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Original Articles

Competition and reform of the New Zealand tertiary education sector

Pages 367-387 | Published online: 18 Aug 2006
 

Abstract

The purpose of this paper is to use an historical approach to examine the changing nature, size and diversification of education and training in New Zealand. In particular, attention will be concentrated on the impact of the introduction of competition into the New Zealand tertiary education industry since 1989. It will examine the relationship between the various tertiary education institutions as well as the relationship between these institutions and the demands of both students and industry.

Notes

1. A polytechnic is a Government‐owned tertiary education institution that is characterized by a wide diversity of vocational and professional programmes. A college of education is a Government‐owned tertiary institution that provides mainly teacher education training.

2. In New Zealand, as in many countries, the term ‘tertiary’ is used to denote all post‐secondary school courses, including both higher education degrees and diplomas as well as vocational education and training courses.

3. The reports on education and training were the Probine–Fargher report on polytechnics (New Zealand, Office of the Minister of Education, Citation1987), the Shallcrass Report on non‐formal education (New Zealand, Interim Advisory Group on Non‐Formal Education, Citation1987), the Treasury briefing paper (New Zealand, Treasury, Citation1987), the Watts report on Universities (New Zealand Universities Review Committee, Citation1987), the Tertiary Review (New Zealand, Department of Education, Tertiary Review Project Team, Citation1988), and the Picot Report on educational administration (New Zealand, Taskforce to Review Education Administration, Citation1988).

4. See Tables and as well as the Appendix.

5. In practice accreditation of the Government polytechnics and colleges of education is delegated by NZQA to ITP Quality of the Institutes of Technology and Polytechnics of New Zealand, and the Accreditation Committee of the Association of Colleges of Education of New Zealand. This leaves NZQA to oversee directly the private providers and the Wananga.

6. Real Government funding of Government tertiary institutions (including bulk, research and EFTS funding) rose from $1075 million ($1995) in 1991 to $1451 million in 2003. Per EFTS funding has fallen from $8017 in 1991 in $1995 to $5451 in 2003 (Tertiary Education Commission, Citation2004).

7. From 2004 the Government has set maximum fees that can be charged for domestic students. There is scope for variance in fees beneath the maximum. One potential problem with this approach is that tertiary education providers will respond by creating more places for the uncapped international students and begin restricting places for the capped domestic students.

8. For a description of the methodology used for the estimations of productivity growth for the universities and polytechnics see the Appendix.

9. Examples of ranking include those by Asiaweek (http://www.asiaweek.com/asiaweek/features/universities2000/) for the Asia‐Pacific region, German University Rankings (http://www.university‐ranking.org) for Germany, the Good University Guide (http://www.times‐archive.co.uk/news/pages/tim/2000/04/14/timguggag01002.html) for the UK, McLean’s (http://www.macleans.ca/universities/index.jsp) for Canada and Princeton’ Review (http://www.princtonreview.com/college/research/rankings/rankings.asp) for the US.

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