’, since this will helpfoster and facilitate specialisation within the system.

The functional classification of ‘specialist teaching’ includes: providing specifically focused formal education andtraining in a limited number of fields (up to and including undergraduate-degree-level programmes); andcarrying out research that supports undergraduate-degree programmes. These activities would focus on NQFlevels 3 to 7, and lead to certificates, diplomas, and undergraduate degrees. This classification includes theconduct of research that supports undergraduate teaching, as this is an essential component of degree provision.

Examples of existing providers whose activities could fall within this functional classification are colleges ofeducation, OTEPs such as the New Zealand Schools of Dance and Drama and Taratahi Agricultural TrainingCentre, and some PTEs.

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6.1.6 Comprehensive Teaching and ResearchComprehensive teaching and research activities – which provide the basis for virtually all degree-level study –should be recognised within the functional classification system.

The functional classification of ‘comprehensive teaching and research’ would include: carrying out research ina wide diversity of fields; and providing a wide diversity of formal education and training. These activities wouldbe focused on NQF levels 5 and above, and include provision of diploma, undergraduate, and post-graduatedegree programmes.

Most of the activities of universities would fall within this functional classification.

6.1.7 Specialist Teaching and ResearchThere will be a number of areas of specialist teaching and research where, for reasons of researchspecialisation or high cost, it is desirable to concentrate effort within the tertiary education system. Thefunctional classification system should recognise this, in a manner that facilitates the specialisation andconcentration sought for the system as a whole.

The functional classification of ‘specialist teaching and research’ would include: carrying out specifically focusedresearch in one or more fields; and providing specifically focused formal education and training in one or morefields (primarily undergraduate-degree and post-graduate-level programmes). These activities would befocused on NQF levels 5 and above, and would involve the delivery of diploma, undergraduate, and post-graduate degree programmes.

Examples of existing providers whose activities could fall within this functional classification are professionalschools (such as medicine, engineering, and architecture) and graduate schools.

6.1.8 Akoranga MaoriGiven the responsibilities of the Crown under the Treaty of Waitangi, it is important that learning andknowledge in a Maori context is recognised and addressed appropriately within the tertiary education system.

The functional classification of ‘akoranga Maori’ would include supporting learning, or providing educationand training, according to ahuatanga Maori and tikanga Maori. These activities could be carried out in a widevariety of contexts, and by different types of providers.

Examples of existing providers whose activities could fall within this functional classification are wananga andMaori PTEs.

6.1.9 Further ClassificationsThe Commission does not believe that these proposed functional classifications should be used as a rigid andexclusive statement of functions and activities. Rather, they are intended as a tool that gives focus and directionto the processes of profiling and funding allocation.

Recommendation 37

The Commission recommends that consideration be given to the following functional classifications of provider and quality-assured learning environments as a basis for preparing and negotiating charters and profiles:a) learning and assessment support;b) community education and training;c) industry or professional education and training;d) comprehensive teaching;e) specialist teaching;f) comprehensive teaching and research;g) specialist teaching and research; andh) akoranga Maori (Maori learning).

The Commission proposes that the proposed functional classifications have the meanings shown in Table 6.1on the following page.

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FUNCTIONALCLASSIFICATION

Learning and AssessmentSupport

Community Educationand Training

Industry or Professional Education and Training

Comprehensive Teaching

FUNCTIONS &ACTIVITIES

• providing advice,guidance, and/orbrokerage services thathelp learners to accesslearning

• helping learners to gain recognition ofachievement

• assisting communityand personaldevelopment

• providing or supportinglearning environmentsin areas of generaleducation and training

• helping learners to gain recognition ofachievement

• assisting industry orprofessional skillsdevelopment

• providing or supportinglearning environmentsparticularly in industryor professionaleducation and training

• helping learners to gainrecognition ofachievement

• providing a widediversity of formaleducation and training,up to and includingundergraduate-degree-level programmes

• carrying out researchthat supportsundergraduate-degreeprogrammes

NQF LEVELS /QUALIFICATIONS

• levels 1 – 6 (recognition oflearning)

• levels 1 – 6 (non-formal learning,certificates, diplomas)

• levels 1 – 8 (national standards,certificates, diplomas)

• levels 3 – 7 (certificates, diplomas,undergraduate degrees)

EXAMPLES OFEXISTING PROVIDERS

• registered assessors(ITOs)

• RPL service providers

• career advisory services

• libraries and museums

• adult and communityeducation providers

• many PTEs

• OTEPs (eg LiteracyAotearoa, WorkbaseEducation Trust, PIERCEducation)

• ITOs

• apprenticeship co-ordinators

• many PTEs

• GTEs (eg NZ Police, NZ Army)

• professional bodies (egInstitute of CharteredAccountants)

• polytechnics

• some PTEs

PROPOSED FUNCTIONALCLASSIFICATIONS(TABLE 6.1)

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FUNCTIONALCLASSIFICATION

Specialist Teaching

Comprehensive Teachingand Research

Specialist Teaching andResearch

Akoranga Maori

FUNCTIONS &ACTIVITIES

• providing specificallyfocused formaleducation and trainingin a limited number offields (up to andincludingundergraduate-degree-level programmes)

• carrying out researchthat supportsundergraduate-degreeprogrammes

• carrying out research ina wide diversity of fields

• providing a widediversity of formaleducation and training(primarilyundergraduate-level andpost-graduate-leveldegree programmes)

• carrying out specificallyfocused research in oneor more fields

• providing specificallyfocused formaleducation and trainingin one or more fields(primarilyundergraduate-level andpost-graduate-leveldegree programmes

• supporting learning, orproviding educationand training, ahuatangaMaori and tikangaMaori

NQF LEVELS /QUALIFICATIONS

• levels 3 – 7 (certificates, diplomas,undergraduate degrees)

• levels 5+ (diploma,undergraduate, post-graduate degreeprogrammes)

• levels 5+ (diploma,undergraduate, post-graduate degreeprogrammes)

• a range of levels(depends on theprovider’s primaryfunctionalclassification)

EXAMPLES OFEXISTING PROVIDERS

• colleges of education

• OTEPs (eg NZ Schoolsof Dance and Drama,Taratahi AgriculturalTraining Centre)

• some PTEs

• universities

• professional schools (eg medicine,engineering,architecture)

• graduate schools

• wananga

• Maori PTEs

PROPOSED FUNCTIONALCLASSIFICATIONS continued

(TABLE 6.1)

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6.1.10 Process of Functional Classification

The proposed functional classifications are intended as a tool to bring about greater focus and differentiation

in the tertiary education system. Providers will be able to identify more clearly their role and function within

the system; and the TEC will be able to encourage provider excellence in areas of specialisation.

The functional classifications are intended to play a leading role in the organic development of the tertiary

education system, and to encourage new forms of delivery within a coherent and managed context. It is

therefore proposed that providers be classified within more than one functional classification in situations

where this would assist differentiation and specialisation.

For example: a provider whose activities are classified principally as ‘comprehensive teaching’ might also have

some activities classified as ‘specialist teaching and research’, if it had a concentration of expertise in a

specialist area of research and post-graduate education.

Equally, a provider whose activities are classified principally as ‘comprehensive teaching and research’ might

also have some of its activities classified as ‘industry or professional education and training’.

Recommendation 38

The Commission recommends that some or all of the activities of providers and quality-assured learning environments beclassified within more than one functional classification, where this is agreed with the TEC.

The importance of maintaining this flexibility can be seen when it comes to classifying activities as ‘akoranga

Maori’. This particular classification would identify that a provider, either in relation to all of its activities or in

a specified area, was providing education and training in a context of ahuatanga Maori and tikanga Maori. It

would also be possible, and useful, to identify the other foci of the provider’s activities – which could range

from learning and assessment support to specialist teaching and research.

Also important is the role of Maori in determining which activities should be recognised as falling within

‘akoranga Maori’. The Commission’s view is that Maori rightfully have a central role in determining which

provider’s activities are classified as ‘akoranga Maori’, and that the proposed TEC should establish processes

for achieving this.

Recommendation 39

The Commission recommends that processes be established by the TEC to enable Maori to play a central role in determiningwhich providers should be classified within the functional classification of ‘akoranga Maori’.

6.2: ChartersThe importance the Commission attaches to charters can be seen from its recommendation (see Section 4.1.2)

that a charter be a requirement for any provider seeking public funding.

Charters set the provider’s medium- to long-term goals and objectives. They are an existing policy instrument

that can be adapted and modified to provide an effective tool (when used in conjunction with functional

classifications and profiles) for allocating funding and helping to steer the system. Ultimately, charters will

create greater predictability and stability in the tertiary education system.

The Commission believes that while the current processes for the negotiation of charters are generally

appropriate, two specific changes are required:

• to assist in the steering of the tertiary education system, there must be more active use of the Minister’s

current powers to specify mandatory requirements for charters (under s184 to s191 of the Education Act

1989); and

• responsibility for advising the Minister on the content of charters should be transferred to the TEC.

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With these changes, the Minister and the TEC will be able to use charters as a mechanism for steering

individual providers at a strategic level – and also to assist in steering the system as a whole. This is because

charters are medium- to long-term strategic documents that describe not only the nature of their agreed role

and function within the system, but also how the provider contributes to the strategic development of the

tertiary education system.

Although the focus of charters is on the medium to long term (covering five to ten years), providers should be

able to modify them in response to changing needs. Such modifications would need to be approved by the

Minister on the advice of the TEC.

Recommendation 40

The Commission recommends that, in approving charters, the Minister be advised by the TEC.

6.2.1 Content of Charters

The content of charters should reflect both the role of charters in the steering process and their function as

medium- to long-term strategic documents.

While charters should include a consistent and coherent range of information, the type of information

required should vary according to the individual provider and the functional classification of its activities.

The Commission envisages that there would be significant differences in the content of charters for different

providers. The charter of an adult and community education provider, for example, would be quite different

in scope and content from that of a university. The TEC, in conjunction with provider representatives, could

develop charter ‘templates’ to assist providers in this process.

Charters would include some or all of the following information:

Mission and special characterThis states the provider’s mission, and the special characteristics that differentiates it from other providers. It

would take into account the provider’s legal form, and the functional classification(s) of its activities.

Contribution to New Zealand’s identity and its economic, social and cultural developmentThis is the provider’s contribution to its region as well as to the nation as a whole. It could also include details

on wealth and employment creation.

Contribution to the tertiary education system as a wholeIn this, the provider builds on its statement of special character. Information here could include the provider’s

pedagogical approach, its regional spread, and its distinctive products and services.

Collaboration and co-operation with other tertiary education providers (OTEPs) and those outsidethe tertiary education systemThis is a description of how the provider works with other parts of the tertiary education system and those

outside it. It could include articulation arrangements with other providers, and also the nature of the

provider’s relationships with research institutes, industry groups, and its community.

Fulfilling its obligations under the Treaty of WaitangiIt is essential that each provider detail how it will give effect to the Treaty of Waitangi – that is, how it will meet

and fulfil its Treaty obligations.

Improving equity of accessThis is a statement of equal education opportunities for those groups who have been traditionally under-

represented in the tertiary education system. It could include initiatives such as allowing for improved pastoral

care, physical access, and other facilities for disabled groups.

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Supporting credit transfer and the recognition of prior learningHere the provider sets out how it recognises prior learning and how it provides effective pathways for learners

who are seeking to build on previous qualifications and learning experiences.

Meeting the educational needs of learnersThis outlines a provider’s educational programmes and services, the NQF levels covered, and any research

plans (if appropriate).

Ensuring the professional development of staffThis states the provider’s approach to meeting the professional development needs of their academic and

general staff – so that the staff profile remains appropriate to the provider’s mission and special character.

Strategic planningThis describes the provider’s approach to strategic planning – with particular emphasis on how all relevant

stakeholders can have appropriate input into this process.

Environmentally sustainable activitiesProviders will state how they ensure that their activities are undertaken in an environmentally sustainable

manner.

Long-term financial viabilityThis is information on how providers will maintain their financial viability over the long-term. It must include a

description of the provider’s approach to capital management, and it must specify any plans for significant

capital investment (or disinvestment).

Recommendation 41

The Commission recommends that all charters include the following general types of information, although the exact contentof charters will vary with the provider’s functional classification:• mission and special character;• contribution to New Zealand’s identity and economic, social and cultural development;• contribution to the tertiary education system as a whole;• approach to collaboration and co-operation with other tertiary education providers and those outside the tertiary education

system;• approach to fulfilling its obligations under the Treaty of Waitangi;• contribution to improving equity of access;• approach to supporting credit transfer and the recognition of prior learning; • approach to meeting the educational needs of learners;• approach to ensuring the professional development of its staff;• approach to strategic planning; • approach to ensuring that its activities are undertaken in an environmentally sustainable manner; and• approach to ensuring its long-term financial viability, including capital investment and management.

6.3: ProfilesProfiles are a new policy instrument designed to replace the existing instruments used for the allocation of

funding, such as statements of objectives and Skill New Zealand contracts.

Profiles will differ markedly from the existing policy instruments in that they will apply to all tertiary education

providers who operate in New Zealand, rather than just to those who receive public funding. Charters

(described in the previous section of this chapter) provide one component of the steering framework, in that

they give information about providers who receive public funding. Profiles provide more detailed information

about programmes and activities of all providers – and this information, when aggregated, can be used as an

instrument for steering the tertiary education system.

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The kinds of details and performance indicators required in profiles would vary according to the functional

classification within which the provider falls. For example, the information requirements for organisations

carrying out community education and training will vary significantly from those for organisations carrying out

comprehensive teaching and research.

The Commission envisages that the TEC could initiate the development of profile ‘templates’ – and the

information supplied by providers during the process of establishing the functional classification(s) of their

activities could be used as the basis for these templates. This would reduce the administrative and compliance

costs of preparing profiles, and would allow a provider to indicate their distinctive characteristics.

Functional classifications, charters, and profiles will collectively provide an improved means for steering the

tertiary education system. But it is also important to balance this by encouraging provider responsiveness to

local needs, preserving an appropriate level of institutional autonomy, and safeguarding academic freedom.

Profiles should therefore be used to steer the tertiary education system in two ways:

1. During the process of negotiating and agreeing profiles, they should be used as an opportunity to identify

areas of duplication and gaps in delivery.

2. Once the profiles are completed, they should be used to inform decisions on the allocation of public

funding.

The implication of this approach is that profiles should not be used to prevent the delivery of programmes or

the carrying-out of activities. Providers must be able to choose what programmes or activities to offer – even

though they may not receive public funding for these programmes and activities.

Given this view, the existing power of the Minister under s223(3) of the Education Act 1989 to prevent a TEI

from offering a particular course on the basis of the efficient use of national resources is undesirable. If the

system of negotiating profiles and charters provides a mechanism for selectively determining not to fund

certain activities, it is clearly unnecessary to actually prevent activities from being carried out. Indeed, to do so

is a greater infringement of the principle of academic freedom and institutional autonomy than is necessary.

Recommendation 42

The Commission recommends that profiles be used as a basis for determining the allocation of public funding to eligibletertiary education providers, but not for determining which programmes and activities they may carry out, and thatconsequently s223(2) of the Education Act 1989 be repealed.

6.3.1 Profiles to Have Two Parts

The dual role of profiles – that is, to provide information about activities and programmes and their providers,

and to provide a basis for decisions about funding – will require profiles to be organised into two parts.

The first part will provide general information about the provider’s distinctive character, strategic direction, and

planned activities over the forthcoming triennium (three-year period). For providers who also have charters, this

will involve an explanation of how the goals and objectives in the charter will be met over this period. For other

providers (non-funded but quality-assured providers57), the focus will be upon ensuring that the content of the

profile is a complete and accurate description of the programmes and educational activities of the organisation.

The second part will be relevant only to those providers who also have charters (that is, those who receive

public funding). This part of the profile will set out information about the provider’s public funding, with

particular emphasis on planned new activities and the rationalisation of existing activities. This part of the

profile will also cover the forthcoming triennium.

57 Quality-assured providers provide learning in a quality-assured learning environment (see Section 3.2.4).

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Recommendation 43

The Commission recommends that profiles contain two main parts: the first containing general information on theprogrammes and activities of the provider; and the second identifying, for providers with approved charters, the fundingrequested by the provider for its anticipated activities over the forthcoming triennium.

6.3.2 General Content of Profiles – All Providers

All quality-assured providers, whether they receive public funding or not, will provide the following

information in their profiles:

Mission and special characterThe profile will identify a provider’s core mission, and also their special character or characteristics. The core

mission should be related to the needs (of learners, the wider community, the nation) that the provider is

seeking to meet, and indicate how it proposes to satisfy these needs. The special character should relate to the

provider’s charter (if any), its functional classification, its legal form, and any protected terms.

Strategic directionProviders will include information on their current and proposed plans. This could include plans to rationalise

activities, reduce (or increase) staffing, pursue collaborative arrangements, undertake major developments (such

as new sites, new activities or programmes) or investigate proposals for mergers, change of status, and so forth.

Contribution to the tertiary education systemThis will identify the provider’s place in the tertiary education system, including its contribution to the system

and the impact of its activities on others in the system. It should outline partnerships and collaborations with

other providers, international activities, and articulation and credit-transfer arrangements. It should also

include how proposed developments – such as the introduction of new activities, major changes to existing

activities, major changes in the modes or locations of activities, or the termination of existing activities – might

affect other providers and student-learning opportunities.

Planned activitiesThis information should cover:

• the educational programmes the provider intends to offer, facilitate or support, defined both in general

terms and specifically in relation to New Zealand Standard Classification for Education (NZSCED) and NQF

levels and fields;

• the kinds of research the provider intends to undertake, including its research and research-training

management plans;

• the community or industry-development activities the provider intends to undertake; and

• the modes, sites, and regions where these activities will take place.

6.3.3 Additional Content of Profiles – Chartered Providers Only

The profiles of chartered providers (that is, those who receive public funding) will supply the following

additional information:

Forecasts of demand for currently funded programmes and activitiesThis will contain information about the funding implications of programmes and activities for which the

provider is already funded. The information should include forecasts of expected changes in the volume and

pattern of demand, and the implications of these on funding. It should also include the implications that

existing research and community- or industry-development activities have for funding.

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Planned new programmes or activitiesThis will identify new programmes or activities for which the provider seeks public funding. It should include

the expected volume and pattern of activity, and thus its implications for funding. Providers should also justify

the need for the planned programme or activity, and provide information on the consideration they have

given to any third-party effects it may have on the tertiary education system. The provider’s proposal for new

activities should relate to its mission, goals and objectives as set out in its charter, and should reflect its legal

form and functional classification(s).

Planned rationalisation of programmes or activitiesProviders will state whether there is any proposed rationalisation or cessation of their activities. This should

identify the reason for the rationalisation and the possible third-party effects. It should also consider the

impact of these changes on the provider’s legal form and functional classification(s), and on its ability to

achieve its mission and fulfil its charter.

Performance indicators Providers will identify a range of performance indicators for their activities and their charter. These will cover

(where relevant) areas such as:

• educational outputs (including completion of programmes);

• research outputs (including research training);

• community and industry-development outputs;

• equity objectives;

• learner-support objectives;

• staffing and professional-development objectives;

• Treaty of Waitangi obligations;

• environmental-sustainability objectives; and

• financial objectives.

Financial forecasts Financial-forecast information should cover all specific activities over the next triennium and, where relevant,

information on a provider’s capital-investment and capital-management plans.

Recommendation 44

The Commission recommends that all profiles include the following general types of information, although the exact contentof profiles will vary according to the provider’s functional classification:a) the provider’s mission and special character;b) the provider’s strategic direction;c) the provider’s contribution to the tertiary education system; and d) the provider’s planned activities and programmes over a three-year timeframe.In addition, the profiles of chartered providers should include:e) forecasts of demand for currently funded programmes and activities;f) planned new programmes or activities;g) planned rationalisation of programmes or activities;h) performance indicators in relation to relevant outputs and objectives (in relation to the charter provisions of the provider); andi) financial forecasts for the provider.

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CONTENT OF PROFILES (ALL QUALITY-ASSURED PROVIDERS) – TABLE 6.2

PART I: GENERAL INFORMATION

Mission and special • identification of which needs are to be served, how this will be done, and the

character special role or character of the provider

Strategic direction • the provider’s strategic direction, and their current and proposed plans

Contribution to the • partnerships and collaborative arrangements

tertiary education system • articulation and credit-transfer arrangements

• international activities

• third-party effects of proposed developments

Planned programmes • educational programmes (including NZSCED and NQF levels and fields)

and activities • research and research training

• community and industry-development activities

• delivery modes/sites/regions

ADDITIONAL CONTENT OF PROFILES (CHARTERED PROVIDERS ONLY) – TABLE 6.3

PART II: FUNDING REQUEST

Forecasts of demand for • forecast of expected changes in volume and pattern of learner demand, and

currently funded implications for funding levels

programmes and activities • details of ongoing funded research activities

• details of ongoing funded community/industry development activities

Planned new programmes • details of programme or activity, including anticipated volume and pattern of

and activities activity

• justification of the need for programme or activity

• third-party effects

Planned rationalisation of • details of the programme or activity

programmes or activities • justification of rationalisation of programme or activity

• third-party effects

Performance indicators • educational outputs (including programme completions)

(in areas such as) • research outputs (including research training)

• industry/community development outputs

• equity objectives

• learner support objectives

• staffing and professional-development objectives

• Treaty of Waitangi obligations

• environmental-sustainability objectives

• financial objectives

Financial forecasts • financial projections

• information on capital-investment and capital-management plans

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6.3.4 The Process of Negotiating Profiles

The Commission has recommended (in Recommendation 25) that the TEC have responsibility for negotiating

profiles with individual providers and, where relevant, determining the allocation of funding to each provider

on the basis of their profile.

There will be important differences in the processes used for negotiating the profiles of funded and non-

funded providers.

Profiles for funded (chartered) providers will be subject to agreement between the provider and the TEC on

their contribution to the tertiary education system as a whole, and their ability to meet the core elements of

the tertiary education strategy.

As there are no funding implications in non-funded providers’ profiles, these profiles will be the subject of

discussions and agreement principally in relation to their completeness and coherence. This would not

preclude the TEC from making suggestions or comment on the proposed profiles of non-funded providers, so

that improvements could be made in a consultative and a consensual manner.

The Commission believes that in the process of developing profiles all providers should be required to undertake

the same kind of stakeholder consultation that currently applies to the preparation of a statement of objectives.

It is envisaged that the TEC would arrange meetings between two or more providers (for example, amongst

those within the same region or amongst those offering similar programmes) in order to discuss their

respective profiles. Topics to be discussed could include areas of direct competition, the potential for greater

collaboration, and the implications of proposed programme developments. In this respect, the process of

negotiating profiles could be as beneficial and useful as the final document itself.

Recommendation 45

The Commission recommends that providers be required to undertake consultation with relevant stakeholders in thedevelopment of their profiles.

Recommendation 46

The Commission recommends that, where appropriate, the TEC initiate meetings between providers to discuss their respective profiles.

6.3.5 Legislative Issues

In the Commission’s view, profiles should be given a proper statutory basis through an appropriate amendment

to the Education Act 1989. Such an amendment should specify the purpose of profiles, the nature of their

content, and the process by which they are to be prepared, negotiated, and approved. It should also specify the

powers that will reside with the TEC, and any constraints that should apply to the exercise of these powers.

Profiles would replace statements of objectives and other policy instruments (that is, Skill New Zealand

contracts and special purpose grants) that the Government uses to determine which activities of tertiary

education providers it will fund.

Recommendation 47

The Commission recommends that profiles be given a statutory basis, replacing and incorporating the current requirements inrelation to statements of objectives, Skill New Zealand contracts, and special purpose grants.

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Chapter 7: Legal Form and Protected Terms

Amongst the core elements of the Commission’s tertiary education strategy are a systems approach to

recognising the different roles of providers, and an encouragement of greater specialisation and concentration

in order to promote excellence. In this chapter, the Commission use these two elements to underpin its

discussion of the concepts of ‘legal form’ and ‘protected terms’.

7.1: Legal FormAll tertiary education providers, or organisations responsible for a quality-assured learning environment, must

have a legal form. TEIs are statutory corporations, established under the Education Act 1989. GTEs must be a

government department or agency. PTEs, OTEPs, continuing education organisations, and ITOs must be

bodies corporate – but can take on a wide variety of forms within this.

The Commission believes that it would be helpful to simplify the statutory bases under which tertiary education

providers are established or recognised. The current legal form of TEIs, that of a statutory corporation, is

appropriate to their function; and s236 of the Education Act 1989 provides the best framework for the recognition

of non-TEI providers. The two other forms of recognition, GTEs and ITOs, should also continue to be utilised.

Recommendation 48

The Commission recommends that the following legal forms be recognised for tertiary education providers:a) public tertiary education institutions; b) private or community tertiary education providers;c) industry training organisations; andd) government training enterprises.

7.1.1 Public Tertiary Education Institutions

There are currently four types of statutory corporation that can be established under the Education Act 1989.

Two of these are intended for undertaking a broad range of activities (universities and polytechnics); and two

are specifically related to particular objectives (colleges of education and wananga). There is no other type of

statutory corporation under which a public tertiary education institution can be established. This inflexibility

creates some problems.

The need for specialist institutions

The Commission believes that the inability of the Government to establish specialist TEIs is a weakness in the

regulatory framework that needs to be addressed. The Commission’s view is that there are a number of

examples of OTEPs and other providers (including the New Zealand Schools of Dance and Drama, and

Taratahi Agricultural College) that the Government might have preferred to establish as TEIs, but there was

no adequate category for them. The Commission also believes that the current requirement for most TEIs to

offer a ‘wide diversity’ of programmes works against the objectives of specialisation and differentiation.

Recommendation 49

The Commission recommends that s162 of the Education Act 1989 be amended to add a new type of TEI, namely a‘specialist institute or college’ with the following statutory characteristics:‘A specialist institute or college is characterised by teaching (and, where relevant, research of a specialist nature) thatmaintains, enhances, disseminates, and assists in the applications of knowledge and expertise’.

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Recommendation 50

The Commission recommends that, in terms of the suggested functional classifications, a ‘specialist institute or college’ beclassified using any of the functional classifications except for ‘comprehensive teaching’ or ‘comprehensive teaching andresearch’.

The creation of this new category of TEI raises the question of whether it is necessary to retain the existing

category of ‘college of education’. This category is a unique form of a specialist TEI, focusing on pre-service

teacher education. When this category was established under the Learning for Life reforms, colleges of

education provided the bulk of teacher education programmes. As the study of teacher education in Appendix

5 indicates, there have been substantial changes in this situation since that time. Teacher education is now

delivered by a wide variety of providers, including universities, polytechnics, wananga, OTEPs and PTEs.

Colleges of education are no longer the exclusive or primary providers of teacher education.

The Commission is not of the view that the existing colleges of education should be forcibly merged with other

providers. Consistent with its position that decisions on particular providers should be made on a case-by-case

basis, the Commission believes that the future role of each of the existing colleges of education should be

carefully considered in its own context.

On the other hand, considering the broad spread of delivery of teacher education, there does not seem to be a

need for a separate type of TEI for teacher education. The retention of such a category of institution alongside

the more general category of ‘specialist institute or college’ might lead to the conclusion the Government

requires institutions of this type. The Commission therefore believes that existing colleges of education would

be better classified within the new category of ‘specialist institute or college’. The Commission also

recommends the consequential removal of the protected term ‘college of education’.

Recommendation 51

The Commission recommends that those TEIs currently established as a ‘college of education’ under s162 of the EducationAct 1989 be re-established as a ‘specialist institute or college’.

7.1.2 Private or Community Tertiary Education Providers

There are currently three ways in which non-state providers of teaching services can be recognised by the

Government. The first is registration as a PTE under s236 of the Education Act 1989. The other two are

through recognition as providers of ‘other services’ under s321 of the Education Act 1989 and recognition as

‘continuing education organisations’ under s97A of the Education Act 1964. There are established statutory

criteria and procedures for the recognition and quality assurance of PTEs recognised under s236. There are,

however, no criteria for the recognition or non-recognition of providers under s321 or s97A.

The broad category of providers classified as PTEs contains a number of providers who do not consider

themselves to be either ‘private’ or engaged in ‘training’. Organisations classified as PTEs also include many

adult and community education providers who could be more appropriately recognised for the important role

they play in lifelong learning.

The Commission’s view is that, in general terms, the provisions of s236 and its related sections provide an

appropriate scheme for the recognition and quality assurance of non-state providers of tertiary education. The

Commission believes that the functional classifications system should be used to differentiate amongst the wide

range of providers registered under these provisions.

The Commission also believes that the concept of ‘quality-assured learning environments’ (outlined in Section

3.2.4 of this Report) will allow the recognition of adult and community education providers, and will provide

for the quality assurance of adult and community education without the imposition of overly bureaucratic

requirements. It would be possible for a single legal entity, registered under s236, to be responsible for quality

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assurance and other regulatory matters in relation to a range of learning environments – and thus act as an

‘umbrella’ for a number of non-formal learning programmes, activities, and sites.

Accordingly, the Commission believes that s321 of the Education Act 1989 and s97A of the Education Act 1964

should continue to be used for education providers outside the tertiary education system – for example,

organisations (including schools) that provide services in the school or early childhood education systems.

Recommendation 52

The Commission recommends that private and community tertiary education providers be recognised under s236 of the EducationAct 1989; and that the term ‘private training establishment’ be replaced with ‘private or community tertiary education provider’.

7.1.3 Industry Training Organisations

The Commission affirms the essential role that industry training plays in the maintenance of a wealthy society

and acknowledges the vital role that ITOs58 play in the tertiary education system. Because ITOs provide an

essential link between a key group of stakeholders (business and industry) and tertiary education providers,

the Commission believes that business, industry, and the tertiary education system itself would benefit from the

better integration of ITOs into the system.

The Commission believes that the principles set out earlier for establishing and changing the status of

providers should apply, as far as they are relevant, to recognition and change of status for ITOs. This would

make the recognition of ITOs a power of the Minister – a change that the Commission believes is important

and positive, given the vital role that ITOs have as standards-setting bodies responsible for the management of

education and training systems in the workplace. Harmonising their establishment process with that of other

providers will also result in better integration and coherency within the tertiary education system.

Recommendation 53

The Commission recommends that, before an ITO is recognised:a) it be demonstrated to the Minister, on the advice of the TEC, that the recognition of such an ITO is desirable in theinterests of the industries involved and the tertiary education system; and b) it be demonstrated to NZQA that the proposed ITO would meet the requisite quality standards.

Recommendation 54

The Commission recommends that, for any ITO to alter the scope of its recognition or merge with another ITO, a three-partprocess be instituted:a) the TEC be consulted, and provide a preliminary view on the desirability of a particular proposal, prior to an application

for quality assessment being lodged with NZQA;b) it be demonstrated to NZQA that the ITO (or the proposed merged entity) would meet the requisite quality standards for the

new scope of recognition; andc) it be demonstrated to the Minister, on the advice of the TEC, that the proposed change is in the interests of the industries

involved and the tertiary education system.

The Commission believes it is important that the distinctive role and functions of ITOs continue to be

recognised in a more integrated and coherent system. While the same general policy principles should apply

to education providers and to ITOs, the distinct focus of ITOs on standards setting and the management and

facilitation of education and training systems should be retained.

58 ITOs are currently defined in s2 (Interpretation) of the Industry Training Act 1992, which states:‘Industry training organisation’ means a body corporate for the time being recognised under section 5 or section 8(1) of this Act.

ITOs are recognised by the board of Skill New Zealand, under the provisions of s5 of the Industry Training Act 1992, which states:… Subject to section 6 of this Act, the Board may, by notice in the Gazette specifying the name of the body and the industry in respect of whichit is recognised, recognise in respect of any industry any body corporate that applies to the Board to be recognised in respect of that industry.

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Recommendation 55

The Commission recommends that current legislative limits on the funding of the delivery of training by ITOs (as opposed tothe development of arrangements for the delivery of training) continue.

With this proviso, the Commission believes that the activities of ITOs should be profiled alongside those of

providers, so that an overall picture of the pattern of education and training (both on-the-job and off-the-job)

is possible.

Recommendation 56

The Commission recommends that, in terms of the proposed functional classifications, an ITO have its activities classified as‘industry or professional education and training’ for the purposes of negotiating charters and profiles.

7.1.4 Government Training Establishments

The statutory provisions relating to GTEs are sparse. They are confined to s159 (Interpretation) of the

Education Act 1989, which states:

‘Government training establishment’ means any establishment that is –

(a) A Crown entity (within the meaning of the Public Finance Act 1989) for the time being approved by the

Minister for the purposes of this definition; or

(b)A Department (within the meaning of the Public Finance Act 1989) for the time being approved by the

Minister for the purposes of this definition; or

(c) The New Zealand Defence Force constituted by Section 11(1) of the Defence Act 1990; or

(d) The New Zealand Police.

It is important that the role of GTEs be reviewed within the context of the steering framework and central

structures proposed in this Report. The relationship between GTEs, TEIs, and ITOs also needs to be carefully

considered in order to ensure coherence of policy, adequate specialisation and concentration, and effective

linkages between them.

Recommendation 57

The Commission recommends a review be undertaken of the role and function of government training establishments (GTEs),to better integrate them with the rest of the tertiary education system.

7.2: Application of Protected Terms Certain terms used to describe tertiary education providers are currently protected in statute. The purpose of

this protection is to assist learners and the wider community (including the international community) in

understanding the role or roles of a particular organisation.

Currently the terms ‘university’, ‘polytechnic’, and ‘college of education’ are protected terms. These

correspond to three of the four ‘types’ of TEIs, but it is possible for other providers to use these terms if they

meet the requisite quality criteria (under s264 of the Education Act 1989).

Whether non-TEIs should have the right to use protected terms is an issue that has ramifications for the system

as a whole. This being so, the Commission believes that the granting of the right to use a protected term

should be made by the Minister on the advice of the TEC.

Furthermore, if protected terms are to carry out a ‘clarification’ role (rather than being used to control access

to a particular status), then the use of such terms must be rigorously evaluated to determine whether the

provider in question actually meets the statutory definitions of those terms.

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Recommendation 58

The Commission recommends that, before the right to use a protected term is granted by the Minister on the advice of theTEC, the provider in question demonstrate not only that it meets the requisite quality standards, but also that such action isin the best interests of the tertiary education system as a whole.

Recommendation 59

The Commission recommends that those providers which have been granted the right to use protected terms (including bothTEIs and non-TEIs) be able to demonstrate that they are continuing to meet the requisite quality standards, as a part ofexisting quality-assurance processes.

There are good reasons for retaining the protected terms ‘university’ and ‘polytechnic’. As stated above,

protected terms are important for conveying to learners (both within New Zealand and internationally) a clear

understanding of the roles of particular types of institutions – and it is necessary to safeguard the reputation of

institutions which make use of those terms.

The Commission has recommended (in Recommendation 51) that there no longer be a separate institutional

type called ‘college of education’. As a result, the Commission does not believe that there are good reasons for

continuing to protect the use of this term.

Recommendation 60

The Commission recommends that the following terms continue to be protected in legislation:• ‘university’; and• ‘polytechnic’.

Increasingly, significant numbers of polytechnics are using the term ‘institute of technology’ to describe their

institution. The Commission believes that if protection is to be continued for the term ‘polytechnic’, then it

would logically follow that it would make sense to also protect the term ‘institute of technology’ as a synonym

for ‘polytechnic’.

The term ‘wananga’ is not currently a protected term. This has resulted in a wide range of organisations

making use of this term without necessarily demonstrating that they meet the statutory definition. The

Commission believes that it is important that the role and function of ‘wananga’, as defined in the Education

Act 1989, is preserved and enhanced. Given, however, that the term ‘wananga’ has largely entered common

usage, seeking to make it a protected term would involve considerable difficulties. Instead, the Commission

recommends that the term ‘whare wananga’ be protected, using the definition currently set out in the

s162(4)(b)(iv) of the Education Act 1989.

Recommendation 61

The Commission recommends that two new terms be protected in legislation:• ‘institute of technology’ as a synonym for ‘polytechnic’; and• ‘whare wananga’.

The Commission is not proposing that the term ‘specialist institute or college’ be protected. It is anticipated

that institutions established within this proposed institutional type will be described by a variety of terms that

reflect their specialist nature.

In the remainder of this section (Section 7.2), the Commission discusses some additional issues that have

arisen in connection with protected terms.

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7.2.1 ‘University’

The Commission believes that the current definition of a university59 continues to be appropriate. In Section

8.5.2, the Commission examines proposals for additional or new types of universities which might use

alternative definitions. It has concluded that all providers who wish to make use of the term ‘university’ should

be required to meet the current statutory requirements – particularly its role as ‘critic and conscience of

society’ – irrespective of what other special characteristics or mission a particular university might have.

Recommendation 62

The Commission recommends that a ‘university’ be required to meet the requirements currently specified in s162(4)(a) &(b)(iii) of the Education Act 1989.

It is still possible, however, for there to be variations in the special character and mission of universities within

this broad definition. The Commission’s proposal is that this could be reflected in the functional classifications

of universities, and therefore in their charters and profiles. Thus, while all universities would have their

activities classified as ‘comprehensive teaching and research’ (in terms of the proposed functional

classifications), they could also have some of their activities classified within other functional classifications.

Recommendation 63

The Commission recommends that, in terms of the proposed functional classifications, a provider using the protected term‘university’ have its activities classified as ‘comprehensive teaching and research’. In addition, a ‘university’ might have someof its activities classified as: • specialist teaching and research;• industry or professional education; and/or• community education and training.

This will allow for differentiation within a ‘university’, but will require all providers using the term ‘university’

to meet the statutory requirements.

Focus on post-graduate education

Element three of the Commission’s high-level strategy is to facilitate greater specialisation and concentration,

to promote excellence. Given this, and the statutory role of universities, the Commission believes that

universities should remain the primary providers of post-graduate education (and the research which supports

it). There will, however, be areas outside of the universities in which other providers have both the particular

expertise and the requisite critical mass and research base – and so it will be appropriate for those providers to

offer post-graduate programmes.

While universities should remain the primary provider of post-graduate education, they should also collaborate

with other providers of post-graduate education who have the required expertise, critical mass, and research

strengths. This is an integral part of the Commission’s strategy of encouraging linkages within the system in

order to promote both access and excellence.

59 The term ‘university’ is defined in s162(4)(a) and s162(4)(b)(iii) of the Education Act 1989, which state:…universities have all of the following characteristics and other tertiary institutions have one or more of those characteristics:They are primarily concerned with advanced learning, the principal aim being to develop intellectual independence:Their research and teaching are closely interdependent and most of their teaching is done by people who are active in advancing knowledge:They meet international standards of teaching and research:They are a repository of knowledge and expertise;They accept a role as critic and conscience of society.

and… A university is characterised by a wide diversity of teaching and research, especially at a higher level, that maintains, advances, disseminates, and assists the application of, knowledge, develops intellectual independence, and promotes community learning.

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Recommendation 64

The Commission recommends that universities remain the primary providers of post-graduate education; and thatuniversities be encouraged, through the profiling system, to co-operate and collaborate in the overall provision of post-graduate education and in the conduct of research.

Recommendation 65

The Commission recommends that where providers, other than universities, can demonstrate that they have the expertise,critical mass, and intensity of research required to support post-graduate programmes they be permitted to offer theseprogrammes; and that the profiling system be used to encourage them to co-operate with universities (nationally orinternationally).

Specialisation and linkages

The steering framework should be used to encourage universities to focus on their core mission, and to

discourage them from undertaking activities that can be carried out more effectively by other providers. On

the other hand, it should also be used to encourage universities to work with other providers in delivering

university programmes, in cases where doing so would assist access. This type of collaboration will be

particularly important in improving regional access to degree-level education of the requisite standards. The

profiling and funding systems will need to provide rewards and incentives for those universities that focus on

their mission and collaborate in the ways desired.

Recommendation 66

The Commission recommends that universities be encouraged, through the profiling system, to concentrate on their coremission, namely the delivery of degree programmes and the conduct of research; and that they be discouraged from offeringprogrammes which unnecessarily duplicate those of other providers.

Recommendation 67

The Commission recommends that the profiling system be used to encourage universities to co-operate and collaborate withnon-university providers in the regional provision of education and training, particularly at degree level.

7.2.2 ‘Polytechnic’/‘Institute of Technology’

The Commission wishes to reaffirm the existing statutory definition of a ‘polytechnic’ (or ‘institute of

technology’).60 This definition clearly identifies the role of polytechnics as covering a broad range of activities –

including research (and particularly applied and technological research). The Commission believes that this

broad role is, in general terms, appropriate.

Recommendation 68

The Commission recommends that a ‘polytechnic’ or ‘institute of technology’ be required to meet the requirements currentlyspecified in s162(4)(b)(ii) of the Education Act 1989.

The very breadth of this definition, however, creates difficulties in recognising differences between individual

polytechnics, in terms of their respective roles and the ways in which they respond to the particular needs of

the regions and communities they serve. It also creates difficulties for the funding system’s ability to respond

appropriately to these differences.

60 This is currently set out in s162(4)(b)(ii) of the Education Act 1989, and states:… A polytechnic is characterised by a wide diversity of continuing education, including vocational training, that contributes to the maintenance, advancement, and dissemination of knowledge and expertise and promotes community learning, and by research, particularly applied and technological research, that aids development.(It should be noted that, in this section of the Report, the terms ‘polytechnic’ and ‘institute of technology’ are used interchangeably.)

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The Commission therefore proposes that the functional classification system be used to enable differentiation

within the broad category of polytechnic. While all providers using the terms ‘polytechnic’ or ‘institute of

technology’ would still have to meet the statutory definition set out in s162(4)(b)(ii) of the Education Act

1989, it would be possible to identify (and reward) individual polytechnics for their particular roles and focus.

Recommendation 69

The Commission recommends that, in terms of the suggested functional classifications, a provider using the protected term‘polytechnic’ or ‘institute of technology’ have its activities classified as:• comprehensive teaching; • community education and training; and/or• industry or professional education and training (in at least four fields). In addition, a polytechnic or institute of technology might also have some of its activities classified as: • learning and assessment support; • specialist teaching; and/or• specialist teaching and research (in areas where the polytechnic or institute of technology offers post-graduate programmes).

Specialisation and focus

The Commission believes it is important that polytechnics focus their efforts on their areas of specialisation,

and that they be discouraged from undertaking activities that are more effectively carried out by other

providers. The profiling and funding systems will need to provide rewards and incentives for polytechnics to

concentrate on their mission and areas of specialisation.

Recommendation 70

The Commission recommends that polytechnics be encouraged, through the profiling system, to concentrate on their mission,namely vocational education (including relevant degree-level education), community education, second-chance education,and research with an applied or technological focus; and that they be discouraged from offering programmes whichunnecessarily duplicate those of other providers.

The Commission is aware that, in some activities, the expertise and focus of polytechnics legitimately involves

degree-level and post-graduate-level learning and research. This should be recognised by the profiling system.

Recommendation 71

The Commission recommends that polytechnics be encouraged to focus their degree offerings in areas where they have aspecific concentration of expertise and intensity of research, and where there are particular industry needs.

Linkages

The Commission’s view is that the strength of polytechnic degree programmes – particularly at post-graduate

level – would be enhanced by building linkages with universities and other research institutes. These linkages,

however, must be built in a manner that recognises the distinctive purpose and nature of polytechnic degree

programmes. The Commission is aware that there are difficulties in developing such linkages in the current

environment, but anticipates that its proposed steering framework will create a better environment for this

form of collaborative activity.

Recommendation 72

The Commission recommends that the profiling system be used to encourage polytechnics to offer post-graduate programmesonly in collaboration with a university or research institute (nationally or internationally).

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The Commission believes that polytechnics, particularly those in regional areas, have a crucial role to play in

providing access to tertiary education. The Commission’s view is that this should be done in a way that

encourages regional polytechnics to collaborate with other providers in providing the widest range of learning

opportunities in a cost-effective and high-quality manner – without necessarily developing and supporting a

full range of programmes internally.

Recommendation 73

The Commission recommends that the profiling system be used to encourage polytechnics with a regional focus to base most oftheir programmes on the needs of their particular region, and to co-operate and collaborate with other providers to enableaccess to education and training for those in their region.

7.2.3 ‘Whare Wananga’

The Commission believes that it is necessary to recognise and protect the activities of providers carrying out

activities covered by the current definition of ‘wananga’.61 Because of the generic use of ‘wananga’ by both

Maori and other providers, the Commission accepts that this term cannot be protected. It proposes instead

that the term ‘whare wananga’ be protected, to cover this type of provider.

Recommendation 74

The Commission recommends that a ‘whare wananga’ be required to meet the requirements currently specified ins162(4)(b)(iv) of the Education Act 1989.

Providers using this protected term of ‘whare wananga’ will have their activities classified under the functional

classification of ‘akoranga Maori’. They will also be able to negotiate the use of other functional classifications

that are appropriate to the range of educational services they offer.

Recommendation 75

The Commission recommends that, in terms of the suggested functional classifications, a provider using the protected term‘whare wananga’ have its activities classified principally as ‘akoranga Maori’. In addition, a ‘whare wananga’ may havesome of its activities classified within other relevant classifications.

While a range of providers will be able to classify some or all of their activities as ‘akoranga Maori’, the

Commission strongly supports the view that Maori should play a central role in determining which providers

meet the statutory criteria for being defined as a ‘whare wananga’.

Recommendation 76

The Commission recommends that processes be established by the TEC to enable Maori to play a central role in determiningwhich providers meet the statutory criteria for being defined as a ‘whare wananga’.

Currently, ‘wananga’ may only be established as TEIs. But a protected term such as ‘whare wananga’ can apply

to both public and non-public providers who meet the required definition. This will enable ‘whare wananga’ to

be either public institutions or private/community providers owned by whanau, hapu, iwi, urban Maori

authorities, or other Maori organisations – and this may assist in the resolution of issues of tino rangatiratanga.

Legislative change will be required to protect the term ‘whare wananga’.

61 The term ‘wananga’ is defined in s162(4)(b)(iv) of the Education Act 1989, which states:… A wananga is characterised by teaching and research that maintains, advances, and disseminates knowledge and develops intellectual independence, and assists the application of knowledge regarding ahuatanga Maori (Maori tradition) according to tikanga Maori (Maori custom).

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Recommendation 77

The Commission recommends that the protected term ‘whare wananga’ may be applied to either a TEI or aprivate/community tertiary education provider.

In the light of all this, it may be desirable to examine the status of those providers currently established as ‘wananga’.

Number of whare wananga

The Commission believes that investigating the issue of the appropriate number and spread of organisations

carrying out the function of ‘whare wananga’ is a matter of high priority. There has been little policy

development in this area since the creation of the category of ‘wananga’ in the Learning for Life reforms. The

learning needs of Maori require urgent attention, and it is vital that consideration is given to the role that

‘whare wananga’ can play in this.

Recommendation 78

The Commission recommends that priority be given to a review of the role of ‘whare wananga’ in meeting national, local,hapu and iwi needs, including a consideration of the adequacy of current provision.

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Chapter 8: Using the Steering Framework to Shape the System

There will be continuing evolution of the mix, nature, form, and location of tertiary education provision

needed to meet both the major social and economic changes identified in Chapter 3 and the tertiary

education system’s broad strategic objectives. For this reason, the Commission does not believe it is possible to

define a fixed ‘shape’ for the tertiary education system. Rather, the Commission considers that when the

improved central structures and steering instruments recommended in this Report are implemented, the

tertiary education system will be able to be managed using an approach that better enables active engagement

by stakeholders and recognises the distinctive roles of the different parts of the system.

This process of organic change is implicit in the integrated approach the Commission is aiming for – in both

the development of the steering framework and its application to the system as a whole. The mix of systems

and partnership approaches implies an overall system that is dynamic.

The application of the integrated steering framework described in this Report provides a real opportunity to

influence behavioural change in the tertiary education system. This chapter explores how some of these

behavioural changes may be encouraged and managed.

8.1: Allocating FundingThe Commission believes the responsibility for overseeing the operation of the profiling system should reside

with the TEC. One of the TEC’s primary tasks when negotiating the contents of profiles with individual

chartered providers will be to determine which of their activities will receive public funding.

The Commission has recommended (in Chapter 6) that profiles should not be used to prevent providers from

offering programmes or carrying out activities. But in the continuing climate of scarce resources that the

tertiary education system is likely to have to operate within, the impact of decisions not to fund activities will be

considerable.

The Commission’s concern in these circumstances is to ensure that the allocation of funding is made in a

principled and consistent manner, and that it supports the objectives of the steering system and the tertiary

education strategy. The Commission is therefore of the view that it is essential for the TEC to use clear

statutory criteria when it determines the allocation of funding.

8.1.1 Possible Statutory Criteria

The Commission has not finalised its views on the statutory criteria that the TEC should use in determining

whether or not to fund particular programmes or activities offered by chartered providers.

Key considerations for possible statutory criteria are:

• the Government’s strategic objectives and priorities in relation to tertiary education and research within the

tertiary education system; and

• the efficient and effective allocation of resources, including opportunities for more efficient and effective

provision through co-operative or collaborative arrangements between two or more providers (or

organisations outside the tertiary education system).

In addition, the following criteria might also be considered:

• the current and expected future level and pattern of student demand (including the implications of

demographic trends);

• the current and expected future needs of the society and economy (including expected changes in

workforce requirements);

• the contribution of the provider to the sustainable prosperity of the nation;

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• the provision of equitable and affordable access to a comprehensive range of educational and training

opportunities;

• the fulfilment of the provider’s obligations under the Treaty of Waitangi;

• the maintenance of a high level of institutional autonomy;

• the enabling of flexibility and responsiveness to the diverse needs of stakeholders;

• the maintenance of a vibrant, dynamic, innovative, and internationally oriented tertiary education system;

• the development and maintenance of a fair, inclusive, and democratic society enriched by our natural and

cultural heritage;

• the maintenance of an appropriately differentiated system, in which the provision of particular programmes

is consistent with the statutory role of the providers in question; and

• the financial, educational, and research performance of providers.

The Commission has also considered, but not finalised, its views on the manner in which such criteria should

be applied – including the extent to which there should be a presumption in favour of funding the quality-

assured programmes and activities of chartered providers. Such a presumption would reduce the impact of

profiles on autonomy and academic freedom, and reduce compliance costs; but it might undermine the ability

of the TEC to steer the system in a way that responds the problems identified in Chapter 2.

The Commission will consider further the issue of the appropriate statutory criteria, and their application, in

its later reports.

Recommendation 79

The Commission recommends that the TEC base its determination of whether or not to fund particular programmes andactivities (as stated in the profiles of chartered providers) on clear statutory criteria.

8.1.2 Implications for the Funding System

Under a profiling system of the kind the Commission is recommending, the TEC will need a reasonable

degree of discretion in allocating funding – and it will certainly need more flexibility than has been possible

under the strongly demand-driven systems that New Zealand has operated in recent years.

Accordingly, it may be necessary to establish funding mechanisms (or pools) that are separate from student-

load considerations. These might include: targeted funds to help establish or expand priority activities that are

costly or that have gaps in provision; funds to support centres or networks of excellence (in teaching and/or

research); and funds for research that are based on assessed performance rather than student demand. These

issues will be covered in the Commission’s later reports.

8.2: Assuring QualityThe Commission has not addressed the issue of quality assurance in depth in this Report. The proposed profiling

system, however, will have important implications for the quality assurance of tertiary education providers.

Quality assurance will continue to be an essential part of many of the key decisions within the profiling system,

and all recognised providers will be required, as at present, to be quality-assured. Under the new steering

framework, the quality-assurance system will need to verify that providers are fulfilling the aspirations and

obligations set out in their charters and profiles. The Commission believes that there should be ongoing

quality assurance of providers in relation to any protected terms that they are using. This is essential for the

validity and usefulness of these terms.

As previously argued, the Commission believes that, as a matter of principle, quality-assurance activities should

be separated from decision making on the allocation of funding. This means there must be a clear separation

between the bodies responsible for these two activities (although the relevant bodies will need to co-operate in

an appropriate manner).

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Recommendation 80

The Commission recommends that progress continue on the harmonisation of processes operated by NZQA and other quality-assurance bodies, to improve the consistency of quality assurance across the tertiary education system.

Recommendation 81

The Commission recommends that the validation of providers’ performance in relation to their charters and/or profiles form akey component of the quality-assurance processes of NZQA and other quality-assurance agencies.

8.3: Establishment, Recognition, and Change of Provider Status The steering framework should assist the organic growth and development of the tertiary education system by

bringing about desirable changes in the number, type, and distribution of providers. This process requires

careful management to ensure that any changes in provider status, type, or distribution consider third-party

effects that may be involved and determine whether the changes are in the interests of the system as a whole.

It was suggested in a number of submissions to the Commission that it should recommend limits on the

numbers in particular types or categories of provider. The Commission’s view is that such an approach is

mistaken, for two reasons.

Firstly, there is insufficient information or research to enable the Commission to make rational decisions about

the appropriate number of a particular type of provider. This is not to say that such a judgement could not be

made, given improved information and systems that would support the making of such judgements on the

basis of research and careful analysis. Many of the Commission’s recommendations in this report are aimed at

providing just this sort of information.

Secondly, the Commission is very aware that the particular context and circumstances of individual providers,

and the communities and stakeholders they serve, vary considerably within broad ‘types’ of provider. Even if a

general principle could be established on the desirability of limiting the numbers of providers of a particular

type, it would still be essential for each proposal to be considered on its merits: there are likely to be important

factors that vary between cases and that warrant serious consideration.

As the study of teacher education (in Appendix 5) demonstrates, duplication of programmes often involves

complexities such as diversification in the nature, form and content of the programmes, differences in delivery

style and mode, and responses to emerging and changing needs.

Recommendation 82

The Commission recommends that there be no a priori limit on the number of providers of a particular type; and thatdecisions on particular proposals for the establishment of new TEIs, changes in TEI status, or the funding of non-TEIs bemade on a case-by-case basis that takes into account the relevant statutory criteria.

Recommendation 83

The Commission recommends that the TEC initiate reviews of provision within the tertiary education system in priority areas;and that it make recommendations to the Minister and to providers on any actions necessary to alter the nature or amount of provision.

The Commission’s view, therefore, is that there should be a consistent approach to decisions such as

establishing a new TEI, promoting or permitting the change of status of a TEI, or recognising other forms of

provider (for funding or other purposes). This approach should be based upon the tests of quality and

desirability. Desirable changes are those that will enhance the system as a whole and meet the needs of the

Government and other stakeholders.

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Mergers of institutions that require a change of institutional type also need to be considered in this context. A

considerable amount of work is required to merge two institutions of different institutional types – and so any

plans for a merger should be preceded by a preliminary independent view of the desirability of the merger

and an assessment of whether the merged entity would meet the requisite quality criteria.

It is also the Commission’s view that decisions of this nature about TEIs should lie with the Minister, on the advice

of the TEC. To provide this advice, the TEC would use information gathered as part of the profiling process.

Recommendation 84

The Commission recommends that, before any new TEI is established by the Government:a) it be demonstrated to the Minister, on the advice of the TEC, that the addition of such a provider is desirable (that is, it isin the best interests of the tertiary education system and the nation as a whole); and b) it be demonstrated to NZQA that the proposed TEI would meet the requisite quality standards.

Recommendation 85

The Commission recommends that, for any TEI to change its institutional type (or merge with another institution of adifferent type), a three-part process be instituted:a) the TEC be consulted, and provide a preliminary view on the desirability of a particular proposal, before an applicationfor quality assessment can be lodged with NZQA;b) it be demonstrated to NZQA that the TEI (or the proposed merged institution) would meet the requisite quality standardsfor the proposed institutional type; andc) it be demonstrated to the Minister, on the advice of the TEC, that the proposed change is in the best interests of the tertiaryeducation system and the nation as a whole.

The recognition of non-TEIs (whether private or community tertiary education providers, GTEs, or ITOs) for

funding purposes should follow similar principles. This would mean asking whether it is desirable, or in the

best interests of the tertiary education system as whole, to fund some or all of the activities of these providers.

It would require careful balancing of the stakeholder interests that the provider sought to address, against the

wider national interest.

Recommendation 86

The Commission recommends that the recognition of non-TEI providers continue to be based upon the provider meeting therequisite quality standards; and that decisions on public funding (for all or any of their activities) be at the discretion of theTEC, once a charter for the organisation has been approved by the Minister.

8.4: Accountability and Governance

8.4.1 Accountability

The Commission’s proposed steering framework will require a robust system of accountability. It will be

necessary for the TEC to have the capability to monitor effectively the implementation of charters and profiles.

All chartered providers will be required to report against their charters; and reporting against profiles will

replace existing accountability measures. These reporting requirements for chartered providers will mean that

the TEC has information available for evaluating the financial viability of these providers. So the TEC will be

able to act proactively, in situations where a provider is financially vulnerable – rather than after the fact.

8.4.2 Governance

The Commission has investigated a wide range of issues relating to the governance of TEIs, and a further range

of issues relating to the governance and accountability of other providers and organisations (including ITOs).

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Before it makes detailed proposals on governance, however, the Commission wishes to further consider theissues it has identified so far. It will do this once it has considered the Government’s response to therecommendations in this Report, the Government’s recent proposals for changes to the accountability of TEIs,and the findings of both the industry training review and the adult and community education working group.The Commission will make recommendations on both governance and accountability in its future reports.

8.5: Examples of the Application of the Steering FrameworkIn determining how to shape the tertiary education system, the Commission has considered a number ofspecific issues about new and existing provider types. This has given the Commission the opportunity to testthe application of the steering framework and the integrated approach that it has developed in this Report.

8.5.1 The Role of Colleges of EducationAs the Commission’s study of the growth in teacher education provision has highlighted, colleges of educationare no longer the exclusive or primary providers of teacher education programmes.62 This raises questionsabout the education of teachers: what should be taught, and who should provide it? It also raises questionsabout the continuing need for specialist teacher-education providers and the role they play in the tertiaryeducation system as a whole.

There is some support for the view that all programmes of teacher education should take place withinuniversities. It can be argued that teacher education is best provided in a critical and research-based culture,not only for the study of professional education but also for the study of subjects (such as science, history, andliterature) that constitute the content of teaching at all levels of schooling. It can also be argued that teachersin training should mix with others training for various professions, rather than being isolated on their owncampus with their own social and recreational facilities.

On the other hand, there are also arguments in favour of free-standing colleges of education – that teachers intraining need to be taught in a milieu which models that of schools: where classes are small, the learner iscentral, and subjects are presented to meet the needs of individual learners. It can also be argued that teachersneed to be taught the content of their programmes in terms of the particular tasks they face – that is, intransmitting cultural heritages in a form to be assimilated by immature minds. Universities, it is argued,present subjects in a ‘pure form’ that is often irrelevant to the task of teachers.

The Commission is conscious of the fact that in many English-speaking countries all teacher education hasbeen conducted traditionally in universities. There are, however, models in Europe of highly successfulcolleges standing alone.

In applying a systems approach to the issues and asking how the objectives of collaboration, specialisation andlinkages can best be addressed, the Commission has considered a number of issues.

Universities as lead organisations

Universities, with their diverse subject offerings and strong research culture, should take a leadership role inpromoting teacher education. The TEC, through the process of negotiating charters and profiles, will requireuniversities who seek acknowledgement of such a leadership role to demonstrate how they would recognise thesubstantial expertise in teacher education that has been developed over many years by colleges of education, aswell as the innovative programmes provided by polytechnics and other providers. Such recognition couldinclude co-operative programme development and research.

The Commission also believes that those universities who offer pre-service teacher education programmesshould examine how they can best utilise their resources to develop and support teacher educationprogrammes suited to the needs of a knowledgeable and critical-minded workforce and citizenry in the 21stcentury. This examination should inform not only the programmes of those universities, but also teachereducation programmes more generally.

62 See Appendix 5.

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Specialist institutions

The Commission has recommended (in Recommendation 49) the introduction of the new category of

‘specialist institute or college’. Specialist providers of this nature would have their activities classified under the

functional classification of ‘specialist teaching’. They would be encouraged to demonstrate how they might

link with other providers and researchers through their charter and profiles. The Commission considers that

such specialist providers should develop strong collaborative and co-operative links with other disciplines and

other providers, to supply the appropriate context for learning and (where relevant) research. The TEC,

through the process of negotiating charters and profiles, could ensure close collaboration of institutions rather

than forcing mergers that may turn out to be ‘problematic’ or unsuccessful.

In the Commission’s view, a single policy prescription will not meet the needs of the tertiary education system

as a whole. Nor will it address the issue of the future of each of the existing colleges of education. The

Commission believes that colleges of education, along with other specialist institutes or colleges, can be

operated as stand-alone providers where there are good reasons for doing so.

The Commission’s conclusion is that the existing colleges of education should examine how they can best

support the maintenance and delivery of high-quality teacher education within the regional and community

needs they serve, while still reflecting their individual special character, mission, and philosophy.

Recommendation 87

The Commission recommends that the existing colleges of education consider the full range of options for co-operation,collaboration, or merger with other providers, particularly universities.

Given the complexity of the issues associated with this area of learning and research, the Commission believes

that a comprehensive review of teacher education is required. This is made more urgent by findings in recent

international literature, which indicate strongly that the length and quality of teacher education is the best

predictor of student achievement in schools, and by the Government’s intention to set up an Education

Council.63 One of the requirements for the proposed Education Council will be the setting of guidelines to

ensure that all programmes of teacher education are of a high standard and in line with the increasing

demands on schools to provide diverse programmes such as technological education and values education.

There will, of course, also be the continued need for a strong scientific and cultural base, for understanding of

environmental issues, for mental and physical health, and for involvement in the performing arts.

The Commission believes that further work should be undertaken, possibly by the TEC in conjunction with

other agencies, on the nature, form, and spread of the provision of teacher education.

Recommendation 88

The Commission recommends that a review be undertaken of the future shape of pre-service teacher education provision,taking into account international literature on teacher education, the role of the proposed Education Council, and the long-term needs of the school and early childhood education systems.

Irrespective of the findings of such a review, the Commission believes that, given the importance of teacher

education for the education system as whole, it is essential that all providers of teacher education co-operate

and collaborate to ensure the relevance, quality, and spread of provision.

Recommendation 89

The Commission recommends that all providers of teacher education programmes be encouraged, through the profiling system,to co-operate with each other in the development and review of teacher education programmes.

63 Education Amendment Bill (2) 2000.

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8.5.2 Possible New Forms of Universities

Up until 1990, degrees could be conferred only by universities. The Learning for Life reforms made provision for

degrees to be awarded by non-university providers. Processes were established so that degrees and their

providers could be quality-assured – by panels that were established by NZQA and that contained

representatives from universities.

Polytechnics (and other non-university degree providers) maintain that their degree programmes are of a

standard comparable to those offered by universities. They believe that NZQA has insisted on appropriately

high standards and that polytechnic degrees, while to some extent different, are of equal worth to those

offered by universities.

Notwithstanding this, there are concerns that the degrees offered by polytechnics do not enjoy the same status

or ‘parity of esteem’ as those offered by universities. This, it is claimed, has had a number of negative

consequences. For one thing, it means that polytechnic students may not fare as well in the labour market as

their university counterparts. For another, polytechnics believe that they are at a disadvantage, relative to

universities, in attracting international students.

Concerns of this nature have generated a number of suggestions for changes to the current legislative

arrangements for universities. Two such changes deserve particular attention. The first is a proposal, advanced

by UNITEC (Submissions 71 and 142), for the creation of a new category of university – that is, a ‘university of

technology’. The second is a proposal, advanced by the Association of Polytechnics in New Zealand (APNZ;

Submission 100), for the creation of a new national university that would be called the ‘New Zealand

University of Technology’ and that would approve and award higher-level non-university qualifications. The

cases for and against each of these proposals are outlined below.

A new category: ‘university of technology’

The Commission has evaluated this proposal using the instruments outlined in this Report. The Commission has

focused on the issue of the desirability of a new category of university. As the Commission has emphasised, the

issue of whether a particular provider might meet the quality test for such a new category is a separate matter.

To determine the desirability of including a new category of ‘university of technology’ as a protected term and/or

a legal form, the Commission has evaluated the proposal by looking at its impact on the tertiary education system

as a whole and at its ability to contribute to the broad objectives of the system as described in this Report.

In its submission, UNITEC describes the special character and mission of a ‘university of technology’ as an

institution focused on providing a comprehensive and varied range of programmes. The qualifications have a

vocational emphasis and its research is of an applied nature. Compared with a traditional university,

universities of technology would have a smaller proportion of post-graduate students and a correspondingly

larger range of diploma, certificate, and ‘foundation’ programmes.

UNITEC claims that the university of technology concept would contribute to the development of the tertiary

education system as a whole by providing a means of differentiating between traditional ‘research’ universities

and applied universities of technology.

Other contributions UNITEC claims the university of technology would make to the tertiary education system

include:

• It would enhance differentiation in the tertiary education system, by improving the educational

opportunities and the range of choices available to learners. At the same time, it would allow institutions to

focus and specialise their activities by offering a distinctive style of education.

• It would improve access to tertiary education by offering ‘staircasing and ongoing personal and professional

development from foundation to post-graduate level in a way not possible in any other category of institution’.

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• It would provide a focus for applied and vocational education, and would be in a ‘unique position to foster

and respond to the needs of industry for an appropriately trained and educated workforce, and for relevant

applied research and development partnerships’.

The Commission has evaluated the contributions (benefits) described in UNITEC’s proposal against possible

adverse impacts on the system as a whole. This evaluation highlights the following points:

• To the Commission’s knowledge, there is no separate statutory category of ‘university of technology’ in any

comparable jurisdiction. In other countries such as Australia, an institution cannot be called a university of

technology unless it meets the normal criteria that apply to university status. The creation of two separate

categories of university might have serious implications for the international standing of New Zealand’s

higher education system.

• Given the current statutory criteria, there are likely to be serious difficulties distinguishing a separate

category of ‘university of technology’ from other kinds of university such as a ‘research university’. If a

separately designated university of technology meets the current criteria in s162(4)(a) of the Education Act

1989, it is difficult to see how it constitutes a new category. If it does not, questions arise as to the legitimacy

of using the term ‘university’ in relation to the institution (or institutions) in question.

• Greater differentiation between universities could be achieved through functional classifications and other

elements of the profiling system outlined in this Report. It does not require the creation of a new legal category.

• This Report recommends that the different roles of universities and polytechnics be recognised through the

profiling system. If a new category of university were to be introduced, it is likely that a significant number of

polytechnics would follow UNITEC in seeking this status. If they were successful, the status of polytechnics

would be weakened, if not seriously undermined – and this would have potentially negative implications for

the learners whom polytechnics are designed to serve.

• The creation of a separate category of ‘university of technology’ would not necessarily solve the parity-of-

esteem issue. The UNITEC proposal might establish two ‘grades’ of university and, in all probability, the

universities of technology may, over time, seek to become research universities because these would be seen

as having a higher status. It might also lead to two ‘grades’ of polytechnics: those which became universities

of technology, and those which did not.

• It is likely that the parity-of-esteem issue could be better dealt with through the development of stronger

linkages and collaborative arrangements between universities and other providers in the system. These would

be encouraged by the TEC, through the profiling process.

The Commission believes that, on the basis of the UNITEC proposal, the establishment of a new category of

‘university of technology’ would not meet the desirability test as set out in this Report. The Commission

therefore does not recommend that a ‘university of technology’ category be included in legislation.

Recommendation 90

The Commission recommends that a university might be termed a ‘university of technology’ provided it meets the requirements

of a university as set out in the Education Act 1989 and has a particular focus on industry or professional education and

training. The Commission does not recommend that a separate legal category of ‘university of technology’ be introduced.

A new organisation: ‘New Zealand University of Technology’

In considering whether to establish a new entity known as the New Zealand University of Technology, the

Commission has once again applied the desirability test.

Under the proposal advanced by APNZ, the New Zealand University of Technology (NZUT) would have its

activities classified in the ‘learning and assessment support’ category of the Commission’s proposed functional

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classifications. Its special character would allow it to focus on approving programmes (mainly at the degree

level), accrediting tertiary providers to deliver them, and awarding qualifications to programme graduates.

The fact that the NZUT would, in many respects, duplicate the functions of NZQA raises concerns about the

desirability of the proposal. The essential difference is that a qualification approved and awarded by NZUT

would have the status of a ‘university’ qualification. Under the APNZ proposal, any non-university provider

offering a degree programme would have access to NZUT irrespective of what proportion of its total

qualification portfolio comprises degree programmes. This would enable non-university degree providers to

have access to a university brand without establishing a new provider. In this sense, NZUT would be a ‘virtual’

university in the sense that it would not have its own dedicated academic staff or students.

According to the APNZ proposal, the establishment of NZUT would have a number of benefits for the tertiary

education system:

• It would create a university that has, as its primary mission, the provision of degree-validation services.

Moreover, it is not in competition with providers seeking to have their qualifications validated. Its existence

would thus remove the hurdles created as a result of the current power imbalance between universities and

non-university degree providers.

• It would enhance learning opportunities and learner choice by directly addressing the parity-of-esteem issue.

That is, it would enable students pursuing higher-level qualifications outside of universities ‘to receive the

same level of recognition for their qualifications as that afforded by institutions within the existing university

system’. Furthermore, this would be achieved without endangering the nature of the applied degrees

currently offered by various polytechnics and other non-university providers.

• It would reduce the pressures for ‘institutional drift’, in the sense that there would be fewer pressures on

polytechnics and other non-university degree providers to become universities in their own right.

• It would help preserve and enhance the differentiation between existing universities and other providers.

• It would enhance the ability of non-university degree providers to recruit international students.

Again, the Commission has evaluated the benefits of NZUT against the impact it might have on the tertiary

education system as a whole. This evaluation shows up some issues of concern:

• While NZUT could be recognised within the functional classifications of ‘learning and assessment support’, this

would not make it automatically eligible for recognition as a university. NZUT would still need to meet the

criteria for the award of this protected term, in order to protect the status of other universities. Although it is

based on the model of the University of New Zealand (which ceased to exist in the early 1960s), NZUT would

be a very different kind of institution – it would not have affiliated colleges, and it would have no courses,

academic staff, or research facilities of its own. Such a body would not meet the current legislative criteria for a

university. Accordingly, the TEC would need to consider establishing NZUT as a separate category of university.

This would be subject to the same kinds of objections that can be levelled against the UNITEC proposal.

• It is by no means clear that NZUT would solve the problem of ‘institutional drift’. Some polytechnics are

likely to prefer being a university in their own right rather than having their degrees awarded by a separate

body. Thus the proposal would not solve problems associated with ‘categories’, ‘competition’, ‘co-

ordination’, or ‘differentiation’. The APNZ proposal seems to duplicate the activities of NZQA and it is

unclear how this duplication would contribute to the system as a whole – especially as not all polytechnics

are in support of the proposal.

The Commission believes that, on the basis of the APNZ proposal, the establishment of a ‘virtual’ university of

technology would not meet the desirability criteria. It therefore does not recommend the establishment of a

New Zealand University of Technology.

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8.5.3 Other Options for Addressing the Parity-of-Esteem Issue

There is clearly no simple statutory solution to the parity-of-esteem issue. Qualifications offered by different

types of providers are always likely to be seen by some as carrying a different status. Moreover, turning non-

university providers into universities will not solve this problem; it will simply create a more differentiated

university sector with its own status hierarchy. The parity-of-esteem problem is thus likely to prove enduring.

As it stands, non-university degree providers have a number of options available to them. They can offer their

degree programmes under the current NZQA approval and validation arrangements. Alternatively, they can

approach a university, either in New Zealand or overseas, and seek to have their degrees validated by this

institution. For example: The Open Polytechnic has some of its degrees validated by the Open University in

the United Kingdom; and Wanganui Regional Community Polytechnic has entered into an arrangement with

Waikato University in which some degrees will be jointly awarded.

Other options have been suggested to the Commission, including more collaborative partnerships between

universities and non-university providers. One possibility, again raised by UNITEC, would be to facilitate the

development of ‘university colleges’ – which would be established within non-university degree providers, and

would offer programmes and activities in conjunction with a local university (Submission 142).

Solutions from other countries include the concepts of ‘foundation’ and ‘professional’ degrees. These mechanisms

recognise the relevance and orientation of these non-university degrees to the workplace; and, at the same time,

they establish clear linkages to existing university qualifications. In some countries, ‘professional’ degrees are

offered only by universities.

The Commission believes that options of this nature deserve further exploration, and intends to address them

in its forthcoming reports.

Recommendation 91

The Commission recommends that further analysis be undertaken of the options for the validation of degree programmesoffered by providers other than universities. The Commission does not recommend the establishment of a ‘New ZealandUniversity of Technology’ in the form currently proposed by the Association of Polytechnics in New Zealand.

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Chapter 9: Objections to the Commission’s Proposals

The Commission is aware that the introduction of its proposals are open to a range of objections and may not

be favourably received by some institutions and groupings within the tertiary education system. In this chapter,

the Commission has identified some of these potential criticisms and has endeavoured to address them.

9.1: Academic FreedomOne possible objection is that the Commission’s proposals, including the introduction of profiles, pose a threat

to academic freedom.

The Commission strongly endorses the principle of academic freedom as defined in s161(2) of the Education

Act 1989. In accordance with this Act, academic freedom is taken to mean:

a) the freedom of academic staff and students to question and test received wisdom, to put forward new ideas

and to state controversial or unpopular opinions;

b) the freedom of academic staff and students to engage in research;

c) the freedom of the institution and its staff to regulate the subject matter of courses taught at the institution;

d) the freedom of the institution and its staff to teach and assess students in the manner they consider best

promotes learning;

e) the freedom of the institution through its chief executive to appoint its own staff.

It is the Commission’s view that its proposals will have no negative implications for the ability of staff or

students to exercise the freedoms specified above. The tertiary education system – particularly the universities

– has had a traditional and important role as a ‘critic and conscience’ of society. While this unfettered right to

be critic and conscience is fundamental to democracy and academic freedom, it carries with it the

corresponding responsibilities of sound research and ethical application of knowledge. None of the

Commission’s proposals interferes with, or hampers, this basic freedom and its associated responsibilities.

9.2: Autonomy A related objection to the Commission’s proposals is the concern that they may unduly affect institutional

autonomy.

By international standards, New Zealand’s tertiary education providers enjoy a high degree of autonomy or

independence, both in terms of substantive autonomy (that is, the degree of choice over the nature of the

activities undertaken) and procedural autonomy (that is, the degree of choice over how these activities are

undertaken).64 Their autonomy, however, is conditional, and always has been.

In relation to TEIs, the main limitations on substantive autonomy include the current powers of the Minister:

• to determine the contents of charters, and initiate amendments to them;

• to veto the provision of particular courses (where there are significant implications for the allocation of

national resources);

• to determine the level of an institution’s annual funding and to link any funding to the approval of an

institution’s statement of objectives; and

• to recommend the disestablishment of an institution.

In terms of procedural autonomy, TEIs have considerable control over how they operate. They are, however,

constrained in various ways by their governance and organisational structures (as specified in the Education

64 See Blakeman (1999); Blakeman and Boston (2000).

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Act 1989). Further, while the Government is unable to determine what is taught or how it is taught, it can

influence the length of a course, and determine how many years a particular activity will be funded.

The Commission’s profiling proposals will undoubtedly have implications for the level of substantive and

procedural autonomy. There are at least two reasons for this. First, as noted in Chapter 6 of this Report, it is

proposed that the Minister make more extensive use of statutory powers to influence the contents of charters. The

Commission is not proposing that these powers be extended. Nevertheless, the proposals outlined in this Report

are intended to change the way in which providers operate, and will involve additional constraints and obligations.

Secondly, tertiary education providers will be somewhat more constrained in relation to their activities,

certainly in terms of the activities that they are funded to provide. Having said this, it should be remembered

that the Government currently has the power to cap the number of funded places at each provider (both in

relation to the aggregate number and the numbers in specific courses). These powers, however, have not been

extensively used in recent years.

In the Commission’s view, the reduction in autonomy arising from the new steering framework is justified;

however, the impact of the proposed changes must not be exaggerated. First, under the profiling system,

providers will continue to enjoy a high level of substantive and procedural autonomy. Second, the proposals do

not involve detailed micro-management of the tertiary education system, and any reduction in autonomy is

likely to be relatively modest. Third, if the main powers in relation to the profiling system are placed in the

hands of the TEC, there is little risk of the policy process being politicised or funding decisions being taken

for political reasons. Finally, if somewhat greater constraints of the kind proposed in this Report are not

introduced, many tertiary education providers are likely to find their autonomy limited in other ways. For

instance, those TEIs that encounter serious financial difficulties will be obliged to seek assistance from the

Government; in exchange, they will have little choice but to accept greater involvement by the Government in

the determination of their objectives, plans and direction.

It is also important to emphasise that programmes or activities which meet the appropriate quality-assurance

standards will be able to be offered even in circumstances where, for one reason or another, the TEC has

chosen to decline public funding. So it will be possible, as at present, for a provider to carry out non-

government funded activities and secure the necessary resources from other quarters. Where the TEC decides

not to fund a particular programme or activity, or to restrict funding for a particular programme or activity, it

is envisaged that the relevant provider will have the opportunity to resubmit its bid (or submit a revised bid)

after a specified time period.

9.3: Constraints on Political ActionThe Commission has considered the argument that the TEC may weaken and diminish the power of the Minister

to act effectively in the pursuit of the Government’s objectives. There are two main points to consider here.

First, the current policy framework constrains the Minister’s capacity to act effectively to manage the tertiary

education system. In some cases, the powers to act are limited or inadequate; in others, there is a risk that

ministerial intervention will be subject to judicial review.

The second point is that the Commission has been careful not to unduly constrain the Minister’s capacity to act.

For this reason, the Commission has recommended that certain important powers are retained by the Minister

(and in some cases transferred to the Minister). The Commission has also recommended that the Minister be

able to direct the TEC to provide advice or conduct research on any matters within its areas of responsibility.

More generally, the Commission’s proposals are aimed at developing a policy framework that will build a

partnership between the Government, tertiary education providers and other stakeholders to steer the tertiary

education system more effectively. This type of approach needs to strike a judicious balance between, on the

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one hand, the ability of the Government and the relevant Crown entities to influence the behaviour of

providers, and, on the other, giving institutions enough autonomy for them to be responsive to local needs and

learners’ interests.

In the Commission’s view, this balance is most likely to be maintained by a body that has some independence

and autonomy from the Government – that is, the TEC.

9.4: EffectivenessThe TEC will face a number of significant challenges in ensuring that the proposed steering framework

operates in an effective manner and achieves its objectives. To start with, some providers may seek to thwart

the goals of the profiling system by failing to supply relevant information, by ignoring advice, or by being

uncooperative in other kinds of ways. Furthermore, the extent of the TEC’s influence will be largely dictated

by its funding role. With most tertiary education providers receiving a significant proportion of their income

from non-governmental sources, the TEC will have less capacity to influence behaviour in the system than was

previously the case. Also relevant in this context is the continuing internationalisation of tertiary education,

and the implications of this for competition within the system.

These challenges should not be underestimated, but nor should they be exaggerated. What they do suggest is

that, if the profiling system is to operate as the Commission intends, the TEC must be properly funded and

staffed with people who have a detailed experience of the tertiary education system.

9.5: The Impact on Innovation, Responsiveness and Productive EfficiencyA steering framework of the kind envisaged could have the effect of slowing the pace of change in certain parts of

the tertiary education system and making it more difficult, in some instances, for providers to respond rapidly to

changes in the level or pattern of student demand. The Commission’s view is that, if its steering framework is

applied as intended, the new regime is likely to give providers greater ability to plan with confidence and to

embark upon new initiatives. It should also offer added incentives for mutually beneficial partnerships. Potentially,

therefore, the new regime offers the promise of a more innovative, forward-looking tertiary education system.

Nor does the Commission believe that its proposed steering framework will have a detrimental impact on the

overall responsiveness of tertiary education providers, whether in terms of responsiveness to students, business,

community groups or the wider society.

9.6: The Impact on Administrative and Compliance CostsThere will inevitably be some transitional costs while charters are amended and the initial profiles are

prepared and negotiated. Over the medium term, however, any additional costs should be relatively modest in

nature. This is because much of the information that providers will be required to supply under the proposed

regime is already available within the system (for example, in statements of objectives) and will not need to be

generated from scratch. Also, if the TEC adopts a relatively light-handed approach, the negotiation of profiles

should not prove to be an unduly arduous or time-consuming process.

9.7: Determining What to FundA critical feature of the steering framework is the proposal that the TEC will determine which activities within

the tertiary education system will be funded and which will not. Directly related to this will be decisions on the

level of funding for different activities and the number of funded places. Such a policy framework could be

challenged on the grounds that those charged with making such decisions are unlikely to have the necessary

information to make sensible judgements. Equally, even with robust information, it will often be difficult to

determine when competition between providers is desirable and when it is not, or how a proposed new

programme will affect other providers.

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These concerns are understandable and should not be passed over lightly. Nevertheless, several matters should

be borne in mind. One of these is the fact that judgements of this nature are a feature of the current policy

framework, even if only to a modest degree: there are caps on some activities, and there is a fixed number of

providers of certain expensive courses. Admittedly, the Commission’s proposals certainly involve an extension

of this practice, but they do not entail any new exercise of administrative discretion.

Equally important, the Commission believes that the policy changes recommended will provide a framework

for improved central steering of the system. The exercise of discretion for tertiary education funding will be

given to the TEC – and the design of the system should, in principle, furnish a relatively stable and predictable

framework for planning by providers.

Further, the reporting framework should produce better information for those charged with oversight of the

tertiary education system and allow discretion to be exercised in a more informed manner.

Given the importance of funding issues, the Commission will address the problems of determining what to

fund in its future reports.

9.8: Simpler, Cheaper SolutionsA final objection that warrants mention is the claim that there are simpler and cheaper ways of achieving the

Commission’s objectives for the tertiary education system. Some simpler (and possibly cheaper) solutions were

suggested to the Commission as part of its consultative process. These ranged from curbing the number of

universities, to merging the current polytechnics into five or six institutions, to cutting the funding of PTEs.

There are various problems with suggestions of this nature: they tend to focus upon a part of the system and

give inadequate attention to the inter-sectoral linkages; they often reflect sectoral interests rather than a

concern for the system as a whole; and they tend to involve ad hoc and arbitrary decisions about the desired

number and type of providers. Moreover, ‘simple’ solutions, by their very nature, are unlikely to solve

multifaceted patterns that arise in a complex, dynamic system.

9.9: The Need for Urgent ActionThe Commission’s recommendations may be criticised by some for not providing a rapid ‘solution’ to

immediate problems. As the Commission has noted, however, any changes to resolve the serious and complex

problems facing the tertiary education system will take time to implement.

The Commission is well aware of the compelling need to deal with these issues now – and to do so in a manner

that begins the process of longer-term change (which will address the underlying causes of the current

problems). For this reason, the Commission has proposed the transition arrangements in the following chapter.

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Chapter 10: Transition Arrangements

If the Government agrees with the broad thrust of the Commission’s recommendations, including the

establishment of the TEC and the introduction of profiles, then the Commission believes that action should be

taken now to begin the implementation of the recommendations outlined in this Report.

This is because, although the Commission’s recommendations focus on the long term, there are serious short-

term challenges that need to be confronted. Unless early progress is made on establishing a new steering

framework and central structures, the problems identified in this Report will only be exacerbated.

The Commission believes that, until the new powers and structures are established, the Minister should make use

of existing powers (to the extent that this is possible) to begin to implement the changes outlined in this Report.

10.1: TEC Establishment UnitAn establishment unit should be set up to manage the transition from the existing steering structures to the TEC.

The unit will do this in conjunction with TEAC, the Ministry of Education, and the State Services Commission.

Recommendation 92

The Commission recommends that a establishment unit be set up in early 2001 to begin the process of establishing the TEC;and that this unit work in conjunction with TEAC, the Ministry of Education, and the State Services Commission inimplementing the recommendations in this Report.

10.2: Introduction of Interim Profiles If the Government accepts the Commission’s recommendations on profiles, an interim form of profiles shouldbe instituted for the calendar year 2002. Interim profiles could build upon existing policy instruments, such asstatements of objectives or relevant contracts, and progressively move towards the kind of profilerecommended in this Report.

These interim profiles would require providers:

• to state their contribution to the tertiary education system and to take account of their impact on it;

• to demonstrate responsiveness to the needs of their community, industry and business, and others outside ofthe system, and to build partnerships with them;

• to collaborate and co-operate with other providers;

• to collaborate in the establishment of networks of research excellence (where the provider is engaged inresearch – including those delivering undergraduate degrees);

• to establish and implement processes for rationalising existing programmes and activities that fall outside theinterim profile (particularly those programmes and activities established after 1 January 2001);

• desist from planning new offerings or activities outside their interim profile, unless negotiated with andagreed to by the Government; and

• include any other requirements that might apply either generally or to a particular type of provider.

A variety of different legislative provisions could be used to introduce interim profiles. For TEIs this could eitherinvolve specifying changes to the content of statements of objectives (utilising s199(3) and s203 of theEducation Act 1989), or specifying conditions in respect of the award of supplementary grants under s199(4).For PTEs and OTEPs, the Minister can simply specify the terms under which grants are made (s238A and s321of the Education Act 1989). The Government could seek to have the principles underpinning profiles institutedfor other funding systems through adjustments to the documents of accountability for Skill New Zealand.

The negotiation of interim profiles would require the input of both the Ministry of Education and Skill New Zealand.It is likely that the TEC establishment unit would need to play an integrative and monitoring role in thisrespect, to ensure that the interim profiles were moving the system in the direction set out in this Report.

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Recommendation 93

The Commission recommends that interim profiles be introduced for 2002, with support from the TEC establishment unit inan integrating and monitoring capacity.

10.3: Re-Negotiation of Existing TEI ChartersThe Commission recommends that the process of re-negotiating the charters of TEIs to reflect the directions

outlined in this Report commence as soon as possible. The Commission recommends that the TEC

establishment unit play a role in ensuring that this process advances the recommendations in this Report.

Recommendation 94

The Commission recommends that the process of re-negotiating TEI charters to implement the recommendations in this Reportcommence in 2001, with support from the TEC establishment unit.

10.4: Introduction of ‘Charters’ for Non-TEIsCurrently PTEs and OTEPs that receive public funding are not required to have a charter. They do, however,

enter into agreements that specify commitments similar to those contained in charters. The Commission

believes that it would be advantageous to begin the process of negotiating charters with non-TEIs in 2001. This

could be done by the Minister making use of the power under s238A(1) of the Education Act 1989 to

‘recognise’ providers under that section ‘for the purposes of funding’. The Minister could make such

recognition contingent upon negotiating a charter.

Recommendation 95

The Commission recommends that the process of negotiating charters for non-TEIs begin in 2001, with support from the TECestablishment unit.

10.5: Identification of Centres or Networks of Research ExcellenceThis Report recommends increased specialisation and concentration of research in the tertiary education

system. One means of doing this is to recognise a number of centres or networks of research excellence. The

Commission believes that this should be a matter of priority in the short term, and that the Government

should give serious consideration to beginning this process in 2001.

10.6: Skill New Zealand’s Documents of AccountabilityThis Report recommends the disestablishment of Skill New Zealand, and the transfer of its responsibilities to

the TEC. To address these transition issues, the documents of accountability between Skill New Zealand and

the Ministry of Education, and Skill New Zealand and the Department of Work and Income, should be

reviewed in early 2001. The TEC establishment unit should have a role to play in facilitating this review, and in

the transition to the new arrangements.

In this process, priority should be given to moving the funding and contracting arrangements for providers of

industry training and second-chance education towards the directions outlined in this Report. In particular, it

is essential that the transfer of second-chance education programmes, including both the Training

Opportunities and Youth Training programmes, to the TEC involve their reconfiguration as genuine education

interventions, which provide entry-level qualifications and work skills, improve literacy, and lead to further

education and employment. Giving effect to these changes will also involve transfers from Vote: Work and

Income to Vote: Education.

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Recommendation 96

The Commission recommends that the Skill New Zealand documents of accountability be reviewed in early 2001, with inputfrom the TEC establishment unit, to enable the transition to the new central structures recommended in this Report.

10.7: Legislative ReviewImplementing the changes recommended in this Report will require a significant number of legislative

changes, not the least of which will be the establishment of the TEC. The Commission believes that these

changes present an important opportunity to improve the comprehensiveness and coherence of legislation

relating to tertiary education.

Recommendation 97

The Commission recommends that, as part of the examination of legislative changes necessary to implement therecommendations in this Report, a substantive review be undertaken of the tertiary education provisions of the Education Act1989 (Parts XIII to XXV, and XXVII) and of the Industry Training Act 1992, with the objective of improving the coherenceand comprehensibility of these provisions.

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Concluding Note: Need for Ongoing Review

Responding to the challenges of the knowledge society will require continuing change. But New Zealand and

its peoples will want (and need) to retain continuity with the past, and will need to deal with the past as well as

the future. Change for change’s sake will not assist the development of a knowledge society – but neither will

continuity for continuity’s sake. A careful and judicious balance between the two is essential.

A major examination of the processes of change within tertiary education providers has noted:

The challenges of institutional change presented by the new environment are daunting. For institutions to

be successful, change must be both intentional and continuous. Colleges and universities undergo change

all the time; only some of the change is intentional. Shifting student demand, budget shortfalls, and

legislative mandates will produce any number of changes. But an intentional change requires strategies and

behaviours that are quite different from those associated with unplanned change. Although intentional

change is always subject to serendipity, it involves charting a deliberate course.65

The key is to find ways of charting intentional change that are responsive to challenges, and at the same time

to preserve and transform (where necessary) that which is of value and benefit to New Zealand society, the

New Zealand economy, and the environment.

The lack of easily accessible information has made it difficult for the Commission to obtain a full and accurate

picture of the tertiary education system as it currently exists. The Commission has also noticed a lack of

forward-looking research – on trends in post-compulsory education, and on workforce or community-

development needs.

Such a lack of information hampers policy development. Good decisions and good leadership require robust

systems, along with information and input from a wide variety of sources. This is all the more so as social,

economic, and environmental issues become more complex – and as the amount and diversity of knowledge

expands. Judgement implies that rational decisions can be made, based upon good information. In a

knowledge society, such decision making is essential.

The successful implementation of the Commission’s recommendations will require a commitment by every

stakeholder to participative leadership and careful judgement in policy making, implementation, and

evaluation. In the Commission’s view, this can only happen if the Government and the tertiary education

system’s stakeholders are willing to engage in continuing and iterative review.

65 Eckel (et al) (1998), p. 1.

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Glossary of Education Terms and Acronyms

College of Education Accreditation CEAC holds the authority delegated from the New Zealand Qualifications

Committee (CEAC) Authority (NZQA) for the approval and accreditation of non-degree

programmes offered within member colleges. CEAC carries out this function

for The Association of Colleges of Education in New Zealand (ACENZ)

Equivalent Full-Time Student A standard unit of measurement of student enrolments. It is defined as a

(EFTS) student workload that would normally be carried out by a full-time student

in a single academic year.

Government training Government departments or Crown entities (other than TEIs) that have

establishments been approved by the Minister of Education and registered by NZQA as

(GTEs) a ‘tertiary education provider’ offering training subject to approval and

accreditation requirements of the Education Act 1989. A full list of GTEs

can be found in Appendix 4.

Industry training Organisations that represent industries or industry sectors. They set skill

organisations (ITOs) standards, and arrange and manage (but do not provide industry) training.

New Zealand Polytechnics The Committee provides accreditation and programme approval services

Programmes Committee (NZPPC) to polytechnics and institutes of technology for programmes other than

degrees. The Association of Polytechnics in New Zealand (APNZ) is the

parent body of the NZPPC.

New Zealand Standard A subject-based classification system for courses at institutions that

Classification for Education receive government funding.

(NZSCED)

New Zealand Vice-Chancellors’ The Committee represents the interests of New Zealand’s eight universities

Committee and was established by the Universities Act 1961, which replaced the

federal University of New Zealand with separate institutions. Its sub-

committee, the Committee on University Academic Programmes (CUAP),

considers academic matters across the university system. These include

inter-university course approval and moderation procedures, advice and

comment on academic developments, the encouragement of the coherent

and balanced development of curricula and the facilitation of cross-

crediting between qualifications.

National Qualifications A system of national qualifications developed by the New Zealand

Framework (NQF) Qualifications Authority (NZQA) and based on unit standards.

Other tertiary education Organisations that deliver study programmes of some national

providers (OTEPs) significance and that are recognised by the Minister of Education under

s321 of the Education Act 1989. Because the delivery of these

programmes of study is in the national interest, OTEPs have a special

relationship with the Crown.

Private training Defined in legislation as ‘an establishment, other than an institution,

establishments (PTEs) that provides post-school education or vocational training’ – and, in this

sense, would include all providers other than TEIs. In practice, usually

refers to private-sector organisations that provide tertiary education or

training. They may receive some government funding.

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Skill Enhancement Training aimed at young Maori and Pacific people aged between

16 and 21. The emphasis is on training for the workplace, with a

minimum of training being conducted in the workplace.

Tertiary education All involvement in post-school learning activities. It includes industry

training and community education.

Tertiary education Public-sector institutions that provide tertiary education. There are four

institutions (TEIs) kinds of TEIs defined in the Education Act 1989: universities, polytechnics,

colleges of education, and wananga. TEIs are Crown entities, and are

required to follow standard public-sector accountability processes.

Tertiary education A generic term used for all institutions and organisations that provide

providers (TEPs) tertiary education or training.

Training Opportunities A programme targeted at job seekers usually aged 18 or more, long-term

Programme (TOP) unemployed people with low qualifications, people with disabilities,

certain benefit recipients, refugees, ex-prisoners, and ‘priority’ clients of

Work and Income New Zealand. Training is designed to provide trainees

with practical pathways to employment or further education.

Youth Training Programmes that offer a range of practical skills-training for school

leavers, under 17 year-olds, students who have no more than two School

Certificate passes, and students with no formal qualifications above Sixth

Form Certificate. The training covers both job-specific and general

workplace skills, and is linked to the National Qualifications Framework

through unit standards.

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Glossary of Maori Terms

Ahuatanga Maori Maori tradition.

Akoranga Learning (as a noun). Derived from 'ako' which means both 'learn' and

'teach'.

Akoranga Maori Maori learning.

Hapu Localised sub-tribal but independent grouping based on a whakapapa

link to a named ancestor.

Politically, the term 'hapu' is representative of particular interests that

are subsumed under Article 2 of the Treaty of Waitangi.

Iwi Regionalised tribal grouping that may be constituted by several hapu; it

is linked by whakapapa to a named eponymous ancestor.

Also used as a generic term for 'people' (e.g. Iwi Maori = Maori 'people';

Iwi Pakeha = Pakeha 'people'.).

Politically, the term 'iwi' is representative of particular interests that are

subsumed under Article 2 of the Treaty of Waitangi.

Kawa Marae protocol, as inherited from the ancestors and as (rigidly) set by an

iwi or hapu.

Maori A socio-cultural construct denoting both the collective of tribal entities

and the ethnic labelling of the indigenous people of this country.

Technically it means 'normal', 'everyday', and 'native' – which reinforces

the notion of the indigenous.

Politically, the term 'Maori' is representative of particular interests that

are subsumed under Article 3 of the Treaty of Waitangi, and is used to

augment urban Maori interests within national discourse.

Matauranga A generic and over-arching term for the learning and teaching nexus.

Often used as a synonym for education. Thus, Matauranga Maori

denotes the uniqueness of the learning and teaching nexus from a

Maori perspective.

Mita A spoken dialect of the Maori language.

Pakeha A socio-cultural construct denoting New Zealanders of largely European

(or British) origin. This term is not universally accepted in New Zealand

society, and is a source of ongoing debate. In all discussions on race

relations in New Zealand, the term 'Pakeha' is used along with 'Maori' to

denote bi-culturalism – but not always successfully.

Rangatiratanga Literally 'chieftainship'. This term has several layers of meaning:

(Tino rangatiratanga) from self-determination, to sovereignty, to managerial responsibility.

The use of the intensifier 'tino' adds greater weight to the notion of

'ultimate' right to self-determination.

Tino rangatiratanga is also a fundamental construct in the Treaty of

Waitangi.

Reo Language/discourse. Te Reo Maori = the Maori language.

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Taonga Treasured possession as handed down from one generation to the next.

Also used to denote high as opposed to low value of an object or

concept. Thus the Maori language is regarded as a taonga.

Tikanga Customary practices and organising principles that can be changed to

suit contemporary conditions – but not often are.

Wananga Higher or specialised learning. Can be used as a verb to denote the act

of specialised learning, usually in a group.

Whakapapa Genealogy, or more precisely the act of making genealogical ties

between existing individuals, groups and their antecedents and/or

descendants. Terms such as whanau, hapu and iwi are whakapapa-based

entities. Terms such as Maori and Pakeha are not fundamentally

whakapapa-based.

Whanau A nuclear- or extended-family unit, usually spanning 3 generations.

Also used to denote a defined group of people who share a common

social, cultural, religious, or other purpose.

Whanaungatanga Relationship, kinship.

Whare Wananga School of higher learning (in the traditional sense). Denotes context

rather than process. Has been used (since the 1980s) as a synonym for

'university', but this is not its original meaning.

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Glossary of Government Organisations

More complete descriptions of individual organisations can be found in Appendix 4.

Career Services Provides information, advice and guidance services to help people make

informed career-choices.

Ministry of Education Provides policy advice to the Minister and oversees the implementation

of approved policies. Covers all areas of education – early childhood,

primary, secondary, and tertiary. It also negotiates funding for TEIs.

New Zealand Qualifications Co-ordinates all qualifications in post-compulsory education and

Authority (NZQA) training, and oversees the standards of these qualifications. It also

administers national examinations.

Skill New Zealand Administers the Government’s industry training policy. It focuses on

transition to work, and on access to workplace training.

Teacher Registration Board Administers teacher registration and approves programmes for teacher

education.

Department of Work and Income Administers ‘income support’ benefits and helps unemployed job-

seekers to find work. It also administers student loans and allowances.

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Appendix 1: Guiding Principles

In Shaping a Shared Vision, the Commission identified the following guiding principles for the design of policy

for the tertiary education system:

• Lifelong equitable access: All New Zealand citizens should have equitable and affordable access to tertiary

education of an international standard of excellence, to the extent of their ability throughout their adult life.

• Portability: The tertiary education system should enable portability of credit and recognition of current

competency.

• Balancing co-operation and competition: There should be a regulatory framework for the tertiary education

system that seeks to maximise the benefits of both co-operation and competition.

• Differentiation and complementarity: There should be a regulatory framework for the tertiary education

system that promotes differentiation and complementarity of roles in order to ensure that learning and

knowledge creation opportunities are sufficiently diverse and comprehensive.

• National identity and cultural diversity: The tertiary education system should play an active role in the

preservation and development of the identities of the people of New Zealand, as a nation in the Pacific.

• The Treaty of Waitangi: The tertiary education system should be informed by the Treaty of Waitangi.

• Democracy and citizenship: The tertiary education system should take its proper responsibility for

safeguarding democratic values, the promotion of citizenship and participation in society, and the protection

of fundamental human rights.

• Academic freedom: Tertiary education providers, their staff, and learners should have the maximum level of

academic freedom consistent with the highest ethical standards and the demands of accountability.

• Autonomy: Tertiary education providers should have the maximum level of autonomy consistent with the

nature of the services they are required to provide, the efficient use of resources, the national interest, and

the demands of public accountability.

• Good stewardship of resources: Resources provided by the Government, learners, and others should be used

efficiently, effectively, and ethically – both by individual providers and within the system as a whole.

• Accountability: Tertiary education providers should be openly accountable to their respective stakeholders

for their performance, including the efficient, effective and ethical use of the resources with which they have

been entrusted, in a manner consistent with their purpose and the principle of autonomy.

• Predictability of funding: Public funding of tertiary education providers should be sufficiently stable and

predictable to support effective planning and investment.

• Maintaining research capability: Research should be adequately supported long-term to contribute to the

cultural, social and economic development of New Zealand, pursue innovative and creative endeavours, build

and maintain a strong research workforce, and make an effective contribution to the global knowledge

community.

• Responsiveness: The tertiary education system should be managed in such a way as to ensure that it is

sufficiently innovative and responsive to the changing needs of society and the economy.

• Quality: All tertiary education should be of an acceptably high quality supported by processes of critical self-

evaluation that are regularly assessed and audited.

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Appendix 2: Summary of Issues in the Submissions

Introduction

The Commission received 149 submissions on a wide range of issues that affect the tertiary education system.

Amongst the issues addressed were the nature and level of differentiation within the system, the roles of

different types of providers, the respective responsibilities of universities and polytechnics, the place of private

providers within the tertiary education system, the role of colleges of education, the role of wananga, and the

role and function of ITOs. Some of the submissions also addressed the appropriate policy instruments for

regulating the behaviour of providers, in particular the means by which the Government can encourage co-

operation and collaboration and reduce unnecessary duplication.

The following is a brief summary of some of the issues that were raised in the submissions made in relation to

this Report.

Differentiation and Parity of Esteem

The issue of differentiation in New Zealand TEIs has led to a perceived parity-of-esteem issue. This issue

generated considerable discussion in the submissions. Much of the discussion centred on the ability of

polytechnics to offer degrees, the scope of institutional autonomy, and the use of ‘protected terms’.

Some of the submissions supported strong differentiation because this assists diversity of subjects and courses

and improved public understanding of institutions’ roles (28, 36, 41, 47, 61, 100, 104, 110, 113, 121). It was

argued in one submission that the legislative definitions were clear, but that funding and regulatory

arrangements had led to a blurring of roles (47). Others felt that flexibility was more important, as actions are

more important than mission or definition (29, 53, 68, 80). Those submissions also argued that community

needs, not legislation, should drive the offerings of the TEIs.

The Association of Polytechnics in New Zealand (APNZ) suggested that, although the gap in degree provision

had narrowed between polytechnics and universities, the difference in mission was still significant – they were

offering different types of degrees (29). The Waikato Polytechnic stated:

… it is inappropriate to argue that simply because two types of institutions both offer degrees, they are

necessarily in competition. (p. 9, 26)

Others took up this argument, suggesting that polytechnics were simply developing qualifications to meet the

needs of their traditional target market (34, 43, 54, 60, 71). Other submissions pointed out that, if anything, the

universities had become more vocational over the last 30 years, arguably encroaching upon polytechnic turf (26, 43).

While many diploma courses at polytechnics before 1990 were at a level that was similar to degree courses, none

offered the equivalent of post-graduate courses, which has become a new area for debate. As at 1999, there were

562 students undertaking post-graduate level courses in polytechnics.66 The Association of Staff in Tertiary

Education (ASTE) supported polytechnics offering degrees beyond bachelors’ level as long as they met the

required standards, although it wanted to retain their vocational education capability (30). On the other hand,

one submission argued that polytechnics should not offer doctorates (41), and others were keen on re-

examining whether polytechnics should offer any advanced degrees (25, 61). One suggestion was that

polytechnics offering expensive research-based degrees should do so under the supervision of a university (31).

Some others argued that a strict distinction should be maintained between universities and polytechnics

(22, 73, 121); they expressed a strong desire for community polytechnics to return to their basic role of serving

vocational and social needs in a local community and to provide a bridge between secondary school and higher

education (102). The Australasian Mycological Society argued that the outcome of competition between

66 See Ministry of Education (2000), P40.

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universities and polytechnics has been ‘the narrowing and dumbing-down of universities and over-inflation of

polytechnics’ abilities and qualifications’ (p.3, 88). One submission commented that the blurring of roles has

led to universities becoming second-rate polytechnics and polytechnics becoming second-rate universities (81).

Such submissions often referred to the special role that universities had in acting as ‘the flagships of the tertiary

education sector’ (p.1, 22) or as the ‘critic and conscience of society’ (p.1, 87). Another argued that ‘TEAC

must acknowledge and reflect the complex central place that is unique to universities within the tertiary sector’

(p.2, 39). These examples illustrate the split between those who see universities as a unique cultural institution

and those who see them as just one type of tertiary education institution.

The argument that polytechnic degrees are different led on to points about the way in which degrees, and the

research that their teachers need to do, are defined. A restrictive definition for the research that supports

degree teaching was rejected by some, with polytechnics preferring the NZQA definition (60).

Simply noting that the degrees were different was not enough, though, as some people see polytechnic degrees

as being inferior. APNZ noted that this parity-of-esteem issue had led two polytechnics (UNITEC and Auckland

University of Technology) to seek to become universities in order to get equal recognition for their students’

achievements (29). In the process they may have lost some of their initial strengths. The solutions proposed to

this problem show a strong divergence of views:

• All but one of the main national organisations (APSU, 28) either opposed the ‘university of technology’

concept or did not mention it.

• The University of Waikato suggested that policy should not be driven by a couple of exceptions to the rule (50).

• Auckland University of Technology opposed both the ‘university of technology’ concept and APNZ’s

‘national polytechnic university’ (31, 107).

• UNITEC strongly supported the ‘university of technology’ concept, presenting a proposal for

implementation (71, 101, 142).

• The Waikato Polytechnic also supported the ‘university of technology’ concept and presented a proposal for

implementation, though this was not as detailed as UNITEC’s. It rejected the APNZ proposal (26, 113).

• Smaller polytechnics and some larger ones such as Otago Polytechnic and Christchurch Polytechnic Institute of

Technology opposed the ‘university of technology’ and supported APNZ’s proposal (29) for a ‘national

polytechnic university’. They saw the APNZ proposal as helping to preserve the shape of the polytechnics, while

allowing them to offer degrees equivalent to those of universities in their areas of strength (34, 36, 54, 55, 59, 60).

• ASTE rejected the APNZ proposal in its present form, urging ‘greater dialogue with those who are

responsible for the facilitation of learning, developing new programmes and producing research outcomes,

i.e. academic staff’ (119).

Massey University suggested that the term ‘institute of technology’, already taken up by many institutions, may

be a better option than ‘university of technology’ (38). Those supporting the latter argued that it recognised

the obvious distinction between higher applied learning and higher research-based learning. They pointed to

the real differences between the offerings of UNITEC or AUT and those of the University of Auckland. They

suggested that the only way to deal with parity of esteem was to recognise such institutions as valid institutions

of higher learning, rather than to implicitly encourage them to become research-led universities (32, 71).

On a completely different note, The Open Polytechnic of New Zealand suggested that ‘open university’ be

given the status of a protected term (55, 122).

PTEs and their Funding

A fundamental problem confronting the tertiary education system is how to maximise participation rates and

equitable access, while at the same time ensuring adequate quality in the context of ever-constrained budgets.

Most of the submissions acknowledged the fact that New Zealand must operate in an environment of scarce

resources, and that difficult decisions must be made about the nation’s investment in tertiary education.

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At the heart of the PTE debate is the issue of funding tertiary education in a time of scarce resources. Some

submissions stated that having more than 800 registered PTEs was excessive and that PTEs were undermining

vulnerable TEIs by ‘cherry-picking’ the most popular courses – but no specific examples were provided (10, 25,

29, 30, 34, 41, 80). One provider stated that the increase in PTEs had seen the ‘utter destruction of a rational

system of trades education’ (p.3, 26) with PTEs and ITOs exploiting the most profitable niches and leaving the

rest to the polytechnics. Auckland College of Education stated that there probably should be some creative

tension between PTEs and TEIs, but that there should be restrictions on how many teacher education

providers were funded. There was also a perception that PTEs did not meet the community-service obligations

that TEIs did (41), and that their courses were not of equivalent quality (7, 9, 25, 28, 41, 49).

In contrast, some of the submissions pointed out that PTEs had reporting requirements similar to those of

TEIs (40) and that they added cultural and academic pluralism to the tertiary education system (40, 46) – the

latter point being recognised by others who were otherwise critical of PTEs (28, 29, 41). The New Zealand

Association of Private Education Providers (NZAPEP) commented that, while there are 841 registered PTEs,

only 441 receive government funding and/or offer courses of longer than a week (53). PTEs account for 13.5

percent of all enrolments and 5 percent of all EFTS-funded enrolments. Some submissions from PTEs used the

term ‘independent tertiary education providers’, as they felt it better reflected what they were and what they

did. (21, 53). Another PTE pointed out that it was much like a state provider because it was ‘not for profit’ –

but it offered courses that were qualitatively different (46).

Actions proposed by submitters ranged from severely cutting back on PTEs to allowing them to continue on

their present course.

The two principal solutions proposed by those opposed to PTEs were a cap on the number of PTEs receiving

EFTS funding or a requirement for them to prove that the need they were meeting was not already being met

by the public sector (28, 32, 34, 41).

The Association of University Staff of New Zealand (AUS) and ASTE noted that PTEs did have high Maori

enrolments but this was part of the ‘ghettoisation’ of Maori (25, 30). AUS noted that the PTEs’ funding could

instead be used to improve the responsiveness of universities, which have the lowest Maori participation of all

tertiary education providers.

The Employers’ Federation and the NZAPEP suggested that PTEs played an important role in second-chance

education, vocational education, and specialist degree programmes. NZAPEP pointed out that PTEs already

complemented other providers, and that most competition is between TEIs. These submissions were of the

view that the current system was working well (40, 52).

One submission argued that PTEs should be required to have sufficient capital to support students in case of

institutional failure; and that if a PTE received capital funding from the Government, then the Government

should have some ownership interest in that PTE (2).

The Bible College of New Zealand (a PTE) argued that PTEs are a diverse group and that this needs to be

recognised (7). As the first institution other than a university to be approved for offering degrees, the Bible

College argued that the requirement for all PTEs to demonstrate class-contact time was very difficult, especially

in programmes that involved masters students working on their theses.

Many of the submissions on PTEs were put forward by PTEs eager to describe their important contributions to the

tertiary education system overall (89, 106, 117, 120, 123, 124, 127, 128, 130, 131, 132, 133, 134, 135, 137, 138, 139).

One submission, when describing the role of PTEs, argued:

Private education at the secondary level is accepted and respected. It is curious that similar

acceptance and respect at the tertiary level are difficult to attain – although over the past couple of

years considerable gains have been made. Private tertiary educational institutions, many now with

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track records of significant achievements, deserve to be seen as more than ‘plugs for gaps’ in a

governmental system. While in the past ‘uneven playing fields’ have forced them to seek particular

market niches and/or to demonstrate higher quality and benefits to their students, private tertiary

education institutes (sic) are now an integral part of the sector. (p.3, 135).

Colleges of Education as ‘Specialist Institutes’

The Association of Colleges of Education in New Zealand (ACENZ) and ASTE supported the traditional role

of the colleges of education and suggested that any mergers should be voluntary (12, 30, 91). Some colleges of

education pointed out that they had diversified, but only in associated areas (13). Overall, the colleges were

perceived as retaining a unique position in teaching, research, professional development, and curriculum

support (13, 35, 52). There was seen to be no need for forced mergers with universities; it was believed that

this could damage the provision of teacher education, as the culture of universities is not amenable to

professional education (35, 52). One suggested alternative to forced mergers was to have all colleges of

education working under the aegis of a single university (35).

Some submissions acknowledged the tension between colleges of education and the Government, in that the

colleges serve the recruitment needs of a largely government-controlled system; but these submissions

nevertheless wanted the colleges to maintain their institutional autonomy (35, 53, 65). Two submissions

suggested that teacher education should be seen as an integral part of the tertiary education system, rather

than as a supplier for the compulsory education system (17, 62).

Various organisations outside the colleges of education suggested that the colleges should be encouraged to

merge with other institutions, with their ‘protected term’ being dropped from the Education Act 1989 (25, 28,

36, 41, 71). This was justified with arguments that the colleges of education have lost their monopoly on

teacher education, that the small size of the colleges undermines economies of scale, that teaching needs to be

done within a research environment, and that the colleges add little to differentiation of the system. The

members of the Association for Tertiary Education Management (ATEM) tended to favour the merger of the

remaining colleges of education with universities, as a means of broadening their students’ options and

enhancing the international standing of their qualifications (96).

Wananga

Although wananga represent about 1 percent of government-funded places in tertiary education (71), there is

general agreement that wananga are critical to Maori development and are a positive move (32, 36, 41, 71, 96, 119).

Wananga are also seen as an important step in exercising tino rangatiratanga and as a critical component of a

differentiated system – despite their not being a ‘protected term’ in the Education Amendment Act 1989 (28, 41).

Two submissions recommended the retention of wananga, a clarification of their definition, and continued

consultation on such with Maori (28, 41). One submission (25), along with its supplementary submission

(121), stated that the Treaty of Waitangi could be used to clarify the differentiated infrastructure of wananga.

Another submission argued that, under the Treaty, the Government is obliged to support and fund wananga

(36) – a point advanced further (121) in support of the Waitangi Tribunal’s findings on the capital funding of

wananga.67 Furthermore, one submission suggested a specific contestable funding 'tranche' for wananga (29).

One submission (71) claimed that, because of their newness, wananga currently add little to the differentiation

of the system in terms of student choice – although they serve a valuable purpose in contributing to Maori

educational development. Another argued that a proliferation of publicly funded wananga may not be efficient

or in the national interest (32). A further submission suggested an EFTS ‘hosting limit’ on wananga, to be set

by an appropriate Maori authority (31).

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67 Waitangi Tribunal (1999).

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Submission 41 stated that wananga have experienced difficulties in meeting some of the statutory

requirements for governance. This same submission also noted that very little work has been done in

evaluating the effectiveness of wananga, and suggested that any proposed intermediary body should be

engaged in wananga establishment. Submission 124 recommended ‘an alternative status to Private Training

Establishment and Whare Wananga for Maori tertiary (education) providers’. However, this submission added

a cautionary note to the effect that the attainment of whare wananga status (through NZQA, for example)

would not suit some providers because of capacity issues and inadequacies in the current ‘definition’.

In the spirit of co-operation, three submissions (30, 39, and 119 – a follow up to 30) mentioned the potential

for other TEIs and wananga to come together in certain arrangements of mutual benefit, and also the need

for this. Three other submissions (9, 47, 50) noted or discussed the notion of internal wananga and colleges

(i.e. entities ‘internal’ to TEIs). Submission 113 extended this co-operative notion to credit transfers, with a

specific mention of credit transfer between wananga and PTEs.

ITOs as Part of the Tertiary Education System

There were few references to ITOs in the submissions, some of which were negative (31, 34) or simply noted

problems (38).

AUT suggested that all ITO money should be transferred to the polytechnics so that they could establish

centres of excellence in trade training (31). The Industry Training Federation also supported centres of

excellence, but not the transfer of purchasing power (67). The Federation and others were concerned about

the short-term contracts offered by ITOs, because these undermined long-term planning and capital

investment (31, 34, 60). Some submissions proposed that ITOs should be restricted to standard-setting and

that on-the-job assessment should be much more limited (60, 83).

The Industry Training Federation argued that ITOs were playing an important role:

Participation is high and growing rapidly … Participation has diversified to include many more

adults, Maori and Pacific Islands people, and women … The key strength of the current strategy

is its flexibility and responsiveness to the dynamic training requirements of diverse industries. In

simple terms, trainees can achieve national qualifications while in employment and at a lower

cost than if they were to study full-time at a tertiary institution (p.5, 67).

Some of the main issues from the Federation’s perspective were the level of resourcing, the need for research

into industry training, the duplication of ITO functions by other organisations, the number of ITOs, and

restrictions on funding above level 4 of the National Qualifications Framework (67).

Intermediary Body

Many of the submissions made to the Commission addressed the issue of whether establishing an intermediary

body would be desirable. A number of them favoured the creation of such a body (89, 91, 102) and even argued

that the establishment of an intermediary body for tertiary education in New Zealand is essential (133).

Amongst other things, intermediary bodies were seen as providing a means for achieving greater differentiation

within tertiary education, enhancing policy co-ordination, and improving the quality of policy advice.

Against this, the creation of a new body was questioned or opposed on the grounds that it might unduly

constrain institutional autonomy, increase the level of bureaucratic control, and impose additional

administrative costs (131).

One submission, on behalf of the members of the ATEM, presented mixed reactions to the introduction of an

intermediary body. While some members supported the concept, others felt that its establishment would

‘create too many levels to work through’ (p. 5, 96).

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Various submissions referred to the successful implementation and use of intermediary bodies in countries

such as Australia (before 1988), Israel, the United Kingdom, and the United States – especially the state of

California (47, 59, 70).

Charters and Profiles

Various submissions (27, 28, 32, 41, 47, 59, 70, 91, 101) argued for the use of educational profiles or enhanced

charters to set out expectations for, and to monitor the performance of, tertiary providers. The strongest

advocacy for profiling was contained in submissions by the Aotearoa Post-Compulsory Student Union (APSU)

(pp.19-20, 28) and UNITEC (101).

APSU argued that each TEI and ITO should be required to develop an educational profile setting out its short-

term (1 year) and medium-term (3 years) objectives and characteristics. Such a profile would be more specific

than an existing charter or a statement of objectives, and would include information about:

• the range of courses and subjects the TEI/ITO intended to offer or purchase;

• where and how the TEI/ITO intended to offer these courses;

• expected student numbers;

• the area in which the TEI/ITO intended to specialise;

• institutional capital management and development plans;

• equity programmes and targets; and

• current and planning partnerships with industry, the community, and other key stakeholders.

Such profiles would be negotiated with the Minister via a ‘Tertiary Education Authority’. In negotiating a TEI

or ITO profile, the Authority would take into account such matters as:

• the Government’s overarching strategy for tertiary education;

• the need to minimise duplication, and encourage institutional specialisation;

• the need to ensure equity of access, and a wide range of education provision;

• the need to have efficient and responsible institutional management;

• the particular type and legislative characteristics of the institution;

• the financial performance of the institution; and

• the educational performance of the institution.

Under the APSU model, a profile (once approved) would constitute the basis for funding that TEI or ITO.

Where the Authority had reservations about particular aspects of the profile, conditions could be attached.

Alternatively, the Authority could recommend that the profile be rejected and that the TEI or ITO not receive

public funding.

The proposals advanced by UNITEC have many similarities to the APSU approach. Under the UNITEC model,

each higher education institution would have an educational profile to be negotiated with the Government on

a rolling 3-year basis. The relevant documentation would define the academic and professional envelope

within which each institution would operate. For instance, the documentation would set out each of the

disciplinary areas (under an agreed classification system) in which the institution would provide programmes

and, within each discipline, the level (or levels) at which it would be offering courses (e.g. certificate, diploma,

undergraduate degree and post-graduate degree). In addition, the institution would be required to specify

what proportion of the students in each disciplinary area would be undertaking courses at each level.

Negotiations would then take place with the Government over the number of publicly funded places (within

agreed ranges) that the institution would be able offer in each disciplinary area and at each level. Once the

institution’s profile had been set, any movement outside the agreed parameters (whether in terms of

disciplinary areas or levels) would require governmental approval, especially if there was any question of public

funding being provided. Under UNITEC’s proposal, individual providers would retain considerable flexibility:

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they would have the ability to move the actual student load between classifications and categories, and to

introduce new or revised programmes in response to developments in student needs or fields of inquiry.

UNITEC also suggested ways in which the research activities undertaken by tertiary education providers could

be incorporated into a profiling system.

Learning and Technology

Lifelong learning for a knowledge society was addressed in most of the submissions. Technology and, more

specifically, e-learning will play an important role in the development of lifelong learning pathways and will

provide access for learners in distant geographical locations. It has been argued by some that e-learning should

be used as a means to an end, rather than as an end in itself. In its submission, ASTE (119) maintains that:

…the potential of E-education is much greater than is presently being realised. However, it is our

view that tertiary institutions should be exercising some caution in this area. E-education should

not be embraced simply as a way to cut the cost of mass tertiary education. The real time costs

associated with the development of materials, teaching support and delivery must be taken into

account, including the difficult-to-measure workload implications for academic staff. It is ASTE’s

view that tertiary institutions should be using E-education to modernise academic work, and not

to transform themselves from real to virtual institutions.

The Open Polytechnic of New Zealand (122) argued that a lead provider with demonstrated capability should

be nominated to develop this area. The concept of lead provider is similar to the idea of a centre of excellence.

Maori and Pacific Peoples’ Issues

Several submissions outlined particular and general failings (and underlying gaps) of the tertiary education

system in relation to Maori. Some of the issues and themes described included: exclusionism (21, 22, 67),

income disparities (9, 47), lowered expectations (9, 25, 47), general participation (48, 58), curriculum support

(14, 60), equitable access (3, 69), competition (25), lack of research (48), systemic failings and under-

achievement (9, 22, 48, 59), and advocacy and mentoring (9, 22, 58) – all this despite the promise of mass

tertiary education (43).

A number of submissions also stated that the future of the tertiary education system needs to be considered

within a context of building a critical mass of well-qualified and highly motivated Maori teachers and

researchers, which will be essential given the changing nature of New Zealand demographics (9, 25, 47, 48).

Some of the submissions reflected on the responsiveness of TEIs to Maori and argued that changes have occurred,

despite significant institutional barriers and constraints. Many tertiary education providers, as well as Maori-specific

entities such as wananga, are now providing a culturally appropriate context for learning – and so they represent a

powerful conduit for Maori into the tertiary education system as a whole (25, 28, 36, 41, 121, 124).

Only a few of the submissions were related directly to Pacific peoples. One submission (117) suggested that the

Ministry of Education should engage directly with PTEs that cater specifically for Pacific peoples’ needs.

Another submission (132) also supported this view, stating that a hands-on approach would fit well with

Polynesian tradition and cultural patterns.

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LIST OF SUBMITTERS (as they referred to themselves in submissions) – TABLE A2-1

SubmissionNumber Name of Submitter

1 Jacinta Dalgety, PhD student, The University of Waikato

2 A J C Begg BSc BCom DPhil DipTchg, Senior Lecturer, The University of Waikato

3 Canterbury Medical Research Foundation

4 Faculty of Medicine, University of Otago

5 National Institute of Water and Atmospheric Research Ltd

6 Instructional Design and National Student Administration and Teaching Support, Massey University

7 Bible College of New Zealand Inc.

8 Meteorological Service of New Zealand Limited

9 Victoria University of Wellington Alumni Association

10 Telford Rural Polytechnic

11 Peter Walls, Professor of Music, Victoria University of Wellington

12 Association of Colleges of Education in New Zealand

13 Christchurch College of Education

14 Hutt Valley Polytechnic

15 Jim Chapple (personal submission)

16 Massey University Extramural Students Society Inc.

17 Teacher Education Forum of Aotearoa New Zealand

18 The New Zealand Association of Scientists (Inc)

19 Associate Professor John D. Green, Department of Biological Sciences, The University of Waikato

20 Dr. Lyndsay Main, Associate Professor in Chemistry, The University of Waikato

21 Apparel Technology Training Ltd

22 Mark Wilson, Jolisa Gracewood, Richard Easther, Amanda Peet, Michelle Elleray and Alice Te Punga Somerville – expatriate academics and researchers

23 Human Resources Institute of New Zealand

24 Professor Margaret Clark; Professor Ralph Pettman; Professor Emeritus Harvey Franklin; Professor Paul Morris; Professor Emeritus Peter Munz; Professor Vincent O’Sullivan; Associate Professor Harry Ricketts; James Urry, Reader; R J Tristram, Senior Lecturer; Professor Emeritus David Vere-Jones: all of Victoria University of Wellington

25 The Association of University Staff of New Zealand

26 The Waikato Polytechnic

27 David Woodhouse, Director, New Zealand Universities Academic Audit Unit

28 Aotearoa Post-Compulsory Student Union

29 Association of Polytechnics in New Zealand

30 Association of Staff in Tertiary Education

31 Auckland University of Technology

32 Vince Catherwood and George Preddey: Catherwood, Preddey & Associates

33 APNZ Teacher Education Subject Forum

34 Christchurch Polytechnic Institute of Technology

35 Dunedin College of Education

36 Education Policy Response Group, Massey University College of Education

37 Professor Luanna Meyer, Pro Vice Chancellor, Massey University College of Education

38 Professor James McWha, Vice Chancellor, Massey University

39 Massey University Council

40 New Zealand Employers’ Federation

41 New Zealand University Students’ Association (Inc)

42 Noeline Arnott, graduate student, Massey University

43 Otago Polytechnic

44 Associate Professor Irene Zohrab, Russian Section, School of European Languages, Victoria University

45 Tairawhiti Polytechnic

46 The Learning Connexion Ltd

47 The University of Auckland

48 University of Canterbury

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SubmissionNumber Name of Submitter

49 Ian Whalley, Music Department, The University of Waikato

50 The University of Waikato

51 PostGraduate Students’ Association, Victoria University of Wellington

52 Wellington College of Education

53 New Zealand Association of Private Education Providers

54 Whitireia Community Polytechnic

55 The Open Polytechnic of New Zealand

56 Professor DT Jones, Dean, Otago School of Medical Sciences, University of Otago

57 Henry Barnard, Senior Lecturer, Social Anthropology Programme, School of Global Studies, Massey University

58 Te Mana Akonga (Inc): National Maori Students’ Association

59 Professor PD Gluckman CNZM MBchB MmedSc DSc FRACP FRCPCH FRSNZ, Dean, Faculty of Medical and Health Sciences, The University of Auckland

60 Nelson Marlborough Institute of Technology

61 New Zealand Vice Chancellors’ Committee

62 School of Education, The University of Waikato

63 School of Music, Victoria University of Wellington

64 Aoraki Polytechnic

65 Auckland College of Education

66 Dr Charles R. Pigden, Department of Philosophy, University of Otago

67 Industry Training Federation

68 New Zealand Association of Crown Research Institutes (Inc)

69 Royal New Zealand Foundation for the Blind

70 The Humanities Society of New Zealand

71 UNITEC Institute of Technology

72 University of Canterbury Students’ Association (Inc)

73 Kathrine Biggs, Philippa Tucker and Jayendra Chhana, post-graduate students, Victoria University of Wellington

74 Claudine Earley, Postgraduate Student, Victoria University of Wellington

75 James Urry BSc (Hons) (Lond) DPhil (Oxon), Reader in Anthropology, Victoria University of Wellington

76 Wanganui District Council

77 Lincoln University

78 Industrial Research Limited

79 Victoria University of Wellington

80 Eastern Institute of Technology

81 Derek W. Smith, Associate Professor of Chemistry, The University of Waikato

82 Edwin Budding, Central Institute of Technology

83 Bay of Plenty Polytechnic

84 Gordon Parr

85 Institution of Professional Engineers New Zealand; School of Engineering, University of Canterbury; School of Engineering, The University of Auckland; Engineering and Technology Programme, Massey University.

86 Bob Mills CEng MIMechE FIPENZ, Senior Lecturer, Department of Materials and Process Engineering, Technology Management and Innovation Consultant, The University of Waikato

87 Dr Charles R. Pigden, Department of Philosophy, University of Otago

88 Australasian Mycological Society

89 Bible College of New Zealand Inc.

90 Luis Gonzalez, Staff Development Co-ordinator, Bay of Plenty Polytechnic

91 Association of Colleges of Education in New Zealand

92 Whitireia Community Polytechnic

93 Caryl Ginever, Community Education, Hamilton’s Fraser High School

94 Adult and Community Education Association

95 Robert Tobias, Centre for Continuing Education, University of Canterbury

96 Association for Tertiary Education Management

97 Claudine Earley, Postgraduate Student, Victoria University of Wellington

98 New Zealand Geophysical Society Inc.

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SubmissionNumber Name of Submitter

99 Linda H Wilson MSc DHA, NZROT

100 The Association of Polytechnics in New Zealand

101 UNITEC Institute of Technology

102 The New Zealand Institute of Management

103 John Tiffin, Professor Emeritus of Communication Studies, Chancellor of the Global Virtual University

104 New Zealand Vice-Chancellors’ Committee

105 Department of Child Youth and Family Services

106 Teachers to Speakers of Other Languages Aotearoa, New Zealand, Special Interest Group: ESOL in Tertiary Sector

107 The Auckland University of Technology

108 Transit New Zealand

109 University of Auckland Alumni Association

110 Professor Darryl Le Grew, Vice-Chancellor, University of Canterbury

111 Jim Chapple, Green Party co-ordinator for eco-education

112 Hana Potiki, Tumuaki, Te Matauranga Maori, Christchurch Polytechnic

113 The Waikato Polytechnic

114 New Zealand Manufacturers Federation Inc.

115 National Council of Women of New Zealand

116 Brian Easton

117 Pacific Island Training Providers of New Zealand Inc.

118 New Zealand Association for Environmental Education Incorporated

119 The Association of Staff in Tertiary Education

120 SEEDS Institute International Ltd

121 Association of University Staff of New Zealand

122 The Open Polytechnic of New Zealand

123 Captain’s Table Training Centre

124 Te Runanga o Turanganui a Kiwa

125 Simon Titheridge

126 Dr James Maclauren, Department of Philosophy, University of Otago

127 Stuart Peterson, Director, Northland Farm Labour Ltd

128 Ashton Warner Nanny Academy

129 Robyn Walsh BA MBA Post-Grad Dip Arts Dip Teaching, Director, Marketing and Communications, UNITEC, Auckland

130 The Salvation Army Employment Plus

131 Avonmore Tertiary Academy

132 Jonathan Milne, Managing Director, The Learning Connexion

133 Interim Technology Training Institute

134 AMES Resources Trust

135 Auckland Institute of Studies St. Helens

136 Dunedin College of Education

137 National Council of YMCAs of New Zealand

138 Agriculture New Zealand Limited

139 The National College of Design and Technology

140 New Zealand Association of Private Education Providers supported by 66 PTEs

141 South Island Regional Polytechnics’ Alliance

142 UNITEC Institute of Technology

143 New Zealand Association of Private Education Providers

144 New Zealand Tertiary College

145 English Language and Literacy for New Zealand, Auckland University of Technology

146 Robin Gwyn JP MA Cert.Ed PhD, Formerly Reader in History, Massey University

147 The University of Auckland Alumni Association

148 Datacom Employer Services

149 Liz Love, Di Lyons, Margaret McNie, and Carrie Stock

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Appendix 3: Groups and Individuals Consulted

The lists given below are of the groups and individuals that the Commission has met with over the course of its

deliberations. In keeping with the Commissions ‘open door’ policy on meeting and consulting with interested

parties, many of these meetings were at the group’s or individual’s request. The Commission also instigated

meetings with others when it felt this to be necessary.

Please note that the lists do not include informal meetings and meetings with government departments and

ministries.

Tertiary Education Institutions

Auckland University of Technology

Christchurch College of Education

Christchurch Polytechnic Institute of Technology

Dunedin College of Education

Massey University

Otago Polytechnic

Te Wananga o Aotearoa

The Open Polytechnic of New Zealand

UNITEC Institute of Technology

University of Auckland

University of Canterbury

University of Otago

Wanganui Regional Community Polytechnic

Industry Training Organisations

Design & Construction Consultants Industry Training Organisation – Warwick Bell

Electricity Supply Industry Training Organisation – Bob Howlett

Forest Industries Training – John Blakey

New Zealand Contracting Industry Training Organisation – John Wills

Maori

Nicola Bright – Te Taurawhiri, Maori Language Commission

Arohia Durie – Massey University

Ross Himona – New Zealand Maori Internet Society

Trevor Moeke – Te Mangai Paho

Toroa Pohatu

Hana Potiki – Christchurch Polytechnic Institute of Technology

Piri Sciascia – Victoria University of Wellington

Graham Smith – University of Auckland Te Whare Wananga o Awanuiarangi

Danica Waiti – Te Mana Akonga New Zealand University Students Association

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Pacific Peoples

Pesio Ah Honi – PIERC Education

Melani Anae – University of Auckland

Linda Aumma – UNITEC Institute of Technology

Esther Cowley – Auckland University of Technology

Winnie Laban MP

Okusi Maitina – University of Auckland

Linita Manu’atu – University of Auckland

Rosemary Peterson – Auckland University of Technology

Sisi Pritchard – Academy NZ Otahuhu

Ezra Schuster – UNITEC Institute of Technology

Lavinia Tamarua Turoa – University of Auckland

Koli Vanisi – Massey University

Albert Wendt – University of Auckland

Private Training Establishments

Academy New Zealand – Andrew Murray

Apparel Technology Training – Kevin Smith

Auckland Institute of Studies St Helens – Steve Keung

Bethlehem Institute of Education – David Giles

Bible College of New Zealand – Bruce Knox

The Sir George Seymour National College of Tourism and Travel – Raewyn Idoine

Te Rapu Matauranga – Ruhia King

The Learning Connexion – Jonathan Milne

The Open Pacific Education Centre – Fitu Ah-Young

Whitecliffe College of Art and Design – John Reynolds

International

Israeli Council for Higher Education

Nicholas Barr – London School of Economics and Political Science

Roger Mills – Open University

Business and Industry

Employers Federation – Marilyn Davies

Ericssons – Stephen Crombie

Industry Training Review – Michael Fletcher

Manufacturers Federation – Simon Carlaw

Transit New Zealand – Robin Dunlop and Stuart Fraser

John Williams, Jim Donovan, Bill Kain, and Suzanne Snively

Sector Groups

Association of University Staff of New Zealand – Neville Bampied, Rob Crozier and Margaret Ledgerton

Industry Training Federation – Martin Eadie, Paul Williams and Nick Green

New Zealand Vice Chancellors’ Committee

Tertiary Institutes Allied Staff Association – Shelley Weir

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Other Organisations and Individuals

Adult and Community Education Working Group – Mary Jane Rivers and Jo Lynch

Career Services – Lester Oakes

David Hood

Education New Zealand – John Sargent

Foundation of Research, Science and Technology – Peter Morten, Emma Speight and Clare Dominick

New Zealand Green Party – Ian Ewen-Street MP and Jim Chapple

Regional Development Strategy Group, the Office of Hon Jim Anderton – John Lepper and David Cuthbert,

Science Deans – James Coxon, Roy Geddes, Margriet Theron, John Welch and Peter Englert

The Natural Step – Dr Lin Roberts and Jo Blakeley

Waitakere City Council – Tony Mayow

Workbase Education Trust – Liz Moore

Working Groups

International Reference Group

Jim Downey, former Chair of the Association of Commonwealth Universities, former President of the

Universities of Waterloo and New Brunswick, Canada

Nicholas Fox – Head of Learning Development, Learning Business Link, Kent, UK

Ray Griffin – Waterford Institute of Technology, Ireland

Gretchen Kalonji – Kyocera Chair International Faculty Council, University of Washington, USA

Johanna Lasonen, Institute for Educational Research – University of Jyvaskyla, Finland

Mike Long, Senior Research Fellow, Centre for the Economics of Education and Training, Monash University,

Australia

Simon Marginson, Associate Dean (Research), Director, Monash Centre for Research in International

Education, Monash University, Australia

Chris Robinson – Managing Director, National Centre for Vocational Education Research, South Australia

Margareta Ronnback – Director of Education, National Agency of Education, Stockholm, Sweden

Sir David Watson – Vice-Chancellor, University of Brighton, UK

Research Working Group

Professor Paul Callaghan

Professor Marston Conder

Professor Mason Durie

Jane Holden

Dr Bill Kain

Dr Wanda Korndorffer

Professor Ian Pool

Dr Ian Smith

Dr Steve Thompson

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Appendix 4: Current Arrangements

Forms of Provision

There are a variety of ways in which providers of tertiary education and training are currently categorised.

These include:

• tertiary education institutions (TEIs) – which can be colleges of education, polytechnics, universities or

wananga defined and established under s162 of the Education Act 1989;

• government training establishments (GTEs) defined and recognised under s159 of the Education Act 1989;

• private training establishments (PTEs) defined under s159 and recognised under s236 of the Education Act 1989;

• other tertiary education providers (OTEPs) recognised under s321 of the Education Act 1989;

• industry training organisations (ITOs) defined under s2 and recognised under s5 of the Industry Training

Act 1992;

• continuing education organisations defined under s2 and recognised under s97A of the Education Act 1964.

In addition, it is possible for a provider other than a TEI to be recognised as a university, polytechnic, or

college of education under s264 of the Education Act 1989.

Tertiary Education Institutions

Universities

Universities are state-owned autonomous institutions characterised by their engagement in a wide diversity of

teaching and research, especially at a higher level. This teaching and research:

• maintains, advances, disseminates, and assists the application of knowledge;

• develops intellectual independence; and

• promotes community learning.

Under the Education Act 1989, universities are required to have all the following characteristics:

• to be primarily concerned with more advanced learning, the principal aim being to develop intellectual

independence;

• to undertake research and teaching that are closely interdependent, with most teaching done by persons

active in advancing knowledge;

• to meet international standards of research and teaching;

• to be a repository of knowledge and expertise; and

• to accept a role as critic and conscience of society.

There are 8 universities in New Zealand. Each of them (apart from Auckland University of Technology) is

established under its own Act.

Polytechnics

Polytechnics or ‘institutes of technology’ are state-owned autonomous institutions that offer a wide diversity of

courses, including vocational training. These courses:

• contribute to the maintenance, advancement, and dissemination of knowledge and expertise; and

• promote community learning.

Polytechnics also promote research, particularly applied and technological research.

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As defined under the Education Act 1989, polytechnics must exhibit one or more of the following

characteristics:

• to be primarily concerned with more advanced learning, the principal aim being to develop intellectual

independence;

• to undertake research and teaching that is closely interdependent, with most teaching being done by

persons active in advancing knowledge;

• to meet international standards of research and teaching;

• to be a repository of knowledge and expertise; and

• to accept a role as critic and conscience of society.

There are currently 22 polytechnics in New Zealand.

Colleges of Education

Colleges of education are specialist institutions that provide teaching and research programmes to support the

development of pedagogy and teaching practice and associated social and educational service roles.

While specialising in teacher education, a college of education may also offer other courses. Like polytechnics,

they are required to exhibit one or more of the following characteristics:

• to be primarily concerned with more advanced learning, the principal aim being to develop intellectual

independence;

• to undertake research and teaching that is closely interdependent, with most teaching being done by

persons active in advancing knowledge;

• to meet international standards of research and teaching;

• to be a repository of knowledge and expertise; and

• to accept a role as critic and conscience of society.

There are currently 4 colleges of education in New Zealand

Wananga

Wananga are characterised by teaching and research that:

• maintains, advances, and disseminates knowledge

• develops intellectual independence; and

• assists the application of knowledge about ahuatanga Maori, according to tikanga Maori.

There are currently 3 wananga established as TEIs.

Government Training Establishments (GTEs)

GTEs are Crown entities that are approved by the Minister of Education to provide specialist tertiary education and

training for defined groups (subject to approval and accreditation requirements). There are currently 11 GTEs:

• Career Services;

• Custodial Studies Unit of the Prison Service;

• Department of Child, Youth and Family Services;

• Early Childhood Development;

• Naval Training – HMNZS Tamaki;

• New Zealand Army Government Training Establishment;

• New Zealand Fire Service National Service Centre Training Support;

• New Zealand Police Training Services;

• RNZAF – Directorate of Education and Training;

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• Sector Development Unit of the Ministry for Emergency Management; and

• Specialist Education Services.

Private Training Establishments (PTEs)

PTEs are defined in the Education Act 1989 as ‘an establishment, other than an institution, that provides post-school

education or vocational training’. In this sense, all education and training organisations other than TEIs are PTEs.

The establishment of NZQA and the National Qualifications Framework in 1990 allowed PTEs to provide

nationally recognised qualifications on the same quality-assured basis as TEIs. This has enabled PTEs to deliver

government-sponsored targeted training programmes such as Training Opportunities (TOP) and Skill

Enhancement – and also to seek funding through the EFTS-based funding system.

In order to be able to provide approved courses, offer programmes of over 12 weeks duration to international

students, or be eligible for government funding, a PTE must be registered under s236 of the Education Act

1989. This requires the organisation to be a body corporate, to supply proof that it is financially viable, to meet

requirements for providing information to prospective students, and to meet quality standards set by NZQA.

The key features of the PTE component of the tertiary education system are its diversity and complexity. It

encompasses a diverse and complex range of providers in respect of their ownership, size, role and purpose,

reliance upon government funding, and relationship to public tertiary education providers.

Individual PTEs have developed to meet the needs of many different groups in many different locations in

New Zealand. Most have tended to specialise, offering courses in a narrow field. These courses range from

degree and post-graduate programmes to week-long transition-to-work programmes. The majority of

programmes offered are at lower levels of the National Qualifications Framework (including levels 1 and 2),

and many PTEs specialise in ‘second-chance’ programmes such as TOP, Skill Enhancement, and Youth

Training. In addition, PTEs provide most of the targeted training programmes and trade apprenticeships

funded by Skill New Zealand.

While the subject areas and range of programmes offered by PTEs are diverse, individual PTEs are small in

terms of the number of students they educate and the number of qualifications and courses they teach. A large

proportion of students attending PTEs are Maori or Pacific peoples and were beneficiaries or unemployed

before attending the PTE.

There are currently over 800 registered PTEs. Approximately 200 of these receive EFTS-based funding, and a

further 200 contract for other forms of government funding. The remainder offer programmes to

international students or generate their revenue from sources other than the government, including student

fees and corporate training.

Other Training and Education Providers (OTEPs)

OTEPs are recognised under s321 of the Education Act 1989. The criteria for recognition include whether a

provider is to supply a service of national significance, which is generally not able to be funded solely through

an EFTS-based funding mechanism.

There were 13 OTEPs funded in 1999:

• 3 provided early childhood teacher or parent-education qualifications;

• 2 offered community education courses for specific ethnic communities;

• 4 provided basic education opportunities for adults (including community and workplace literacy, numeracy,

and ESOL programmes);

• 3 provided qualifications in the performing arts; and

• 1 was involved in agricultural training.

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Industry Training Organisations (ITOs)

ITOs are industry bodies representing different industries or industry sectors. While they are not training

providers, they are responsible for the design, management and delivery of training arrangements for their

respective industries. This includes the facilitation of on-the-job training as well as commissioning training

providers to offer complementary off-the-job training and education courses. These activities are funded

through the Industry Training Fund, which is administered by Skill New Zealand.

A key part of the role of ITOs is the development of unit standards and national qualifications for their

respective industry sectors. In addition, ITOs are involved in accrediting providers to teach these unit

standards, moderating assessment, and (in some cases) assessing and maintaining trainee records.

There are currently 47 registered ITOs.68

Community Education Providers

Community education programmes are provided by universities, polytechnics, colleges of education, PTEs, and

schools – and in 1999 they were attended by about one in every 150 New Zealanders (this equates to

approximately 25,000 community education students).

Seventy-seven percent of TEI community education students in 1999 were enrolled at polytechnics. The majority of

these students were of mature age (61 percent were aged 35 or more, with only 17 percent below the age of 25).

Schools provide adult community education programmes in addition to their regular curriculum. Their

government-funded community education programmes include basic education for adults, Maori language

and culture, training for voluntary community workers, parent-education courses, programmes defined to

meet community need, and personal development.

Adult community groups have access to CLANZ69 funding for non-formal community education activities.

Other Forms of Provision

Secondary Tertiary Alignment Resource

The Secondary Tertiary Alignment Resource (STAR) funding ($24.17 million in 1999) enables secondary

schools to purchase and/or provide workplace experience that lead to skills and qualifications which promote

transition from school to either employment or further education. In 1999 there were 9,230 STAR-funded

students in TEIs, comprising 3 percent of all TEI students. Almost all the STAR students studied at

polytechnics.

Gateway

Gateway is a pilot programme designed to increase the number of school-leavers entering apprenticeships,

traineeships and other structured industry training. Gateway provides support for programmes that link to

these types of training. In most cases, the school will act as a broker between the student and the training

programme; in other cases, the brokering will be done by community groups under contract to Skill

New Zealand, or by Skill New Zealand itself.

The National Certificate of Educational Achievement (NCEA)

This is a new qualification under development for introduction in schools from 2002. Aspects of its design are

aimed at ensuring that the qualification is flexible in the range of learning that can be recognised. Because of

68 As at 25 January 2001.69 The CLANZ Committee (Committee for Community Learning Aotearoa New Zealand) has $200,000 available nationally for distribution to

community groups for learning projects or programmes for adults.

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the flexibility in crediting components of other qualifications within the NCEA, students can complete an NCEA

while studying for a tertiary education qualification. The NCEA will also be awarded by tertiary providers, allowing

second-chance opportunities for those who did not achieve a secondary-level qualification while still at school.

Youth Training

Youth Training is an education scheme at NQF levels 1-3 for school leavers who are under 18 and have low or

no qualifications. It allows young people to explore work options, expand their understanding of the world of

work, and develop job skills. At 30 June 1999 there were 334 providers offering Youth Training programmes,

with 12,685 trainees undertaking programmes during the year. Approximately 35 percent of students go on to

further education and training courses at the end of their course.

Research Institutions

The majority of research activity undertaken in New Zealand takes place within the universities. Other TEIs and

some PTEs, however, also undertake research in their areas of expertise. Some of these institutions are only just

starting to develop their research activities in a more structured way and are seeking to increase their staffs’

knowledge of research, to establish a research culture and service, and to develop a strategic plan for their research.

Universities have been particularly successful in gaining contestable research funding from the Health

Research Council and the Marsden Fund.

Central Steering Mechanisms

Establishment and Recognition of Providers

The Education Act 1989 sets out the processes for the establishment and recognition of TEIs, PTEs, OTEPs,

and GTEs. (The establishment and recognition of ITOs is covered by the Industry Training Act 1992.)

The criteria for establishment, recognition, and disestablishment vary greatly between different entities. Criteria

for PTEs are tightly controlled; but there are no criteria for the establishment of either GTEs or OTEPs.

Governance and Accountability

As Crown entities listed in the fourth schedule of the Public Finance Act 1989, TEIs are required to follow

standard public-sector financial accountability processes and to report under Part V of that Act.

Each institution is governed by its own council. The make-up and duties of these councils are specified under

Part IV of the Education Act 1989, and their main functions in relation to the institution they govern are:

• to set the strategic direction and policies;

• to prepare a charter and approve statements of objectives;

• to ensure the institution is managed according to its charter and statement of objectives;

• to determine the programmes to be delivered;

• to set the budget including tuition fees; and

• to appoint the chief executive officer.

In carrying out these functions, councils are required:

• to establish an academic board to advise them on matters relating to academic issues;

• to strive for the highest standards of excellence in education, training and research;

• to encourage the greatest possible participation of students in education, especially by traditionally

disadvantaged groups;

• to use public resources responsibly; and

• to acknowledge the principles of the Treaty of Waitangi.

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The main functions of a chief executive officer are to implement council policies and decisions and to manage

the academic and administrative affairs (including the employment of teaching and support staff).

Charters

Charters are the primary governance document for TEIs, with Section 184 of the Education Act 1989 requiring

each TEI to have a written charter approved by the Minister of Education. Under the current regime for

tertiary education, only TEIs are required to have charters.

There are few legislative requirements for the content of charters. The document is intended to be a statement

of the goals and purposes ‘that are appropriate for the type of institution concerned’ (i.e. university,

polytechnic, college of education, or wananga). The charter provides detail about the mission, character, goals,

values, and purposes of each TEI.

Section 190 of the Education Act 1989 enables the Minister to ‘set out the kinds of matters in respect of which

charters must specify goals and purposes’ and to do so by notice published in the Gazette [s190 of the

Education Act 1989]. The Act states that such matters may include the standards of teaching and learning to

be achieved by the TEI, and the codes or principles of conduct or administration to be observed in the TEI’s

management. This provision is not restrictive, and it does not prevent the Minister from specifying that more

general matters be covered in charters. In addition, a Ministerial notice published in the Gazette need not

apply to all TEIs; it could apply to groups of TEIs or even to specific TEIs.

The Minister may also, through the Secretary for Education, propose any amendment to a TEI’s charter on his

or her own initiative (s187 of the Education Act 1989). This power was exercised in 1997 by the Minister of

Education for statements on entrepreneurial activities carried out by TEIs.

The charter is intended to reflect the core activities of an institution and its principles of operation. It

incorporates a medium-term vision of the institution and its achievements, and is meant to ensure that risks

are managed in order to achieve that vision. The Tertiary Advisory Monitoring Unit (TAMU) of the Ministry of

Education, which manages the TEI charter process, envisages charters as documents which exist alongside, but

also contribute to, an institution's strategic-planning process.

Statements of Objectives

Statements of objectives are the 3-yearly contracts that all TEIs and OTEPs must negotiate with the Ministry of

Education as the basis of their bulk-funding70 allocation. All PTEs that seek funding through the EFTS-funding

system must also negotiate a statement of objectives with the Ministry.

A statement of objectives sets out what the provider is accountable for providing. It also includes a list of clear,

specific, and measurable statements of services to be provided by the institution to its students and community.

In addition, the statement of objectives establishes agreed outputs and performance indicators for measuring

achievement of each output.

Performance indicators include a range of non-financial performance indicators for:

• quantity of provision (student numbers, student profiles, staffing numbers, ratio of staff-to-students, and

numbers and types of qualifications conferred);

• quality of provision (student satisfaction, successful completion or achievement rates, and surveys of

graduate destinations); and

• equal educational opportunities (indicators for students with disabilities, and Maori and Pacific peoples).

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70 These grants are determined by a funding formula based on an equivalent full-time student (EFTS) unit, where one EFTS is defined as the student workload that would be normally carried out by a full-time student in a single academic year.

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Statements of Service Performance and Annual Reports

Statements of service performance are the means by which TEIs fulfil their obligations for reporting under the

Public Finance Act 1989. TEIs must provide an audited report on actual performance in comparison with the

performance measures set out in their statement of objectives. These statements of service performance are

included in the institution’s annual report to the Minister of Education.

Similarly, where a grant has been paid to a PTE under s238A of the Education Act 1989, that PTE must

provide an audited statement of service performance to the Secretary of Education.

Quality Assurance

Only those tertiary education programmes and providers that have been quality-assured by a quality-approval

body are able to generate government funding, either through one of the funding systems or through student

access to loans and allowances. To retain the funding, the standards of quality must be maintained.

There are currently 4 quality-assurance agencies:

• The New Zealand Qualifications Authority (NZQA) is responsible for quality-assuring all PTEs, GTEs, and

OTEPs. In addition it is responsible for approving all non-university degree programmes and accrediting

providers to deliver these programmes.

• The New Zealand Vice-Chancellors’ Committee (NZVCC) is responsible for approving all programmes

delivered within universities. It delegates the approval process to one of its standing committees, the

Committee on University Academic Programmes (CUAP).

• The New Zealand Polytechnic Programmes Committee (NZPPC) operates under delegated authority to

APNZ from NZQA to approve and accredit polytechnic sub-degree programmes.

• The Colleges of Education Accreditation Committee (CEAC) performs the same service for colleges of

education, also under delegated authority to ACENZ from NZQA.

All teacher-education qualifications also require approval by the Teacher Registration Board (TRB). The TRB

has separate legislative authority to approve teacher-education qualifications for the purposes of registration.

Funding

Government support for tertiary education may be provided through one or more of the following:

• bulk grants to TEIs;

• tertiary education and training subsidies that provide funding for teaching and its associated research by

subsidising EFTS places in approved qualifications;

• full or partial funding for on-the-job and off-the-job training (provided through the Industry Training Fund);

• community education funding provided for the delivery of non-formal community and adult education

courses through schools and other agencies;

• tertiary education scholarships for Maori and Pacific tertiary students who meet established criteria;

• doctoral, enterprise and university bursary scholarships;

• student allowances;

• student loans; and

• training benefits.

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Central Structures

The Minister and the Government

The main regulatory powers currently available to the Minister responsible for tertiary education are:

• to establish and disestablish four types of TEI (college of education, polytechnic, university and wananga), to

determine whether a TEI can become a different type of institution, and to determine whether mergers

between two or more TEIs should proceed (Education Act 1989 ss162, 164);

• to recognise GTEs, and to cease recognition of them (Education Act 1989 s159);

• to recognise OTEPs, and to cease recognition of them (Education Act 1989 s321);

• to recognise continuing education organisations, and to cease recognition of them (Education Act 1964 s97A);

• to influence the contents of each TEI’s charter, and thus shape their character and goals (Education Act

1989 s190);

• to secure detailed information about the activities of TEIs, through their statements of objectives and other

means (Education Act 1989 s203);

• to direct the councils of TEIs not to provide a course in cases where provision of that course would be

contrary to the efficient use of national resources (Education Act 1989 s223);

• to determine funding at the aggregate level (i.e. across the system);

• to decide the level of funding for particular kinds of courses and the fundable length of each course

(Education Act 1989 s199);

• to make bulk grants (Education Act 1989 s199);

• to fund particular activities of TEI’s outside the bulk funding system (via special supplementary grants);

• to make grants to PTEs, and to set conditions on these (Education Act 1989 s321);

• to make grants to OTEPs and to set conditions on these (Education Act 1989 s321); and

• to make grants to continuing education organisations, and to set conditions on these (Education Act 1964 s97A).

In addition, through agencies such as NZQA and Skill New Zealand, the Government has the capacity:

• to register PTEs and de-register them (Education Act 1989 s236, 237);

• to recognise ITOs (Industry Training Act 1992 s6);

• to grant the right to use protected terms such as ‘university’, ‘college of education’ and ‘polytechnic’

(Education Act 1989 s264);

• to administer education and training programmes (Education Act 1989 s271); and

• to fund ITOs, for the purpose of setting standards and managing training (Industry Training Act 1992 s10).

Ministry of Education

The Ministry of Education is responsible for:

• providing policy advice to the Minister of Education on all aspects of education;

• overseeing the implementation of approved policies;

• providing advice on the best use of resources allocated by the Government to education; and

• developing national guidelines.

The Ministry negotiates funding for TEIs, and ensures accountability for the use of government funding and

assets. It also administers legislation, manages property owned by the Crown, conducts research and collects

education statistics.

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Within the Ministry of Education, divisions working with the tertiary education system include:

• Tertiary education policy (TEP). This division undertakes policy work across the tertiary education system,

including adult and community education and the tertiary education interface with schools and industry.

• Tertiary Advisory Monitoring Unit (TAMU), formerly known as Tertiary Ownership Monitoring Unit

(TOMU). This unit is responsible for managing the Government’s interest in the 38 TEIs. It also has

responsibility for monitoring the 4 Crown agencies or entities – NZQA, Skill New Zealand, Teacher

Registration Board, and Career Services.

• Tertiary Resourcing (TER). This is responsible for determining, allocating, and delivering tuition-subsidies

and supplementary grants to tertiary education providers. It is responsible for the approval of programmes

for which student loans and allowances may be paid.

• Tertiary Information Project (TIP). This special project has been set up to improve the standard of information

about the tertiary education system. New tertiary-education information requirements include the collection of

student-based data and a national register of quality-assured providers, qualifications, and courses.

• Data Management and Analysis. This is part of the Ministry of Education’s strategic information and

resourcing group. It is responsible for collecting and processing data from tertiary education providers,

monitoring trends in educational processes and outcomes, and reporting on roll projections, financial

forecasting, and indicators of educational performance.

Skill New Zealand

Skill New Zealand is a Crown agency. It works under a document of accountability to the Minister of Education

and is governed by a board also appointed by the Minister. Its focus is on the transition from education and

training to work, and on increasing access to training in the workplace.

Skill New Zealand’s main functions are to administer the Government’s industry-training policy and to

implement a range of initiatives designed to build a highly skilled and adaptable workforce. A key

development focus is on integrating capability skills (such as literacy, numeracy, and communication) into

work programmes.

In addition to commissioning training through ITOs, Skill New Zealand also manages the funding and

monitoring of:

• Training Opportunities Programme (TOP);

• Youth Training;

• Skill Enhancement; and

• English for Migrants (a programme offering English language training for migrants, targeted towards

business migrants and applicants in the general-skills category).

Department of Work and Income

Work and Income New Zealand administers the Government’s student loans and allowances scheme.

It is also responsible for providing fees-subsidies for targeted groups such as domestic purposes and sickness

beneficiaries, through the Training Incentive Allowance Scheme.

New Zealand Qualifications Authority

The New Zealand Qualifications Authority (NZQA) is a Crown agency, and currently reports directly to the

Associate Minister of Education (Tertiary Education).

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Its functions are:

• to co-ordinate all qualifications in post-compulsory education and training from senior secondary to degree level,

so that they have a purpose and relationship to each other that is understood by both students and the public;

• to oversee the setting and regular review of standards as they relate to qualifications;

• to ensure that New Zealand qualifications are recognised overseas, and that overseas qualifications are

recognised in New Zealand; and

• to administer national examinations, both secondary and tertiary.

NZQA is the key quality-assurance body for all non-university qualifications. It is responsible for approving

programmes (including non-university degrees), and for accrediting institutions to offer these programme.

NZQA has delegated these quality-assurance processes: to the New Zealand Polytechnics Programme

Committee (NZPPC), in the case of polytechnic qualifications; and to New Zealand Colleges of Education

(CEAC), in the case of college-of-education qualifications.

Career Services

Career Services is a Crown entity. It was established in July 1990 and is directly responsible to the Minister of

Education (who appoints a Board to oversee its work).

Career Services is responsible for providing information and advice to targeted groups to help people choose

careers, work, education, and training.

Its clients include the Minister of Education, the Associate Minister (Tertiary Education), Work and Income

New Zealand, Accident Compensation Corporation, and a range of individuals and organisations that pay fees

for services.

The Minister of Education purchases various information and advisory services from Careers Services. These include:

• development and provision of career information;

• promotion of the development and accessibility of career information to training and other organisations;

• advice to individuals on how best to use career information; and

• provision of career-planning services to client groups who are unlikely to access such assistance through

other channels.

Teacher Registration Board

The Teacher Registration Board (TRB) is a Crown entity established under the Education Act 1989. It has

responsibility for:

• maintaining a register of teachers and determining policies for teacher registration;

• approving registrations, and issuing practising certificates and limited authorities to teach;

• establishing the policy for removal from the register, deciding whether a teacher’s name should be removed

from the register, and informing school boards of trustees of the names of teachers with cancelled

registrations or limited authorities to teach; and

• ensuring that teachers are satisfactorily trained through the accreditation and approval of teacher education

programmes and providers.

There is currently legislation before Parliament to replace the TRB with a new body, the Education Council.

The Council would carry out the functions of the TRB, and also have other powers and responsibilities.

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71 Since then, 2 colleges of education have amalgamated with universities (in Hamilton and Palmerston North), and 4 have remained autonomous.72 A further result of this ‘opening up’ of teacher education provision has been a reduction in the length of pre-service degree programmes for primary and early childhood teachers (from 3 years to 4).

Appendix 5: The Provision of Teacher Education

Background

In New Zealand, the education of teachers has followed a tradition in which teachers are trained at stand-alone

tertiary education institutions. Secondary teachers have usually completed a degree in a university, followed by

a year of professional study at a college of education. Departments of education within universities have

provided ‘non-professional’ qualifications such as a Diploma of Education and specialist or post-graduate study

for teachers.

Over the years there have been various attempts either to bring teacher education into the universities or to

encourage greater co-operation between universities and colleges of education. From the 1960s, universities

and ‘teachers colleges’ (as they were then called) began to co-operate in the provision of Bachelor of

Education degrees; and by the 1980s each major centre offered a 4-year Bachelor of Education degree as a

joint programme.

In the New Zealand education reforms of the late 1980s, the Picot Report (The Report of the Taskforce to

Review Education Administration, 1988) recommended that all colleges of education ‘become semi-

autonomous schools of teacher education within the universities’. By contrast, the Hawke Report (The Report

of the Working Group on Post-Compulsory Education and Training, 1988) left it up to individual colleges to

decide whether to integrate with a university or to remain autonomous. The subsequent Government policy

statement on post-compulsory education and training, Learning for Life (1989), followed the Hawke Report’s

recommendation. More significantly, it also allowed others (including universities, polytechnics, and private-

sector organisations) to provide teacher education.71

As a result, there are now a considerable number of programmes that offer pre-service education and training

to primary- and secondary-school teachers – and programmes for early-childhood teacher training have

proliferated to an even greater extent.72

Proliferation of Teacher Education Programmes

In many ways, teacher education is an instructive microcosm of the ways in which the competitive ethos has

affected tertiary education. In 1990, teacher education was based on a single model and was carried out only in

the 6 colleges of education. Now it is now extremely varied, particularly in relation to primary and early

childhood education. There are pathways to degrees as well as diplomas, and there are quite a number of

short courses for graduates of both primary and secondary teaching.

There are 19 providers offering primary-teacher education programmes approved by the Teacher Registration

Board. The providers are: 4 colleges of education; 4 polytechnics; 4 universities; 2 wananga; and 5 PTEs. (The

PTEs are Masters Institute, Te Wananga a Takuira o Nga Kura Kaupapa Maori o Aotearoa, Anamata Private

Training Establishment, Bethlehem Institute of Education, and the New Zealand Graduate School of Education.)

Fifteen providers offer secondary-teacher education programmes approved by the Teacher Registration Board.

The providers are: 4 colleges of education; 4 polytechnics; 5 universities; and 2 PTEs. (The PTEs are

Bethlehem Institute of Education and the New Zealand Graduate School of Education.)

The early childhood scene is even more complex and diverse. There are 20 providers of 3-year diplomas or

degrees whose programmes are approved by the Teacher Registration Board. The providers are: 4 colleges of

education, 8 polytechnics, 3 universities, and 5 PTEs or OTEPs. (The PTEs/OTEPs are New Zealand Tertiary

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College, Bethlehem Institute of Education, Te Tari Puna Ora o Aotearoa/NZCA, New Zealand College of Early

Childhood Education, and Rangi Ruru Centre for Advanced Studies.)73

In addition, there are 12 more providers of early childhood training below the diploma level. Their

programmes (which do not require the approval of the Teacher Registration Board) are directed at areas of

early childhood education such as nannying and sub-supervisory positions within childcare centres, play-

centres, and so forth. As well, many other early childhood training programmes that are not approved by the

Teacher Registration Board are directed at Maori and Pacific early childhood education centres, which

currently do not have the same certification requirements as other centres.

More recently, there has been a shift away from provider-developed programmes towards the new National

Certificate in Early Childhood Education, which has resulted in a slowing in the increase of early childhood

training programmes. Interestingly, it has been mainly PTEs and colleges of education that have moved to

offer this qualification.

The tables on the following pages list the providers of teacher education and training programmes for primary,

secondary and early childhood education.

73 This increased breadth of provision of programmes at diploma/degree level has been primarily within the public sector – although some PTEs are also offering programmes approved by the Teacher Registration Board (two of them at more than one level).

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PROVIDERS OF PRIMARY- AND SECONDARY-TEACHER EDUCATION PROGRAMMES APPROVED BY THETEACHER REGISTRATION BOARD * – TABLE A5-1

Primary-Teacher Education Northland Polytechnic (Te Waoku Programme only)

University of Auckland

Auckland College of Education

Masters Institute

Te Wananga a Takuira o Nga Kura Kaupapa Maori o Aotearoa

UNITEC Institute of Technology

Te Whare Wananga o Awanuiarangi

Anamata Private Training Establishment

Bethlehem Institute of Education

School of Education, Waikato University

Massey University School of Education

Wanganui Regional Polytechnic Te Rangakura bilingual programme

Te Wananga O Raukawa

Wellington College of Education

Christchurch College of Education

NZ Graduate School of Education

Christchurch Polytechnic

Dunedin College of Education

University of Otago

Secondary-Teacher EducationNorthland Polytechnic

University of Auckland

Auckland College of Education

Auckland University of Technology

Bethlehem Institute of Education

Waikato University School of Education

Massey University College of Education

Wairarapa Community Polytechnic

Wellington College of Education

Whitireia Polytechnic

Christchurch College of Education

NZ Graduate School of Education

Dunedin College of Education

UNITEC Institute of Technology

University of Otago

*As at October 2000.

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EARLY CHILDHOOD EDUCATION PROVIDERS FUNDED BY THE MINISTRY OF EDUCATION * TABLE A5-2

Number of Number of approved non-approved National

Provider Type programmes programmes CertificateAoga Fa'afaia'oga O A'oga Amata PTE - 2 -

Auckland College of Education CoE 5 1 -

Auckland University of Technology University 1 2 -

Bay of Plenty Polytechnic Polytechnic - 1 -

Bethlehem Institute of Education PTE 2 - -

Christchurch College of Education CoE 3 - 1

Dunedin College of Education CoE 5 - 1

Eastern Institute of Technology Polytechnic 1 - -

Endeavour Skills 2000 Limited PTE - 1 -

Horizon Early Childhood Training Ltd PTE - - 1

Insight Limited PTE - - 1

Kaat Trust PTE - 1 -

Manukau Institute of Technology Polytechnic 1 - -

Massey University University 1 2 -

NZ Childcare Association OTEP 1 - -

NZ College of Early Childhood Education PTE 1 - -

NZ Tertiary College PTE 1 1 -

The Open Polytechnic of New Zealand Polytechnic 1 3 -

Porse ECE Training (NZ) Ltd PTE - - 1

Rangi Ruru Centre for Advanced Studies PTE 1 - -

SEEDS Teacher Training International Ltd PTE - - 1

Taranaki Polytechnic Polytechnic 1 1 -

Te Kohanga Reo Trust – Wellington OTEP - 1 -

Te Wananga O Aotearoa Wananga - 1 -

UNITEC Institute Of Technology Polytechnic 1 - 1

Universal College of Learning Polytechnic - 1 -

University of Waikato University 2 - -

Waiariki Institute of Technology Polytechnic 1 - -

Waikato Polytechnic Polytechnic 1 - -

Wellington College of Education CoE 2 - -

Whitireia Community Polytechnic Polytechnic 1 2 -

Workforce Consultants Limited PTE - - 1

Number of programmes 33 20 8

Number of providers 20 14 8

Number of providers of ECE programmes

Number of colleges of education 4 4 1 2

Number of universities 3 3 2

Number of polytechnics 10 8 5 1

Number of wananga 1 - 1

Number of PTEs/OTEPs 14 5 5 5

Total number 32

* For the year 2000.

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EARLY CHILDHOOD EDUCATION PROGRAMMES FUNDED BY THE MINISTRY OF EDUCATION *TABLE A5-3

Aoga Fa'afaia'oga O A'oga PC1273 Aoga Amata Certificate in ECE Amata PC1754 Aoga Amata Diploma in ECE

Auckland College of Education AC1027 Early Childhood Education – PIECCAAC1054 Bachelor of Education (Teaching) – Early ChildhoodAC1067 Diploma of Teaching (ECE) Intensive ProgrammeAC1077 Diploma of Teaching (ECE)AC1079 Diploma of Teaching Early Childhood – Pacific IslandsACEE03 Early Childhood Teacher Education/ B Ed

Auckland University of Technology AK3525 Certificate In Early Childhood EducationAK3533 Certificate of Intro to Early Childhood Care & EducationAK3594 Bachelor of Education (Early Childhood Teaching)

Bay of Plenty Polytechnic BP3138 Certificate in Early Childhood Education and Care

Bethlehem Institute of Education PC1993 Diploma of Teaching (Early Childhood Education)PC3033 Bachelor of Education (Early Childhood Education)

Christchurch College of Education CE1024 Bachelor of Teaching and Learning (Early Childhood)CEEE03 Diploma of Teaching and Learning (ECE)CEES02 Graduate Diploma of Teaching and Learning (ECE)NC5549 National Certificate in Early Childhood Education and Care

Dunedin College of Education DN1016 Bachelor of Education (Teaching) (Early Childhood)DN1018 Bachelor of Education (Teaching) 0-8 years (Early Childhood)DNEE03 Diploma of Teaching (Early Childhood)DNEE04 Diploma of Teaching (Early Childhood)/Bachelor of EducationDNES02 Diploma of Teaching (Early Childhood) 2-year shortened courseNC5549 National Certificate in Early Childhood Education & Care

Eastern Institute Of Technology HB3823 Diploma of Teaching (Early Childhood Education)

Endeavour Skills 2000 Limited PC1798 Endeavour Skills Professional Early Childhood Certificate

Horizon Early Childhood NC5549 NC in ECE and Care (L5) Training Ltd

Insight Limited NC5549 National Certificate in Early Childhood and Care Level 5

Kaat Trust PC1717 Early Childhood Education

Manukau Institute of Technology MN4307 MIT Diploma of Teaching Early Childhood Education

Massey University MY1032 Certificate in Early Childhood EducationMY1033 Certificate in Early Childhood DevelopmentMY6016 Early Childhood Pre-service Teacher Education Programme

NZ Childcare Association PCEE03 Diploma of Teaching (ECE

NZ College of Early Childhood PC1337 Diploma of Teaching (ECE) Year 2Education PC1356 Diploma of Teaching (ECE) Year 3

PC1413 Diploma of Teaching (ECE) Year 1

NZ Tertiary College PC1250 Early Childhood Teachers CertificatePC1778 Diploma of Teaching (Early Childhood Education)PC2604 Diploma of Teaching ECE – Distance LearningPC2773 Early Childhood Teachers Certificate – Distance Learning

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The Open Polytechnic of NC5222 NZ Certificate in Family Day Care: CaregiversNew Zealand OP5420 Certificate in Childcare

OP5421 Certificate in Early Childhood EducationOP7050 Diploma of Teaching (Early Childhood Education)OPEE03 Diploma in Teaching (Early Childhood Education)

Porse ECE Training (NZ) Ltd NC5549 National Certificate in Early Childhood Education and Care

Rangi Ruru Centre for PCES02 Diploma of Teaching (Early Childhood Education) Advanced Studies

SEEDS Teacher Training NC5549 National Certificate in Early Childhood Education & Care L5 International Ltd PC1773 Early Education Vocational Diploma

PC1774 Early Education Management Diploma

Taranaki Polytechnic TK9802 TP Diploma of Teaching Early Childhood EducationTK9916 TP Certificate in Professional Childcare

Te Kohanga Reo Trust – Wellington PC1699 Tino Rangatiratanga Whakapakari Programme

Te Wananga O Aotearoa AIEE03 Te Timatanga o te Whakatipuranga o te Tamaiti

UNITEC Institute of Technology NC5549 National Certificate in Early Childhood Education – Level 5

Universal College of Learning MA4124 Certificate in Early Childhood Education and Care – Level 3

University of Waikato WIEE03 3-year Early Childhood ProgrammeWIEE04 Early Childhood Programme – 4th YearWIEM03 Bilingual 3-year Early Childhood Programme

Waiariki Institute of Technology WR2757 Diploma in Teaching Early Childhood Education

Waikato Polytechnic WK2434 Diploma of Teaching (Early Childhood Education)

Wellington College of Education WGED03 Bachelor of Education (Teaching) ECEWGEE03 Diploma of Teaching (Early Childhood Education)

Whitireia Community Polytechnic PR4657 Diploma in Pacific Islands Early Childhood EducationPR4659 Diploma of Teaching (Early Childhood Education)PR4687 Whitireia Early Childhood Bridging

Workforce Consultants Limited NC5549 National Certificate in Early Childhood Education and Care

* For the year 2000.

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Tertiary Education Advisory CommissionTe Ako Pae Tawhiti

Level 20, 125 The Terrace

PO Box 10-906

Wellington, New Zealand

ph: +64-4-472-9723, fax: +64-4-471-5349

www.teac.govt.nz, [email protected]

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