Budget 2009

Tertiary education is critical to New Zealand’s economic and social wellbeing.

Our tertiary education system is a key national strategic asset which plays a vital role in building the skills of New Zealanders to help them meet the challenges of the 21st century.

This Government believes the needs of students and economy should drive the provision of tertiary education.

Budget 2009 should be seen as Government taking the first steps towards its new tertiary education strategy, which it will release later this year.  These include decisions to focus investment on higher-value provision.

Budget 2009 lays the foundations for simplifying the funding system, lowering compliance costs and reducing central planning.

There will be less emphasis on central control, and greater responsibility for TEOs[1] to manage the quality and delivery of tertiary education.

Increasingly, future tertiary education funding will be strongly linked to performance.  Student choice will be informed by the publication of TEOs[2]' performance information.

Government is simplifying tertiary education funding by reducing the number of funds while, in most cases, maintaining the number of tertiary student places agreed in Investment Plans.

• [1]

  Tertiary education organisation (TEO)

• [2]

  Tertiary education organisation (TEO)