Funding Moratorium For New Private Training Providers Announced

A moratorium coming into effect today prevents new private training providers from accessing public tuition subsidies and the student loans and allowances schemes.

Associate Education (Tertiary Education) Minister Steve Maharey said the moratorium will apply to new private training establishments (PTEs) seeking funding and to applications by existing publicly funded private providers to mount new qualifications or to significantly alter qualifications currently offered. The moratorium will not apply to Training Opportunities, Youth Training, Skill Enhancement and english for migrants programmes administered by Skill New Zealand.

Mr Maharey said that following the announcement of the establishment of a new Tertiary Education Commission (TEC) to fund and regulate tertiary providers it is time to signal the changes ahead for the PTE sector.

"The Government's reform programme is designed to improve the quality, relevance and cost effectiveness of tertiary education. We have clearly indicated to the PTE sector that the new system under development will provide them with a clear and distinctive complementary role to that played by New Zealand's 36 public providers.

"PTEs make a valuable contribution to the tertiary sector. However in the 1990s the National government encouraged them to move up the framework to put competitive pressure on public institutions.

"There are now over 840 registered PTEs, some 53% of which currently access public funding or whose students can qualify for loans and allowances.

"The moratorium will remain in place until the 2003 academic year when I anticipate the funding and regulatory processes of the new TEC will be fully in place. PTEs will then enter the new arrangements as part of the integrated tertiary education system," Steve Maharey said.

Fact sheet: Moratorium on Ministry of Education funding for Private Training Establishments (PTEs)

The Government is putting in place a moratorium on increases in Government assistance for private training establishments by not recognising additional PTEs, additional PTE qualifications, or qualifications offered by currently recognised PTEs which change significantly in scope or level, for the purposes of equivalent full-time student funding and for access to the student allowances and loan schemes.

The moratorium on PTE funding is a short-term measure until Government decisions regarding the future funding system for the sector have been implemented.

The moratorium will exclude:

- PTEs seeking access to the student allowances and loan schemes in order to participate in the Skill Enhancement programme;

- PTEs not already recognised for equivalent full-time student (EFTS) funding and access to student allowances and loan schemes that have lodged an application and are actively seeking recognition with the Ministry of Education;

- PTEs, that are already recognised, that are actively seeking, either with New Zealand Qualifications Authority (NZQA) or the Ministry of Education, to provide a new qualification which will be eligible for EFTS funding and access to student allowances and loan schemes;

- growth in student numbers in qualifications and courses at PTEs currently recognised for EFTS funding and access to the student allowances and loan schemes.

PTEs not already recognised for EFTS funding and access to the student allowances and loan schemes that have made application to NZQA for registration, qualification approval, or accreditation will be included in the moratorium.

The moratorium will commence from the date of the Ministerial announcement.

It is expected that the moratorium will be in place until the end of the 2002 academic year.

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