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The TES is part of the tertiary education reforms aimed at creating a more coherent and collaborative tertiary education system. The reforms are aimed 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.

Shift in focus of reforms from new infrastructure to quality and relevance

The initial focus in the reforms was on developing new processes and infrastructure, and in particular, the establishment of the TEC. This was followed by the implementation of new planning and accountability arrangements, which are now in place for all government-funded TEOs.

Allied to these changes was the development and implementation of funding mechanisms to reward quality and excellence in research and education. A new funding mechanism for research is being implemented - the PBRF. The second round of PBRF quality evaluations will be conducted in 2006. In the area of funding for tuition, there has been considerable work put into design of a performance element in the Student Component funding framework. However, the Minister of Tertiary Education has asked for a more comprehensive review of funding for teaching and learning with a focus on rewarding quality and relevance.

The period 2002 to 2004 has been characterised by significant growth in areas where government considers provision could be of low quality and/or low relevance. This has included adult and community courses provided by TEIs, short courses (such as first-aid certificates) and qualifications at levels 1 and 2. A number of reviews have been conducted of provision in these areas. Funding rules have been tightened for provision of short courses and adult and community education through TEIs, with savings being reinvested to provide higher-quality and higher-relevance courses.

In 2005, the government issued a new STEP. This document signalled a greater shift in focus towards quality and relevance, with less emphasis on increasing participation.

Capability of government agencies reviewed

In 2005, the State Services Commission led a review of the Ministry of Education, the TEC and the New Zealand Qualifications Authority (NZQA). The reviewers were asked by government to “form a judgement and recommend further work on the machinery of government and governance arrangements for the three agencies for the years to come, in order to restore/build confidence in the sector”¹.

The review provided a number of recommendations covering strategic alignment of the agencies, development of a sector leadership group of Ministers, Chief Executive Officers and the TEC and NZQA Board Chairs, consistent and effective relationship management, capability assessment and development, role clarity and more effective monitoring and negotiation of profiles. The review recommended that at this time there be no major structural changes.

Since the review, the three agencies have been working together on a strategic work programme, led by the chief executives and chairs, to address the issues raised in the review.

Future direction set by Minister

In April 2006, the Minister for Tertiary Education announced significant changes proposed to the tertiary education system to better link tertiary education to economic transformation. The changes cover:

• further defining and applying the distinctive contributions of tertiary organisations and ensuring different parts of the sector work together in more complementary ways
• designing an alternative to the current demand-driven Student Component funding system. The new system will invest in organisations based on multi-year plans agreed with government. These plans will build on existing profiles, but will be more detailed so that government can be assured that its investment is channelled into the highest priority areas
• developing a better quality assurance and monitoring system that focuses on outcomes and assesses the quality of teaching and learning.

The new arrangements will be in place for 2008.

¹ State Services Commission, Education Sector Review, June 2005, p 7. (↑)

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• 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