Post Budget Tertiary Focus

The Budget did not talk about the tertiary sector because the Government is currently involved in a major review of the
sector as part of its Five Steps Ahead programme, Minister for Tertiary Education Max Bradford says.

The Government has arranged a series of 24 regional forums across the country to get feedback from the tertiary, research
and business sectors on the five key planks of the programme.

(See end of statement for the five key planks).

The forums provide a focus for business, education and research leaders to work more closely together to lift our economic
growth and build a supportive culture for creative and innovative New Zealanders.

"The Government and I personally place a lot of weight on the importance of tertiary education and we will announce the
results of the review and new policies in due course," Mr Bradford said.

Critics who complained there was little in the Budget for tertiary education overlooked the fact that last year the Government
increased tertiary subsidies by $155 million over three years, he said.

"As a result funding, per academic year, has increased from $1,153 million in 1998 to $1,185 million in 1999 and an
estimated $1,231 million in 2000.

"The additional total funding means that the Government now subsidises all students in recognised courses. In the past there
was a limit on the number of people who could have a tertiary education. That cap has gone," Mr Bradford said.

In addition, all students in quality-assured programmes would receive the Universal Tertiary Tuition Allowance from 2000,
he said.

"The extra $8 million of tertiary funding that was announced in the 1999 Budget will enable better monitoring of public
tertiary institutions and greater assistance, where it is necessary, to ensure they stay healthy financially.

"New funding will establish a data warehouse to provide the Government, tertiary education providers and students with
better information.

"Students will be able to make well informed choices through better access to comprehensive information on courses,
qualifications and education providers, " Mr Bradford said.

Tertiary institutions would also be able to compete for the $28.1 million of additional research and development funding to
be spread over three years, also announced in the Budget, he said.

The Five Steps Ahead plan is:

ing New Zealanders' skills and New Zealand's intellectual knowledge base;
Better focusing the direction of the Government's effort in research and development;
Improving access to risk and investment capital;
Ensuring regulation and laws support, not frustrate, innovation; and
Promoting success and building a supportive culture for creative and innovative New Zealanders.