This post by Derek McCormack, NZVCC Chairperson and AUT Vice-Chancellor, is the sixth in our series of guest posts from sector groups on the 2010 Budget. You can access the others in our featured posts sidebar.

It’s no secret that the government is facing difficult financial times and the New Zealand Vice-Chancellors’ Committee (NZVCC) acknowledges that tough choices are needed in this year’s budget.  Indeed, universities have been making hard choices for some time now, as we work to deliver more value for money and continue to drive efficiency in our institutions, while protecting our research and research-led teaching strengths. 

University teaching and research are vital to New Zealand’s economic growth.  While we don’t expect this week’s budget to contain the level of investment needed to maximise our contribution to economic growth, we are somewhat heartened by the work the government has been doing to reduce costs around the margins and free up funds to recycle back into the sector, and look forward to hearing more about these initiatives in Thursday’s budget announcement. 

We are also encouraged by the government’s announcement last week that the budget will prioritise research, science and technology through $225 million of new spending. 

Universities are the most important research organisations in New Zealand.  We have over half the country’s research staff, have the bulk of its fundamental research capability and train nearly all its postgraduate students – the researchers and professionals of the future.  In addition, universities are at the forefront of commercialising research results.

As key players in the science and innovation system we welcome the additional funding for new initiatives to encourage links between companies and publicly-funded research organisations, promote technology transfer, support mid-career researchers and attract top science entrepreneurial talent to New Zealand.

In the Prime Minister’s speech to the Wellington Chamber of Commerce last Tuesday, he stated that “knowledge drives prosperity.” We will continue to encourage the government to lift its investment in universities to a level that allows us to fully contribute to this goal.  We will work with the government, industry and others to make sure New Zealanders enjoy the full benefits – cultural, social and economic – from this investment.

Capital investment in infrastructure like hospitals, schools and roads will not pay off without parallel investment in human capital.  Graduates from our universities staff our hospitals, schools, farms, research facilities and creative sectors, to name a few.

Every New Zealander benefits from investment in our universities.