Purpose of the Tertiary Education Performance Report

The Tertiary Education Commission (TEC) has a statutory responsibility to report to the Minister for Tertiary Education, Skills and Employment on the performance of the tertiary sector.

The 2013 Tertiary Education Performance Report draws together educational, financial and governance information on the tertiary sector and on individual universities, institutes of technology and polytechnics, and wānanga. This report provides a snapshot of selected indicators for each of these institutions. Organisations’ own websites provide a more comprehensive picture of their individual performance.

The Tertiary Education Sector

New Zealand’s economic and social well-being relies in part on a high-quality and responsive tertiary education system. Its most important role is to help New Zealanders develop the right skills to meet the new and changing challenges of the 21st century.

Tertiary education in New Zealand includes all post-school education, from adult and community education, literacy and numeracy skills and industry training (including Modern Apprenticeships) to certificates and diplomas, Bachelor-level degrees and postgraduate qualifications. These are delivered or arranged by many types of tertiary education organisations (TEOs):

Of these the universities, ITPs and wānanga are Crown entities and are known as tertiary education institutions (TEIs).

Figure 1: Tertiary education organisations
Figure 1: Tertiary education organisations

The Government has named four strategic drivers of its policy to improve New Zealand’s economic performance and support sustainable growth. These are:

The tertiary sector addresses these strategic imperatives in several ways. It plays a key role in enhancing skills across the spectrum, from foundation-level learning through to the most advanced training and qualifications. Effective and efficient tertiary institutions contribute to a well performing public sector. The research and skills developed in tertiary education support innovation and growth in New Zealand industry.

The Government sets out its long-term strategic direction for tertiary education in the Tertiary Education Strategy (TES) issued by the Minister for Tertiary Education, Skills and Employment. The Government’s vision is for a world-leading education system that equips New Zealanders with the knowledge, skills and values to be successful citizens in the 21st century. To achieve this the Government expects the tertiary education system to:

During 2013 the TEC worked with the Ministry of Education to develop the Tertiary Education Strategy 2014–19, which is in effect from 2014 onwards.

In 2013, the tertiary sector was responding to the Tertiary Education Strategy 2010–15, which sets out the Government’s long-term strategic direction for tertiary education. To get the best return on this investment, the Government has articulated six priorities:

Most TEOs are required to have an Investment Plan with the TEC that describes how they will achieve Government priorities set out in the Tertiary Education Strategy, including specific targets for each of these priorities. Investment Plans also describe a TEO’s mission and role in the tertiary sector and all the tertiary education programmes and activities it undertakes.

In addition to the TEC a range of other government agencies are also concerned with tertiary education. These include the Ministry of Education, the New Zealand Qualifications Authority (NZQA), Careers New Zealand, the Ministry of Social Development, Inland Revenue Te Tari Taake and the Ministry of Business, Innovation and Employment. More information can be found on the TEC website: www.tec.govt.nz.

Role of the Tertiary Education CommissionTop

The TEC is a Crown entity with the principal role of funding the tertiary education sector and giving effect to the TES. It does this by:

The TEC’s legislative functions are set out in section 159F of the Education Act 1989 and include allocating funding to TEOs and providing advice on matters affecting tertiary education to the Minister for Tertiary Education, Skills and Employment. The TEC’s other major functions, as set out in the Education Act, are to develop and implement funding mechanisms and to monitor the performance of organisations that receive funding from the TEC.

Tertiary education funding for 2013

This report focuses primarily on the outputs funded by the Student Achievement Component (SAC) appropriation, which is the Government’s direct contribution to teaching and learning, and accounts for 70 percent of Crown funding for TEIs. It is also allocated to PTEs and Rural Education Activities Programmes (REAPs). Allocations are based on volume of delivery, measured in units of equivalent full-time students (EFTS), which are agreed between the TEC and providers in each organisation’s Investment Plan.

Additionally this report provides information on Youth Guarantee, the fees-free tertiary fund administered by the TEC, which aims to increase the educational achievement of 16- and 17-year-olds not currently engaged in education, and to improve transitions between school, tertiary education and employment. The TEC has funded fees-free Youth Guarantee delivery at Levels 1–3 on the New Zealand Qualifications Framework (NZQF) in PTEs, ITPs and wānanga since 2010. From 2013, allocations for Youth Guarantee are also based on volume of delivery using EFTS. This funding plays an important role in the achievement of the Better Public Service target of 85 percent of 18-year-olds achieving National Certificate of Educational Achievement (NCEA) Level 2 or equivalent by 2017.

The report also provides information on the Industry Training Fund (ITF), which is allocated to ITOs for the arrangement of employment-based training linked to national qualifications, predominantly at NZQF Levels 1 to 4, including Modern Apprenticeships. The volume of this training is measured using Standard Training Measures (STMs).

TEC-allocated funding is split into the following four categories:

Figure 2: Tertiary Education Commission-allocated funding, 2013
Figure 2: Tertiary Education Commission-allocated funding, 2013

In 2013 the TEC allocated $2.73 billion in Government funding to invest in the services offered by TEOs that arranged and delivered tertiary education and training.

Table 1: TEC funding for 2013
Providers 2012 2013
$(000) % $(000) %
Universities $1,422,948 53% $1,454,133 53%
Institutes of technology and polytechnics $620,896 23% $594,014 22%
Wānanga $169,248 6% $169,566 6%
Industry training organisations $136,377 5% $157,434 6%
Private training establishments $311,377 12% $324,655 12%
Other funded organisations $31,970 1% $31,991 1%
Grand Total $2,692,816 100% $2,731,794 100%