Fourth Report of the Tertiary Education Advisory Commission - full report 40/58

Shaping the Funding Framework
Fourth Report
of the Tertiary Education Advisory Commission

Chapter 13: Responsiveness to Maori

This chapter builds on recommendations made by the Commission in its previous
three reports. These recommendations were aimed at enhancing the responsiveness
of the tertiary education system to Maori, encouraging high-quality Maori
providers, and reducing disparities in Maori participation at all levels of the
tertiary education system.

The Commission affirms its commitment to the principles of the Treaty of
Waitangi. It recognises that the tertiary education system is required to
address the needs of Maori as Treaty partners, and that it should also address
the disparities in Maori participation and achievement that currently
exist.²⁷⁴ In particular, the Commission
believes emphasis should be given to ensuring:

• a substantial increase in the number of Maori within the tertiary education
  system, as learners, academic staff and researchers;
• an improvement in achievement levels of Maori at all levels of the system;
• the protection and advancement of Matauranga Maori, Tikanga Maori and Te Reo
  Maori; and
• greater responsiveness by the tertiary education system as a whole to the
  diversity of Maori learner needs and Maori development aspirations.

In this report, the Commission recommends (Recommendation 2) that the funding
framework accords with the principles of the Treaty of Waitangi. A key element
of this recommendation is that, whenever funding decisions are made, these
decisions take into account the Treaty of Waitangi.

In its third report, Shaping the Strategy, the Commission stated that
'the tertiary education system [should] balance needs of those Maori who choose
to access the system according to Matauranga Maori with those who choose to
participate in the mainstream tertiary education system'.²⁷⁵ The Commission believes that 'equal support and
opportunity should continue to be given to Maori to allow for that
choice'.²⁷⁶ It is important, therefore,
both that high-quality Matauranga Maori learning environments are supported, and
that those Maori who choose to learn through mainstream methods and pedagogy are
given equal opportunity to do so. Doing this, however, should not be seen as
setting up a false dichotomy between Matauranga Maori and mainstream
delivery.²⁷⁷

It is also important to note that the composition of New Zealand's population
is changing. The (relatively youthful) Maori population has increased at a
faster rate than the Pakeha population over the past few years, and this trend
is expected to continue. It is predicted that by 2051, the Maori population will
have increased so that Maori make up 21 percent of the general
population.²⁷⁸ By 2006, Maori will make
up 21 percent of the main tertiary education-aged cohort (ages 18 to 24).

Meeting the needs of this changing population in a manner that ensures Treaty
rights are maintained is a challenge for the tertiary education system and for
New Zealand as a whole.

13.1 Strengths and Weaknesses of the Current
System for Maori

13.1.1 Progression and Participation

The tertiary education system has witnessed a dramatic increase in the
numbers of Maori entering it over the past decade. This reflects both the
differentials in population growth and changes in Maori aspirations and
development. Over the past decade the rate of growth of Maori participation in
TEIs has been six times that of European/Pakeha learners.²⁷⁹

The composition and operation of the compulsory education sector largely
determines how many Maori participate in post-compulsory education. Maori
currently comprise 20 percent of all students attending school, but
proportionally fewer Maori learners leave school with a qualification that will
enable them to advance to higher levels of tertiary education.²⁸⁰

Given this situation, proportionately fewer Maori learners enter the tertiary
education system directly from school, although Maori are more likely than
non-Maori to participate in tertiary education later in life.²⁸¹ Those Maori who do continue with tertiary
education are less likely to go to university and are more likely to enrol in a
programme funded by Skill NZ.²⁸² For
example, the proportion of those who left school in 1999 and then enrolled at
university in 2000 was 1 in 4 for the general population but only 1 in 10 for
Maori.

13.1.2 Support for Maori Providers

Wananga are recognised under the Education Act 1989 as public institutions
with the specific responsibility of carrying out teaching and research that
assists the application of knowledge in respect of Ahuatanga Maori and Tikanga
Maori. The first modern wananga (as compared to traditional wananga) was
established in 1993, followed by two others soon after.

Wananga receive most of their funding from government sources. In 2000,
wananga received $3.8 million in adjusted tuition subsidies, an increase of
almost 100 percent from 1999.283 This was due to an increase in enrolments
facilitated by the change to a fully demand-driven EFTS system. A challenge for
wananga in the future will be building research capacity and capability and
strengthening the quality of their degrees.

There has been significant growth of Maori enrolments in the PTE sector. In
2000, Maori made up 27 percent of students in all PTEs. Of 828 registered PTEs
in 1999, 178 identified themselves as Maori PTEs. (In some instances these were
created by Maori organisations such as iwi, runanga and trust boards.) PTEs are
therefore an important part of the tertiary education system for Maori, and more
clarity and differentiation of their role is needed to ensure that they continue
to be adequately supported. Differentiation that reinforces ongoing support for
Maori PTEs could be by pedagogy, client group (Maori), and the nature of care
and support they provide for Maori.

In 2001, a further initiative was introduced to support Maori. This was the
Maori Special Supplementary Grant (SSG), which was made available to all TEIs to
fund additional support services for Maori with the aim of improving their
tertiary education outcomes. The value of this grant was set at $13.8 million
over four years. This funding was to be specifically used for increasing the
level of enrolment, improving retention rates, and increasing achievement levels
of Maori. The funding is tied to tight accountability measures and mechanisms.

13.1.3 Support for Maori Learners

As well as accessing mainstream financial assistance (student loans and
student allowances), Maori learners in the tertiary education system can access
other forms of financial assistance. These include government financial
incentives such as TeachNZ Scholarships and the Manaaki Tauira scheme. TeachNZ
scholarships are offered in response to an under-supply of teachers, and are not
limited to Maori teachers and teachers of Maori. The Manaaki Tauira scheme
provides targeted financial assistance for tertiary tuition fees, and is linked
to kaupapa Maori and financial need.

Currently, there are high levels of mature Maori who lack basic numeracy and
literacy skills and there are a number of initiatives aimed at improving
literacy/numeracy levels. These initiatives include increasing the number of
literacy programmes available in the workplace and community, providing
professional development for literacy providers, and building capacity and
quality in Maori adult literacy programmes. For example, there is currently a
small amount of funding²⁸⁴ within the
system to allow for adult literacy provision by Maori for Maori; thereby
increasing the capacity of Maori communities to identify and meet their own
literacy learning needs (which has been identified as a priority for Maori
development).

As Maori enrolments in tertiary education have increased, so has student loan
indebtedness - reflecting a steady increase in the rate of uptake of loans by
Maori. In 1999, 19 percent of all borrowers were Maori, up from 13 percent in
1992. Maori students are more likely to take out loans than other students (45
percent of Maori students had a student loan in 2000).²⁸⁵ Learners who attend PTEs borrow more on average
than students in other sectors of tertiary education, reflecting the higher fees
charged by PTEs for their EFTSfunded programmes (see Table A2.8).

Because Maori are over-represented at lower levels of tertiary education,
they are more likely to exit the system having either entered into lower-paid
employment or not gained employment. It is therefore likely that Maori learners
take longer to repay their student loan debt, a conclusion supported by Ministry
of Education modelling.

13.2 Implications of the Commission's Proposals
for Maori

13.2.1 Development of Effective Learning Pathways for
Maori

The poor performance of Maori in compulsory education makes it difficult for
them to enter under-graduate programmes, and also to progress through tertiary
education, particularly to higher levels. The Commission has concluded that, if
the disparities between Maori and non-Maori are to be reduced, the level of
uptake of tertiary education by Maori school leavers must be addressed.

The provision of additional support including foundation and bridging
courses, pastoral care and better information will go some way to addressing
uptake issues. Failure of Maori learners to continue in tertiary education may,
however, be closely linked to factors (home environment, parental encouragement,
peer-group pressure) over which the provider, and to some extent the learner,
has limited influence.

Strong bridging courses would provide a means of preparing Maori students for
entry into tertiary education, particularly in disciplines where Maori are
under-represented, and under-graduate degrees. These bridging courses could be
funded at a higher rate than other courses through the SFF,²⁸⁶ in order to achieve the desired equity goals.
These programmes also have the potential to meet the specific needs of an
increasing number of mature Maori who are returning to tertiary education after
a substantial break.

The Commission has previously recommended (Recommendation 10) that certain
categories of learners receive a 100 percent tuition subsidy (that is, they
should pay no fees) and that this provision be uncapped. The categories of
learners eligible for these subsidies are those who have not previously achieved
in school or in foundation education.²⁸⁷
The entitlement takes into account previous consumption of foundation education
in terms of Register credits,²⁸⁸ and
stipulates that the learner's tertiary education should be able to be credited
towards the NCEA. The broad range of subjects available under the NCEA, along
with its compulsory numeracy and literacy requirements, means that it forms a
sound basis for re-engaging disadvantaged learners with tertiary education.

Recommendation 61

The Commission recommends that, in accordance with the intention to uncap
foundation education, priority be given to develop the capacity to support the
literacy and education needs of Maori.

The full-subsidy proposal for foundation education would, if adopted, reduce
financial disincentives against further tertiary study and alleviate the debt
burden for (some) Maori learners. The Commission's recommendation
(Recommendation 31) that the standard of entry to under-graduate degrees be
lifted makes the full-subsidy proposal more important, because learners would
need to have pathways available to enable them to reach the entry standard
without great penalty. The proposed merit test for entry to under-graduate
degrees programmes (Chapter 7) may act as a barrier for mature learners unless
alternatives (such as a recognition of prior learning or other competencies) are
deemed to be a means to entry.

The Commission recommends in this report (Recommendation 37) that the current
policy of 'writing-off'sstudent loan interest while studying be amended. This
proposal could disproportionately affect Maori, who are high users of the
student loan scheme. The proposed re-allocation of resources to foundation
learners would, however, improve the overall equity in the tertiary education
system.

Two components of the proposed SFF can be used to reflect the needs of
specific learners: the Learner Index and the Learner Add-on (see Chapter 6).
These mechanisms allow for additional funding to providers for particular groups
of learners, including Maori. Nevertheless, the Commission considers that a more
effective way of ensuring responsiveness to the education needs of Maori is
through specific accountability processes for providers. (These are described in
the next section.)

13.2.2 Development of Improved Accountability
Processes

An issue of importance to Maori is the lack of accountability (of both the
tertiary education system and the providers within it) to Maori as Treaty
partners.²⁸⁹ For providers and the system
to be genuinely accountable, the accountability regime should ensure that:

• provider and system performance measures, linked to learning outcomes, meet
  Maori aspirations and concerns;
• the Treaty of Waitangi principles of Kawanatanga, Tino Rangatiratanga, and
  Partnership, Protection and Participation are recognised and considered; and
• appropriate sanctions are applied for under-performance.

The Commission believes that many providers, particularly TEIs, are not doing
enough to meet the needs of Maori. The Commission further believes that there
are currently few existing mechanisms by which Maori can hold providers
accountable for their performance. For example, although TEIs'scharters are
required to include statements about how the TEI meets Treaty of Waitangi
obligations, and although TEI councils must 'acknowledge the principles of the
Treaty of Waitangi',²⁹⁰ when and how TEIs
meet these legislative obligations is left for the TEIs themselves to determine.

Under the current system, performance standards and benchmarks are largely
absent, there is little evidence of best-practice research, and monitoring of
achievement is ad hoc. Auditing of strategies for Maori equity or Treaty of
Waitangi compliance is rarely carried out, in contrast with the accountability
regimes for financial performance and quality assessment (where accredited
external agents provide assurance of compliance with accounting or quality
standards). Many TEIs simply delegate issues of Maori responsiveness to their
Maori staff members to resolve.

The Commission recommends that, to enhance provider accountability, all
funded providers be required to specify (in their charters and profiles) the
initiatives they will use to support Maori learners and to develop Maori
capability and capacity. Providers should also specify the performance
indicators they will use to measure their achievement of these aims and the TEC
would be able to use system-level benchmarks to determine whether levels of
performance are adequate. The Commission further recommends that, when the TEC
applies the desirability test to a programme or activity, it takes into account
the contribution (in terms of the performance measures specified in the
provider's charter and profile) these activities make to enhancing participation
and achievement by Maori learners.

Recommendation 62 The Commission recommends that, in their
charters and profiles, providers be required to specify:

• the initiatives they will use to support Maori learners and develop Maori
  capability and capacity; and
  
• the performance indicators to be used for measuring their achievement of
  this.

The Commission further recommends that, in applying the desirability test to
a programme or activity, the TEC take into account the contribution (specified
in the provider's charter and profile) that the programme or activity makes to
enhancing participation and achievement by Maori learners.

The Commission believes that any review of governance structures and
practices must take into account the ability of providers to meet Treaty
obligations.

As noted previously, SSGs amounting to $13.8 million over four years were
made available to all TEIs to assist Maori learners in 2001. While the
Commission applauds the targeting of additional support for Maori learners, it
also believes that the effectiveness of SSGs is eroded by their limited
availability (TEIs only) and their high transaction (reporting) costs.

The Commission concludes that resources currently allocated to Maori SSGs
would be more effective as a component of the proposed SDF. As outlined above,
all providers should be held accountable for their performance in meeting the
needs of their Maori learners, using initiatives and performance measures
specified in their charters and profiles that are benchmarked across the system.
Accordingly, the current Maori SSG funding would be made more effective by
giving incentives to all providers to achieve high levels of performance against
their Maori-related performance indicators. Furthermore, financial penalties
should be imposed on providers that cannot demonstrate they are meeting the
needs of their Maori learners.

Recommendation 63

The Commission recommends that financial penalties be imposed on providers
that cannot demonstrate they are meeting the needs of their Maori learners as
specified in their charters and profiles and that this be done by withholding a
proportion of their tuition funding.

To alleviate any initial impact of the proposed re-allocation of SSG funding,
the Commission suggests that the equity funding for Maori in the SDF be
ring-fenced until the accountability regime is fully implemented. The impact on
particular TEIs that may be adversely affected (such as wananga) can be
moderated through use of the SDF.

Recommendation 64

The Commission recommends that, in the short term, funding re-allocated from
the existing Maori Special Supplementary Grants be ring-fenced for equity
purposes within the Strategic Development Fund.

13.2.3 Strengthening Maori Providers, Preserving Te
Reo Maori and Tikanga Maori

In view of the importance it places on the provision of Matauranga Maori and
on preserving Te Reo Maori and Tikanga Maori, the Commission believes that the
cost and funding category review (see Chapter 6) should consider the merit of
establishing a separate funding category for Te Reo Maori.

Through its consultative processes, the Commission was made aware of a lack
of Maori teaching and research capacity and capability within the tertiary
education system. There are, however, a number of capabilitybuilding initiatives
that individual providers have undertaken of their own volition, and the
Commission believes that successful programmes (especially in research) should
be identified and used as examples of best practice.

The Commission recognises that the current lack of capacity and capability
means that initiatives are needed (across TEIs and other providers) to encourage
cross-provider academic and research capacity and capability building. Rather
than relying on a small number of dedicated facilitators (as currently occurs),
what is required is a system-wide response that includes incentives to providers
to collaborate. Possibilities include collaboration between a wananga and a
university to build Maori research capacity and capability, or between the Crown
and an iwi in the delivery of iwi-specific education outcomes.

A challenge for wananga in the future, along with building research capacity,
will be strengthening the quality of their degrees. The Commission's
recommendations in respect of the PBRF provide a direct incentive for
co-operation and collaboration between Maori and other providers.²⁹¹ The small number of current Maori providers
could work with each other and other TEPs to achieve the critical mass needed to
access additional research funding and thereby support the quality of degree
teaching. If, however, no provider achieves a sufficiently high PBRF ranking for
research performance in Maori issues once the PBRF is implemented, then priority
should be given by the TEC to the development of a dedicated Maori CoRE (Model
A) in this field. (CoREs are discussed more fully in Chapter 10.)

A Maori CoRE would assist Maori to be represented at the highest levels of
the tertiary education system and this requires the building of Maori research
and teaching capacity. The Commission (in Recommendation 3) signals that
tertiary education funding in general must provide for, in addition to teaching
and research, capacity building for Maori.

Recommendation 65

The Commission recommends that if no institution achieves a high
Performance-Based Research Fund ranking for research performance in Maori
issues, then priority be given by the TEC for development of a Model A
Centre/Network of Research Excellence in this field.

The Commission is also aware that, as a result of ongoing iwi development,
more pressure may be placed on the government to provide for iwi-based wananga.
This raises issues of diseconomies of scale that have to be balanced against iwi
aspirations.

13.2.4 Improved Information

The importance of adequate information for learners was raised during the hui
held as part of the Commission's consultation process, and was described as
essential for Maori to make informed and suitable study choices. This includes
not only course- and career-option information, but also comprehensive financial
information on course costs, available support, and the likely benefits of
study.

The Commission is recommending (Recommendation 75) that consideration be
given to providing career information in a range of media including Te Reo
Maori. Information required by Maori learners (and those not yet in the system)
needs to be accessible, affordable and culturally appropriate.

Improvements in information and data gathered from providers would enable the
progress of Maori learners to be more effectively measured and reported. This
would result in more effective and efficient strategies for supporting and
nurturing Maori within the tertiary education system. National-level information
disseminated to providers would complement provider-specific and
community-specific information already available, and would give providers
incentives to plan and deliver appropriate and affordable tertiary education to
Maori learners.

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Footnote(s):

274

For examples of these disparities, see Ministry of Social Policy (2001); Te
Puni Kokiri (2000).

275

Shaping the Strategy, p. 37.

276

Ibid.

277

Student choice may be dictated by factors such as curriculum, course
location, and cost. Mainstream delivery often incorporates Maori pedagogy and
curriculum, and Maori learners in mainstream provision have not necessarily
decided against studying within a context that incorporates Maori pedagogy.

278

Ministry of Education data.

279

Ministry of Education, (2000b), p. 13.

280

Ministry of Education, (2000a).

281

In 2000, 58 percent of Maori students enrolled in TEIs were aged 25 or
above, compared with 48 percent of non-Maori students.

282

The main programmes being Industry Training, Youth Training, Training
Opportunities, and Skill Enhancement.

283

Ministry of Education data.

284

There are currently six pilot programmes involving 120 learners.

285

Ministry of Education data.

286

The issue of whether bridging courses should be funded at a higher rate than
other courses is a vexed one. On the one hand, the Commission recognises that
with a higher merit-entry test to under-graduate degrees, it is imperative for
equity reasons to generously resource bridging programmes. On the other hand,
identifying bridging programmes is problematic and care should be taken to avoid
dead-weight losses where possible. While these issues need investigation, on
balance, the Commission prefers that bridging courses are funded relatively
generously, even if there is some dead-weight loss.

287

Foundation education is learning at levels 1 to 3 of the NQF. It covers
Youth Training and Training Opportunities programmes.

288

This subsidy would only be available to a limit of 240 NQF credits of
foundation education (including previous consumption of credits).

289

This was raised during hui arranged as part of the Commission's consultation
process.

290

Education Act 1989, s181(b).

291

A strong incentive will be the requirement that only groups of 50 or more
researchers will be able to access the PBRF.