TEU Tertiary Update Vol 13 No 7

JOYCE WANTS TO CUT GOVT'S STUDENT LOAN BILL

Tertiary education minister Steven Joyce wants to cut the government's student loan bill by removing access to the scheme for students who fail or drop out.

The minister told the Weekend Herald that over 40 percent of New Zealand's tertiary education budget goes on student loans and allowances, compared with an OECD average of only 17.6 percent. He plans to 'rebalance' costs by cutting access to loans for those who fail more than half of their courses. The New Zealand Qualifications Authority is also considering restricting the current open entry into tertiary education for students aged over 20.

"I'd like to see more money going into actually training EFTSs and I'm looking around for opportunities to deliver that in 2011," Mr Joyce said.

"There is also student support. We want to make sure that is well-targeted. We are not going to change the interest-free loans, but we have to do some work on whether all the money is being spent as well as it should be.”

"We have an unusually high level of student support and people are taking advantage of that, so we are looking at ensuring that the student is making academic progress while they are taking up the loans."

Unitec chief executive Rick Ede supported the principle of tying student loans to achievement, but NZUSA co-presidents David Do and Pene Delaney were critical.

"We are concerned that moves to restrict entry for over-20s will limit access to those who missed their first opportunities for tertiary education. This would disproportionately affect Maori, Pasifika, and second chance learners," said Mr Delaney.

ALSO IN TERTIARY UPDATE THIS WEEK:

1. Taskforce calls for more certainty for CRI research funding
2. Employment key to recovery
3. Wilkinson wants less red tape to dismiss workers
4. Search and Surveillance Bill

TASKFORCE CALLS FOR MORE CERTAINTY FOR CRI RESEARCH FUNDING

A report has recommended the Government change the way it funds Crown Research Institutes (CRI) so they can do more research which is in the national interest.

The Crown Research Institute Taskforce says the institutes should be allocated much more money on a long-term basis rather than competing for short term contracts.

It says the competitive model used for the institutes, which means they vie for funding, creates uncertainty and makes them vulnerable as businesses.

The taskforce also says the current ownership structure of the CRIs places more emphasis on their own business performance rather than on doing research which contributes to the wellbeing of the country.

The report concludes;

"We believe that existing funding and governance arrangements for CRIs inhibit collaboration, position natural partners such as universities and firms as competitors, and interfere with CRIs’ adoption of best-practice research management. Governance and institutional arrangements can be considerably simplified so that CRIs have a stronger sense of purpose and direction."

The taskforce recommends strengthening opportunities for universities and other organisations to collaborate with CRIs, to contribute to national challenges.

Scientific bodies and CRIs have been largely supportive of the recommendations. The chairman of Science New Zealand and CEO of NIWA, Mr John Morgan, says the CRI Taskforce has done a great job in identifying the issues and solutions, and has provided the Government with a sound and constructive path forward.

TEU national president Dr Tom Ryan says the review makes important recommendations around providing greater certainty of funding for research.

"We support the taskforce view that there needs to be more government investment in research, and that it should focus on contributing to the wellbeing of the country rather than achieving business performance indicators," said Dr Ryan.

EMPLOYMENT KEY TO RECOVERY

CTU economist, Dr Bill Rosenberg is warning that a high unemployment rate could inhibit New Zealand's recovery from recession. The unemployment rate in December surprised most economists: 7.3 percent or 168,000 workers.

"Predictions were that the level would be well below 7 percent. That was not the whole story either: as well as the jobless, there were a further 114,600 part-timers who would like more hours of work."

For many workers, the likelihood is that times will remain tough for the next 2-3 years. Government forecasts are for unemployment levels to remain well above 6 percent for this period, and consensus forecasts are for unemployment to still be at 7 percent in March next year.

"However, it also is possible that skill shortages will revive, due either to the government's failure to increase investment in tertiary education and loss of apprenticeships due to unemployment, or to workers moving to Australia, which did not go into recession and for the first time in many years has lower unemployment (5.7 percent) than New Zealand."

Given the promising signs in other economic indicators, such as a small 0.2 percent growth in gross domestic product, unofficial signs of growth in manufacturing and service industries, and the health New Zealand's financial deficit compared to so many other OECD countries, Dr Rosenberg says, New Zealand needs to be careful that it addresses unemployment to give the recovery a chance.

"New Zealand's public finances are far from crisis. It is much more important to ensure that, with the support of government spending, the economy revives, people are protected from a crisis they did not create, and given the skills they need, and for the government to take an active role encouraging productive sustainable development for the longer run."

WILKINSON WANTS LESS RED TAPE FOR DISMISSING WORKERS

Employment minister Kate Wilkinson is seeking feedback on extending the 90 day trial period for new workers, and changing the rules over when it is fair to dismiss employees.

A Department of Labour discussion document on personal grievances, which the minister released earlier this week, includes suggestions to increase the length of the 90-day period for workers in small workplaces, and also to extend the 90-day rule, presently restricted to workplaces employing fewer that 20 staff, to those with up to 49.

It also proposes changing the "justifiable dismissal" test, giving employers many more grounds to dismiss staff, and downgrading the natural justice requirements - the right to be told, explain, have that explanation considered – and removing reinstatement as a primary remedy.

Ms Wilkinson argues that the review is about cutting red tape and regulation.

"A number of concerns have been raised about the personal grievance system, including uncertainty about the law and the ability for parties to spin out the legal battle for years," Ms Wilkinson said.

However, she told Radio New Zealand's Morning Report yesterday that while the Government has suggested expanding the 90-day trial period for workers, it doesn't yet know how many are using the scheme.

The trial period was introduced in April 2009, allowing an employee in a workplace with fewer than 20 staff to be dismissed in the first 90 days without the right to bring a personal grievance. Currently it covers very few workers in the tertiary education sector, but the proposed changes could see numerous smaller providers, especially PTEs, covered by the legislation.

Papers released under the Official Information Act show the Labour Department is conducting a survey because it knows little about the uptake of the probationary period.

Minister Wilkinson told Morning Report there is anecdotal evidence the scheme is working. However, CTU president Helen Kelly says the proposals undermine fundamental rights to a fair hearing and security of employment.

SEARCH AND SURVEILLANCE BILL

Critics of the government's new Search and Surveillance Bill are warning of a massive increase in state powers to spy on New Zealanders, and say the proposed law changes need to be stopped.

The bill gives more state agencies the power to tap into personal conversations, hack into computers and install hidden cameras.

Instead of just the police and the intelligence agencies having these rights, all sorts of other agencies like Inland Revenue, the Reserve Bank, the Ministry of Agriculture and Fisheries, and even the Pork Industry Board, would have new rights of surveillance.

Last year NDU Express reported that a police informant had been found to have been prying into NDU and other unions’ affairs for over 10 years.

Community groups, including unions and environmentalists, have criticised the bill, but it’s not just grass-roots campaigners that are concerned.

The Law Society and the Chief Justice have also spoken out against it, and corporate lawyers Chapman Tripp have called it "an extraordinarily wide proposal, of unprecedented invasiveness."

Likewise, the Human Rights Commission wants changes to the Bill, saying that search and surveillance rules are among the State’s most powerful weapons, and are open to abuse if sufficient human rights safeguards are not put in place.

On the web: www.october15thsolidarity.info/surveillance

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TEU Tertiary Update is published weekly on Thursdays and distributed freely to members of the Tertiary Education Union and others. You can subscribe to Tertiary Update by email or feed reader. Back issues are available on the TEU website. Direct inquiries should be made to Stephen Day, email: stephen.day@teu.ac.nz