2017/18 Estimates for Vote Tertiary Education

Transcription

1 2017/18 Estimates for Vote Tertiary Education Report of the Education and Science Committee Contents Recommendation 2 Introduction 2 Quantum Education Group 2 International education 3 Completion and employment rates 3 Shortage of engineering graduates 4 Appendix 5

2 Vote Tertiary Education Recommendation The Education and Science Committee recommends that the appropriations for the year ending 30 June 2018 for Vote Tertiary Education, as set out in Parliamentary Paper B.5, Vol. 2, be accepted. Introduction The appropriations sought for Vote Tertiary Education increase 0.7 percent to $3.019 billion in 2017/18 from an estimated actual spending of $2.999 billion in 2016/17. Vote Tertiary Education includes the following approximate appropriations: A total of nearly $2.907 billion, forming the bulk of the Vote, for tuition and industry subsidies, research funding for tertiary education organisations (TEOs), funding to help recruit academics in universities, and services from the adult and community education sector. A total of just over $47 million for services from the Tertiary Education Commission (TEC). A total of just over $31 million for services from Education New Zealand. A total of nearly $22 million for tertiary scholarships, international education, and other grants. A total of just over $12 million for services from the Ministry of Education for policy advice, research, and monitoring. The Minister for Tertiary Education, Skills and Employment, Hon Paul Goldsmith, is responsible for Vote Tertiary Education. We heard from the Minister of Tertiary Education, Skills and Employment, from the Ministry of Education, and from the TEC. Quantum Education Group We are aware that the Intueri Education Group has received funding from the TEC for its subsidiary schools. One of the subsidiaries, Quantum Education Group, was under enquiry by the Serious Fraud Office. The enquiry closed in April 2017 with no further action taken. Quantum remains under investigation by the TEC for alleged manipulation of data relating to student numbers and course completions. Some of us are concerned about whether appropriations in the Vote that are allocated to the TEC for funding education providers are being used as intended. We asked what changes have been made as a result of the investigation into the Quantum Education Group. The Minister told us that funding for the tertiary education sector is being spent appropriately. The TEC and the New Zealand Qualifications Authority (NZQA) have robust systems in place to monitor reporting compliance of public and private training establishments in New Zealand. 2

3 These systems include active pattern-recognition software of enrolments that is crosschecked against Studylink every three months, and collaboration with NZQA and the Academic Quality Agency. The Education (Tertiary Education and Other Matters) Amendment Bill, currently before the committee, proposes additional monitoring and compliance mechanisms. These mechanisms allow the TEC to set conditions on funding for TEOs, and require TEOs to maintain accurate records of their use of government funding, and to make these records available to the TEC. We are aware that Studylink will recover student tuition fees if a student withdraws from a course before the deadline date. We heard that the refund deadline date and the date by which a tertiary provider can claim Student Achievement Compensation funding are now aligned, to prevent further instances of non-compliance from occurring. This alignment of dates is made possible because all student data from the point of enrolment must be provided to the TEC immediately. We will be interested in the results of the investigation into the Quantum Education Group, to be released later this year. We will continue to observe the TEC to ensure that it continues to monitor for compliance of correct reporting by all tertiary education providers. International education Vote Tertiary Education includes new funding of $6.8 million over four years to strengthen the foundations and growth of international education. We asked how the tertiary education sector is matching value to the growth of international education in New Zealand. The Minister told us that the international education industry in New Zealand has grown 6 percent to 131,609 student enrolments in The industry also supports roughly 33,000 jobs across New Zealand. As a result of the growth, Education New Zealand is working with the Ministry of Education to develop a new international education strategy, to be launched late June The strategy aims to ensure the sustainability of international education and to increase the value over time to New Zealand. We look forward to seeing the new strategy and future objectives for growing and developing international education in New Zealand. Completion and employment rates The Minister told us that there were 42,000 bachelor completions in 2016, up 17 percent since There have also been significant improvements to completion rates for Māori and Pasifika students. Bachelor completion rates rose 46 percent for Māori students and 69 percent for Pasifika students from 2010 to We asked what the target is for completion rates. We were told that there is no specific percentage goal within the next five years. The focus within the last few years has shifted from enrolment rates to completion rates. We are aware that for every 100 domestic students enrolled in 2009, the completion rate after six years is 57 percent, compared with 80 percent in Australia and 93 percent in Finland. The ministry also published a report for 2015 stating that the employment rate of young graduates, nine years after completing a qualification, ranged from 46 percent to 55 percent. We expect to see an improvement in domestic qualification completion rates and employment rates. 3

4 Shortage of engineering graduates Vote Tertiary Education includes a $400,000 appropriation for the Engineering Education to Employment programme (E2E). The programme was created in 2014 to address the shortage of engineers at all levels in New Zealand by attracting more students into tertiary education in engineering. The allocation of funding is intended to boost the number of engineering graduates by an additional 500 students each year from 2014 to The TEC confirmed that the goal has been achieved, with 511 graduates from priority engineering courses, out of a total of 2,151 graduates in We are pleased that the E2E programme has achieved its goal a year in advance of the deadline, ensuring that engineering graduates are supported through education to employment. 4

5 Appendix Committee procedure We met on 7 June and 5 July 2017 to consider Vote Tertiary Education. We heard evidence from the Minister for Tertiary Education, Skills and Employment, Hon Paul Goldsmith, the Ministry of Education, and the Tertiary Education Commission. We received advice from the Office of the Auditor-General. Committee members Dr Jian Yang (Chairperson) Todd Barclay Catherine Delahunty Hon Jo Goodhew Chris Hipkins Hon Peseta Sam Lotu-Iiga Tracey Martin Todd Muller Adrian Rurawhe Jenny Salesa Hon Maurice Williamson Evidence and advice received In addition to the standard Estimates documents, we considered the following evidence and advice during this examination: Estimates briefing paper, prepared by committee staff, dated 6 June Office of the Auditor-General, Briefing on Vote Tertiary Education, received 6 June Minister for Tertiary Education, Skills and Employment, Standard Estimates questionnaire response, received 26 May Minister for Tertiary Education, Skills and Employment (responses to questions 1-115), received 2 June Minister for Tertiary Education, Skills and Employment (responses to post-hearing questions ), received 23 June