This post by Edwige Fava, NZAPEP President and Dean of Studies at Wellington Catholic Education Centre,  is the seventh and last in our series of guest posts from sector groups on the 2010 Budget. You can access the others in our featured posts sidebar.

There seems to be one constant in the life of the private tertiary education sector, a constant that has been prevalent for quite a number of years now: there is no money.

The National Government’s first Budget in 2009, arguably touted to be the most significant in the last two decades, was certainly a ‘no shock’ Budget, and it is quite likely that this year’s will be the same.  However, while last year’s Budget was focused on managing a dire economic crisis, dare I hope that the 2010 Budget will shock us for its ability to allow for innovation and strategic direction towards building what is crucially an important part of the nation’s infrastructure, and by doing so, enable a stronger economic recovery?

With this in mind, what does the New Zealand Association of Private Education Providers (NZAPEP) expect of this Budget?

We expect some relaxation of the Fee and Course Costs Maxima as well as the inclusion of PTEs in the process for exemptions and appeals.  This policy, combined with capped funding, is stifling the private sector.  PTEs exist because they are small, responsive, innovative in their dealings with students and industry, and are known for their high level of pastoral care.  In many cases PTEs deal with students who would not succeed in the larger institutions. For some, individualised attention, increased support and different learning environments are essential to their success.  Therefore, a relaxation of the policy, to allow PTEs to charge appropriate fees, is essential.

We also expect some changes to interest-free student loans.  In its current form, this policy is not affordable, and in addition, it excludes a significant number of students from tertiary education.  While student support is important, so is access to tertiary study. With an increase in the demand for tertiary education, limited financial resources must be reallocated to benefit a greater number of students.  While some shift has been flagged by Minister Joyce, a more radical re-think of this policy is required so that barriers to tertiary education are removed to enable more students to access tertiary education.

The Minister has also signaled that some extra domestic funded places will be available by releasing funds from other parts of the tertiary sector including some controls on interest-free student loans.  We expect the allocation of these extra places to include the private tertiary sector and to be on a performance basis.

Finally, NZAPEP expects a relaxation of the 103% overprovision policy.  This, driven by the financial ramifications of a free student loan policy rather than as a driver of quality, has impacted severely on the private sector. Some relaxation of this policy for educational provision deemed to be of strategic relevance and for high performing institutions will enable the private sector to offer tertiary education above its funding cap.  This is the best value for tax payer money since the only cost to the Government is the interest on student loans. Importantly, it will increase access to tertiary education at a time when New Zealand needs a more qualified and skilled worked force, and it will partially address the recent phenomenon of students being turned away from enrolling in tertiary study.

So will the Budget shock us with its ability to be innovative at a time of tight fiscal control, and will it allow for strategic investment in the nation’s infrastructure?  I sincerely hope that, at the very least, it will focus on a long term plan for tertiary education in New Zealand, one that will genuinely benefit the country.