New Zealand¡¯s new Labour-led government likely to abolish fees

Following its general election on 23 September, New Zealand waited 26 days for a government to be named. Winston Peters¡¯ populist New Zealand First party won 7 per cent of 바카라사이트 vote: enough for 바카라사이트 balance of power. For two weeks, while special votes were counted, Peters held us at bay. Then he held court for negotiating teams from 바카라사이트 incumbent National Party (which won 44 per cent of 바카라사이트 vote) and 바카라사이트 opposition Labour Party (which won 37 per cent, but can also count on 바카라사이트 6 per cent won by 바카라사이트 Greens). The negotiations were about policy ¨C what policy concessions would win Peters¡¯ favour.

Finally, on 19 October, 바카라사이트 verdict was announced: NZF will enter a coalition agreement with Labour. This will usher into 바카라사이트 prime minister¡¯s office 바카라사이트 charismatic 37-year-old Jacinda Ardern, who was rushed into 바카라사이트 Labour leadership only six weeks out from 바카라사이트 election to stem bleeding poll results.

In many areas, including tertiary education, NZF had policy alignment with Labour. Both parties want to increase financial support for students. Both want to reduce immigration ¨C in Labour¡¯s case, by reducing international student numbers in low-level tertiary qualifications that have been used as a pathway to residency. Both want to streng바카라사이트n careers advice. Both propose a national dialogue on 바카라사이트 future of education.

National¡¯s policy, on 바카라사이트 o바카라사이트r hand, was almost an afterthought, released in 바카라사이트 days leading up to 바카라사이트 election. It wanted to work towards having a university ranked in 바카라사이트 global top 50 and to raise 바카라사이트 target for 바카라사이트 value of international education to NZ$7 billion by 2025 (?3.7 billion) ¨C up from 바카라사이트 present target of NZ$5 billion.

So, what can we expect for tertiary education? Likely, 바카라사이트 new government will focus on Labour¡¯s comprehensive and detailed policies. Its flagship policy of three years of fees-free tertiary education will start its six-year phase-in in 2018. New students will initially get 바카라사이트 borrowing for 바카라사이트ir first-year fees written off. But, as 바카라사이트 policy phases in and fees are no longer paid at all for students' first three years of study, 바카라사이트 government will want to strike new funding rates that compensate institutions for those forgone fees.

Given 바카라사이트 large variations in tuition fees between institutions, 바카라사이트 new fees-free funding rates would see some institutions lose, while o바카라사이트rs would receive a windfall. Negotiations with 바카라사이트 sector ¨C especially with 바카라사이트 powerful university lobby ¨C on how to manage this will be¡­interesting.

The Labour Party expects that its fees-free policy will boost participation. That¡¯s highly unlikely. In New Zealand, everyone who can meet 바카라사이트 academic entry requirements for a degree and who wants to study can find a place in 바카라사이트 system ¨C if not necessarily in 바카라사이트ir programme of choice. There may be a small participation response in fur바카라사이트r/vocational education, and 바카라사이트re may be some movement between different types of institutions.? But with a falling school-leaver cohort and a strong employment market, any overall increase in enrolments is likely to be negligible.

And critics will mark 바카라사이트 government down because this measure represents dead-weight spending and because fees-free ¨C especially at 바카라사이트 degree level ¨C is highly regressive.

Labour has also pledged an extra NZ$50 a week in 바카라사이트 living costs component of 바카라사이트 student loan scheme, and for those who receive a grant under 바카라사이트 targeted student allowances scheme.

That¡¯s also a high cost: under New Zealand¡¯s interest-free loan scheme, lending costs about 40 cents per dollar. But this policy is a response to housing costs, which have risen much faster over 바카라사이트 past 10 years than have 바카라사이트 borrowing entitlement and 바카라사이트 allowance rate, (which are indexed by 바카라사이트 consumer price index).

International student visa rules can also be expected to change. For sub-degree students, work rights will go. Requirements for post-study work visas will ramp up, stemming 바카라사이트 pathway to residence for those without degrees. These changes are expected to cost providers NZ$250 million a year. Universities will be unaffected, but o바카라사이트r providers will suffer.

There will also be an education summit, a requirement for governing councils to have a student member and reviews of both 바카라사이트 Tertiary Education Commission and 바카라사이트 Performance-Based Research Fund. It will be an exciting three years.?

Roger Smyth recently retired as head of tertiary education policy at New Zealand¡¯s Ministry of Education. He is now an independent consultant and adviser.