Estrategia Educaciòn Superior Nueva Zelanda

Shaping the
Tertiary Education Advisory Commission

Te Ako Pae Tawhiti
THIRD REPORT OF THE TERTIARY EDUCATION ADVISORY COMMISSION

STRATEGY QUALITY ACCESS
JULY 2001
The cover of Shaping the System features the braided river, The Waimakariri, which is located in the South Island of New Zealand.
ISBN 0-477-01953-6

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Towards a Strategy The Future of New Zealands Tertiary Education System

Introduction
Since the education reforms based on the Learning for Life reports in 1989-1990, the New Zealand tertiary education system has made significant gains in terms of responsiveness to student needs, and in terms of increasing national participation levels. The intent of those reforms was to create a balance with institutions getting the autonomy they had been seeking and that autonomy being constrained by carefully drawn up Charters setting out complementary institutional missions. In implementing those reforms, instead of the proposed co-operative model, a market-place model was developed. This has placed some institutions at risk and resulted in a fragmented system lacking in clear direction. Our challenge now is to provide future-focused leadership to the tertiary education system. New Zealand now faces new and demanding challenges in a period of rapid global change in technology, in communications, and in labour market dynamics. The tertiary sector has a key role to play in equipping New Zealand to meet these challenges and to take advantage of the opportunities they create. It also has a fundamental role to play in promoting a vibrant cultural identity, which places value on diversity, achievement and innovation. This Report, the third in the planned series of reports from the Tertiary Education Advisory Commission (TEAC), recommends a set of strategic priorities for the tertiary system, in order that it contributes to the national goals for economic and social development. This is necessary if New Zealand is to compete successfully in a global environment. The development of new strategies for the tertiary system cannot be undertaken without continued dialogue with the sector and the public. We put forward TEACs recommendations in the hope of encouraging wide-ranging debate.
A Paradigm Shift
Tertiary education is one of this countrys major public investments in building the skills and capability needed for the future. To maximise the benefits of this important investment, a paradigm shift is required. The tertiary education system will no longer be solely driven by the choices of consumers as it was during the 1990s, when it was too narrowly focused on student demand as the primary determinant of resource allocation. Rather, the focus of the tertiary education system will now be to produce the skills, knowledge and innovation that New Zealand needs to transform our economy, promote social and cultural development, and meet the rapidly changing requirements of national and international labour markets. This Government will lead a shift to a co-operative and collaborative sector, unified by a clear vision for the future, which contributes effectively to New Zealands development as a knowledge nation. While maintaining strong levels of participation, the tertiary education system needs to be more explicitly aligned with wider government goals for economic and social development. The key message is that the tertiary education system can no longer be seen in isolation from the Governments wider social and economic development initiatives and strategies.

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Tertiary Education Advisory Commission and its work

The Commission was established by this government in April 2000 to provide advice on the future strategic direction of the New Zealand tertiary education system. I welcome this Report and acknowledge the considerable debate and discussion with businesses, educators, researchers, and Maori and Pacific communities that has informed its development. The Government has already announced some decisions following from TEACs earlier reports: to establish a Tertiary Education Commission (TEC); to introduce a system of enhanced Charters and Profiles for all publicly-funded providers and industry training organisations; to establish a Centres of Research Excellence Fund; and to develop a Tertiary Education Strategy. Over the next few months, further decisions regarding the structure of the TEC, the nature and form of Profiles and Charters, and the funding system will be taken.
The Tertiary Education Strategy

The tertiary education system is diverse and complex. It will require a well-designed Tertiary Education Strategy to achieve the paradigm shift we need, across all areas of the system. The tertiary system includes learning in workplaces as well as classrooms and laboratories. It includes long-established universities and polytechnics and new training and research establishments. It includes full-time and part-time learners, adults and school leavers, learning in lecture theatres and learning by distance. The Tertiary Education Strategy will cover the whole tertiary education system, and will have linkages with the compulsory education system and the labour market. All elements of the system need to be performing to the highest standards to ensure we develop the skills, capabilities and knowledge that New Zealand requires for the future. The Tertiary Education Strategy will outline how the tertiary education system will achieve the paradigm shift from looking inwards at consumers, to looking outwards at how it can: contribute to New Zealands goals for economic and social development; produce the knowledge that New Zealand needs to be a world leader in innovation; produce the skills and competencies that New Zealanders need in order to fuel our economic growth; and develop the capabilities within the sector to meet the needs and expectations of enterprise and communities. The Strategy will outline priorities and milestones for the next three to five years and inform policy direction, purchasing decisions and capability building by the TEC, as well as provide a framework within which the tertiary education system can develop.
Process for developing the Strategy

These are the steps we are taking: release of Commissions Shaping the Strategy report; discussion on priorities with the public and other stakeholders (enterprises, communities, tertiary sector, Maori and Pacific peoples); draft Tertiary Education Strategy developed (building on public consultation and Shaping the Strategy) and circulated; the final Tertiary Education Strategy approved by the government; implementation by the TEC, Ministry of Education, New Zealand Qualifications Authority, the tertiary sector, industry/enterprises, research communities and so on.
Shaping the Strategy

strategy quality access
Tertiary education is key to all sectors of New Zealand businesses, industries, schools, community organisations, research institutes, iwi and Maori organisations, and Pacific communities. Thats why we want to know what the tertiary education priorities are for every sector. Government invites your feedback, questions and suggestions on the priorities recommended in TEACs report, as well as your own priorities for tertiary education, by 31 October 2001. A set of questions to focus your thinking is provided below. You can write, email us as below, or contact us through our consultation website, at www.talktertiarystrategy.minedu.govt.nz We intend to release a draft Tertiary Education Strategy, based on the discussion and consultation process, in December this year, and to finalise the strategy by March 2002.
Hon Steve Maharey Associate Minister of Education (Tertiary Education)
Questions
The selective list below is intended to start you thinking, and should not limit the nature of your response. From your perspective, what would be the three key performance indicators of a successful tertiary education system? What practical measures would ensure that the tertiary education system is responsive to your needs and interests? Should we have quantitative goals in the Tertiary Education Strategy? For example, New Zealand is in the top 10 of OECD countries for adult literacy levels by 2011? Should we be concentrating on developing our knowledge base in particular areas? If so, which areas? And which areas are of less importance? What are the knowledge, skill, and competency constraints you/your organisation are currently facing? (from an individual, a business, a city, regional, and an iwi perspective and so on.) If you had an extra $10 million to spend in tertiary education, how would you spend it? Should there be limits on the choices available to students if this helps to focus resources on education that is aligned with key national strategies, and/or concentrate resources to produce higher quality teaching and research (e.g. Centres of Research Excellence)? What responsibility/role should the tertiary sector have in meeting the skill needs of particular industries/labour markets, and what responsibility/role should those industries/labour markets have?
Contact details: Tertiary Education Strategy Ministry of Education PO Box 1666, Thorndon Wellington, New Zealand Email: tertiary.strategy@minedu.govt.nz

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Table of Contents
Preface 1. Executive summary 2. Recommendations 3. Introduction
3.1 A new paradigm 3.2 The strategic model Figure 1 The tertiary education system strategy process 3.3 National strategic goals for New Zealand 3.4 Why invest in tertiary education?
5 6 8 12
12 12 13 14 15
4. The setting 5. Giving effect to the strategy

5.1 The priorities of the strategy 5.1.1 Building the quality of learning 5.1.2 Focusing on the two ends of the system 5.1.3 Developing the competencies, attributes and environment for a distinctive knowledge society 5.2 The tertiary education scorecard Table 1 The Tertiary Education Scorecard - Outcomes and objectives for the tertiary education system linked to national strategic goals
17 18
18 18 21 26 29 30
6. Priorities for Maori 7. Priorities for Pacific peoples 8. Achieving the priorities
8.1 The desirability test Figure 2 The desirability test process for a tertiary education provider to receive public funding 8.1.1 The operation of the TEC in relation to the desirability test 8.1.2 Ownership and the desirability test 8.2 Measuring success
37 40 44
44 46 47 49 49
9. The next steps Glossary of Education terms and acronyms Glossary of Maori terms Glossary of Government organisations Bibliography
52 53 54 55 56

Preface
The role of the Tertiary Education Advisory Commission
The Tertiary Education Advisory Commission1 was established by the government in April 2000 to devise a long-term strategic direction for the tertiary education system. The overall aim of the strategy is to make New Zealand a world-leading knowledge society by providing all New Zealanders with opportunities for lifelong learning. Its current members are: Russell Marshall (Chairperson) Jonathan Boston Hugh Fletcher Tony Hall Patricia Harris John Ruru Ivan Snook Linda Tuhiwai Smith Linda Sissons (for part of year) Shona Butterfield (for part of year)
An integrated set of reports

The Commission intends to publish four reports on the tertiary education system, of which Shaping the Strategy is the third. The four reports will form an integrated set that provides a comprehensive strategic direction for tertiary education in New Zealand. Shaping a Shared Vision, the Commissions first report, set out the new directions for the tertiary education system. It argued that the challenge of ensuring all New Zealanders have access to lifelong learning in a knowledge society will require new ways of organising, delivering, and recognising tertiary education and learning. Shaping the System, the Commissions second report, mapped out the structures and instruments, that will bring about change. This report emphasised that if New Zealand is to be a knowledge society, the tertiary education system will require mechanisms, policy instruments and structures that will allow for more effective engagement and steering of the system by government and stakeholders. This Report, Shaping the Strategy, recognises that in an environment of scarce resources, choices will need to be made about how those resources are allocated. This Report outlines the strategy and priorities for the tertiary education system. The strategic planning and priority-setting processes described in this Report are intended to be dynamic and fluid and should be evolutionary, flexible and continually monitored and improved upon. The tertiary education strategy must also be able to provide a framework for a strategic approach to funding, and support decisions on what is desirable or not and therefore funded from the public purse. The instruments chosen should facilitate the achievement of the outcomes and pursue the priorities of the tertiary education system. The Commissions fourth report will deal with the instruments needed to implement the tertiary education strategy, particularly funding.
The term the Commission is used to describe the Tertiary Education Advisory Commission throughout this Report. The acronym TEC is used to describe the Tertiary Education Commission throughout this Report.

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1. Executive summary
The Commission considers that a strong tertiary education system is a key component of the knowledge society to which New Zealand aspires. It believes that the tertiary education system can make a considerable contribution towards achieving national strategic goals, and should be encouraged to do so, through the use of the steering mechanisms proposed in Shaping the System, and other instruments. To do this, the Commission believes that there is a need to explicitly state where and how the tertiary education system should focus, by prescribing priorities for the system The Commission has identified five national strategic goals, which the tertiary education system should contribute to and be measured against. These are: innovation; economic development; social development; environmental sustainability; and fulfilling the obligations of the Treaty of Waitangi. The Commission recommends that, as a means of ensuring that the tertiary education system best contributes to the achievement of the national strategic goals, the priorities of the tertiary strategy should be to: build the quality of learning while maintaining high participation rates; build stronger bridges into tertiary education, through better integration of foundation education into the system; enhance tertiary research quality, capacity and linkages, through a tighter focus on research training and retention of top students in New Zealand, further development and more rigorous application of existing quality assurance processes, and integration between research, industry, and the community; and develop the competencies and attributes and the environment for a distinctive knowledge society, including creativity, critical thinking, competence with technology, and multidisciplinary or transdisciplinary thinking, learning and research. The Commission has determined priorities from the system for Maori and Pacific peoples. Specific recommendations for Maori and Pacific peoples have been developed to reflect those priorities. The process of developing targets and an approved set of outcome measures has commenced, and the Commission encourages further work to ensure the development of a comprehensive and meaningful performance framework, that can be used to evaluate the contribution of the tertiary education system. The tertiary education scorecard is the culmination of this work. The Commission recommends that the strategic approach to tertiary education be given effect through the application of a desirability test that will assess whether a provider/Industry Training Organisations (ITOs) activity provides sufficient net benefit through: relating to the national strategic goals and tertiary education priorities; and enhancing economic efficiency and effectiveness across the tertiary education system; and assisting appropriate differentiation and specialisation across the system.

A desirability test will be applied in the following situations. a) The provision of advice by the Tertiary Education Commission (TEC) to the Minister on: the withdrawal or approval of charters; the recognition and re-recognition of ITOs; the recognition of Government Training Establishments (GTEs); the establishment, dis-establishment or merging of Tertiary Education Institutions (TEIs); and the approval of the use of protected terms. b) The approval or withdrawal by the TEC of profiles.
The Commission recommends that public funding be reduced, withheld or removed from those proposals and activities which fail the desirability test. The Commission recommends that the process of evaluating the performance of the tertiary education system and the ongoing contribution to the tertiary education strategy and agreed priorities within it be a key role of the TEC.

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2. Recommendations
Recommendation 1
The Commission recommends that the following national strategic goals be adopted: innovation; economic development; social development; environmental sustainability; and fulfilling Treaty of Waitangi obligations.
Page 14
Recommendation 2
Page 16
The Commission recommends that the government commit to continued and predictable growth in public investment in the tertiary education system as long as the system demonstrates measurable gains in meeting tertiary education priorities and contributing to the national strategic goals.
Recommendation 3
Page 21
The Commission recommends that there be increased emphasis on continuous quality improvement in the tertiary education system through the following mechanisms: better assessment of quality of learning outcomes; more explicit financial rewards and incentives for quality learning and learners and sanctions for failure to deliver quality services; more effective institutional governance; and encouragement of greater unbundling of services associated with learning.
Recommendation 4
Page 23
The Commission recommends that a priority of the tertiary education strategy be the building of stronger bridges into tertiary education through such means as: an explicit commitment to basic skills achievement; incentives for educationally disadvantaged learners; more comprehensive research into the requirements of those in the greatest need of assistance; a greater focus in ACE policy on serving the educationally disadvantaged and on improved linkages between the ACE sector and the rest of the system; more extensive, independent, and quality information and guidance on study and career options focused on the needs of individuals and employers and other stakeholders; creating effective pathways for Maori and Pacific learners to better enable them to access learning opportunities; the development of comparable and meaningful performance measures for providers and ITOs to assess progress in reducing disparities; the sharing and development of best practice resources in assisting the educationally disadvantaged; and greater support for ESOL, and for new migrants.
Recommendation 5
Page 23
The Commission recommends that the current review of the Training Opportunities and Youth Training programmes consider the issues outlined in recommendation 4 and section 5.1.2.

Recommendation 6
Page 23
The Commission recommends that a review of the compulsory (secondary) and post-compulsory (tertiary) interface be undertaken with a view to ensuring seamlessness, career pathways, and learner focus.
Recommendation 7
Page 26
The Commission recommends that there be an enhanced focus on research capacity and capability through the following mechanisms: requiring tertiary providers receiving public funding for postgraduate research to demonstrate the provision of robust research training policies and strategies; ensuring the development of a critical mass of researchers in areas of priority, including supporting New Zealands best students and international students and researchers; focusing in qualification design on work skills or experience in research programmes; developing the capability and capacity of Maori and Pacific researchers; and funding incentives to support capacity development.
Recommendation 8
Page 26
The Commission recommends that there be an enhanced focus on research quality through mechanisms such as: greater rewards for and tighter assessment of research performance; greater accountability for the use of research funding; and progressive expansion of both Model A and B Centres/Networks of Research Excellence.
Recommendation 9
Page 28
The Commission recommends that greater focus be placed on the development of the competencies and attributes and environment needed for a knowledge society through such mechanisms as: greater support for multidisciplinary programmes and new areas of convergent learning; a greater focus on increasing the competencies and attributes for a knowledge society across all parts of the education system; discretionary funding to support new developments and innovations; and interventions to support greater levels of ICT literacy.
Recommendation 10
Page 29
The Commission recommends that the tertiary education scorecard be further developed and adapted as the means of measuring the performance of the tertiary education system in achieving the national strategic goals and tertiary education priorities.
Recommendation 11
Page 39
The Commission recommends that to fulfil the obligations of the Treaty of Waitangi, strategies be put in place to: reflect Matauranga Maori within the tertiary education system; develop high quality whare wananga and other providers operating within a Maori context; encourage greater levels of support for learners of Te Reo Maori and Tikanga Maori; facilitate the movement of Maori from foundation levels of the system; develop Maori capacity and capability, especially at the high end of the system, in order to assume leadership roles;

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enable Maori to enter into those disciplines with which they have not had a strong traditional involvement, such as engineering, science, and technology; and develop a critical mass of Maori academics and researchers.
Recommendation 12
The Commission recommends that the TEC have regard to the needs and priorities of Maori in its establishment and operation.
Page 39
Recommendation 13
Page 42
The Commission recommends that the tertiary education system provide incentives and rewards to ensure: the development of high-quality learning environments that are responsive to the needs of Pacific peoples and accountable to the Pacific community; the development of improved accountability measures, including performance indicators and benchmarks for Pacific peoples and best-practice models for meeting charter commitments; the appropriate support to enable the development of effective learning pathways for Pacific learners, including an improved interface with the compulsory sector and the provision of information and support for learners, their families, and their communities; improved achievement rates for Pacific peoples, particularly at degree and post-graduate levels; and the removal of the barriers associated with the digital divide.
Recommendation 14
Page 43
The Commission recommends that the TEC have regard to the needs and priorities of Pacific peoples in its establishment and operation.
Recommendation 15
The Commission recommends that a desirability test be applied in the following situations: a) The provision of advice by the TEC to the Minister on: the withdrawal or approval of charters; the recognition and re-recognition of ITOs; the recognition of GTEs; the establishment, dis-establishment, or merging of TEIs; and the approval of the use of protected terms. b) The approval or withdrawal by the TEC of profiles.
Page 48
Recommendation 16
Page 48
The Commission recommends that the desirability test be whether or not a proposal provides sufficient net benefit and that in making decisions about a proposals sufficient net benefit, the TEC and the Minister be required to assess whether the proposal: gives effect to the national strategic goals and/or tertiary education strategies; and enhances economic efficiency and effectiveness across the tertiary education system; and assists appropriate differentiation and specialisation across the system. Depending upon the nature of the decision in question, additional considerations may need to be taken into account.
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Recommendation 17
The Commission recommends that the desirability test, as proposed, be included in legislation.
Page 48
Recommendation 18
Page 49
The Commission recommends that the government require the TEC to have regard to the following considerations when making decisions or recommendations about desirability: the desire expressed by the Commission and the system for light-handed steering, which avoids micro-management; the desire for the entire steering process to encourage self-regulation rather than central control; the need to respect institutional autonomy, protect academic freedom, and promote the critic and conscience role played by tertiary education institutions; the number and nature of existing activities and programmes currently in the system; the need for negotiations with providers to be meaningful, and for consistency and transparency in the application of the relevant criteria; and the obligation on the TEC to ensure the development of a differentiated, innovative, responsive, and accountable tertiary education system.
Recommendation 19
The Commission recommends that when reviewing the tertiary education strategy, the TEC:
Page 51
consult comprehensively with stakeholders in the development of a five-year strategy for the tertiary education system, articulating priorities for intervention; and constantly monitor the effectiveness of the system in meeting the priorities and make amendments and adjustments as required.
Recommendation 20
Page 51
The Commission recommends that the legislation enabling the establishment of the TEC and specifying its accountabilities recognise the role of the TEC in the development, evaluation, and achievement of the tertiary education strategy.
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3. Introduction
3.1 A new paradigm
In Shaping the System the Commission described the elements of a new tertiary policy framework that would fulfil the vision for the nation and the tertiary education system outlined in Shaping a Shared Vision. These elements collectively constitute a paradigm that views the entire sector from the system level. The new paradigm suggested in Shaping the System is one that uses the integrated approach of inclusiveness, partnership and intelligent intervention2 to co-ordinate and resource the tertiary education system in order that: the diversity and distinctive roles within the whole system are recognised and valued; the stakeholders are actively involved in steering the system to ensure national and local responsiveness; there is greater specialisation and there are more areas of concentration and better linkages and networks to ensure efficiency and promote excellence; and there is genuine partnership with Maori in the delivery of education.3 The Commission also recognises that developing a tertiary education system of this nature requires a more strategic approach than has been used in the past.
3.2 The strategic model

In developing a strategic model for the tertiary education system, the Commission has built upon the discussions, conclusions, and recommendations of its previous reports. These include: a vision for New Zealand society that informs the vision for the tertiary education system;4 the characteristics of the tertiary education system necessary to achieve these visions, including purpose and goals;5 the guiding principles underpinning the development of the tertiary education system and the relating policy;6 a broad description of the outcomes that can be expected from the tertiary education system as a whole;7 an analysis of the current system including identification of strengths, weaknesses, issues and opportunities;8 and the broad objectives for a tertiary education strategy.9 This Report provides more detail, focus and direction for the tertiary education system by articulating priority areas that meet national strategic goals and some of the performance measures by which progress towards these goals could be assessed. These interrelationships are illustrated in Figure 1.
2 3 4 5 6 7 8 9
Shaping the System (2001), summarised from an integrated approach, p. 26. Shaping the System (2001), adapted from the tertiary education strategy, p. 27. Shaping a Shared Vision (2000), p. 14. Shaping a Shared Vision (2000), pages 10 and 6. Shaping a Shared Vision (2000), p. 12. Shaping a Shared Vision (2000), pages 16 to 21. Shaping the System (2001), pages 7 to 25. Shaping the System (2001), p. 27.
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Figure 1 The tertiary education system strategy process
principles and philosophical framework
Vision for society
Vision for tertiary education
National strategic goals
Tertiary education outcomes
Informs policy
evaluation of progress towards attainment of goals
Charter & profile development Assessment through desirability tests
Tertiary education priorities
Performance measures
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3.3 National strategic goals for New Zealand

The Commission has reviewed the strategies and goals for other sectors and government agencies and found that they consistently reinforce five national strategic goals. These are: Innovation recognising the importance of building a culture of innovation and creativity in New Zealand to underpin all other economic, environmental and social outcomes. This goal links directly to the governments aspirations to create an enterprise economy and to value innovation. This goal also reinforces the governments strategic priority to expand the countrys knowledge base, technological capabilities, and comparative advantage. Economic development stressing the importance of the development of skills and of new knowledge, applications of knowledge, and technological change as drivers for value-creation, innovation, and productivity gains across the economy. This goal links to the governments aspiration to develop an enterprise economy. Social development including well-being, equity, democracy and inclusiveness in New Zealand society by increasing knowledge of our own and others cultures, by supporting the dissemination and use of such knowledge and by fostering debate. This goal also reflects the increasing international recognition that the development of attitudes and generic skills, including communication, problem solving, critical evaluation, creativity, ethical thinking and respect for self and others provides a platform for developing New Zealands innovative capacity, and opens avenues for improving well-being in its own right. Environmental sustainability emphasising how capability and knowledge of environmental states and processes underpins the ability to improve environmental quality and integrity through application and skill development. This goal focuses on improving skills and understanding of the web of interconnected factors that determine the state of the environment. The knowledge gained will underpin sustainable management of all New Zealands environments (terrestrial, marine and atmospheric), and will contribute to reducing hazards and risks associated with our unique environments. This will in turn contribute to enhanced economic and social outcomes. Fulfilling Treaty of Waitangi obligations through Maori development and recognising the need to develop better approaches to fulfil the obligations of the Treaty of Waitangi. Maori have consistently argued for a full range of options, choices, and pathways in education that meet their aspirations. An implicit assumption of these arguments is that different options and pathways will enable Maori to participate more fully in their own development - including fostering Te Reo Maori and Tikanga Maori as well as New Zealands wider development These goals reflect the position of many submissions to the Commission, including those of public agencies, and are based on the Commissions analysis of a range of documents and sources.10 These national strategic goals must also inform the development of the priorities for the tertiary education system.
Recommendation 1
The Commission recommends that the following national strategic goals be adopted: innovation; economic development; social development; environmental sustainability; and fulfilling the obligations of the Treaty of Waitangi.
10
SIACs first quarterly report and current work (2000 and 20001); Treasury reports (2001, a,b); New Zealand Association of Crown Research Institutes (2000); Industrial Research Limited (1999); the Foresight and Bright Futures initiatives; government agencies annual reports and strategic plans.
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3.4 Why invest in tertiary education?

The tertiary education system represents a major investment in the development of the knowledge society that New Zealand aspires to. A quality tertiary education system will be the key generator of the innovation, competencies, attributes, and knowledge that contribute to achieving the five national strategic goals. Creating new knowledge and new applications of knowledge and improving the skills and knowledge of New Zealanders are key elements that support and reinforce the development of economic growth and higher living standards. While investments in education, health and other social services are of direct benefit to individuals, their families, and society in general, education is the most important variable to affect individuals quality of life equipping them with knowledge, motivation and providing choices the positive correlation between education and earnings is indisputable and universal.11 In addition to private benefits, tertiary education also has a variety of public benefits, including reducing crime, reducing dependence on the state, and reducing disparities.12 As well as being a determinant of quality of life, tertiary education is a precondition for greater economic performance. As the report by the Economic Development Strategy Review Group in Northern Ireland stated: A well qualified workforce is a key determinant in attracting inward investment, promoting innovation and fostering economic growth. This is increasingly the case as modern economies move towards knowledge-based industries.13 The accelerating transition to knowledge-based societies has increased the need for higher levels of educational achievement and competency. Economic success is highly dependent on increasing productivity and the speed with which new information can be turned to economic advantage. Research, including that conducted by tertiary providers, contributes to the discovery, integration and application of knowledge and plays a major part in wealth creation. At the same time, social and cultural development is enhanced by a tertiary education system that supports the development of citizens who are socially, culturally and environmentally aware and actively engaged in the development of their communities. These are strong arguments for a continuing, and major, government role in the funding of tertiary education. A high-performing tertiary education system can therefore contribute to the fulfilment of national strategic goals by developing community and business leaders; cultivating the intellect and personal well-being; reducing inequalities; preserving, renewing and transmitting culture; building research capability and creating new knowledge; responding to the needs of the labour market; supporting business and industry development; and promoting social cohesion.14 In recommending a more strategic approach to funding, steering and regulating the tertiary education system, the Commission proposes forging a closer and more transparent partnership between the government, the community, and the system while recognising tertiary education as an investment and not simply as a cost. Having said that, the Commission believes that the tertiary education system must be accountable for the public funding it receives. This requires an agreed set of outcome measures that can be used to determine both the effectiveness of the tertiary education system in contributing to the nations strategic goals and as a basis for international comparison. The Commission has begun the process of developing such measures in section 5.2. The benefit of this approach is greater clarity of desired outcomes from the tertiary education system and a greater clarity of the measures used to determine how it supports the national strategic goals. Underpinning this approach is the concept that successful contributions to achieving national strategic goals should be rewarded by increased investment.
11 12
13 14
Psacharopoulos and Patrinos, (1994). Ministry of Social Policy (1999) and other agencies such as social services, health, housing, employment, Corrections, Te Puni Kokiri, Pacific Island, Womens and Youth Affairs. Economic Development Strategy Review Group Northern Ireland, Strategy 2010 (2000). Shaping a Shared Vision (2000), p. 6.
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To reflect the nature of this relationship, the Commission considers that an explicit commitment should be made between the partners, recognising the responsibility of the system to perform and the responsibility of the government and the community to make an appropriate level of investment. Given New Zealands aspiration to become a knowledge society, it would be inconsistent for the nation not to invest in its tertiary education system at internationally competitive levels.
Recommendation 2
The Commission recommends that the government commit to continued and predictable growth in public investment in the tertiary education system as long as the system demonstrates measurable gains in meeting tertiary education priorities and contributing to the national strategic goals.
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4. The setting
How well placed is the tertiary education system to contribute appropriately to the national strategic goals? In its previous reports, the Commission outlined its view of the systems successes over the past decade along with the systems problems and weaknesses. The strengths and achievements of the system that have been identified include the following: Diversity of provision: New Zealand has a wide range of providers, education service delivery organisations, programmes, and modes of delivery. High levels of participation: after starting from low levels of tertiary participation in the late 1980s, New Zealand now has comparatively high rates of overall participation by many measures.15 The weaknesses and problems identified include the following: Scarce resources, which are being spread too thinly, thereby undermining the viability of some parts of the system. An excessive focus on competition, which has weakened incentives for co-operation, and destabilised the nations research infrastructure. Inadequate steering mechanisms. A lack of coherence, with poorly co-ordinated and sometimes contradictory funding and regulatory policies. Inequitable access and participation (notwithstanding considerable improvements). Failure to fulfil Treaty of Waitangi obligations. The Commission discussed these issues in Shaping the System and identified the need for a strategic approach to addressing them. It identified the broad objectives of a strategic approach as being the following: Introducing a systems approach to policy and regulation for the whole tertiary education system that recognises the distinctive roles of its many components. Improving the proactive steering of the system in a manner that is responsive to both local and national needs and priorities. Encouraging greater specialisation and concentration to promote excellence. Facilitating greater linkages to improve access and efficiency. Expecting greater accountability from the system in terms of meeting Treaty of Waitangi commitments and obligations.
15
New Zealand has the highest participation rate in Tertiary Type A courses, (theoretically-based education, leading to advanced research qualifications), as measured in terms of net entry rates in the OECD. New Zealand has the second highest participation rate for Tertiary Type B courses (occupationally-specific education, more linked to the labour market) OECD, Education at a Glance (2001), p. 148.
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5. Giving effect to the strategy

The Commission is committed to ensuring that the tertiary education system is better positioned to give effect to the national strategic goals. This requires: the government, the system and the community to understand how the tertiary education system contributes to the achievement of the national strategic goals; providers to commit to an improved system of accountability based on measuring both the performance of individual providers and the system as a whole; and the government to make decisions about where and how it will intervene or invest, in order to enable the system to respond more rapidly to identified priorities. In view of the current weaknesses and strengths within the tertiary education system, the Commission proposes the following areas of priority: building the quality of learning; building stronger bridges into tertiary education; enhancing research quality, capacity and linkages; and developing the skills and environment for a distinctive knowledge society. In this section of the Report, the Commission has also commenced the process of developing a tertiary education scorecard, that could be used to describe and measure the systems performance.
5.1 The priorities of the strategy

In developing priorities for the tertiary education strategy, the Commission reviewed international and national strategies, consulted with a range of stakeholders and government agencies, facilitated reference groups, hui and fono, and considered submissions. The priorities outlined in this section represent a distillation of this consultation and the Commissions own deliberations. The Commissions recommended approach to the development of priorities is to preserve the achievements to date while focusing resources in areas of need or weakness. In the current environment of scarce resources, this approach necessarily involves making trade-offs between quality and quantity, diversity and concentration of resources, and other factors. The Commission does not see the priorities in this Report as being the only desired outcomes from the tertiary education system. Rather, they represent areas in which the Commission considers that there is a need to lift performance, capacity and capability. The Commission has previously noted the multiple purposes of tertiary education and would be concerned if the priorities were applied in a manner that stifled these.
5.1.1 Building the quality of learning

A key policy focus of the past decade has been on increasing participation. This focus has been reflected in the numerical targets of Education for the 21st Century16, the shift to a level funding field, the decision to subsidise all enrolled students, and reduced public per-student funding. By many measures, this has been fairly successful. Total enrolment in tertiary education increased by 47 percent between 1990 and 1997. Participation in tertiary education by those aged 18 - 24 years has grown from 20.5 percent of the population in 1990 to 28.9 percent in 1999. At 1999 levels of participation, 82 percent of the population will enrol with a tertiary education provider before reaching the age of 25 years.17 The beneficial and positive outcomes resulting from this are that more people will have the competencies, knowledge and capabilities to participate in society and the economy.
16 17
Ministry of Education (1993). Ministry of Education (2000).
18

The Commission believes, however, that inadequate attention has been paid to quality and that there is an increasingly pressing need to redress this balance. At a high level, the government has not provided sufficient direction, rewards, or support for quality improvement. In other jurisdictions, governments measure quality and performance more specifically (such as the British teaching and research assessment systems) or tie funding to specific outcomes (such as the Standards Fund or output-related component of funding for further education and workplace-based learning in England or the marginal performance-based funding for higher education in Denmark, Finland and the Netherlands).18 The definition of quality selected will affect the range of approaches used to develop it. Numerous possible definitions could be used in a New Zealand context, including excellence, fitness for purpose, and value for money. Each definition has its strengths and weaknesses and may be more appropriate in certain areas. Regardless of which definitions are chosen, the Commission is aware that traditional notions of quality indicators need considerable review. For example, some current proxies for quality (such as staff:student ratios or library holdings) do not comprehensively measure the effectiveness of teaching and learning or the relevance of learning resources. There is a need to develop more outcome-focused measures, to give a more complete picture of education quality. The Commission considers that rising skill requirements, stakeholder expectations and increasing social complexity will require even greater levels of quality in the future. The submissions made to the Commission strongly suggest that the potential of the tertiary education system to achieve this end has been constrained by increased pressure on staff, limited funding, and a reduced ability on the part of providers/ITOs to reinvest in staff, capability and infrastructure. A greater focus on the outputs of tertiary education, such as completion rates (and the related issues of retention, attrition and progression) is needed. Also needed is more attention to the learning experience which includes ensuring that learning is portable and transferable. At the same time, New Zealand needs to ensure that the nations best and brightest learners are well supported. Specifically, there is a need to foster environments and opportunities that encourage New Zealands best minds to continue to contribute. Quality, from the perspective of the Commission, therefore contains several elements including the following: the quality of the learning experience, which involves the appropriateness of learning materials and resources, programmes and teaching methods; the quality and appropriateness of the learning opportunities in relation to learners abilities and motivations; and the quality of the learning outcomes. Providing a quality learning experience includes the need to ensure learning pathways and experiences are culturally appropriate. For Maori this means supporting whare wananga and other provision based in Matauranga Maori as well as providing additional support for learners of Te Reo Maori, one of New Zealands two official languages. For Pacific peoples, this would include ensuring access to, and support for, information and learning based on appropriate Island traditions and languages. Improved accountability of providers for meeting the needs of Maori and Pacific learners will be essential. Improved quality will require the system and the government to consider new ways of working with existing organisations and within resource constraints. This may involve the following: new approaches to institutional governance and accountability because there is some anecdotal evidence of deficiencies and inadequacies with current provision; and better use of resources.
18
TEAC (2001,a).
19

Te Ako Pae Tawhiti
One aspect of smarter resource use, the desirability test, is described in more detail in section 8.1. The desirability test will be used to identify and remove unnecessary duplication and competition, encourage specialisation by providers and ITOs, and determine which programmes and activities the government will not fund. Better use of resources requires a more imaginative approach to the organisation and delivery of educational services. One option in a range of alternatives is to unbundle the component parts of the education process and share services where this improves quality and efficiency. Some of these component parts are career guidance, academic guidance, enrolment systems, curriculum design/development, production of lecture content/learning resources, library services, assessment and credentialling services, including the recognition of prior learning (RPL) and the recognition of current competency (RCC), and tailored learning support services for special student groups. The traditional model for educational delivery, where individual lecturers/teachers develop curricula, lecture content and learning materials, and design assessments is appropriate in many circumstances. Another approach, however, is that through collaboration, these processes are shared between providers allowing more time to support learners through their learning process or more time for research. Alternative approaches to delivery could also support the provision of higher quality learning experiences for Maori, Pacific peoples, new migrants and those with special needs. It is expected that other options for different models that better meet the range of learner needs and increasing demand for participation and quality will also evolve. The Commission has noted the increase in the availability of specialist services internationally and strongly advocates that the TEC give priority to ensuring that the framework within which investment choices are made is future focused and that it encompasses the range of options that are emerging for quality provision of tertiary education. While resources can be freed up by greater collaboration, more innovative approaches to teaching, and sharing of best practice knowledge in an environment of limited resources, there may well be a need to also reallocate some funding in order to support the achievement of greater quality. Among the options which would need to be seriously considered are: reducing the levels of some funding categories; imposing additional caps in parts of the system (on numbers of students and years of learning funded); and rationalising of programmes and providers. The quality versus participation trade-off could carry some risks. First, to the ability of New Zealand to maintain its relative success in achieving high participation rates. The recent reductions in the growth rates for tertiary participation reduces the immediacy and urgency of this trade-off. The Commission is aware, however, that the traditional core tertiary cohort (18 - 24 year-olds) is expected to increase over the years 2003 to 2011. The second risk is to the participation of Maori and Pacific peoples in tertiary education. The number of Maori and Pacific peoples entering and completing tertiary education in tertiary education institutions (TEIs) has increased considerably in the past decade19 and the Commission is aware that there is much progress to be made in further broadening and deepening participation and achievement by these and other traditionally under-represented groups. Added to that is the increasing requirement for ongoing participation, albeit often part-time, by the existing workforce throughout their working lives. The Commission therefore considers that, wherever possible, any shift of resources to support greater quality should be managed in such a way as to: maintain the current high overall rates of participation; increase overall achievement and completion rates; and increase participation, achievement, completion and progression by under-represented groups, especially Maori and Pacific peoples.
19
Maori participation in TEIs rose from 6.8% in 1990 to 11.6% in 1996. The number of Maori gaining first or post-graduate degrees in 1999 was double that of 1995 while there was a 63% increase in the number of Pacific students doing so. (Ministry of Education (2000) pages 11 and 32.
20

This greater focus on quality has several possible implications: better assessment of quality in terms of learning outcomes; more explicit financial rewards and incentives for quality learning and learners in the funding system, and sanctions for failure to deliver quality services; more effective institutional governance; and encouragement of greater unbundling of services associated with learning.
Recommendation 3
The Commission recommends that there be increased emphasis on continuous quality improvement in the tertiary education system through the following mechanisms: better assessment of quality of learning outcomes; more explicit financial rewards and incentives for quality learning and learners and sanctions for failure to deliver quality services; more effective institutional governance; and encouragement of greater unbundling of services associated with learning.
5.1.2 Focusing on the two ends of the system

The current funding mechanisms are unlikely to either ensure the significant reduction in educational disparities needed for social and economic development or support the capacity or critical mass necessary for world-class teaching and research. Although successfully reducing disparities requires a multi-pronged and coordinated approach across the education system, social policy, government agencies and the community at large, the Commission considers that improved performance by the tertiary education system in this area should be encouraged. There is also a need for a change in approach if the nation is to achieve the desired research outcomes and retain its best learners. The Commission therefore recommends that a greater focus on the top and bottom of the system be a priority for tertiary education. By bottom, the Commission means those people who have not achieved previously in education and who have no, or very low, qualifications. By top, the Commission means highquality, world-class research and New Zealands top learners. Focusing on the two ends of the tertiary education system also enables the system to focus on the particular capacity and capability development needs of Maori and Pacific peoples. For both these groups, developing a critical mass of leaders, educators, and researchers is vital in meeting their social and economic development aspirations. In focussing on the top and bottom of the tertiary education system, particular emphasis should be given to supporting these aspirations.
Building stronger bridges into tertiary education

In considering the issues facing New Zealand, the Commission strongly believes that there are significant social and economic returns to be gained from lifting the human capability of the least-skilled and qualified. In particular, evidence suggests that lifting the achievement of communities with low levels of education is likely to improve income adequacy and distribution, increase well-being, reduce the cost of state-provided social welfare and have a number of other positive flow-on effects for families and communities.20 Although considerable progress has been made in raising the overall levels of education achievement and qualification completion, a considerable proportion of the community (across all ages and ethnic groups) still has no qualifications or lacks the qualifications necessary for effective participation in the modern workforce or in further education.21 In addition, a lack of support for immigrants makes it difficult for this group to
20 21
The Treasury (2001,a) pages 22 to 23. There is scope for considerable debate about what is defined as the minimum level of qualification necessary for participation. For the purposes of this report, the Commission has concluded that qualifications at, or equivalent to, level 3 of the National Qualifications Framework (NQF) constitute that minimum. This conclusion is based on current assumptions from the compulsory education sector, namely, that in order to access many areas of tertiary education and many jobs, Bursary (which is equivalent to NQF level 3) is a basic requirement.
21

Te Ako Pae Tawhiti
contribute to New Zealand society and economy. These issues may be amplified if there is insufficient support for English for Speakers of Other Languages (ESOL) programmes and courses. A further and related issue is adult literacy. This is becoming increasingly important for large numbers of New Zealanders because over one million adults are currently below the minimum level of competence in each of the three domains required to meet the demands of everyday life.22 Literacy encompasses computer literacy as well as reading, writing and numeracy competencies. Achievements in computer literacy (and therefore participation in tertiary education) are hindered by lack of access to computer technology and training, particularly for Maori, Pacific, and other disadvantaged peoples this is the so called digital divide. A number of aspects of current behaviour and policy frameworks inhibit progress towards reducing educational disparities. These include the following: The lack of parity of esteem and integration current interventions (Training Opportunities/Youth Training) can ghettoise the educationally disadvantaged and create stigmas which may discourage participation or create undue hardship. The Commission has anecdotal evidence of disadvantaged students and their families paying substantial fees in order to access foundation education when fully-funded Training Opportunities or Youth Training places are available. There is a need to ensure that the educationally disadvantaged can access foundation level education in a number of learning environments without incurring heavy costs. There would also be merit in more comparable and meaningful measurement of equity performance across the system,23 and in better integrating the Adult and Community Education (ACE) and ESOL sectors into the rest of the system. The targeting criteria while the government can legitimately choose to target specific groups of people over others, the Commission is concerned that the current criteria leave too many educationally disadvantaged people with little choice but to incur significant costs for foundation education. The heavy focus on employment outcomes over education/capability outcomes - while the Commission supports the use of performance measures for providers offering foundation education, it feels a higher weighting should be given to education outcomes. The Commission commented on this matter in Shaping the System and recommended that Skill New Zealands documents of accountability should be reviewed with a focus on reconfiguring foundation education programmes as genuine education interventions, which provide entrylevel qualifications and work skills, improve literacy, and lead to further education and employment.24 This is not to downplay the importance of employment and employability as outcomes. Rather, the Commission notes, and concurs with, points made in submissions that interventions which better support qualification completion could better promote sustainable employment and positive, ongoing participation in the labour market than short-term, employment-focused interventions. As one submission noted: More time is required to build self esteem and confidence, which can be done under an education emphasis. The high employment outcomes in short periods of time are unrealistic requirements and dont bring about lasting changes. A longer-term view is required where habit patterns need to be broken and new patterns established.25 The cap on funding for at-risk interventions and programmes - while the Commission is aware that moving or removing the cap will have cost implications, it concurs with the following statement from a submission: Why should funding to such an essential group of students who are unable to access other forms of tertiary education be limited when surely they are the very group which need skills and qualifications the most to enable them to take the first step in a process of life-long learning?26
22
23
24
25 26
Ministry of Education (2001). p. 22. The three domains are: prose literacy (knowledge and skills required to understand and use information from texts); document literacy (knowledge and skills to synthesise timetables, graphs and charts) and quantitative literacy (numeracy skills). That is, the access, completion and progression of people with low or no qualifications in all parts of the tertiary education system should be measured in a comparable and meaningful manner. Shaping the System (2001), p. 86. The Commission also noted here that giving effect to these changes will also involve transfers from Vote: Work and Income to Vote:Education. Julian Chapman, submission (No. 31) to Shaping the System (2001). Wai Ora Christian Community Trust, submission (No. 97) p. 5, to Shaping the System (2001).
22

The lack of an effective and smooth compulsory/tertiary interface - although the tertiary education system can contribute much to reducing disparities, there is a clear need to improve the linkages between the compulsory and tertiary sectors. It can be argued that the requirement for basic remedial work for many young people who leave school without qualifications arises in part because secondary schools do not provide courses, and environments, appropriate to their learning needs. The Commission believes that the strategy set out in this Report cannot be fully implemented unless this wastage of talent is halted. The Commission therefore considers that an investigation into the needs of these young people is urgently required. The Commission also sees a necessity for greater and more effective learning and career advice and guidance. The priority of building stronger bridges into tertiary education has various possible implications, including: an explicit commitment to basic skills achievement goals, such as increasing the proportion of adults at level 3 or above on the International Adult Literacy Scale (IALS) by 2011; incentives for educationally disadvantaged students; more comprehensive research into the requirements of those in the greatest need of assistance; a greater focus in Adult and Community Education (ACE) policy on serving the educationally disadvantaged and on better linking the ACE sector to the rest of the system; more extensive, independent and quality information and guidance on learning and career options focusing on the needs of individuals and employers; creating effective pathways for Maori and Pacific learners to better enable them to access learning opportunities; the development of comparable and meaningful performance measures for providers and ITOs to assess progress in reducing disparities; the sharing and development of best practice resources in assisting educationally disadvantaged learners; a review of the compulsory (secondary) and post-compulsory (tertiary) interface with a view to seamlessness, career pathways, and learner focus ; and greater support for ESOL, and for new migrants.
Recommendation 4
The Commission recommends that a priority of the tertiary education strategy be the building of stronger bridges into tertiary education through such means as: an explicit commitment to basic skills achievement; incentives for educationally disadvantaged learners; more comprehensive research into the requirements of those in the greatest need of assistance; a greater focus in ACE policy on serving the educationally disadvantaged and on improved linkages between the ACE sector and the rest of the system; more extensive, independent, and quality information and guidance on study and career option focused on the needs of individuals and employers and other stakeholders; creating effective pathways for Maori and Pacific learners to better enable them to access learning opportunities; the development of comparable and meaningful performance measures for providers and ITOs to assess progress in reducing disparities; the sharing and development of best practice resources in assisting the educationally disadvantaged; and greater support for ESOL, and for new migrants.
Recommendation 5
The Commission recommends that the current review of the Training Opportunities and Youth Training programmes consider the issues outlined in recommendation 4 and section 5.1.2.
Recommendation 6
The Commission recommends that a review of the compulsory (secondary) and post-compulsory (tertiary) interface be undertaken with a view to ensuring seamlessness, career pathways, and learner focus.
23

Te Ako Pae Tawhiti
Enhancing tertiary research quality, capacity and linkages

International work on building knowledge societies and innovation cultures has consistently focused on the need to increase the quality, output, and level of research and to link research firmly to industry and the wider community, particularly in supporting the unique cultural identities of the nation. Although the research, science and technology policy has focused increasingly on these goals, tertiary policy levers have provided little reward or encouragement for pursuing them. Indeed, in the view of the Commission, tertiary research funding and regulatory policies have been a barrier to the goals of higher quality, greater capacity, and better system/industry linkage. New Zealand does not allocate research funding according to quality. By contrast, some overseas jurisdictions (for example, the United Kingdom, Australia, and Hong Kong) tend to allocate research funds against specified quality criteria, and/or provide assistance with infrastructure costs.27 The largest single source of funding for research in the tertiary education system is through the Equivalent Full-Time Students (EFTS) system, which rewards providers only for their student numbers. As a recent paper noted, under the current system: If student numbers (EFTS) fall or patterns of enrolment change, for whatever reason, tertiary institutions will receive a direct and immediate drop in funding. In other words, funding follows students rather than the quality or quantity of research. This is bad for institutions and potentially bad for the country since it is possible that top-rate, nationally significant research programmes will suffer as a consequence. Research capacity cannot be turned on and off at a moments notice. If it is lost through a few years of poor enrolments, it could take as much as a decade to rebuild.28 Moreover, accountability mechanisms around the use of research funding are very weak. For example, there is no actual requirement on providers to use degree-based EFTS funding for research, nor to specify how that funding has been used. The recent Academic Audit Unit reviews of research and support for post-graduate students indicate that universities provide varying levels of assistance, training and guidance for New Zealands future researchers. Tertiary research policies in other countries provide greater assurance that the researchers of tomorrow are being properly trained and supported, for example the Australian requirement that all higher education institutions accessing research training29 funds provide research and research training management plans, specifying: the operating environment for research and research training, including the institutions human and physical resources and areas of research strength; the proposed future directions for research and research training and how these link to the universitys strategic plan; the arrangements for ensuring a quality research training experience for research students; collaboration with other institutions, industry and other bodies; management of commercialisation, intellectual property, and contractual arrangements; quality assurance mechanisms for self-assessment; a review of recent past research performance; graduate outcomes, both in terms of attributes and employment; and research active members of staff and their research outputs and achievements.30
27 28
29 30
TEAC (2001,a). Peters, M. (New Zealand Vice-Chancellors Committee), Performance-based Research Funding Options for the Tertiary Education Sector (2001), pages 3 to 4. Research training refers specifically to Masters by thesis, doctoral and post-doctoral programmes. Kemp, D. (1999).
24

The Commission recommends that tertiary providers receiving public funding for post-graduate research be required to demonstrate robust research training policies and strategies. Particular attention needs to be given to developing the capacity and capability of Maori and Pacific peoples and to developing a critical mass of graduate students and researchers in areas of national priority research. The Commission also recommends that a priority of the tertiary strategy should be the improvement of research quality and capacity and stronger encouragement of research/industry and research/community linkages. This has several possible dimensions including: ensuring the development of a critical mass of researchers in areas of priority, both by retaining New Zealands top students and by attracting top-quality international students and researchers; developing the capability and capacity of Maori and Pacific researchers; funding incentives to support capacity development; and focusing in qualification design on work skills or experience in research programmes. The Commission notes with interest the recent development of New Route PhDs in Britain, which offer a mix of interdisciplinary and subject-specific tuition alongside research training and thesis work and an explicit commitment to provide a high level of subject expertise [with developed] personal qualities and a range of advanced skills increasingly in demand within the workplace.31 The Commission endorses the funding of Centres of Research Excellence announced in the 2001 Budget. In its work to date on its fourth report, the Commission recognises that there are a number of possible models of Centres/Networks of Research Excellence. One model recognises world-class research at the creation/discovery end of the spectrum with no regard to discipline, theme, extent of collaboration or nature of research outputs. The Commission refers to this as Model A. Another model, while similarly requiring excellence in world-class discovery research, has two additional requirements: that the discovery/research entity must be part of a formal collaborative network involving focus on application and communities/enterprises that will use the research to deliver desired outcomes; and that the desired outcomes must materially address at least one of the nations strategic goals. The Commission refers to this as Model B. The Commission believes both Model A and Model B Centres/Networks of Research Excellence should be supported. It also believes that the government and the community have the right to a greater level of accountability for the use of research funding and to better information about the level and standard of research and research training supported by that funding. The implications of this priority include: greater rewards for, and tighter assessment of, research performance and greater accountability for the use of research funding; the development and progressive expansion of both Model A and Model B Centres/Networks of Research Excellence; a more explicit commitment from the government and system to quality research training with a stronger emphasis on preparing researchers for work with, and in, the community and industries; and a commitment to developing the capability and capacity to support Maori and Pacific peoples research.
31
http://www.newphd.ac.uk
25

Te Ako Pae Tawhiti
Recommendation 7
The Commission recommends that there be an enhanced focus on research capacity and capability through the following mechanisms: requiring tertiary providers receiving public funding for postgraduate research to demonstrate the provision of robust research training policies and strategies; ensuring the development of a critical mass of researchers in areas of priority, including supporting New Zealands best students and international students and researchers; focusing in qualification design on work skills or experience in research programmes; developing the capability and capacity of Maori and Pacific researchers; and funding incentives to support capacity development.
Recommendation 8
The Commission recommends that there be an enhanced focus on research quality through mechanisms such as: greater rewards for and tighter assessment of research performance; greater accountability for the use of research funding; and progressive expansion of both Model A and B Centres/Networks of Research Excellence.
5.1.3 Developing the competencies and attributes, and environment for a distinctive knowledge society
At the heart of the Commissions mission is the development of a knowledge society, which it has deliberately chosen not to define narrowly or specifically. This allows the potentially valuable contribution of all forms of knowledge to be recognised. It also reflects the Commissions view that the nature and content of a knowledge society should not be defined outside of its cultural and social context. The Commission does consider that there are some competencies and attributes that are fundamental to the development of knowledge societies. These competencies and attributes include: creativity, critical and reflective thinking, problem solving, technological competence, information retrieval, interpersonal and team skills, change management and an ability and desire to continue lifelong learning;32 and multidisciplinary and transdisciplinary thinking, learning, and research, that looks beyond the traditional classifications and boundaries of knowledge for the intersections that can produce new areas of knowledge, services, and products, and which address national priorities.
The competencies and attributes needed

The Commissions views about the need for creativity, flexibility, problem-solving skills, and competence with technology are based on an assessment of current and future environments. In a society built upon the dissemination, creation, and exploitation of knowledge, it will be vital that people are able to access that knowledge, recognise its potential, and put it to use. A contributor to a recent United Nations Educational Scientific Cultural Organisation (UNESCO) conference on higher education noted: The challenge is how to get knowledge that may have been produced anywhere in the world to the place where it can be used effectively in a particular problem-solving contextThis requires the creation of a cadre of knowledge workers people who are expert at configuring knowledge relevant to a wide range of contexts. This new corps of workers is described in the text as problem identifiers, problem solvers, and problem brokers.33
32
West, R., Learning for Life (1998); The Treasury (2001, a, b); New Zealand Association of Crown Research Institutes (2000); Industrial Research Limited (1999); National Committee of Inquiry in Higher Education (1997), chapter 9. 33 Gibbons, M., Higher Education Relevance in the 21st Century (2000), p. i.
26

And as IPENZ commented in their submission: The basis for wealth creation within a knowledge economy is either having knowledge that others dont haveor being able to utilise knowledge in a unique way to create or fill a market need.34 A failure to prepare all members of society, including Maori and Pacific peoples to engage in these processes will have a number of negative outcomes, including social exclusion and division and sub-optimal economic performance and productivity levels.
The environment needed

To create an environment to support a knowledge society, the Commissions next conclusion, that New Zealand should support multidisciplinary and transdisciplinary thinking, learning, and research, is informed by papers and submissions which comment on developments in research and knowledge creation and on the importance of convergence between disciplines and traditional groupings of knowledge. Some examples of convergent disciplines include: the integration of information and communication technologies (ICT), mathematical modelling, molecular biology biochemistry to create new disciplines such as metabolomics and proteomics35; and the integration of ICT, plastics engineering, meteorology and design in creating New Zealands leading-edge boat building industry. The HUMANZs recent report to the Ministry of Research, Science and Technology notes that: One of the distinguishing traits of this period is that we are witnessing a convergence between qualitative and quantitative (symbolic and material) modes of production, reversing the recent history of increasingly rigorous separation between knowledge in the arts and culture (individually created) and knowledge in science and technology (industrially or organisationally produced). One sign of this convergence is the increasing use of creativity in scientific and technological contexts; another is the use of industry and product in arts contexts.36 Similarly, the Royal Society notes in its submission to the Commission: New knowledge is often produced at the interface where disciplines meet, rather than at their core. The knowledge needed to solve a particular problem may reside in many places, not just a tertiary education institution. It could be distributed among non-government organisations (sic), industry, government, and research institutions in every fieldTo achieve the highest possible returns on investment, the various parts of the New Zealand innovation system must be closely integrated.37 The Commission does not assume that supporting the development of creativity, flexibility and problemsolving skills, and transdisciplinary themes will be easy. At a fundamental level, the changes that are most needed are cultural, organisational and behavioural. They require a commitment to an ongoing dialogue between educators, business, the government, researchers and students, in a number of contexts. Appropriate public support mechanisms should take an enabling and bottom-up approach to policy. Rather than directing, the aim should be to facilitate and support initiatives that promote creative thinking, the creation of frontier-pushing knowledge, and more linkages between disciplines, providers, the system and the wider community. Possible implications of this priority include the following:
33 34
Gibbons, M., Higher Education Relevance in the 21st Century (2000), p. i. IPENZ submission (No. 3), to Report 3 (2001). 35 Proteomics is the mass information scanning of protein function and metabolomics is the regulation of the protein function as metabolism. 36 HUMANZ, Knowledge Policy Research Group (2000), p. 17. 37 The Royal Society submission (No. 54) p. 7, to Shaping the System (2001).
27

Te Ako Pae Tawhiti
a greater support for multidisciplinary programmes and new areas of convergent learning; a greater focus on increasing competencies and attributes for a knowledge society across all parts of the education system; the discretionary funding to support new developments and innovations within the tertiary education system; and interventions to support greater levels of ICT literacy.
Recommendation 9
The Commission recommends that greater focus be placed on the development of the competencies, attributes, and environment needed for a knowledge society through such mechanisms as: greater support for multidisciplinary programmes and new areas of convergent learning; a greater focus on increasing competencies and attributes for a knowledge society across all parts of the education system; discretionary funding to support new developments and innovations; and interventions to support greater levels of ICT literacy.
A way forward building on existing strengths and dimensions

One of the debates that has occurred in international discussions of knowledge society policies is whether to target particular disciplines. Some European jurisdictions have, for example, concentrated on lifting the number of engineering, science, medical and computer science graduates. The Commission is wary of committing too many resources and too much attention to specific disciplines or engaging in other forms of workforce planning for two main reasons. Firstly, there is insufficient information upon which to make such judgements. The Commission concurs with much of the literature and anecdotal evidence about the potential lack of accuracy and relevance of traditional workforce planning.38 Secondly, supporting specific disciplines would appear to run counter to the whole thrust of encouraging multidisciplinary or transdisciplinary thinking, skills, and outcomes. While some specific disciplines or programmes may well be proxies for creativity, flexibility and problem-solving, the Commission has yet to see convincing evidence to that effect. The Commission does, however, see some value in the notion of workforce nudging, whereby greater support could be made available to meet specific, high-value human capability needs, such as those required by Motorola when it looked recently at establishing a factory in Christchurch. Such support could be used to underpin aspects of industry/provider joint ventures, for example the acquisition of the necessary physical or human capital or trainee scholarships. Any public support for workforce nudging should be made contingent upon enterprises providing employment opportunities for the learners and graduates. Rather than attempting to single out specific disciplines as winners, the Commission is of the view that the development of a distinctive New Zealand knowledge society requires a commitment to build on and develop its existing strengths and characteristics. As one submission to the Commission noted: It is our responsibility as a nation to protect, develop, and examine those things that go to make New Zealand different from the rest of the world.39
38 39
Papps, K., (2001). New Zealand University Students Association Inc. submission (No. 41), to Shaping the System (2001).
28

Some possible areas for focus are the physical environment and its associated land- and water-based industries, the Pacific region, and the culture of innovation that are associated with New Zealand. Defining an insightful statement of New Zealands distinctiveness is an important task.40 To be effective, the process also needs to achieve a considerable degree of consensus. The Commission encourages discussion and debate to achieve this as a priority. The Tertiary Education Commission (TEC) will have to take care in applying these priorities so that the middle of the system continues to have adequate care and support. The need for graduates from broadly based certificate, diploma and undergraduate degrees is critical for a competent workforce.
5.2 The tertiary education scorecard

A relevant and robust tertiary education strategy and a stronger commitment to measurement and accountability require the development of a comprehensive set of desired outcomes for the tertiary education system linked to performance measures. Ideally, such outcomes and measures should describe how the tertiary education system contributes to the achievement of the national strategic goals and be used by the TEC to measure the performance of the tertiary education system as a whole. They should also be used on an ongoing basis for determining the tertiary education priorities by evaluating where the system is under performing or where greater emphasis is needed. Although certain parts of the tertiary education system are, or have been, subjected to some level of performance measurement, the system as a whole has not. Nor has the systems performance been explicitly linked to broader social and economic outcomes. Since this approach is new, there is currently limited information upon which to base outcome measures. Some data is not collected, and in other cases, the data is partial and incomplete. If this approach to system performance measurement is adopted, the collection, storage and dissemination of information will need to be improved and extended. Given these limitations, the Commission has suggested some indicators that could be used to measure the systems performance, and these are included in Table 1. This table provides the genesis for further consultation and debate on the required outcomes and potential measures for the tertiary education system. In recommending a more strategic approach to funding, steering and regulating the tertiary education system, the Commission aims to: draw out and make more explicit the contributions that tertiary education makes to the society, culture, the economy, and the environment; and measure the performance of the system in terms of these contributions.
Recommendation 10
The Commission recommends that the tertiary education scorecard be further developed and adapted as the means of measuring the performance of the tertiary education system in achieving the national strategic goals and tertiary education priorities.
40
Recommendation 1 and corresponding text, Shaping the System (2001), p. 6.
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Te Ako Pae Tawhiti
Table 1 The tertiaty education scorecard outcomes and objectives for the tertiary education system linked to national strategic goals
National strategic goal: Economic development SCOPE TERTIARY EDUCATION SYSTEM GOALS
That individuals renew skill and knowledge over their lifetimes
TERTIARY EDUCATION SYSTEM OBJECTIVES 2011

That New Zealand ranks in the top 5 OECD countries for participation and completion rates for tertiary education That an increasing percentage of New Zealanders engage in tertiary education more than once during their lifetime
BASELINE MEASURE 2001
ASSUMPTIONS
Individual
1st for both41
That developing human capacity throughout life contributes to economic development That the tertiary education system will be proactive in developing qualifications, systems and processes to assist in developing learning pathways
Not measured42
Enterprise
That enterprises have access to the necessary/appropriate skills
That an increasing percentage of the employed workforce (or of enterprises) is encompassed by an ITO A decrease in the net percentage of firms experiencing relative difficulty in finding skilled labour according to the NZIERs 43QSBO
Not available44
Not measured
That businesses and industries are involved in determining education and training needs and work with providers to ensure these are met That ITOs have a positive impact on developing education and training opportunities
Community/ Region
That enterprises are maintaining and enhancing their human capability
That the percentage of the workforce participating annually in structured training increases to 30% That the percentage of payroll spent on education and professional development of staff increases
16%45
That human capability contributes to economic development
Not measured
National
That New Zealand enterprises have world class leadership
That the percentage of managers/enterprise owners with some form of manage-ment qualifications increases That the percentage of graduates from programmes with leadership/entrepreneurship content increases
Not measured
Not measured
That education can improve management performance which has been identified by IMF and WEF46 as poor, and a barrier to higher growth
41 42
43 44 45 46
OECD, Education at a Glance (2000), pages 148 and 159. Not currently measured in New Zealand, however statistics for education engagement expectancy are in OECD, Education at a Glance (2001) pages 121 and 133. New Zealand Institute of Economic Research. Data available from various sources including Skill NZ ITO statistics and Statistics NZ statistics, but compatibility problems raise validity issues. Skill NZ submission (No. 70) p. 8, Shaping the System (2001). International Monetary Fund and World Economic Forum.
30

National strategic goal: Economic development (continued) SCOPE TERTIARY EDUCATION SYSTEM GOALS
That regions have the skills and knowledge necessary to sustain themselves

That education and training participation and achievement rates meet the needs of communities and regions That the number of technology transfer and incubator projects increases to 50 That the number of businesses spinningoff from research activities increases
ASSUMPTIONS
Community/ Region
Not measured
That learning outcomes are sufficient to meet the needs of not only learners but also the communities and regions
National
That New Zealand has a high concentration of knowledge-based industries
11, with 7 in development47
Not measured
That knowledge-based industries generate significant national wealth and contribute to human capital development
That New Zealand has the human capability to support increasing economic wealth
That the education system is assessed as meeting the needs of a competitive economy48 That the number of R&D personnel per 1000 population increases to 5
Not measured
That knowledge provides a competitive advantage in ways that physical resources cannot50
3.4 per 100049
That export education forms an increasing proportion of GDP
That export education increases as a percentage of GDP to 2%51
0.708% of GDP
That this increases our potential education market and revenue and has other spin-offs such as transcultural understanding That knowledge increases return on investment and is a factor of production53
That New Zealand has the research and development capacity and outcomes to support economic development and international competitiveness
That New Zealands R&D investment as a percentage of GDP ranks in the top 10 OECD countries That New Zealand has a minimum of 12 Centres/Networks of Research Excellence supporting economic development
Ranked 21st (1.1% of GDP)52
Not measured
47 48 49 50 51 52 53
Ministry of Economic Development (2001). The World Economic Forum (2000). This measurement could be based on some of those indicators in the Global Competitiveness Report. Ministry of Research, Science and Technology (1999). See Kurtzman (interview with Romer) (1997). Labour Government (16 May, 2001). OECD (1999), p. 11. See Kurtzman (interview with Romer) (1997).
31

Te Ako Pae Tawhiti
National strategic goal: Innovation SCOPE TERTIARY EDUCATION SYSTEM GOALS

That New Zealanders have the skills and qualifications to be responsive, flexible, dynamic and capable of engagement in growth industries

That the percentage of New Zealanders with ICT skills above level 4 on the NQF increases That the percentage of New Zealanders completing advanced research qualifications increases to 2% of the population That the percentage of enterprises linked formally to tertiary education research facilities increases
ASSUMPTIONS
Individual
Not measured
0.8%54
That innovation, entrepreneurship and discovery lead to growth and attract new knowledge and investment and that the stock of human capital affects the rate of technological innovation and adoption of knowledge and innovation55
Enterprise
That New Zealand enterprises/industry have strong links to the tertiary education research sector
Not measured
That linkages between industry and the tertiary education research sector produces significant benefits to both partners and the synergy of the partnership contributes to innovation and economic growth That growth is positively affected by the rate of technological innovations and also by the rate of diffusion or adoption of existing innovations56
National
That New Zealand becomes a leader in the production and dissemination of new ideas and products
That the number of patents produced by tertiary providers, CRIs, enterprises, and industry/tertiary joint ventures increases That the number of new discipline areas, and multidisciplinary qualifications and activities increases That New Zealand has at least one Centre/Network of Research Excellence focused on each of the national strategic goals and tertiary education priorities
Not measured
Not measured
Not measured
Global
That New Zealand produces world-class research in areas of specialisation
That the number of New Zealand Centres/ Networks of Research Excellence which are ranked in the top 10 internationally (in their respective disciplines) increases That the amount of international venture capital for New Zealand basedresearch increases That the number of researchers from other countries coming to work in New Zealand increases
Not measured
That New Zealand builds on current strengths and capabilities for its niche research market contributing to its competitive advantage
That New Zealands R & D sector is wellintegrated into the global research community
54 55 56
Not measured
Not measured
OECD Education at a Glance (2000), p. 169. See Behabib and Spiegel (1994). See Behabib and Spiegel (1994).
That the New Zealand research sector is attractive for foreign investors and foreign research staff for its acknowledged contribution to the global body of knowledge and knowledge transfer and transformation
32

National strategic goal: Social development SCOPE TERTIARY EDUCATION SYSTEM GOALS
That actively participating citizens/increase social capital (as manifested through such things as greater participation in community/voluntary organisations, voting rates, etc) That there are initiatives and programmes which lead to strengthening of communities

That the percentage of the population participating in community education programmes will increase to 1%
ASSUMPTIONS
Individual
0.49%57
That those with a higher level of educational achievement are more actively involved and participate in their communities
Community/ Region
That an increasing percentage of tertiary education providers commit in their profiles to community involvement, development (assistance to voluntary agencies) and contribution to economic support That an increasing percentage of government social expenditure is spent on social research
Not measured
That tertiary education providers have a unique role to play in their relationship with communities in order to contribute to social and economic gains
National
That there is an increased amount of and improved quality of social research
Not measured
That if a larger proportion of this is spent in the tertiary education system, it will result in robust and comprehensive social policy from which effective and high impact strategies can be developed and measured Specialisation and diversity will maintain and strengthen existing cultures and also promote a sense of unique collective nationhood in NZ
That there is enhanced national identity and diversity
That two world-class Centres/Networks of Research Excellence dedicated to New Zealand history, culture and identity are developed That participation and achievement in courses and programmes of Pacific-content increases That one world-class Centre/Network of Research Excellence is identified and/or developed dedicated to Pacific peoples
Not measured
That there is reflection and celebration of Pacific cultures nationally
Not measured
That increased participation and achievement will maintain, preserve and celebrate the uniqueness of Pacific cultures whilst providing a sense of pride and cultural identify for those peoples
57
Ministry of Education (2000), p. 30.
33

Te Ako Pae Tawhiti
National strategic goal: Social development (continued) SCOPE TERTIARY EDUCATION SYSTEM GOALS
That there is reduction of disparities in education achievement

That the percentage of the population with at least a level 3 NQF qualification increases That 70% of adults achieve literacy at least at IALS level 3 (in all three literacy domains58)
ASSUMPTIONS
National (continued)
Not available
Prose 45% Document 50% Quantitative 50%59
That education and tertiary education contribute to employability and other social and other gains (whilst reducing disparities)
That there is reduced infant mortality and injury rates better educational retention and performance by children
That the percentage of parents (with dependent children) with at least a level 3 NQF qualification increases
Not measured
That child health and childrens achievement are positively linked to the education levels of parents (overlapping generations framework)60
58
Ministry of Education (2001). p. 22. The three domains are: prose literacy (knowledge and skills required to understand and use information from texts); document literacy (knowledge and skills to synthesise timetables, graphs and charts) and quantitative literacy (numeracy skills). 59 Ministry of Education (2001) p. 22, figure 1. 60 See Psacharopoulos and Patrinos (1994); Aghion and Howitt (1998).
34

National strategic goal: Environmental sustainability SCOPE TERTIARY EDUCATION SYSTEM GOALS
That all citizens have an increasing understanding of, and take personal responsibility for, management of New Zealands environmental sustainability

That the numbers of community education and ITOinitiated environmentally related programmes increases That the number of learners who successfully complete environmentally related programmes increases That the number of research-based new technologies that reduce environmental impacts and/or enhance environmental remediation increases That there be two World-class Centres/Networks of Research61 Excellence involving significant New Zealand enterprises focused on environmental sustainability
ASSUMPTIONS
Individual
Not measured
Not measured
That pervasive community and workforce awareness of why and how to contribute will lead to enhanced care and protection of the environment and sustainability issues
Enterprise
That New Zealand enterprises are world leaders in applying green technologies
Not measured
Not measured
That active targeted research will lead to green technologies that improve economic performance of enterprises, contributing to more environmentally sustainable business policies and practices, achieving gains for both the economy and environment
National
That government and regional policies for sustainable development are based on environmental indicators merged with economic indicators
That programmes on sustainable development with an interdisciplinary focus are a routine part of all professional qualifications
Data collected for State of the Environment reports62
That awareness of the implications of sustainability and environmental issues throughout the policy, decision making, and professional community will lead to enhanced care and protection of the environment That New Zealand builds and protects its strong leadership history and global influence, for example, the nuclear free stance and the clean and green brand
Global
That New Zealand is respected as a credible contributor, to international understanding of effective environmental management
That New Zealand is ranked in the top 10 OECD countries per head of population for effective environmental mitigation, remediation and protection
Data collected for State of the Environment reports
61
62
For the purposes of this Report the following definition of environmental research has been used builds on understanding of our environment through public good research in areas such as New Zealands ecosystems, our biophysical environment, human environments and its sustainable management of the environment for the productive sector (MoRST, 2001, p. 41). MoRST publishes an annual State of the Environment report.
35

Te Ako Pae Tawhiti
National strategic goal: Fulfilling the obligations of the Treaty of Waitangi SCOPE TERTIARY EDUCATION SYSTEM GOALS
That there is increased understanding of the Treaty and its implications

That the percentage of New Zealanders completing courses/programmes relating to the Treaty and New Zealand history increases That the percentage of Maori business owners/managers with tertiary qualifications increases
ASSUMPTIONS
Individual
Not measured
That this knowledge acquisition will lead to increased tolerance and understanding of the history and context of our national heritage
Enterprise
That Maori-owned/run enterprises increase in number and value
Not measured
The increase of the knowledge and skills to manage and grow successful businesses will lead to self-determination and economic wealth and independence for Maori That increased levels of participation and achievement will lead to enhanced gains in all areas of life and reduce disparities for Maori That this level of competency and awareness will preserve and celebrate Te Reo Maori as a unique global language That this will lead to an increase in research on which to base strategies and policies that are uniquely NZ
Community/ Region
Reduced educational disparities between Maori and non-Maori
That Maori statistics for educational participation and achievement match those of non-Maori at all levels of the system That 8% of the population achieve competency in Te Reo Maori
Participation, 8.19%63 Graduates, 14.5% 64
Maintenance and enhancement of Te Reo Maori
4.25%65
National
Increased national understanding of, and fulfilment of, Treaty obligations
That the percentage of tertiary education provider profiles detailing commitment to the Treaty increases to 100% That New Zealand is ranked in the top 3 OECD countries for research on indigenous peoples issues66
Not measured
That New Zealand increases the international understanding of issues of identity, nationhood, indigenous issues, the Treaty, and partnership
Not measured
That this will maintain and increase the leadership role of NZ and Maori in human/indigenous rights and Treaty issues globally
63
64 65 66
Ministry of Education (2001). This is the percentage of Maori aged 15-64 in tertiary education. The comparable figure for the non-Maori population is 9.39%. Ministry of Education (2001). This is the percentage of all graduates who identify as Maori. Statistics NZ, four-yearly census data. Reference to the development of two world-class Centres/Networks of Research Excellence under the social development/national dimension in the table above.
36

6. Priorities for Maori

In addition, to the priorities for the tertiary education system, the Commission also identified specific priorities for Maori. In considering the specific priorities for Maori, the Commission held hui, consulted with Maori, considered submissions, and drew on its own expertise. Education, and tertiary education, in particular, is seen by the Commission as an important aspect of the strategy to significantly remove the disparities that exist for Maori within New Zealand society. In the Commissions view, Maori, by virtue of being the tangata whenua, and by virtue of the rights recognised and affirmed by the Treaty of Waitangi, have a special place within New Zealand society and should therefore be given recognition worthy of that special place. The Commission affirms its previous statements67 that the tertiary education system, and the tertiary education providers within it, should be actively engaged with Maori. It also affirms the view that the long-term interests of Maori development require a tertiary education system that is better able to deliver effective outcomes for Maori. This will require a principled, planned, and accountable approach to meeting the issues of: provision, equitable access, active protection of Te Reo Maori and Tikanga Maori, research, best practice methods, and educational outcomes. To better deliver effective educational outcomes for Maori, it is essential that the goals of social equity and increased economic development for Maori are achieved. These are goals that all New Zealand must aspire to, achieve, and in which the tertiary education system has an important supporting role to play. As a submission to the Commission stated: [New Zealand] cannot keep talking about a socially just society where an identifiable culturally different group of people are always at the lower socio-economic level.68 There is a wide expectation amongst Maori that education will allow for their full participation as citizens within a knowledge society, not only in a New Zealand context but also within a global context.69 It is the view of Maori with whom the Commission consulted that Maori participation within a knowledge society does not preclude them from choosing to live as Maori. It does, in essence, recognise that Maori can freely choose to live in a variety of situations and be able to move from one to another with relative ease if they so choose.70 These notions were supported by a submission which stated: Tertiary education, for Maori, is part of a wider effort by Maori to live as Maori, to participate actively as citizens of the world. 71 This requires the tertiary education system to balance needs of those Maori who choose to access the system according to Matauranga Maori with those who choose to participate in the mainstream tertiary education system. Equal support and opportunity should continue to be given to Maori to allow for that choice. It is important that the TEC have regard to the needs and priorities of Maori in order to facilitate their aspirations. In choosing educational pathways it is essential that they are culturally appropriate, of the highest quality, in agreement with Maori traditions and customs, and within the broad context of Matauranga Maori. Maori should be given the opportunity to determine the content and context of what they learn, how they learn, and from whom their learning is received. This notion of empowerment is essential if Maori seek the full expression of tino rangatiratanga. It is also essential that Matauranga Maori is accessible across all educational
67 68 69 70
71
See Shaping a Shared Vision, p.24; Shaping the System, p.24. Turoa Royal submission (No. 9), to Shaping the System (2001). This view was reflected by the Maori with whom the Commission consulted and the findings of Hui Taumata Matauranga. Durie, M.H. A Framework for Considering Maori Educational Advancement. Opening Address to Hui Taumata Matauranga, 24 February 2001, Taupo. Literacy Aotearoa submission (No. 28), to Shaping the System (2001); Durie, Opening Address to Hui Taumata Matauranga (2001).
37

Te Ako Pae Tawhiti
pathways for Maori and that whare wananga should play a significant role in this. While Matauranga Maori continues to be defined by Maori, it is essential that it is vigorously debated and maintains a robustness of quality. The Commission recognises these aspirations in establishing its priorities for the tertiary education system. By supporting a stronger focus on building quality as a priority, the Commission considers that Maori must be actively supported to engage at all levels of the tertiary education system. This requires the development of high-quality whare wananga and all other providers, including TEIs, operating within a Maori context. It also requires supporting the development of a critical mass of Maori leaders, researchers, and educators and the facilitation of high-quality information and advice for Maori wishing to engage with the tertiary education system. High-quality and culturally appropriate learning environments, along with appropriate support and advice to ensure that Maori participation, retention and achievement rates continue to improve are also needed. To this end, interventions such as shared best practice methods and improved information and advice will need to be supported and implemented at all levels. Within the priority developing the competencies and attributes, and environment for a distinctive knowledge society, the Commission identified that a range of competencies and attributes are required. Some of these, such as information access, numeracy, communication, and ICT competencies, are priorities for development for Maori learners. Maori should also be encouraged to enter multidisciplinary programmes and new areas of convergent learning as advocated by the Commission. Barriers to participation, however, should be identified and removed. The convergence of Matauranga Maori with other western disciplines of knowledge has the potential to push boundaries into new fields of knowledge, such as sciences and bioethics. The potential of these new approaches should not be overlooked and, indeed, should be encouraged. The Commission also endorses a greater level of support at all levels for learners of Te Reo Maori and Tikanga Maori. This may require greater support of culturally appropriate learning environments, the provision of which may ensure that retention rates of Maori learner within the tertiary education system improves. There is also a need to train those who will provide this form of education to the highest levels possible. The Commissions decision to focus as a priority on the two ends of the system recognises the importance of the system to focus on the requirements of Maori learners to support more meaningful participation in the higher levels as well as at the lower levels. If the tertiary education system is successful in ensuring that this priority is met, it will also allow for the development and retention of a critical mass of Maori academics and researchers. The Commission is often reminded that those Maori who achieve to the highest levels are crucial role models and that they also provide support to other Maori learners who aspire to those levels through mentoring and motivation. Focusing at the bottom of the tertiary education system, where Maori are over-represented in lower level foundation courses and training programmes, is also part of this priority. The issues that surround the compulsory/tertiary interface are often presented to the Commission. For a number of reasons, Maori are more likely to leave the compulsory sector without qualifications and are less likely than non-Maori to be enrolled in tertiary education and training.72 Initiatives are therefore required to facilitate the movement of those Maori who are required to study at foundation levels. Although foundation and bridging courses present opportunities for Maori to enter a range of tertiary education and training pathways, it is a priority to ensure that they succeed and are able to progress to higher levels of learning and meaningful employment.
72
Ministry of Education (2000). Nga Haeta Matauranga: Annual Report on Maori Education (1998/99), p. 32; (1999/2000), pages 26 to 28.
38

Developing Maori capacity and capability to assume leadership roles is a recurring priority for Maori. Fulfilment of this priority will enable greater participation by Maori within the governance and management of tertiary education providers/ITOs. Another issue that Maori have identified is the requirement for greater accountability of providers/ITOs to Maori and for meeting their obligations under the Treaty of Waitangi. This could be improved by applying charter requirements more rigorously, such as those advocated by the Commission in Shaping the System.73 The Commission has determined that developing competencies and attributes for a distinctive knowledge society is an essential priority for the tertiary education system. To that end, Maori must be enabled by the tertiary education system to enter into those disciplines with which they have not had a strong traditional involvement, such as engineering, the sciences, and technology.
Recommendation 11
The Commission recommends that to fulfil the obligations of the Treaty of Waitangi, strategies be put in place to: reflect Matauranga Maori within the tertiary education system; develop high quality whare wananga and other providers operating within a Maori context; encourage greater levels of support for learners of Te Reo Maori and Tikanga Maori; facilitate the movement of Maori from foundation levels of the system; develop Maori capacity and capability, especially at the high end of the system, in order to assume leadership roles; enable Maori to enter into those disciplines with which they have not had a strong traditional involvement, such as engineering, science, and technology; and develop a critical mass of Maori academics and researchers.
Recommendation 12
The Commission recommends that the TEC have regard to the needs and priorities of Maori in its establishment and operation.
73
See Shaping the System, pages 54 to 55.
39

Te Ako Pae Tawhiti
7. Priorities for Pacific peoples

In addition to the overall priorities for the tertiary education system, the Commission has also identified specific priorities for Pacific peoples. In considering these priorities, the Commission held fono, consulted with Pacific peoples and considered submissions. Pacific peoples are a diverse and increasingly important part of New Zealand society. They are, however, under performing when measured against nearly all socio-economic indicators, including employment, earnings, and participation and achievement in tertiary education. Most Pacific peoples living in New Zealand are New Zealand citizens, with over half being born here. This is the fastest growing population group in New Zealand,74 and more than 66 percent are under 30 years of age. By the year 2011, it is predicted that Pacific peoples will constitute 20 percent of the workforce, and this will rise to 41 percent by the year 2052.75 Within and between each group of Pacific peoples in New Zealand, there is considerable diversity of demographics, language, and culture. Pacific peoples as a group face a number of issues particular to them which must be addressed in order to advance social and economic prosperity through tertiary education interventions. The most important of these are: socio-economic factors - generally low income levels for this group associated with the increasing costs associated with tertiary education and their related impact on families and communities are a considerable barrier to increased participation and achievement in tertiary education; a lack of information in culturally appropriate forms and languages which makes it difficult for learners and their parents to make informed choices about their educational participation and employment opportunities; insufficient numbers of trained Pacific teachers, mentors, careers advisors, counsellors and providers, which creates difficulties in providing culturally appropriate learning environments and leaders; the lack of culturally appropriate and supportive learning environments to support retention, participation, and achievement in all levels of tertiary study and there are extremely high levels of non-completion; low levels of literacy and numeracy means that increasing literacy and numeracy in the adult population is a priority; the digital divide and the estrangement of Pacific peoples and communities from ICT means that Pacific peoples generally have low levels of ICT literacy and therefore constrained options for employment and education; and the lack of recognition and support for the pivotal role of Pacific churches and church leaders in Pacific communities. As with Maori, Pacific peoples consider tertiary education interventions to be a key component to enhancing economic and social development and reducing disparities. As The Open Pacific Institute of Learning state in their submission: Social equity in tertiary education for Pacific peoples will require specific targeted approaches. It will also require a clear statement that Pacific people are a priority within the reports accountability framework. The rationale to making specific reference to Pacific peoples is based purely on need. This should not be confused with Maori. We, as Pacific peoples acknowledge and support the fact
74 75
Ministry of Pacific Island Affairs (1999). Cook, L., Didham, R. & Khwaja, M., A Demography of Pacific Ethnic Populations, Statistics New Zealand, December 1999, pages 22 to 23
40

that, for Maori their issues are based on rights guaranteed under the Treaty of Waitangi, whereas for Pacific peoples our justification for being a priority is based on New Zealands need to deal with the disparity issues that a large number of the Pacific population face.76 The Commission recognises the important role that the New Zealand tertiary education system plays in supporting and maintaining the development of South Pacific Island nations, cultures and languages. New Zealand has a long history in assisting some developing Pacific Island nations to build their capacity and capability through support for the provision of appropriate tertiary education both in New Zealand and in the Islands. Within the priority of building quality, the Commission has identified the need to provide mechanisms to address the disparities in participation rates across the tertiary education system. As Pacific peoples are one of the key groups that are currently disproportionately represented, this requires a greater focus on their needs. This focus will include appropriate support for learning and research training to ensure that participation and achievement rates for Pacific peoples match those for the entire population. This may entail sharing of culturally appropriate best practice resources and a greater focus on quality and accountability. The success of these interventions will be determined by their ability to impact on the outcome measure of ensuring meaningful participation and improved achievement rates for Pacific peoples. The Commission has also recognised the need to address specific issues such as poor adult literacy and numeracy rates and providing greater support for ESOL programmes. The aim of providing greater support is to achieve the outcome of ensuring that the percentage of the Pacific peoples population achieving above level three on the IALS matches the general population. Within the priority of focusing on the two ends of the system, the Commission is particularly eager to ensure that disparities in achievement rates at degree and postgraduate levels are addressed. This is to develop a critical mass of senior academic staff and researchers to provide leadership and support for Pacific communities, to ensure that Pacific peoples are represented at senior management and governance levels, and to support the provision of culturally appropriate learning programmes and environments. Achieving this outcome will require initiatives to ensure that more Pacific peoples have the competencies and attributes to enable them to succeed at the higher levels. This means providing greater support to ensure that learners enter the tertiary education system. As the submission from the Pacific Islands Liaison Committee of Victoria University (PILC) states: Many barriers to tertiary education exist for Pacific students. In particular, we are concerned that Pacific peoples are under performing at primary and secondary school level and therefore excluded from tertiary education. Many Pacific peoples arrive at university later as poorly prepared mature students, and serious consideration needs to be given to preparing Pacific peoples for successful study.77 The PILC suggest introducing and funding bridging courses, mentoring schemes, and programmes to support Pacific students through secondary school as a means of supporting greater participation and achievement in the tertiary system. The interventions suggested by the Commission include more comprehensive research to identify the areas of the Pacific population in greatest need of assistance with core skills, adult literacy initiatives, and ESOL, along with researching effective teaching and mentoring methods and bridging programmes. Supporting this will also require a greater focus on high-quality, culturally appropriate information to support learners.
76 77
The Open Pacific Institute of Learning submission (No. 150), to Shaping the System (2001). Pacific Islands Liaison Committee of the Victoria University of Wellington, submission (No. 75) to Shaping the System (2001).
41

Te Ako Pae Tawhiti
The development of comparable and meaningful performance measures for providers and ITOs will be needed to assess the effectiveness of providers in meeting the needs of Pacific peoples and therefore reducing disparities. Within the priority developing the competencies, attributes, and the environment for a distinctive knowledge society the Commission has identified the need to focus on the development of competencies and attributes including critical thinking skills and ICT competencies. The Commission also supports encouraging the development of multidisciplinary programmes and new areas of convergent learning. This should also include providing for programmes supporting the development of Pacific peoples culture and areas of knowledge. These priorities have implications for providing culturally appropriate learning environments. To achieve this, New Zealand needs a diverse tertiary education system and a wide range of providers able to meet the needs of a range of learners. As a submission to the Commission states: The reality is mainstream education has not worked for the majority of Pasifikins, whereas the PTE sector have done their homework and met the challenge successfully. If anything they have provided a bridge to the tertiary sector and become the entry point for second chance learners to participate in society.78 One way of ensuring increased retention and achievement is to develop learning environments more conducive and encouraging to the Pacific learner. This can be achieved by ensuring that culturally appropriate courses taught in the appropriate language(s) are provided. In addition to the ramifications of the priorities for Pacific peoples, the following interventions specific to Pacific peoples are recommended by the Commission. These would facilitate the implementation of initiatives and processes to improve access and performance across the system, hold these initiatives accountable, and allow Pacific peoples to guide and be responsible for their future directions in tertiary education. They include the following interventions: to increase the number of Pacific peoples in decision making positions at all levels of the tertiary education system, including the TEC; to implement and monitor system-wide performance indicators that measure the access, participation, success, and employment outcomes of Pacific peoples in tertiary education. Unacceptable performances should draw attention and sanctions, particularly with regard to EFTS funding; to develop and implement Pacific best-practice models in the tertiary system; to educate Pacific families on how to support their children while undertaking tertiary studies; and to specify within charters and profiles institutional commitments and responsibilities to Pacific peoples so that the accountability of providers is transparent.
Recommendation 13
The Commission recommends that the tertiary education system provide incentives and rewards to ensure: the development of high-quality learning environments that are responsive to the needs of Pacific peoples and accountable to the Pacific community; the development of improved accountability measures, including performance indicators and benchmarks for Pacific peoples and best-practice models for meeting charter commitments; the appropriate support to enable the development of effective learning pathways for Pacific learners, including an improved interface with the compulsory sector, the provision of information, and support for learners, their families, and their communities; improved achievement rates for Pacific peoples, particularly at degree and postgraduate levels; and the removal of barriers associated with the digital divide.
78
Tagata Pasifika, Shaking the System, submission (No. 27), to Shaping the System (2001).
42

Recommendation 14
The Commission recommends that the TEC have regard to the needs and priorities of Pacific peoples in its establishment and operation.
43

Te Ako Pae Tawhiti
8. Achieving the priorities

Achieving the priorities outlined in this Report will require a more subtle, smarter approach to regulation and funding. The Commission has already described some of these levers in Shaping the System, including a greater and more intensive use of charters, the implementation of profiles, and the establishment of an overarching funding and regulatory body for the entire tertiary education system. More detail on other levers, such as the funding quality and accountability systems, will be provided in the Commissions fourth report. The Commission believes that achieving the tertiary education priorities will require: greater attention to the impact of certain activities on the rest of the system and on their relative desirability; linking public funding to desirability; and tighter definition of the outcomes needed to achieve the priorities, a clear expectation of the systems contribution towards those outcomes, and ongoing evaluation and assessment of the systems progress towards those outcomes.
8.1 The desirability test

The system of charters and profiles outlined in Shaping the System consolidates or replaces a number of existing accountability processes, including recognition and re-recognition of ITOs, statements of objectives and charters for TEIs, and Skill New Zealand funding contracts for ITOs and PTEs. Through the process of providers and ITOs developing their charters and profiles, and negotiating them with the TEC, it is intended that both a greater degree of specialisation and differentiation, and a greater alignment of the tertiary education system with national strategic goals will occur. This will be assured through the application of a desirability test. A desirability test will be applied in a number of situations. The TEC will apply the desirability test when providing advice to the Minister on: withdrawal or approval of charters; recognition and re-recognition of ITOs; recognition of Government Training Establishments (GTEs); establishment, dis-establishment or merging of TEIs; and approval of the use of protected terms. The TEC will also apply the desirability test when approving a providers profile, which involves approving funding of specific programmes and activities. The process of assessing the desirability of a profile will occur in conjunction with the application of appropriate quality tests and assurances that quality standards are/can be met. Although the Commission expects quality tests to be strengthened and enhanced, these will remain the responsibility of existing quality assurance bodies. In addition, the TEC will have the right to initiate audits/re-negotiations of profiles or aspects of profiles (such as specific programmes or areas) or to recommend reviews of charters to the Minister. Providers not wishing to access public funding, however, will not be subjected to the desirability test unless they apply to use a protected term. Similarly, non-publicly-funded ITOs would be subjected to the test when they applied for recognition or re-recognition.
44

The core requirement of the desirability test is whether or not a proposal in question provides sufficient net benefit. This will be assessed by the TEC, or the Minister (on the advice of the TEC), determining whether a proposal: gives effect to the national strategic goals and/or tertiary education priorities; and enhances economic efficiency and effectiveness across the tertiary education system; and assists appropriate differentiation and specialisation across the system. Additional considerations may also need to be taken into account, depending upon the category of decision being made. For example, in determining whether to approve a profile, consideration will need to be given to the consistency of the proposed profile with the approved charter. In line with Recommendation 79 of Shaping the System79, which proposed that the TEC base its determination of whether or not to fund particular programmes and activities (as stated in the profiles of chartered providers) on clear statutory criteria, the Commission recommends that the desirability test as proposed be included in legislation. In determining whether a proposal generates sufficient net benefit, all relevant costs and benefits (e.g. economic, social, educational, etc.) would need to be considered, including both quantifiable and nonquantifiable costs and benefits. For the purposes of the test, economic efficiency means productive, allocative, and dynamic efficiency, including consideration of third-party effects. The national strategic goals means those outlined in section 3: economic development, innovation, social development, environmental sustainability, and fulfilling the obligations of the Treaty of Waitangi. The tertiary education priorities are those outlined in section 5.1: building quality of learning, building stronger bridges into tertiary education, enhancing tertiary research quality, capacity and linkages, and developing the skills, attributes, and environment for a distinctive knowledge society. Figure 2 outlines the desirability test process a tertiary education provider would go through when seeking public funding.
79
Shaping the System, Recommendation 79, p. 72.
45

Te Ako Pae Tawhiti
Figure 2 The desirability test process for a tertiary education provider to receive public funding
Quality assured provider/ITO
Is public funding sought?
NO
YES Submit charter to the TEC
Are desirability test criteria met?
NO
YES Submit profile to the TEC
Are desirability test criteria met?
NO
Submit a statement of scope of activities (part 1 of profile) to the TEC
YES Funding approved
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8.1.1 The operation of the TEC in relation to the desirability test

In making decisions about desirability, the following must be considered: the desire expressed by the Commission and the system for light-handed steering, which avoids micromanagement; the desire for the entire steering process to encourage self-regulation rather than central control; the need to respect institutional autonomy, protect academic freedom, and promote the critic and conscience role played by TEIs; the number and nature of existing activities and programmes currently in the system; the need for negotiations with providers to be meaningful and for consistency and transparency in the application of the relevant criteria; and the obligation on the TEC to ensure the development of a differentiated, innovative, responsive, and accountable tertiary education system. In order to provide predictability, transparency, and rigour under this new system, the TEC will need to develop guidelines for providers and ITOs outlining how the process works. Where a provider/ITOs case for funding is not assessed as being sufficiently strong, public funding should be reduced, removed, or withheld. This will provide a powerful incentive for the system to focus on learner outcomes, programmes, activities, and overall missions that meet particular stakeholder needs and give effect to the tertiary education strategy, freeing up public resources from those which do not. Implicit within this discussion is an assumption that some areas, types, or forms of learning and research or achievement by certain types of learners will provide greater social and economic benefits than others. This has a number of possible implications, including differential funding rates for particular types of students or programmes. The Commission will explore these matters further in its fourth report. In discussing the desirability test in relation to certain priorities, the Commission reaffirms the potential value of all forms of knowledge.80 Education is not, therefore, to be seen purely in terms of instrumental value but must include the development of the individual, who can thus realise his or her full potential and live a good life.81 The establishment and refinement of priorities requires a debate about the desirable goals of education and the kind of society we want to develop. Any set of goals or priorities must be subject to scrutiny, and part of the task of tertiary education and research is to help people to develop the understandings and critical attitudes necessary to reflect on long-term goals and to initiate and participate in the public debates about them. Forms of knowledge such as the humanities, social sciences, the performing and fine arts are regarded as particularly important in the development of individuals and in encouraging values which contribute to the shaping of individual and social goals. These must be encouraged by the TEC. Nor should the discussion be seen as detracting from the importance of sound and stimulating teaching of the basic disciplines at all levels of the system. They have a key role to play in laying the foundation for graduate work, innovation, and the achievement of social and economic goals. The interdisciplinary work favoured by the Commission will depend on a thorough grounding in the relevant disciplines, and in particular, the basic sciences. The Commission also believes that the TEC must ensure that certain subjects (such as various foreign languages) are available for study somewhere in the country even if they cannot be fully sustained at their current level.
80 81
Conclusion 4, Shaping a Shared Vision, p.11. Council of the European Union, Report from the Education Council to the European Council: The concrete future objectives of education and training systems, p.4.
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Te Ako Pae Tawhiti
While the Commission is aware that the tertiary education system might prefer a clearer indication of which programmes or activities would not pass the desirability test, it notes that this question is complex. The assessment of a programme or activitys relative desirability will depend on a range of factors, such as the national strategic goals and tertiary education priorities (which will change over time). This may include the context in which a programme or activity is delivered and the particular learners being targeted. What the Commission would like to specify, however, is that the emphasis of the test will be on encouraging providers and ITOs to seriously consider and demonstrate that their activities actually contribute to the needs of learners and stakeholders. Simply offering courses and programmes to attract funding without consideration of externalities and broader needs will not be sufficient. To give an idea of the impact of the desirability test, the Commission considered the tertiary education system of the past few years and identified some specific activities or programmes that would be affected. For example, under the application of the desirability test: Christchurch Polytechnic Institute of Technology might not have received funding for places offered at its Timaru campus, which was in direct competition with Aoraki Polytechnic; and courses such as recreational diving or surfing would be unlikely to receive public funding unless the providers could demonstrate that they imparted important skills and knowledge or provided demonstrable benefits for targeted groups of learners.
Recommendation 15
The Commission recommends that a desirability test be applied in the following situations: a) The provision of advice by the TEC to the Minister on: the withdrawal or approval of charters; the recognition and re-recognition of ITOs; the recognition of GTEs; the establishment, dis-establishment or merging of TEIs; and the approval of the use of protected terms. b) The approval or withdrawal by the TEC of profiles.
Recommendation 16
The Commission recommends that the desirability test be whether or not a proposal provides sufficient net benefit and that in making decisions about a proposals sufficient net benefit, the TEC and the Minister should be required to assess whether the proposal: gives effect to the national strategic goals and/or tertiary education strategies; and enhances economic efficiency and effectiveness across the tertiary education system; and assists appropriate differentiation and specialisation across the system. Depending upon the nature of the decision in question, additional considerations may need to be taken into account.
Recommendation 17
The Commission recommends that the desirability test, as proposed, be included in legislation.
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Recommendation 18
The Commission recommends that the government require the TEC to have regard to the following considerations when making decisions or recommendations about desirability: the desire expressed by the Commission and the system for light-handed steering, which avoids micro-management; the desire for the entire steering process to encourage self-regulation, rather than central control; the need to respect institutional autonomy, protect academic freedom, and promote the critic and conscience role played by tertiary education institutions; the number and nature of existing activities and programmes currently in the system; the need for negotiations with providers to be meaningful, and for consistency and transparency in the application of the relevant criteria; and the obligation on the TEC to ensure the development of a differentiated, innovative, responsive, and accountable tertiary education system.
8.1.2 Ownership and the desirability test

The ownership status of a provider will not be a consideration when the desirability test is applied.82 The emphasis of the test will be on focusing providers and ITOs towards priority areas, encouraging specialisation, and identifying and reducing unhealthy competition. This raises the question of the relative funding of private and public providers, which will be explored in more detail in the Commissions fourth report. At this stage, there are a range of views within the Commission on this matter. At one end of the continuum is a view which assumes that funding of Private Training Establishments (PTEs) should be identical to that of TEIs, unless sound reasons can be found for treating some or all of them differently. Accordingly, PTEs, like TEIs, should be subject only to the desirability and quality tests. At the other end of the continuum is the view that PTEs should not be funded unless sound reasons can be found. This view stresses the long-term policies of successive governments since the late 19th century, under which immense sums of state money have been put into elaborate systems of tertiary education. Proponents of this view argue that it is unreasonable to expect the state to subsidise providers that are in competition with the state system, though particular providers could be subsidised when they perform public functions which state institutions are unable or unwilling to perform. In accordance with Recommendation 5 in Shaping the System, research on the PTE sector has been commissioned and will be available to inform the fourth report of the Commission.
8.2 Measuring success

Implicit within the entire approach taken in this Report is the need to define interventions and actions to support the development of a high-quality, strategically oriented tertiary education system. The impact of the interventions and priorities chosen needs to be measured and the results used to evaluate their effectiveness in meeting the outcomes for the tertiary education system as a whole. The priorities described in this Report identify a portfolio of initiatives that have the potential to impact significantly on the areas either where the tertiary education system is failing to perform or where greater focus and effort is required to support improved achievement. In the environment of scarce resources in which the tertiary education system operates, there will always be a need to make choices about where resources and effort are concentrated. Adopting a portfolio approach to selecting these priorities mitigates the risks of selecting the wrong priority. The Commission restates that the focus on priorities described in this Report does not mean that the other outcomes described for the tertiary education system are not important. The Commission believes these must continue to be supported in order to achieve the vision of a knowledge society supported by access to lifelong learning for all.
82
It should be noted that this view is not unanimously held within the Commission.
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Te Ako Pae Tawhiti
The Commission has chosen to focus on Maori, Pacific peoples, and the educationally disadvantaged as the groups requiring specific attention. It has suggested interventions such as: more extensive, independent, and quality information, advice, and guidance on study, research and career options focused on the needs of individuals and employers; targeted support for the recognition of prior learning/current competency as an entry point for the underrepresented into tertiary education; supporting qualifications that are portable and transferable; targeted financial support for learners and providers; and improved measures for monitoring success. If these interventions are successful, the following results will be achieved by the year 201183: participation and completion rates for priority groups will match those of the general population for level and type of qualification; the percentage of the population with qualifications at level three of the NQF or higher will increase; and the percentage of Maori and Pacific graduates from post-graduate programmes will increase. Some widespread gaps of skills, competencies and attributes have also been identified. Specific interventions have been suggested to ensure New Zealanders have the skills and qualifications to be responsive, flexible, dynamic, and capable of interacting with growth industries. These interventions include: targeted interventions to improve ICT literacy; an increase in the number of people competent in Te Reo Maori; higher levels of numeracy and literacy; and greater support for multidisciplinary programmes. Success of these interventions could be determined using the following outcomes by the year 2011: an increase in the percentage of New Zealanders with ICT competency; and an increase in the percentage of the adult population achieving level three on the IALS literacy tests. The Commission has also identified a need for a greater focus on quality. A number of tactics to achieve this have been suggested, including: better assessment of, and rewards for, high quality research and learning; improved quality assurance processes; access to high quality, culturally appropriate learning environments; greater commitment to developing and maintaining Centres/Networks of Research Excellence; and improved accountability in both governance and management of providers. Tertiary education can also support the goal of New Zealand becoming a leader in the production and dissemination of new ideas and products. Success in achieving this by 2011 could be measured using the following performance measures: an increase in the number of New Zealand Centres/Networks of Research Excellence ranked in the top ten internationally; and an increase in the number of research and development personnel per 1000 population. The Commission believes that evaluation should be a key role of the TEC. The TEC will monitor the performance of the system and will use this information to identify additional priorities and interventions. The Commission recommends that the tertiary education strategy, along with its associated priorities, be set for a five-year timeframe but be constantly monitored, with amendments and adjustments made as required. This will enable changes to priorities to be made in a timely manner that responds to the changing environment.
83
See Table 1, Tertiary Education Scorecard, section 5.2 of this Report.
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In reviewing the strategy, the TEC must consult comprehensively with stakeholders, and from this process, develop a plan including articulated priorities for intervention. This will help provide guidance for providers and ITOs in preparing their charters and profiles and for the TEC in negotiating these and the consequent funding agreements.
Recommendation 19
The Commission recommends that when reviewing the tertiary education strategy, the TEC: consult comprehensively with stakeholders in the development of a five-year strategy for the tertiary education system, articulating priorities for intervention; and constantly monitor the effectiveness of the system in meeting the priorities and make amendments and adjustments as required.
Recommendation 20
The Commission recommends that the legislation enabling the establishment of the TEC and specifying its accountabilities recognise the role of the TEC in the development, evaluation, and achievement of the tertiary education strategy.
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Te Ako Pae Tawhiti
9. The next steps

In its fourth report, the Commission will describe in more detail the instruments (primarily funding) necessary to implement and give effect to the tertiary education priorities and national strategic goals. Over the next year, the work programme for the implementation of the Commissions recommendations from Shaping the System (which have been approved by Cabinet thus far) will commence, including laying the foundations for the TEC in the form of a Transition TEC. It is clear that this process potentially carries significant risks. These will need to be acknowledged and managed through the development of appropriate structures for the TEC, strong and informed leadership, and robust engagement with the system. During this interim phase, the Transition TEC and the Commission will be working closely together to ensure that the processes and thinking are informed by each others work.
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Glossary of education terms and acronyms

Equivalent Full-Time Student (EFTS) A standard unit of measurement of student enrolments. It is defined as a student workload that would normally be carried out by a full-time student in a single academic year. Government departments or Crown entities (other than TEIs) that have been approved by the Minister of Education and registered by NZQA as a tertiary education provider offering training subject to approval and accreditation requirements of the Education Act, 1989. Organisations established under the Industry Training Act, 1992 that represent industries or industry sectors. They are not training providers. A system of national qualifications developed by the New Zealand Qualifications Authority (NZQA) and based on unit standards. The OECD groups 30 member countries in an organisation that provides governments a setting in which to discuss, develop, and perfect social and economic policy. Defined in legislation as an establishment, other than an institution, that provides post-school education or vocational training and, in this sense, including all providers other than TEIs. In practice, this term usually refers to private sector organisations that provide tertiary education or training. They may receive some government funding. Tertiary education All involvement in post-school learning activities. It includes industry training and community education. Public sector institutions that provide tertiary education. There are four kinds of TEIs defined in the Education Act 1989: universities, polytechnics, colleges of education, and wananga. TEIs are Crown entities and are required to follow standard public sector accountability processes. A generic term used for all institutions and organisations that provide tertiary education or training. A programme targeted at job seekers usually aged 18 or more, long-term unemployed people with low qualifications, people with disabilities, certain benefit recipients, refugees, ex-prisoners, and priority clients of the Department of Work and Income. Training is designed to provide trainees with practical pathways to employment or further education. Programmes that offer a range of practical skills-training for school leavers, under 17 year-olds, students who have no more than two School Certificate passes, and students with no formal qualifications above Sixth Form Certificate. The training covers both job-specific and general workplace skills, and is linked to the National Qualifications Framework through unit standards.
Government training establishments (GTEs)
Industry training organisations (ITOs) National Qualifications Framework (NQF) Organisation for Economic Co-operation and Development (OECD) Private training establishments (PTEs)
Tertiary education institutions (TEIs)
Tertiary education providers (TEPs) Training Opportunities (TO)
Youth Training (YT)
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Te Ako Pae Tawhiti
Glossary of Maori terms

Hui Iwi Gathering or meeting. Regionalised tribal grouping that may be constituted by several hapu (or sub-tribe); linked by whakapapa to a named eponymous ancestor. This term is also used as a generic term for people (Iwi Maori = Maori people; Iwi Pakeha = Pakeha people.). Politically, the term iwi is representative of particular interests that are subsumed under Article 2 of the Treaty of Waitangi. A socio-cultural construct denoting both the collective of tribal entities and the ethnic labelling of the indigenous people of this country. Technically it means normal, everyday, and native - which reinforces the notion of the indigenous. Politically, the term Maori is representative of particular interests that are subsumed under Article 3 of the Treaty of Waitangi and is used to augment urban Maori interests within national discourse. A generic and overarching term for the learning and teaching nexus. Often used as a synonym for education. Thus, Matauranga Maori denotes the uniqueness of the learning and teaching nexus from a Maori perspective. A socio-cultural construct denoting New Zealanders of largely European (or British) origin. This term is not universally accepted in New Zealand society and is a source of ongoing debate. In all discussions on race relations in New Zealand, the term Pakeha is used along with Maori to denote bi-culturalism, but not always successfully. Literally chieftainship. This term has several layers of meaning: from self-determination, to sovereignty, to managerial responsibility. The use of the intensifier tino adds greater weight to the notion of the ultimate right to self-determination. Tino rangatiratanga is also a fundamental construct in the Treaty of Waitangi. Language/discourse. Te Reo Maori = the Maori language. A term used to describe the native inhabitants of New Zealand The Maori or indigenous world. The Pakeha or western world. Customary practices and organising principles that can be changed to suit contemporary conditions, but rarely are. Higher or specialised learning. Can be used as a verb to denote the act of specialised learning, usually in a group. School of higher learning (in the traditional sense). Denotes context rather than process. Has been used (since the 1980s) as a synonym for university, but this is not its original meaning.
Maori
Matauranga
Pakeha
Rangatiratanga (Tino rangatiratanga)
Reo Tangata Whenua Te Ao Maori Te Ao Pakeha Tikanga
Wananga
Whare Wananga
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Glossary of government organisations

Ministry of Education (MOE) Provides policy advice to the Minister(s) of Education and oversees the implementation of approved policies. Covers all areas of education: early childhood, primary, secondary, and tertiary. It also negotiates funding for TEIs. Provides policy advice to the Minister of Pacific Island Affairs. Other roles of the Ministry include dissemination of information and consults with Pacific communities, encouraging other government agencies to take responsibility for meeting the aspirations of Pacific peoples, and facilitating policy initiatives in partnership with mainstream agencies and Pacific communities. Co-ordinates all qualifications in post-compulsory education and training and oversees the standards of these qualifications. It also administers national examinations. Administers the governments industry training policy. It focuses on transition to work and on access to workplace training. The Ministry that provides policy advice to the Minister of Maori Affairs. Other roles include working with Maori to build their capacity, audit programmes delivered to Maori, and work with other government departments. The organisation that administers income support benefits and helps unemployed job-seekers to find work. It also administers student loans and allowances.
Ministry of Pacific Island Affairs (MPIA)
New Zealand Qualifications Authority (NZQA)
Skill New Zealand
Te Puni Kokiri (Ministry of Maori Development)
Department of Work and Income
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Te Ako Pae Tawhiti
Bibliography
Published
Aghion, P. and Howitt, P. (1998) Endogenous growth theory. Massachusetts Institute of Technology, United States. Aotearoa Maori Providers of Training Education and Employment (2001) Submission (No. 50) to Shaping the System. http://www.teac.govt.nz Behabib, J. and Spiegel, M. M. (1994) The role of human capital in economic development: evidence from aggregate cross-country data. Journal of Monetary Economics, 34(2): 143-173. Chapman, J. (2001) Submission (No. 31) to Shaping the System. http://www.teac.govt.nz Cook, L., Didham, R. & Khwaja, M. (1999) A Demography of Pacific Ethnic Populations, Statistics New Zealand. Council of the European Union (2001) Report from the Education Council to the European Council: The concrete future objectives of education and training systems, European Union, Brussels. Economic Development Strategy Review Group (2000) Strategy 2010. Northern Ireland Government, Northern Ireland. Foundation for Research, Science and Technology, (undated, a) Investing in research, science and technology, Wellington. Foundation for Research, Science and Technology, (undated, b) SPO framework and outline sketches, Wellington. Gibbons, M. (2000) Higher education relevance in the 21st century. Paper presented to UNESCO world conference on higher education. http://www.teac.govt.nz/issues Government of New Zealand (16 May, 2001) Pre-budget announcement regarding export education. http://www.newsroom.co.nz Government Print (1986) Education Act, Government Print, Wellington. HUMANZ (2000) Knowledge policy research group, Knowledge, Innovation and creativity: designing a knowledge society for a small democratic country: report to the Ministry of Research, Science and Technology. HUMANZ, New Zealand. Industrial Research Limited (1999) The advanced technology solution. Industrial Research Limited, Lower Hutt. Institution of Professional Engineers New Zealand (2001) Submission (No. 3) to Report 3. http://www.teac.govt.nz Kemp, D. (1999) Knowledge and innovation: a policy statement on research and research training. Department of Education, Training and Youth Affairs, Canberra. http://www.detya.gov.au/archive/highered/whitepaper/2htm Kurtzman, J. (1997) An interview with Paul M. Romer. http://www.strategy-business.com/thoughtleaders/ Literacy Aotearoa (2001) Submission (No. 28) to Shaping the System. http://www.teac.govt.nz Ministry of Education (February 1993) Education for the 21st Century. Ministry of Education, Wellington. Ministry of Education (2000) New Zealands Tertiary Education Sector: Profiles and Trends, 1999. Ministry of Education, Wellington.
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Ministry of Education (2000) Nga Haeata Matauranga: Annual Report on Maori Education 1998/1999. Ministry of Education, Wellington. Ministry of Education (2001) More than words: The New Zealand adult literacy strategy. Ministry of Education, Wellington. Ministry of Education (2001) Nga Haeata Matauranga: Annual Report on Maori Education 1999/2000. Ministry of Education, Wellington. Ministry of Pacific Island Affairs and Ministry of Education (2001) Ko e Ako a e Kakai Pasifika. Ministry of Pacific Island Affairs and Ministry of Education, Wellington. Ministry of Pacific Island Affairs (1999) Briefing to incoming Minister. Ministry of Pacific Island Affairs, Wellington. Ministry of Pacific Island Affairs (2001) Pacific capacity building reports. Ministry of Pacific Island Affairs, Wellington. Ministry of Social Policy (1999) Briefing for the incoming Minister. Ministry of Social Policy, Wellington. Ministry of Research, Science and Technology (1999) New Zealand Research and Development Statistics 97/98. http://www.morst.govt.nz/publications/rdstats_98/national.htm Ministry of Research, Science and Technology (2001) Statement of Intent 2001 2004: igniting the future, Wellington. New Zealand Association of Crown Research Institutes (2000) Knowledge underpins quality of life. Association of Crown Research Institutes, Wellington. New Zealand University Students Assocation (2001) Submission (No. 170) New Zealand University Students Association Inc, to Shaping the System. http://www.teac.govt.nz Organisation for Economic Co-operation and Development (1999) The Knowledge-based economy: a set of facts and figures. http://www.oecd.org Organisation for Economic Co-operation and Development (2001) Education at a Glance. http://www.oecd.org Open Pacific Institute of Learning (2001) Submission (No. 150) for Shaping the System. http://teac.govt.nz Pacific Islands Liaison Committee of the Victoria University of Wellington (2001) Submission (No. 75) for Shaping the System. http://www.teac.govt.nz Papps, K. (2001) Occupational and skill forecasting: a survey of overseas approaches with applications for New Zealand. Labour Market Policy Group, Wellington. Psacharopoulos, G. and Patrinos, H. A. [eds] (1994) Indigenous people and poverty in Latin America. World Bank, Washington. Royal, T. K. (2001) Submission (No 9) to Shaping the System. http://www.teac.govt.nz Science and Innovation Advisory Council (December 2000) SIAC: First quarterly report to the Prime Minister, Wellington. Science and Innovation Advisory Council, (April 2001, a) SIAC Second quarterly report to the Prime Minister, Wellington.
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Science and Innovation Advisory Council, (May 2001, b) Draft Innovation scorecard. Wellington. Skill New Zealand (2001) Submission (No. 70) to Shaping the System. http://www.teac.govt.nz Tagata Pasifika (2001) Shaking the System, submission (No. 27) to Shaping the System. http://www.teac.govt.nz Tertiary Education Advisory Commission (2000) Shaping a Shared Vision. Wellington. Tertiary Education Advisory Commission (2001) Shaping the System. Wellington. Tertiary Education Advisory Commission (2001) Review of international tertiary education funding models: discussion paper. http://www.teac.govt.nz The Commission of Inquiry in Higher Education (1997) National Report (the Dearing Report). The Commission of Inquiry in Higher Education, Great Britain. The Open Pacific Institute of Learning (2001) Submission (No. 150) to Shaping the System. http://www.teac.govt.nz The Royal Society (2001) Submission (No. 54) to Shaping the System. http://www.teac.govt.nz The Treasury (1999) Towards higher living standards for New Zealanders: briefing to the incoming government. The Treasury, Wellington. The Treasury (2001, a) Human capital and the inclusive economy. The Treasury, Wellington. The Treasury (2001, b) The knowledge economy. The Treasury, Wellington. Te Puni Kokiri (1999) Briefing to incoming Minister of Maori Affairs, Wellington. Te Puni Kokiri (2000) Progress towards closing social and economic gaps between Maori and non-Maori, Wellington. Wai Ora Christian Community Trust (2001) Submission (No. 97) for Shaping the System. http://www.teac.govt.nz West, R (1998) Learning for Life: Final Report of the Review of Higher Education Financing and Policy, Department of Employment, Education, Training and Youth Affairs, Canberra. World Economic Forum (2000) The Global Competitiveness Report 2000. World Economic Forum, New York. www.newphd.ac.uk
Unpublished
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Tertiary Education Advisory Commission Te Ako Pae Tawhiti

Level 20, 125 The Terrace PO Box 10-906 Wellington, New Zealand ph: +64-4-472-9723, fax: +64-4-471-5349 www.teac.govt.nz, enquiries@teac.govt.nz

Estrategia Educaciòn Superior Nueva Zelanda

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Estrategia Educaciòn Superior Nueva Zelanda

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Shaping the

Tertiary Education Advisory Commission

THIRD REPORT OF THE TERTIARY EDUCATION ADVISORY COMMISSION

Tertiary Education Advisory Commission

Towards a Strategy The Future of New Zealands Tertiary Education System

Tertiary Education Advisory Commission

Tertiary Education Advisory Commission and its work

The Tertiary Education Strategy

Process for developing the Strategy

Shaping the Strategy

Hon Steve Maharey Associate Minister of Education (Tertiary Education)

Tertiary Education Advisory Commission

4. The setting 5. Giving effect to the strategy

Shaping the Strategy

An integrated set of reports

Tertiary Education Advisory Commission

Shaping the Strategy

Tertiary Education Advisory Commission

Shaping the Strategy

Tertiary Education Advisory Commission

Shaping the Strategy

Tertiary Education Advisory Commission

3.2 The strategic model

Shaping the Strategy

Figure 1 The tertiary education system strategy process

principles and philosophical framework

Vision for society

Vision for tertiary education

National strategic goals

Tertiary education outcomes

evaluation of progress towards attainment of goals

Charter & profile development Assessment through desirability tests

Tertiary education priorities

Tertiary Education Advisory Commission

3.3 National strategic goals for New Zealand

Shaping the Strategy

3.4 Why invest in tertiary education?

Tertiary Education Advisory Commission

Shaping the Strategy

Tertiary Education Advisory Commission

5. Giving effect to the strategy

5.1 The priorities of the strategy

5.1.1 Building the quality of learning

Ministry of Education (1993). Ministry of Education (2000).

Shaping the Strategy

Tertiary Education Advisory Commission

Shaping the Strategy

5.1.2 Focusing on the two ends of the system

Building stronger bridges into tertiary education

Tertiary Education Advisory Commission

Shaping the Strategy

Tertiary Education Advisory Commission

Enhancing tertiary research quality, capacity and linkages

Shaping the Strategy

Tertiary Education Advisory Commission

The competencies and attributes needed

Shaping the Strategy

The environment needed

Tertiary Education Advisory Commission

A way forward building on existing strengths and dimensions

Shaping the Strategy

5.2 The tertiary education scorecard