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The TES is part of a set of tertiary education system reforms aimed at creating a more focused, coherent and collaborative tertiary education system. The reforms are directed at ensuring that the system is better aligned to the nation’s goals and is actively identifying and meeting the needs of the communities it serves. They are intended to change the culture of both tertiary education agencies and the sector as a whole. As part of this push, the reforms create a number of regulatory and resourcing changes.

Key to enabling these reforms was the Education (Tertiary Reform) Amendment Act 2002, which came into effect on 1 January 2003. This Act enabled the establishment of the TEC which is responsible for the allocation of funding, and building capability and relationships in the tertiary education sector. It also provided the statutory basis for the TES, the STEP and the system of charters and profiles, and set the basis for a new integrated funding framework.

In August 2003, the first STEP to be issued under the Act was gazetted. This STEP articulates the government’s priorities and is designed to realise the TES in the short to medium term, by providing a focus on particular aspects of the TES. The key priority for the period covered by this STEP is continuing to develop the infrastructure and processes that will support the new tertiary education system.

Improving planning and accountability

A key aspect of the reforms is the introduction of charters and profiles for all TEOs that receive public funding. Charters and profiles articulate the strategic direction and activities of these organisations and show how they will contribute to developing the strategic focus and capability of the system as a whole, and how they will contribute to the achievement of the TES. Approval of a TEO’s charter and profile will be a prerequisite for access to public funding.

A charter is a high-level governance document that provides a broad description of a TEO’s mission and role in the tertiary education system and indicates the type of activities it is likely to undertake. A profile is developed annually. It reports on recent performance and sets out the plans and targets for the following three years. It also specifies the activities for which the TEO seeks TEC funding.

Charters and profiles are being implemented over the following timeframe:

• In 2002, 35 TEOs took part in a trial of the charters and profiles process.

• By 30 September 2003, all currently government-funded TEOs were required to submit a charter for assessment by the TEC, and approval by the Minister. A total of 97 organisations, receiving 85 percent of all government funding for tertiary education, were required to submit a profile.

• In 2004, all TEOs will be required to complete profiles to enable the TEC to approve their funding.

The Integrated Funding Framework

Another key aspect of the reforms is to develop an integrated funding framework to support the development of system capability and focus in areas that are important to the future development of New Zealand and New Zealanders.

The funding framework will have three broad elements which are being implemented progressively as follows:

Funding for teaching and learning

Additional funding has been provided to expand industry training, Modern Apprenticeships and the Gateway programme. Policy work is underway to look at how a performance element can be introduced to funding for teaching and learning. The Technical Working Group has provided a report on options to Ministers.

Funding for research

The PBRF is being implemented, with the first round of assessments having been completed. There will be a gradual introduction of the new funding structure over the next five years. $32.9 million was appropriated over four years to ensure a real funding increase of $20 million from 2006.

Targeted funding for strategic development

New funds were introduced in 2002 for e-learning and polytechnic regional development. Additional strategic development funding was made available in 2003. New funding is also available for building quality and capability in Adult and Community Education.

There have also been funding changes with regard to managing enrolment growth and fee maxima to ensure that the tertiary education system remains affordable for government and students.

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• Table of Contents

• The Baseline Picture

• Cross Strategy Indicators

• Raise foundation skills

• Skills for our knowledge society

• Strengthen research and knowledge creation

• Te rautaki mātauranga Māori

• Pacific people’s development and success

• Capability and quality

• Technical and Data Definitions