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This report analyses the development of the tertiary education system during the initial period of the TES and tertiary education reforms. The emphasis during this period has been on developing infrastructure and implementing new policy. As such, the report considers the early indications of direction within the sector and the overall progress of policy implementation.

In general, this report depicts a sector which is just starting to engage with the TES as a driving influence. Some TEOs are developing new approaches in line with the TES and in many areas, the TES is supporting and encouraging the existing work of TEOs. The profiles process has required TEOs to consider their strategic priorities within the framework of the TES. The extent to which the TES is driving strategic priorities in general remains to be seen.

General trends affecting tertiary education

Continuing growth in participation

The tertiary education system continues to be characterised by growth in provision, especially in certificate-level qualifications. Much of this growth continues to come from people who have not previously participated in tertiary education. Around 55,000 students over the age of 25 started tertiary education for the first time in 2003. However, the rapid growth raises questions about whether quality of provision is being achieved as well as quantity.

Formal domestic students by qualification level 1997–2003

There has also been continued growth in industry training, including Modern Apprenticeships, as a result of increased government funding and employer support for this area. There were 127,000 people participating in industry training during 2003.

Greater labour market demand for all levels of skill

A stronger labour market, and lower unemployment rates, are likely to affect future demand for tertiary education. There is likely to be greater demand for on-the-job training, and less for low-level, pre-employment training. Employer demand for both skilled and unskilled labour is increasing. There is now little difference in unemployment rates by level of tertiary qualification, but still significant advantages in income for higher-level qualifications.

Unemployment rates by highest qualification 1991–2004

Note: Numbers are for the June quarter of each year.
Source: Statistics New Zealand, Household Labour Force Survey

Achieving greater excellence

A key theme of the tertiary education reforms is achieving greater excellence in tertiary education and research. This involves a shift in emphasis from raising participation to the quality of teaching and research and student success. To this end, a major focus of policy development is on building excellence in tertiary education teaching and learning.

In foundation education policy, there is a strong emphasis on understanding ‘what works’ in order to support the development of improved professional resources and higher-quality provision.

The framework for key competencies in tertiary education was published in 2005. Significant aspects of the framework include developing higher levels of competence and enhancing teaching and learning.

To enhance the effectiveness of teaching and learning in tertiary education, the government has agreed to:

• accelerating the shift towards more effective teaching and learning through establishing the National Centre for Tertiary Teaching Excellence
• enhancing quality assurance and risk management practices to support and improve the effectiveness of tertiary teaching and learning
• encouraging providers to assist learners to succeed in their education through the Student Component Performance Measure, which links part of student component funding to performance in teaching and learning.

The successful implementation of the PBRF in 2003 provides greater recognition of excellence in research. The 2003 quality evaluation showed that around half the researchers who had produced sufficient quality and quantity of output in the last six years to be assessed adequately are producing work of national or international reputation, with the sciences, social sciences, humanities and law being areas of particular strength.

Engaging with stakeholders to improve relevance

A key area for improving the relevance of tertiary education and research is increasing the engagement of TEOs with key stakeholder groups. The following analysis comes from a reading of TEI and ITO profiles. Research will be started in 2005 on the stakeholders’ perspectives of engagement with the sector.

In general, this analysis shows that most TEIs and ITOs are cautiously building on existing relationships with stakeholders. Only a few are looking more widely at who they need to build relationships with to improve the relevance of their teaching and research.

Most TEIs building on existing relationships with industry — few moving into new areas of industry

A reading of TEI profiles shows most TEIs are further developing their existing connections with industry and business. Universities are mostly connecting with stakeholders on research, improving the uptake of new knowledge and professionally oriented programmes. Most polytechnics see linking with industry to be a core part of their business and are engaging with stakeholders on the relevance of their vocational education programmes. Some are developing applied research programmes with industry.

TEIs are largely building on existing relationships and strengths and expanding the scope and range of activities. Some areas of industry may not be so well connected, particularly those dominated by small businesses.

There has been continued progress towards developing the leadership roles of ITOs in supporting skill development in their industries and strengthening the links between industry and tertiary education provision.

Most TEIs building on existing relationships with Māori and iwi — a new area of activity for most ITOs

TEI profiles show that most TEIs are moving forward with their relationships with Māori and iwi and exploring opportunities for greater partnership. This follows a period of planning and consultation. Universities are concentrating more on research in their relationships with Māori, while polytechnics are concentrating on vocational education. The extent of relationships is varied, particularly amongst polytechnics.

Engaging with Māori and iwi is a relatively new area of activity for most ITOs. Most are working towards improving delivery of, and access to, industry training. A few are going further and supporting Māori and iwi-based developing industries.

Engagement with Pasifika communities varied and generally in the early stages

There is generally a low level of engagement with Pasifika communities across the tertiary education system.

In general, TEIs are still in the early stages of relationship development, with the emphasis on existing linkages. The level of engagement varies between TEIs and doesn’t necessarily reflect the size of the Pasifika population served by the TEI. Some who have very small Pasifika communities in their area have achieved relatively good relationships, while others in areas of higher Pasifika population are still working out how to connect with their Pasifika communities.

Most ITOs are in the very early stages of considering connections with Pasifika communities. They are formulating plans to consult and identify groups with which to build relationships.

Across both TEIs and ITOs, the main focus is on improving support for Pasifika students and trainees. There is less attention to meeting the wider aspirations of Pasifika communities.

Providing access for under-represented groups

Decline in movement from school to certificate-level studies as labour demand increases

The proportion of students who left school in 2002 and were studying at certificate level in formal tertiary education as at 31 July 2003 declined in comparison with the previous year’s school leavers (a decrease of 4 percentage points). While some of this shift is likely to be due to increased participation in Modern Apprenticeships, some of it will also be due to school leavers moving directly to unskilled jobs as labour demand increases. The latter trend raises concerns about the levels of foundation skills of school leavers going straight into unskilled work.

The government is putting additional resources into supporting young people to continue in education.

Greater participation in foundation education

Participation in foundation education programmes continues to grow, particularly through wānanga and polytechnics. Growth in English-based foundation education has continued to expand at a similar rate to the last three years, with around 22,000 additional students each year. Growth in te reo and tikanga Māori foundation education started to level off in 2003, with just under 50,000 students participating that year.

Formal domestic students in English-language-based foundation education courses by course level 2000–2003

Wānanga providing effective access to tertiary education

Wānanga continue to play an important role in providing access to tertiary education for Māori and other groups. The numbers of students at wānanga continue to grow, with wānanga achieving higher retention and completion rates at certificate level than other sub-sectors. Twenty-four percent of students who completed a level 1 to 3 certificate at a wānanga in 2002 enrolled in a higher-level qualification in 2003 (compared with 29 percent for universities and 18 percent for polytechnics).

More to be done to improve Māori participation, retention and completion in higher qualifications

Māori participation, retention and completion remain strong at certificate level. While gains are being made at higher levels, retention and completion rates of Māori in degree qualifications and above are still below those of non-Māori.

Comparison of participation rates and five-year completion rates for Māori, Pasifika and all formal domestic students 2003

Notes:

1. Rates are represented on an index for comparison, where the rate for all students is set at 100.
2. Participation rates are age-standardised for 2003.
3. Completion rates are five-year completion rates for those starting a qualification in 1999, that is, the proportion of those who started in 1999 who had completed a qualification by the end of 2003.

More to be done to improve Pasifika participation in higher qualifications, and their retention and completion rates at all levels

While Pasifika participation is increasing at all levels, rates of participation at higher levels are still lower than for the rest of the population. Pasifika retention and completion rates at all levels are lower than for other students.

Participation of people with disabilities levelled off

After a period of substantial growth, the proportion of students who have a reported disability has levelled off from 2002 to 2003 at 5 percent of students. This provides a very broad indicator of access for this group. More detailed work is required to understand access issues for people with different levels and types of disability.

Building system capability

Steady improvements in management within an increasingly complex environment

There are some indications of steady improvements in the overall management of TEOs. The financial indicators for TEIs strengthened in 2003. However, there are still significant areas of financial risk and some TEOs are showing signs of struggling to manage within the increasingly complex environment of tertiary education. There is an overall improvement in New Zealand Qualifications Authority (NZQA) audit results for PTEs. The Ministry of Education has provided training to support good governance in TEIs.

Support for system development and collaboration

A number of strategic development funds established over the period 2001 to 2003 have continued to provide support for developing wider system capability, particularly in the areas of e-learning, innovation and collaboration.

The Centres of Research Excellence (CoREs) are making steady progress in developing cross-institutional collaborative research programmes. The Partnership for Excellence fund is supporting innovative projects developed in partnership with the private sector.

Need to increase numbers of Māori and Pasifika staff in teaching programmes

Recent data confirms the low representation of Māori and Pasifika among tertiary teachers at degree level (6.1 percent and 1.2 percent, respectively, of staff teaching at degree level and above). This area is identified as an important aspect of capability in the TES and further attention is needed if this area is to be addressed.

Some uncertainty around future trends in export education

The continued reliance on Asia for international students and the apparent downturn in numbers from that region pose risks for international student programmes in some parts of the sector. Some providers are developing plans for managing international enrolments in the future. Most providers appear to be complying well with the Code of Practice for the Pastoral Care of International Students.

← List of Abbreviations | Home Page | Implementation of the Reforms →

• Table of Contents

• The State of Play

• 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