A stronger economy with more people in paid work, and reductions in the number of people aged 18-25 after 2016, means demand for tertiary education is softening.
Budget 2015 responds to this reduced demand for tertiary education by drawing on funding that would not otherwise be used, to invest in tertiary education initiatives that will:
- maintain the Government’s current investment in tertiary education
- improve the economic contribution of the tertiary education system
- take steps toward delivering on the Government’s manifesto commitments.
Budget will support providers to deliver more of the skills New Zealand needs by directing funding towards:
- targeted increases in tuition subsidies, at degree level and above, for science, agriculture and horticulture, optometry, pharmacy and physiotherapy
- activities to increase the number of engineering graduates including more engineering places
- additional places in Māori and Pasifika Trades Training.
It will also support better communication between industry and providers and provide better information to students through the introduction of Rate My Qualification.
The Government is signalling its intention to identify changes that can be made to the funding system, to make funding more responsive to changes in demand, and allow providers that innovate and get good results for learners, to increase their funding.
For more detailed information on the 2015 Budget, view the Minister of Tertiary Education, Skills and Employment’s media release or you can visit the Ministry of Education website.
3 June 2015
3 June 2015