1. Tertiary Education Agenda New Zealand July 2007

2. Key domestic issues Equity in achievement Demographic patterns Affordability for government Tight labour market – skill and labour shortages Economic transformation constraints – productivity Legacy issues in sector as a result of past funding system Small country with dispersed population

3. Priorities in new Tertiary Education Strategy Increasing educational success for young New Zealanders – more achieving qualifications at level 4 and above by age 25 Increasing literacy, numeracy and language levels for the workforce Increasing the achievement of advanced trade, technical and professional qualifications to regional and national industry needs Improving research connections and linkages to create economic opportunities Also key shifts identified for each sub-sector – overall greater specialisation

4. Key international issues Tertiary Education International competition for skilled staff – salaries, research $, reputation International linkages for teaching and research – best practice, critical mass, infrastructure dependency And links to economy Small, open economy dependent on exports – including domestic market size, manufacturing base, costs of production, and need for links to exploit innovations Dependence on export education for some providers Distance to markets and environmental issues

5. The International Education Agenda New Zealand students are equipped to survive in an inter- connected world International students are enriched by their education and living experience in New Zealand Domestic education providers are strengthened academically and financially through international linkages New Zealand receives wider economic and social benefits

6. Response: Investing in a plan Stakeholders advise on priorities: Government (TES), learners, employers, iwi, ITOs, etc TEO works with regional and national stakeholders (business, communities) to identify need, and with other TEOs TEC monitors outcomes TEC and TEO agree outcomes for the approved plan, areas for capability building, etc, and TEC decides funding Quality assurance and monitoring of provision and TEO TEC engages with TEO in relation to contribution to network of provision, shifts, performance of TEO to date, etc TEO develops plan to meet needs as basis for iterative discussions with TEC TEC establishes investment approach (IG, EBs)

7. Key changes to Tertiary Education from 2008 Government has more say – tertiary strategy linked to funding More strategic – priorities and shifts in strategy Focus on network of provision for New Zealand Sub-sector approach – distinctive contribution Focus on need rather than demand – business and communities will have more influence Funding to support an agreed plan – capped and longer term More flexibility for TEC to engage based on TEO strengths and capability development needs Funding linked to performance and focussed on achievement At all levels based on evidence