4. Question No. 4—EducationCAMILLA BELICH (Labour) to the Minister of EducationQuestion No. 4—Education4. CAMILLA BELICH (Labour) to the Minister of Education: What recent announcements has the Government made on extra support for the tertiary education sector?Hon JAN TINETTI (Minister of Education): Earlier today the Minister of Finance and I announced that this Government will provide an extra $128 million funding over two years for tertiary education providers for courses at degree level and above. This is in addition to the 5 percent increase provided at Budget 2023 the most significant funding increase in 20 years. This funding will help maintain the quality and breadth of our higher education offerings and research capability in our tertiary institutions. This is vital for our students our tertiary workforce our broader research system and for economic and social wellbeing in New Zealand. Camilla Belich: Why was this increase needed? Hon JAN TINETTI: Budget 2023 provided for a 5 percent increase—the most significant funding increase in 20 years—but when we began our Budget process universities and other degree providers were forecasting enrolment increases. The opposite has occurred and it is clear that there is a need for additional support. Presently our tertiary institutions are experiencing an unexpectedly large decline in domestic enrolments and increased cost pressures. In addition although international enrolments are increasing they remain well below pre-COVID levels. Similar issues are being faced by tertiary providers worldwide. The Government has heard the concerns of the sector and has acted.Camilla Belich: What institutions will benefit from this increase?Hon JAN TINETTI: While recent focus has been on Victoria University and Otago University other institutions have previously managed declines in student numbers. We did not want to disadvantage these institutions which in some cases had already made difficult decisions. The funding boost will go to all degree-granting institutions. I will report back to Cabinet by the end of July on whether recently announced changes represent a threat to capability of provision of programmes nationwide.Camilla Belich: How will the Government ensure that higher education funding is fit for purpose going forward?Hon JAN TINETTI: Today we announced the Government will review higher education funding including the Performance-based Research Fund. The current financial situation of some tertiary institutions points to the need to take this broader look into the way our higher education system is funded and financed. Today's funding announcement is a temporary boost for two years. We need to take a thorough look at the funding system during this time. The Government remains committed in supporting and working with the tertiary sector so it meets the evolving needs of students and continues to make a critical contribution to the research and innovation in Aotearoa. Chlöe Swarbrick: Will the review of the tertiary education funding model put the voice of students front and centre in the terms of reference in light of research which finds for example two-thirds of students regularly cannot afford the basics?Hon JAN TINETTI: Absolutely it will and I look forward to working with students to hear about their concerns over the next few months.