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Tertiary change fund details announced

11 October 2001 Media Statement

Tertiary change fund details announced

The newly-established $35 million Tertiary Education Strategic Change Fund gives public tertiary institutions the ability to make changes which respond to the Tertiary Education Strategy coming into place next year, says Associate Education (Tertiary Education) Minister Steve Maharey.

A new tertiary education funding and regulatory environment is being introduced in 2003 to reshape New Zealand’s tertiary education system. A Tertiary Education Strategy will be in place from next year and will place new demands on tertiary education providers. Steve Maharey said he has now written to tertiary institutions inviting applications for a share of the $35m one-off Fund and detailing the criteria that will be used to assess them.

“The need to reorient our tertiary education system to meet New Zealand’s changing economic and social needs is urgent. The Fund offers an opportunity for institutions to respond to these challenges.

“In order to receive funding, institutions will be required to demonstrate how the changes they want to make enable them to:
- contribute to New Zealand’s social, environmental and economic development;
- respond to the challenges of a new strategically-focused tertiary education sector; and,
- build on their current position.
Applications will also need to describe achievable and measurable success criteria and be supported by a clear business plan.

“Total funding worth 34.7m (comprising $18.1m in operating expenditure and $16.6m for capital expenditure) will be divided proportionally amongst successful applicants on the basis of their student roll.

“The Fund has been extremely well received by the tertiary sector with Vice-Chancellor’s Committee Chair James McWha describing it as a ‘very, very good outcome’,” Steve Maharey said.


Purpose of the Fund

The Tertiary Education Strategic Change Fund will support initiatives taken by tertiary education institutions, individually or collectively, to adapt during the establishment of the Tertiary Education Commission and ahead of the implementation of the new funding and regulatory system. The fund will enable institutions to determine how they intend to operate within the new strategically-focused tertiary education sector and to define the unique contribution they wish to make within that environment.

Activities that will be funded
Institutions will be encouraged to consider what tools they require to actively participate in the sector and what areas of their operation require improvement so that they are positioned to make a positive contribution to the tertiary education strategy. This will include clearly identifying their strengths and weaknesses, and assessing whether their strategic and business planning is sound.

The Fund is designed primarily for actions and improvements with measurable outputs. The following list has been provided to institutions as a guide for the types of activities that are likely to be funded:

- Operating expenditure

- Collaboration and Innovation – undertaking collaborative activities within the tertiary sector and to promote innovative ideas that may not have been fully developed to date, e.g. joint ventures between institutions, collaborative arrangements which contribute to the tertiary education strategy; shared services reviews; activities that enhance educational outcomes;

- Forward Planning –producing a strategic plan to analyse regional needs; developing short and long-term financial plans; identifying strengths and weaknesses; developing a charter and profile;

- Programme Development – assessment of programmes in line with the strategic direction of the institution; development of programmes to meet regional needs; exiting programmes which have limited demand that do not fit within the tertiary education strategy;

- Increasing Capability – increasing the skills and knowledge of members of Councils and senior management; governance training; increased support for Chief Executives/Chief Financial Officers.

- Capital

Long term capital works planning and activities. Will assist with upgrading of facilities to comply with legislation, e-learning initiatives or other capital asset development activities.

Applications close with the Ministry of Education on 30 November 2001. Funding is available for distribution from 1 July 2002. Further information about the Fund is available on the Ministry of Education website at

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