export education levy announced

Education Minister Trevor Mallard today announced decisions on the introduction of the export education levy and the work programme of industry development and risk management activities it will fund.

“The introduction of the levy marks an important step in improving long-term capability to manage issues associated with this important and innovative industry, while also focussing on development and sustained growth” Trevor Mallard said. “The export education industry is worth more than an estimated $1.5 billion to New Zealand annually”.

Regulations bringing the levy into force will come into force on January 10, 2003.

The levy will consist of a flat fee component of $185 (GST excl) payable by each provider together with 0.45 percent of tuition and course fee income (GST excl). Fees income from students studying offshore and from students sponsored by the New Zealand Overseas Development Agency will not be subject to the levy.

State schools will incur no extra costs when this levy is introduced as it will be taken as a credit towards the international student levy they currently pay.

The levy will support a wide range of development and risk management activities for the export education industry, including continued promotion of New Zealand as a quality education destination; development of the Code of Practice for the Pastoral Care of International Students; professional development programmes for export education providers and research into key industry issues.

Industry representative organisations, stakeholders and individual institutions were consulted on the levy proposals and some modifications were made.

“We are postponing a decision about a proposed scholarships scheme, pending further discussion. Also in response to industry feedback, further work will be done on the management of the proposed work programme, before any broad purchase agreement is entered into with an industry body such as Education New Zealand.

“It’s up to the industry to work out the best representative structures and governance mechanisms itself, but the Government will want to play a close consultative role.”

The levy will be administered by the Ministry of Education, which will also have initial responsibility for managing the levy-funded work programme.

“I appreciate the excellent role that Education New Zealand plays in the industry in general and its key liaison role with various government agencies can be expected to continue during 2003”.

“Some funding from the levy will be directed to support the general activities of Education New Zealand, partially replacing funding currently supplied through industry subscription,” Trevor Mallard said.

“I also expect that Education New Zealand will play an important role in the delivery of some aspects of the work programme on a contractual basis, while longer term arrangements are considered.”

Work programme and indicative budget

ActivityProjects/work-streamsEst. Budget
PromotionBrand and website activities; market research on brand impacts; generic and sector printed materials; and marketing initiatives. $330,000
AdvocacyDomestic media and public relations.$90,000
Provision factual informationUpdating and translation of information on NZ education and qualification systems. $33,000
Promotion and Communication sub-total:$453,000
Professional Developmenta. Continue sector PD programmes. Staff development scholarships and national workshops on specialist topics. b. Develop and implement initiatives for TESOL/TEFL.a.$530,000b.$215,000
Knowledge disseminationSpecial project publications, distribution of research and resources; newsletter, support for expert visits to NZ.$92,000
Capability Development sub-total:$837,000
Pastoral CareCode of Practice administration and implementation of audit, complaints and appeal procedures. Independent evaluation work; potential changes to Code.$331,000
Academic Quality issuesInternational student outcomes project. Scope quality indicators and qualmark.$32,000
Quality Assurance sub total:$363,000
Researcha. International student survey. Update of industry statistics.b. Develop and deliver research programme in consultation with industry.a.$110,000b. $143,000
Research sub-total:$253,000
Industry Body Core OperatingFor maintenance of core capability – partial replacement for subscription revenue.$350,000
Set-up and AdministrationDevelopment, systems implementation, collection and compliance costs.$275,000
Return of funds to GovernmentPartial reimbursement of funds advanced on recoverable basis.$269,000
Total (GST inc)$2,800,000

Three items previously on the proposed work programme: student scholarships; IEVF (which funds visits overseas by experts to provide information on the New Zealand education system) and internationalisation monitoring have been postponed pending further consideration in 2003.