Street Maryan: Education (Tertiary Reforms) Amendment Bill — Second Reading 
Street Maryan: Education (Tertiary Reforms) Amendment Bill — Second Reading 
[Volume:643;Page:13030] 
Hon MARYAN STREET (Associate Minister for Tertiary Education) 
 on behalf of the  
Minister for Tertiary Education 
: I move  
That the Education (Tertiary Reforms) Amendment Bill be now read a second time 
. The bill as reported back now includes a number of important changes and I commend the Education and Science Committee for the thoroughness and efficiency with which it has considered this bill. I agree with and support the changes it has suggested and I believe that these will improve the bill. 
A high-performing tertiary education sector is critical to the future of our country. This bill implements the Government’s reforms of the system for planning funding and monitoring the provision of tertiary education. It puts mechanisms in place to ensure that the Government can have confidence that the tertiary education system is making a valuable contribution to the social economic and environmental interests of New Zealand. 
One of the main components of the bill is the establishment of a streamlined set of steering instruments. This will significantly reduce compliance costs for tertiary education organisations and will also reduce the administrative workload on the Minister and the Tertiary Education Commission. The Minister will publish a single tertiary education strategy that sets out the long-term strategy and the current to medium term priorities for tertiary education. This will replace the current strategy and statement of tertiary education priorities. The Minister will also determine the design of funding mechanisms and will specify the total amount of funding available to organisations. 
The Tertiary Education Commission will publish guidance on how organisations in different parts of the sector can give effect to Government priorities in a single plan that will replace the current system of charters and profiles. Tertiary education organisations will be required to prepare their plans in consultation with their stakeholders. The commission will approve those parts of the plan for which Government funding is sought with a focus on investing in priority areas identified at both national and local levels. These arrangements simplify the lines of accountability between organisations and central government. 
It is important to note first that in general submitters supported the aims of the bill and of the reforms. In particular they supported the move to a more streamlined system a more strategic focus and the stronger emphasis on stakeholder involvement. 
The Education and Science Committee has recommended several changes in response to concerns that were raised. The committee has recommended that academic freedom now be made explicit in the purpose statement of the bill. 
Dr Paul Hutchison 
: It took a lot; it had to be dragged into the bill. 
Hon MARYAN STREET 
: Although of course it was never the intention of the bill to compromise academic freedom as a former academic I understand the importance of restating this principle. 
Hon Maurice Williamson 
: Yeah right! 
Hon MARYAN STREET 
: The amendments set out in the bill are all subject to sections 160 and 161 of the Education Act 1989. However this was worth clarifying and I support the change. Some of the members opposite are querying my interest in and knowledge of this sector and I just remind them that I spent 9 years as an academic in the tertiary sector and have followed these reforms with great interest. 
All along the bill has given the Tertiary Education Commission power of approval only over those programmes and activities for which organisations are seeking Government funding. Programmes or activities funded entirely by philanthropy and/or private sources will not be subject to approval by the commission. The select committee has recommended changes to the bill to make this explicit and clear in response to concerns expressed by submitters. Tertiary education organisations will identify what “stakeholder” means in their particular contexts. They will consult relevant stakeholders and show how they intend to meet stakeholder needs in their plans. The Tertiary Education Commission will take into account whether the needs of stakeholders have been adequately considered and addressed in an organisation’s plan when determining funding. 
The bill as reported back by the select committee now gives public tertiary institution councils the functional role of undertaking long-term planning. This addresses the concerns of some submitters that in streamlining charters and profiles into plans the ability of organisations to plan for the long term could be compromised. So let us be clear about what these changes mean for the tertiary education system and for the country. These reforms aim to make this key national asset deliver real benefits for New Zealand and New Zealanders. They aim to encourage excellence by rewarding quality and this is quite a shift from a funding system based on quantity. The funding system needs to change so that tertiary education organisations can shift their focus from participation and funding to achievement and the long-term needs of stakeholders. 
Government expenditure will no longer be driven by demand but will be set as a 3-year funding path that takes account of inflation pressures expected demographic change student demand and competing priorities within and outside the education sector. The new investment-based approach will expect and reward high performance. Along with greater funding and planning certainty there will be greater responsibility on organisations to deliver the outcomes the Government is seeking. The new system will be based on high accountability high trust and low compliance. 
The reforms set out with greater clarity what the Government expects of tertiary education organisations. The Government will define national priorities and organisations themselves will determine regional and local needs in consultation with stakeholders which may include businesses local bodies communities and iwi among others. The system will recognise the key strengths of and the differences between tertiary education organisations. This is to ensure a diversity of education provision develop a critical mass and expertise assist decision making and minimise undesirable duplication. This will allow organisations to work together in ways that complement each other’s contributions. 
I commend the select committee again for contributing to the smooth passage of the bill. This has helped to ensure that the necessary legal framework is in place to allow these changes to take place from 1 January 2008. The Tertiary Education Commission has been working closely with the sector to ensure that it is ready for the change. The Government has made new funding available to ensure that tertiary education organisations are able to make the necessary shifts. I am sure that organisations will be relieved to move away from competing with each other in order to attract students and Government funding. That is a very significant difference from the past. In my time as an academic in the 1990s teaching industrial relations labour history organisation and management and things of that sort the competition the university was forced into because of the funding regime at that time did nothing to enhance the education outcomes and these changes will now allow commitment to excellence which has always existed in our tertiary institutions to be the primary driver. 
The bill is good for the tertiary sector. It clarifies the powers of the Tertiary Education Commission and it provides for collaborative long-term planning. It is good for taxpayers in ensuring value for money on our investment in education and it is good for New Zealand by cementing the reforms that create a quality tertiary education system relevant to New Zealand and to the current and future needs of our society. I commend the bill to the House.