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Concern over Proposed Fee Maxima

Concern over Proposed Fee Maxima

“The announcement in the Budget of the proposed levels set for the Fee Maxima is of serious concern”, said Kevin Smith, President of The New Zealand Association of Private Education Providers.

While the Association accepts and supports the government’s aim of access, excellence and relevance in education it does not believe that the proposal for the Fee Maxima will achieve it.

The Association is concerned that the proposed Fee Maxima levels set are too low. The impact could well be that many programmes will no longer operate at either TEIs or PTEs.

It is necessary to ensure that the levels set are appropriate so that the needs of students and the businesses are protected, as well as the very high success rates that many providers are getting, especially with Maori and Pacific Islanders.

NZAPEP is also deeply concerned that private providers will have only one year to comply with the Fee Maxima conditions. Members and associate member groups will be clearly concerned at the substantial impact these changes will have on access to learning and the achievements by students.

The end result for PTEs is that the Fee Maxima will result in increases in class sizes, economies of scale, mergers and even some simply “shutting their doors.” It is also likely that with lower fees niche markets will be abandoned in favour of direct competition with the public sector.

The Association will be making submissions to the Government to work towards a more equitable Fee Maxima to apply to the private sector together with a longer lead time to comply.”

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