$29.5m to stimulate innovation in tertiary sector
Hon Steven Joyce
Minister for Tertiary Education, Skills and Employment
24 May 2012
$29.5m to stimulate competitive innovation in tertiary sector
Budget 2012 commits $29.5 million operating spending over four years for Private Training Establishments (PTEs), to create a fairer funding system that rewards competitive innovation across the tertiary sector.
The Government is committing the funding to close the gap between the historical differential funding rates of PTEs and public providers of the same service, Tertiary Education, Skills and Employment Minister Steven Joyce says.
“The Government wants to ensure there is a level playing field between providers offering the same education, regardless of ownership.
“The previous government cut funding for PTEs relative to public providers, meaning that since 2003 they have had 9.5 per cent less funding per equivalent fulltime student. From January 2013, the additional $29.5 million over four years will halve this difference,” Mr Joyce says.
“This is about encouraging high-quality PTEs to shift into areas, such as engineering and construction, that were previously too expensive for them.
“It is also the Government’s intention for high-quality PTEs to start operating at levels 1 and 2 to encourage more innovation in the delivery of foundation courses. Having more young people succeeding at levels 1 and 2 provides a pathway to further training.
“The Government is not concerned about whether provision comes from the public or private sector – we just want high-quality provision that delivers results.”
The Government will further reduce the difference in funding rates as resources become available.
“This initiative will drive greater competition, which can only be good for learners as providers find more innovative ways to engage them in tertiary education and ensure their success,” Mr Joyce says.