Budget 2007 provides the funding needed to strengthen the ability of the tertiary sector to help meet our economic, environmental and social challenges, Tertiary Education Minister Michael Cullen said today.

"This year's Budget package will enable the tertiary system to better fulfil New Zealand's needs, and at the same time provide better value for money for taxpayers and students.

"This is vital if we are to maximise the potential of the tertiary sector to contribute to our economic and social well-being.

"Therefore, Budget 2007 sets aside $285.1 million of operating funding over four years (and $79.7 million of capital funding over four years). This package will be partially funded by money released from resetting the baseline for sub-degree provision below the current cap. (This was announced pre-Budget)."

This includes:

• $129 million over four years to support universities to build their capability and strengthen their international competitiveness.
• $21 million of operating funding and $55 million of capital funding over the next two years in Institutes of Technology and Polytechnics (ITPs) to support several capability enhancing initiatives.
• $35 million of capital funding over the next two years in the Quality Reinvestment Programme.

Budget 2007 also expands other tertiary investment through:

• $76.3 million of operating funding over four years and $2.2 million of capital funding over the next two years in initiatives that will improve skill levels among people in employment.
• $14 million over four years for the Performance Based Research Fund to expand research by tertiary education organisations.
  
• $6 million over four years specifically for wananga to use to boost their research capability and activity, particularly in the area of Maori knowledge.
• $16.2 million of operating funding over four years to ensure that more full time tertiary students are eligible for government assistance by increasing the student allowance parental income thresholds.