Vote Tertiary Education - Education and Workforce Sector - Estimates 2021/22

Vote Tertiary Education#

Overview of the Vote#

The Minister of Education is responsible for appropriations in Vote Tertiary Education for the 2021/22 financial year covering the following:

• a total of just over $16 million for services from the Ministry of Education
• a total of just over $77 million for services from the Tertiary Education Commission (TEC)
• a total of $48 million for establishing Workforce Development Councils (WDCs) to give industry greater leadership across the vocational education and training system
• a total of nearly $35 million for services from Education New Zealand
• a total of $10 million for establishing Te Pukenga - New Zealand Institute of Skills and Technology (NZIST), a single national vocational institution, and transitioning its subsidiaries into a consolidated network of delivery of vocational education
• a total of nearly $3,239 million for tuition and industry training subsidies and research funding provided to tertiary education organisations and services from the adult and community education sector and other non-departmental providers
• a total of just over $541 million for first year fees-free study for eligible students, apprentices and trainees
• a total of $1 million for Te Wananga o Raukawa to support the resolution of Waitangi Tribunal Claim WAI 2698
• a total of nearly $20 million for scholarships and other awards in the tertiary sector, and
• a total of nearly $74 million for capital grants to the sector to support the rebuild of the earthquake-damaged science facilities at Lincoln University and for the TEC to develop an online careers planning tool and a vocational education data system.

Details of these appropriations are set out in Parts 2-4.

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

1.2 - Trends in the Vote#

Summary of Financial Activity

Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered. In this instance Total Appropriations for the Budgeted and Estimated Actual year may not equal Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations in the Details of Appropriations and Capital Injections.

Adjustments to the Summary of Financial Activity Table Due to Vote Restructuring

There have been no restructuring adjustments to prior years' information in the Summary of Financial Activity table.

1.3 - Analysis of Significant Trends#

Significant changes in departmental and non-departmental appropriations related to tertiary and international education between 2016/17 and 2024/25 are discussed briefly below.

Departmental Output Expenses

Movements in departmental output expenses largely relate to:

• participation in the Organisation for Economic Cooperation and Development's (OECD's) Programme for the International Assessment of Adult Competencies (PIAAC) from 2019/20 to 2023/24
• implementation of the Government's first-year fees-free policy from 1 January 2018, and
• implementation of the Reform of Vocational Education from 2019/20 including the establishment of a single national vocational education institution bringing together the existing 16 institutes of technology and polytechnics.

Non-Departmental Output Expenses

Most tertiary education funding is through non-departmental output expenses with the majority of that on tuition and industry training subsidies (approximately 81%) and research and innovation (approximately 12%).

The major changes to these appropriations over the trend period are principally owing to:

• ensuring the country's skills base supports the needs of industry and encourages innovation - strengthening provision in areas of specific priority, such as engineering, science, agriculture and health sciences, with targeted increases to relevant tuition subsidies and provision for about 5,500 more apprentices by 2020
• integrating Careers New Zealand into the Tertiary Education Commission (TEC) from 2017/18
• implementation of first-year fees-free policy from 1 January 2018
• reallocation of under-utilised Youth Guarantee fees-free places to fund 2,000 additional Trades Academy places in Vote Education from 2020
• fiscally neutral transfer of funding from 2020/21 to 2019/20 to implement the Government's commitment to give tertiary education organisations funding certainty in 2020, regardless of any impact on domestic student numbers resulting from COVID-19. This commitment required a change in accounting treatment to recognise the full 2020 calendar year funding expense at 30 June 2020. It brought forward six months' of funding that would have fallen in 2020/21 but has no impact on the funding available in 2021 and timing of cash payments to tertiary education organisations
• implementation of the Reform of Vocational Education from 2019/20, including establishing:
  • Te Pukenga - New Zealand Institute of Skills and Technology (NZIST), bringing together 16 institutes of technology and polytechnics as subsidiaries of NZIST to create an integrated and collaborative network of vocational education
  • WDCs, industry-governed bodies to ensure vocational education meets the needs of industry and employers
  • Centres of Vocational Excellence, to drive innovation and excellence in teaching and learning and improve links to industry and communities
  • funding from 2021/22 to ensure the viability of vocational education and training and implement a Unified Funding System for vocational education from 1 January 2023
• funding from the COVID-19: Response and Recovery Fund:
  • to manage the cost of additional tertiary education enrolments from 1 January 2021 to 31 December 2023 resulting from the impact of COVID-19
  • to support Group Training Schemes (over 2019/20 and 2020/21) to retain apprentices during COVID-19 economic recovery
  • to establish a Student Hardship Fund for 2020 to provide temporary financial assistance for tertiary students facing hardship from the impacts of COVID-19. The fund was extended to 2021 by the reprioritisation of underspends within the Vote in 2020/21 and funding in Budget 2021
  • for Transitional Industry Training Organisations and WDC led projects (over 2019/20 to 2021/22) to develop local and industry training responses to COVID-19, and
• funding from 2021/22 to continue support for wananga to undertake research and educational delivery that protects and advances matauranga Maori.

Benefits or Related Expenses

Changes in benefits or related expenses are largely related to:

• addressing pressures on Medical Trainee Intern Grants from 2017/18
• the transfer of the Maori and Pasfika Trades Training (MPTT) Tools Subsidy fund to the MPTT Consortium fund (in non-departmental output expense Tertiary Sector/Industry Collaboration Projects) from 2019
• a transfer to non-departmental output expense Access to Tertiary Education to extend the Student Hardship Fund to provide temporary financial assistance for tertiary students facing hardship from the impacts of COVID-19 for the 2021 calendar year, and
• cessation of international student doctoral research scholarships from 2021/22.

Non-Departmental Other Expenses

Significant changes in these appropriations mainly reflect:

• making the first year of tertiary education or training fees-free for new students from 1 January 2018
• impairment of the concessionary loan by the Crown to the Unitec Institute of Technology in 2018/19
• fiscally neutral transfer of funding for Fees-free Payments from 2020/21 to 2019/20 to implement the Government's commitment to give tertiary education organisations funding certainty in 2020, regardless of any impact on domestic student numbers resulting from COVID-19 (see also earlier comments under Non-Departmental Output Expenses above)
• provision for the Targeted Training and Apprenticeship Fund (over 2020/21 and 2021/22) from the COVID-19: Response and Recovery Fund to provide targeted fees-free support for vocational training and apprenticeships, and
• payments to Te Wananga o Raukawa in 2020/21 and 2021/22 to support the resolution of Waitangi Tribunal Claim WAI 2698.

Non-Departmental Capital Expenditure

The major changes in non-departmental capital expenditure relate mainly to:

• assisting Canterbury University in 2016/17 and 2018/19 and Lincoln University from 2019/20 to 2024/25 to rebuild facilities after the impact of the 2010 and 2011 earthquakes
• financial support for Tai Poutini Polytechnic from 2016/17 to 2019/20, Whitireia New Zealand in 2018/19 and 2019/20 and Unitec Institute of Technology in 2018/19 and 2019/20
• capital injections in 2019/20 and 2020/21 to establish Te Pukenga - New Zealand Institute of Skills and Technology (NZIST), bringing together 16 institutes of technology and polytechnics as subsidiaries of NZIST to create an integrated and collaborative network of vocational education
• investing in Tertiary Education Institutions (TEIs) in 2020/21 their share of the proceeds from the disposal of assets used by TEIs that are or were previously held in Crown title, and
• capital injections to the TEC from 2020/21 to 2023/24 to develop Tiro Whetu, an online careers planning system to support learners and workers to plan and manage their careers, and an information technology system to support the implementation of a Unified Funding System for vocational education from 2023.

Crown Revenue

Significant changes between years mainly reflect recoveries of surplus grants funding from the TEC and the tertiary education sector.

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Stewardship and Oversight of the Tertiary Education System (M26) (A19)

Scope of Appropriation

Expenses and Revenue

What is Intended to be Achieved with this Appropriation

This appropriation is intended to provide high-quality and timely advice to Ministers to support decision-making, managing the Government's investment in the tertiary education sector, and monitoring and oversight of the sector.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - The rating measures Ministers' satisfaction on a scale of 1 to 10, where 1 means unsatisfactory and 10 means extremely satisfied.

Note 2 - Based on a five-point scale: 1 = 'Poor'; 2 = 'Borderline'; 3 = 'Adequate'; 4 = 'Good'; 5 = 'Very good'. All agencies are required to use the refreshed Policy Quality Framework to assess the quality of their policy papers.

Note 3 - The Ministerial Policy Satisfaction Survey assesses Ministers' satisfaction with the services provided by the policy function on a scale from 1 to 5, where 1 means unsatisfied and 5 means extremely satisfied. The survey contains a common set of questions to be used by all policy agencies, with guidance available on the Department of Prime Minister and Cabinet Policy Project website.

Note 4 - Based on a five-point rating scale: 1 = 'Very poor'; 2 = 'Poor'; 3 = 'Acceptable'; 4 = 'Good'; 5 = 'Very good'.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Ministry of Education in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $293,000 decrease in this appropriation for 2021/22 is due to a combination of:

• provision in 2020/21 only for remediation payments associated with historic non-compliance of the Ministry's payroll system with the Holidays Act 2003 ($221,000 decrease)
• reduced provision for the Reform of Vocational Education work programme ($160,000 decrease)
• the progression of the Programme for International Assessment of Adult Competencies ($62,000 decrease), and
• provision for the operation of a Disputes Resolution Scheme to resolve contractual and financial disputes between domestic tertiary students and tertiary education providers ($150,000 increase).

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Access to Tertiary Education (M26) (A19)

Scope of Appropriation

Expenses

Components of the Appropriation

What is Intended to be Achieved with this Appropriation

This appropriation is intended to improve access to tertiary education and training for Tertiary Education Strategy priority learners.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - 2020/21 Final Budgeted Standard and 2020/21 Estimated Actual refer to the 2020 calendar year. 2021/22 Budget Standard refers to the 2021 calendar year.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $447,000 decrease in this appropriation for 2021/22 is due to a combination of:

• provision in 2020/21 to support group training schemes to retain apprentices during COVID-19 economic recovery ($16.292 million decrease)
• provision in 2020/21 to support the Southern Institute of Technology to operate the Telford farm training campus up until 31 December 2021 ($1.255 million decrease)
• a transfer from 2019/20 to 2020/21 for the settlement of project deliverables on equity grant contracts delayed due to the COVID-19 lockdown ($500,000 decrease)
• provision to ensure the viability of the vocational education and training system and implement the new Unified Funding System under the Reform of Vocational Education work programme ($11 million increase)
• provision in 2019/20 to implement the Government's commitment to give tertiary education organisations funding certainty in 2020, regardless of any impact on domestic student numbers resulting from COVID-19. This brought forward six months of funding that would have fallen in 2020/21 but has no impact on the funding available in 2021 or 2022 ($4.100 million increase)
• provision ($4.197 million in 2020/21 and $5.803 million in 2021/22) to extend the Student Hardship Fund to provide temporary financial assistance for tertiary students facing hardship from the impacts of COVID-19 for the 2021 calendar year ($1.606 million increase)
• a transfer of $1.962 million in 2021 and $1.100 million in 2022 and outyears from non-departmental output expense Tertiary Education: Student Achievement Component (in the Tertiary Tuition and Training MCA) for an increase to the Maori and Pasifika Trades Training (MPTT) Fees Top-Up rate from 1 January 2021 ($550,000 increase), and
• increases in tuition and training subsidy rates for Equity Loading and MPTT Top-Up funding, comprising 1.6% from 1 January 2021 (Budget 2020) and 1.2% from 1 January 2022 (Budget 2021) (totalling $344,000 increase).

Conditions on Use of Appropriation

Administration of and Support for the Tertiary Education and Careers Systems (M26) (A19)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure New Zealand has effective and well-managed tertiary education and careers systems.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - The Tertiary Education Commission are unable to report 2020/21 estimated actual percentages as results data is not yet available. Progress is measured through annual customer surveys held between April and June each year. No data is collected during the year. The Tertiary Education Commission want to see 2021/22 results be the same or better than the 2020/21 actual results (which will be reported in their annual report for the year ended 30 June 2021).

Note 2 - The survey rating measures Ministers' satisfaction with the quality of advice on a scale from 1 to 10, where 1 means unsatisfied and 10 means extremely satisfied. The 2019/20 result for the Minister's overall satisfaction rating of the Tertiary Education Commission was 8 out of 10.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $4.694 million decrease in this appropriation for 2021/22 is due to a combination of:

• provision in 2020/21 only for direct one-to-one careers guidance services to help workers displaced by COVID-19 understand their skills, develop a clear careers plan, gain the confidence and understanding to search for a new job, and then get back into work ($3.370 million decrease)
• provision for an integrated marketing and promotion campaign ($2.338 million in 2020/21 and $700,000 in 2021/22) to raise the profile and strengthen the pipeline into the vocational education system ($1.638 million decrease)
• provision to pilot delivery of the Work Connect career mentoring programme for Pacific migrants through to June 2021 ($304,000 decrease)
• provision to support the Ministry of Social Development's implementation of the Apprenticeship Boost Initiative ($600,000 in 2020/21 and $300,000 in 2021/22) to support employers to keep first and second-year apprentices employed and training towards their qualification, training the skilled workforces needed to recover from the impacts of COVID-19 ($300,000 decrease)
• provision ($300,000 in 2020/21 and $30,000 in 2021/22) for implementation of Transitional Industry Training Organisations and WDC led projects, funded through non-departmental output expense Tertiary Sector/ Industry Collaboration Projects, to develop local and industry training responses to COVID-19 ($270,000 decrease)
• provision in 2020/21 only for coordination of emergency management and search and rescue training ($185,000 decrease)
• provision in 2020/21 only for managing International Connections for New Zealanders ($125,000 decrease)
• provision in 2020/21 only from the COVID-19: Response and Recovery Fund for implementation of an initiative to support Private Training Establishments in New Zealand's tertiary education sector that offer international education delivery and are of strategic importance ($100,000 decrease)
• expense transfers from 2020/21 ($800,000) and 2021/22 ($900,000) to 2024/25 to manage and deliver the Performance Based Research Fund ($100,000 decrease)
• provision for implementation and operation of the Targeted Training and Apprenticeship Fund over 2020-2022 ($489,000 in 2020/21, $1.372 million in 2021/22 and $504,000 in 2022/23) funded through a transfer from non-departmental other expense Fees-free Payments (within Tertiary Tuition and Training MCA) ($883,000 increase)
• provision ($11.607 million in 2020/21 and $12.032 million in 2021/22) for the Reform of Vocational Education work programme ($425,000 increase), and
• provision ($1.160 million in 2020/21 to $1.550 million in 2021/22) for development and delivery of an online careers planning tool ($390,000 increase).

Centres of Research Excellence (M26) (A19)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve the delivery of high quality research by purchasing cooperative and collaborative research in areas of research strength in the tertiary education sector, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - 2020/21 Final Budgeted Standard and 2020/21 Estimated Actual refer to the 2020 calendar year. 2021/22 Budget Standard refers to the 2021 calendar year.

Note 2 - Progress against impact statements is reported by each Centre of Research Excellence (CoRE) in their annual report. Annual reports are assessed against the milestones and key performance indicators set in research plans and the quantitative measures included in the CoRE's Performance Measurement Framework.

Note 3 - The current funding round runs from 1 July 2021 to 31 December 2028.

Note 4 - The start date of the new CoRE's funding round was impacted by COVID-19 and delayed to 1 July 2021. The 2021/22 baseline figure will represent six months of student completions.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Establishment of a Single National Vocational Education Institution (M26) (A19)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to establish the New Zealand Institute of Skills and Technology (Te Pukenga) as a leading provider of off-job, work-based and online learning.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by Te Pukenga in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $59.082 million decrease in this appropriation for 2021/22 is due to the phasing of $90.182 million to Te Pukenga - New Zealand Institute of Skills and Technology (NZIST) over three years ($11.100 million in 2019/20, $69.082 million in 2020/21 and $10 million in 2021/22 ) to progress its establishment, transition its subsidiaries into a consolidated network of delivery, and to progress planning for its transformation, including supporting greater delivery of on-job learning, to deliver better outcomes for learners, employers and New Zealand, and support communities and the economy to recover from the impacts of COVID-19.

International Education Programmes (M26) (A19)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve enhanced social, cultural and economic benefits to New Zealand through New Zealand international education activities.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - Education New Zealand plans to survey the international sector.

Note 2 - The 2020/21 Estimated Actual refers to the 2020 calendar year. The 2025 target is $6 million (International Education Strategy, Goal 2). Education New Zealand is reassessing the broader contribution as part of the rebuild and will refresh the valuation methodology to reflect this. In addition, COVID-19 has greatly impacted the overall number of students in New Zealand, so the actual target will be substantially lower than in previous years. This is based on data as at 1 February 2021. Education New Zealand have made a number of assumptions about students retained from 2020 and the number of students able to enter the country in 2021.

Note 3 - 'Facilitated customers' are large education providers, peak bodies and regional partners that Education New Zealand business development managers work actively with to provide growth-focused services and targeted support.

Note 4 - This is measured by an online survey of New Zealanders from across the country to explore their perceptions about the benefits of international education and international students to New Zealand.

Note 5 - 2020/21 Estimated Actual refers to the 2020 calendar year.

End of Year Performance Reporting

Performance information for this appropriation will be reported by Education New Zealand in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $817,000 decrease in this appropriation for 2021/22 is due to a combination of:

• provision for a temporary advance to the Export Education Levy Fund in 2020/21 (funded by capital withdrawals from the Ministry of Education) to ensure international student reimbursement claims can be met ($2 million decrease)
• provision from the COVID-19: Response and Recovery Fund in 2020/21 only to support the diversification of international education products and services, including the development and delivery of a unified digital platform, exploration, market testing and analysis, and the delivery of offshore licensed education institutions ($1.850 million decrease)
• decrease in provision from $1 million in 2020/21 to $750,000 in 2021/22 to support international tertiary students if they are affected by failure of Private Training Establishments ($250,000 decrease)
• provision from the COVID-19: Response and Recovery Fund to support international education communications, marketing and brand awareness so that the government can drive and convert demand when circumstances allow and ensure that New Zealand's brand reputation does not diminish while borders are closed ($3 million increase), and
• a transfer to the Ministry of Business, Innovation and Employment for The New Zealand Story initiative in 2020/21 ($283,000 increase).

Support for Wananga (M26) (A19)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to support wananga to undertake research and educational delivery that protects and advances matauranga Maori.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - Annual reports are reviewed against milestones and key performance indicators set in Investment Plans. Reviews look at progress on delivery towards policy objectives and long-term outcomes.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

This new appropriation, established in Budget 2021, will continue support for wananga to undertake research and educational delivery that protects and advances matauranga Maori.

Tertiary Education Research and Research-Based Teaching (M26) (A19)

Scope of Appropriation

Expenses

Components of the Appropriation

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in, or maintain the quality of, research and research-based teaching and learning and to improve investment in research within the tertiary sector.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - 2020/21 Final Budgeted Standard and 2020/21 Estimated Actual refer to the 2020 calendar year. 2021/22 Budget Standard refers to the 2021 calendar year.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Current and Past Policy Initiatives

Conditions on Use of Appropriation

Tertiary Sector / Industry Collaboration Projects (M26) (A19)

Scope of Appropriation

Expenses

Components of the Appropriation

What is Intended to be Achieved with this Appropriation

This appropriation is intended to support the development of knowledge and skills that are required by learners and employers, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - 2020/21 Final Budgeted Standard and 2020/21 Estimated Actual refer to the 2020 calendar year. 2021/22 Budget Standard refers to the 2021 calendar year.

Note 2 - Progress against long-term outcomes is reported by each Centre of Asia, Pacific Excellence (CAPE) in their annual report. Annual reports are assessed against the milestones and key performance indicators set in annual plans and the CAPE's Performance Measurement Framework.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $11.117 million decrease in this appropriation for 2021/22 is due to a combination of:

• provision for Transitional Industry Training Organisations and Workforce Development Council (WDC) led projects ($13 million in 2020/21 and $3 million in 2021/22) to develop local and industry training responses to COVID-19 ($10 million decrease)
• transfers from 2019/20 to 2020/21 due to delays to the final reports of ICT Graduate Schools, Qualifications Development Fund and Engineering Education to Employment initiative disrupted by the COVID-19 lockdown ($1.786 million decrease)
• provision in 2020/21 only to implement a Budget 2019 initiative to improve the quality of educator-child interactions in home-based early childhood education by providing funding to tertiary providers to enable the existing educator workforce to upskill to a Level 4 early childhood education qualification ($1 million decrease)
• reprioritisation of $4.769 million ($2.520 million in 2020/21 and $2.249 million in 2021/22) in this appropriation for postgraduate Initial Teacher Education (ITE) programmes for an enhanced induction programme for ITE graduates who have had their practicum placement disrupted by COVID-19 ($2.656 million in 2020/21 and $2.113 million in 2021/22) ($272,000 decrease)
• provision in 2019/20 to implement the Government's commitment to give tertiary education organisations funding certainty in 2020, regardless of any impact on domestic student numbers resulting from COVID-19. This brought forward six months of funding that would have fallen in 2020/21 but has no impact on the funding available in 2021 or 2022 ($1.100 million increase)
• provision from the COVID-19: Response and Recovery Fund for building the capability of providers and expanding the range of government-funded Adult and Community Education to better meet the learning needs of New Zealanders ($500,000 increase)
• provision for the establishment of WDCs ($5.700 million in 2020/21 and $6 million in 2021/22) to give industry greater leadership across the vocational education and training system and help ensure the delivery of the skills industries need to recover from the impact of COVID-19. WDCs are a foundational component of the Government's Reform of Vocational Education ($300,000 increase), and
• a 1.6% increase in tuition and training subsidy rates from 1 January 2021 for MPTT funding ($41,000 increase).

Conditions on Use of Appropriation

University-led Innovation (M26) (A19)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to help New Zealand universities to recruit world-leading entrepreneurial academics, with a track record of working with industry to turn research into commercial innovation, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - Entrepreneurial Universities are universities receiving funding through the Entrepreneurial Universities initiative.

Note 2 - 2020/21 Final Budgeted Standard and 2020/21 Estimated Actual refer to the 2020 calendar year. 2021/22 Budget Standard refers to the 2021 calendar year.

Note 3 - Annual reports are reviewed against milestones and key performance indicators set in their Programme Maps and Annual Approach to Activity. Reviews look at progress on delivery towards policy objectives and long-term outcomes.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Service Providers

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $151,000 increase in this appropriation for 2021/22 is due to:

• a transfer in 2020/21 to non-departmental output expense Access to Tertiary Education to extend the Student Hardship Fund to provide temporary financial assistance for tertiary students facing hardship from the impacts of COVID-19 for the 2021 calendar year ($2.088 million increase)
• an expense transfer from 2019/20 to 2020/21 to finalise Entrepreneurial Universities grant contracts delayed by the COVID-19 lockdown ($1.287 million decrease), and
• the reprioritisation of unallocated funding for Entrepreneurial Universities in Budget 2019 ($650,000 decrease).

Workforce Development Councils (M26) (A19)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to enable Workforce Development Councils to provide a clear industry and workplace voice into the vocational education and training system.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - Approved Operational Plans will set out how each Workforce Development Council (WDC) plans to undertake key functions, industry engagement and strategic planning.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

This appropriation was established by the COVID-19: Response and Recovery Fund at Budget 2020 for the establishment of WDCs to give industry greater leadership across the vocational education and training system, and help ensure the delivery of the skills industries need to recover from the impact of COVID-19 as a foundational component of the Government's Reform of Vocational Education. Due to the impacts of COVID-19 and taking a more collaborative approach to their establishment, WDCs were not established in 2020 as envisaged at Budget 2020. The resulting underspend has been transferred to the Industry Training Fund (in the Tertiary Tuition and Training MCA) to allow it to support a similar level of apprenticeships in 2022 as in 2021.

3.2 - Non-Departmental Benefits or Related Expenses#

Tertiary Scholarships and Awards (M26) (A19)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve access to wider educational opportunities for skilled New Zealanders to enhance their existing skills.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for payments of Tertiary Scholarships and Awards under the Education and Training Act 2020.

Reasons for Change in Appropriation

The $2.109 million increase in the appropriation for 2021/22 is due to a transfer in 2020/21 to non-departmental output expense Access to Tertiary Education to extend the Student Hardship Fund to provide temporary financial assistance for tertiary students facing hardship from the impacts of COVID-19 for the 2021 calendar year.

3.4 - Non-Departmental Other Expenses#

Support for Te Wananga o Raukawa (M26) (A19)

Scope of Appropriation

Expenses

What is Intended to be Achieved with this Appropriation

This appropriation is intended to ensure progress towards resolving concerns raise in the Te Wananga o Raukawa Whakatupu Matauranga (WAI 2698) claim.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $6.300 million decrease in this appropriation reflects the allocation of expenditure (over 2020/21 and 2021/22) for the $8.300 million funding to Te Wananga o Raukawa to support the resolution of Waitangi Tribunal Claim WAI 2698.

3.5 - Non-Departmental Capital Expenditure#

Careers System Online (M26) (A19)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to support New Zealanders to have a personalised lifelong career plan, to help them easily understand and navigate career options and learning pathways throughout their lives.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - The Product Roadmap sets out the tools and datasets that will be developed and delivered over the three year period. These tools include the job-to-job tool for workers which will enable them to see other jobs that their skills are transferable to. Delivery of this tool was prioritised as part of the Tertiary Education Commission's response to COVID-19. The Tertiary Education Commission is scheduled to deliver the job-to-job tool to workers early in 2021. The online planning tool for secondary school learners, their influencers and schools will be the second deliverable of the wider Careers System Online Initiative and is scheduled to be delivered by the middle of 2022. The measure will be reviewed for 2022/23 to reflect on the usefulness/performance of the new system.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $2 million decrease in this appropriation reflects the timing of the capital injection to the TEC of $15 million over two years ($8.500 million in 2020/21 and $6.500 million in 2021/22) from the COVID-19: Response and Recovery Fund to develop Tiro Whetu, an online careers planning system to support learners and workers to plan and manage their careers.

Support for Lincoln University (M26) (A19)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve effective investment in rebuilding the science facilities at Lincoln University.

How Performance will be Assessed and End of Year Reporting Requirements

End of Year Performance Reporting

Performance information for this appropriation will be reported by Lincoln University in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $50 million increase in this appropriation reflects the timing of the Crown's overall $80 million contribution (in instalments over 2019/20 to 2024/25) to the cost of rebuilding the earthquake-damaged science facilities at Lincoln University.

Vocational Education Data System (M26) (A19)

Scope of Appropriation

Capital Expenditure

What is Intended to be Achieved with this Appropriation

This appropriation is intended to enable the development of a robust information technology system to support the delivery of vocational education.

How Performance will be Assessed and End of Year Reporting Requirements

Note 1 - The Tertiary Education Commission is scheduled to deliver an information technology system to support implementation of the unified funding system for vocational education from 2023. The measure will be reviewed for 2022/23 to reflect specific timeframes for delivery.

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

This new appropriation provides a capital injection to the TEC of $13.850 million over three years ($7.300 million in 2021/22, $4.550 million in 2022/23 and $2 million in 2023/24) to develop an information technology system to support the implementation of a Unified Funding System for vocational education.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

4 - Multi-Category Expenses and Capital Expenditure#

Tertiary Tuition and Training (M26) (A19)

Overarching Purpose Statement

Scope of Appropriation

Expenses, Revenue and Capital Expenditure

Components of the Appropriation

What is Intended to be Achieved with this Appropriation

The overarching intention is to contribute to improved lifetime outcomes of New Zealanders through the provision of skills from tertiary education, training, foundation learning programmes and community education, with a focus on Tertiary Education Strategy priorities.

How Performance will be Assessed for this Appropriation

Note 1 - 2020/21 Final Budgeted Standard and 2020/21 Estimated Actual refer to the 2020 calendar year. 2021/22 Budget Standard refers to the 2021 calendar year.

What is Intended to be Achieved with each Category and How Performance will be Assessed

Note 1 - 2020/21 Final Budgeted Standard and 2020/21 Estimated Actual refer to the 2020 calendar year. 2021/22 Budget Standard refers to the 2021 calendar year.

Note 2 - Desired range of hours relates to the optimal hours of learning needed to make an impact on an individual's learning.

Note 3 - 2020 learner hours were impacted by the COVID-19 pandemic. The Tertiary Education Commission are wanting to see an increase on the 2019 pre-COVID-19 pandemic result of 1,325,557 learner hours.

Note 4 - This is a measure of the percentage point gap between the percentage of Maori learners completing qualifications (or industry training programmes) and the percentage of combined non-Maori and non-Pacific learners completing qualifications (or industry training programmes) - the desired trend is for the percentage point gap to decrease.

Note 5 - This is a measure of the percentage point gap between the percentage of Pacific learners completing qualifications (or industry training programmes) and the percentage of combined non-Maori and non-Pacific learners completing qualifications (or industry training programmes) - the desired trend is for the percentage point gap to decrease.

Note 6 -The performance measure for Fees-free is the average benefit to the learner from Fees-free payments. This is the fee payment for education or training that they no longer need to meet through their own finances, or from student support. As fees charged by tertiary education organisations to learners are inclusive of GST, this average fee payment figure also includes GST.

Note 7 - The Targeted Training and Apprenticeship Fund (TTAF) came into effect at 1 July 2020. The number of learners in TTAF-eligible apprenticeships during the six month period (July to December 2020) is estimated to have been 53,635. The aim of TTAF is to minimise the impact of COVID-19 on apprentice numbers. The Tertiary Education Commission are expecting to limit the decline in apprentice numbers to no more than 5% of the pre-COVID 19 number of 51,332. Consequently 'at least 48,765' learners in apprenticeships is their target.

Service Providers for the Multi-Category Appropriation

End of Year Performance Reporting

Performance information for this appropriation will be reported by the Tertiary Education Commission in its annual report.

Current and Past Policy Initiatives

Reasons for Change in Appropriation

The $1,250.502 million increase in this appropriation for 2021/22 is mainly due to a combination of:

• provision in 2019/20 to implement the Government's commitment to give tertiary education organisations funding certainty in 2020, regardless of any impact on domestic student numbers resulting from COVID-19. This brought forward six months of funding that would have fallen in 2020/21 but has no impact on the funding available in 2021 or 2022 ($1,097.382 million increase)
• provision from the COVID-19: Response and Recovery Fund to manage the cost of additional tertiary education enrolments from 1 January 2021 to 31 December 2023 ($79.450 million in 2020/21, $140.500 million in 2021/22, $87.600 million in 2022/23 and $26.550 million in 2023/24) resulting from the impact of COVID-19 ($61.050 million increase)
• increases in tuition and training subsidy rates for Adult and Community Education, Student Achievement Component funding at all qualification levels, Youth Guarantee and Gateway programmes, and the Industry Training Fund, comprising 1.6% from January 2021 (Budget 2020) and 1.2% from January 2022 (Budget 2021) (totalling $36.104 million increase)
• increased provision for the first-year fees-free policy ($33.970 million increase)
• a transfer of $42 million unspent funding appropriated from the COVID-19: Response and Recovery Fund for establishment of WDCs in 2020/21 to the Industry Training Fund to manage demand for apprenticeships in 2022 ($21 million increase)
• provision to ensure the viability of vocational education and training ($7.420 million increase)
• transfer of under-utilised Fees-Free Payments to non-departmental output expense Administration of and Support for the Tertiary Education and Careers Systems, Vote Education departmental output expense Support and Resources for Teachers (in Improved Quality Teaching and Learning MCA) and Vote Social Development to raise the profile and strengthen the pipeline into vocational education system (transfer of $6.033 million in 2020/21 reducing to $2.200 million in 2021/22) ($3.833 million increase)
• a transfer of under-utilised Youth Guarantee fees-free funding in 2020/21 to Non-Departmental output expense Administration of and Support for the Tertiary Education and Careers Systems to fund direct one-to-one careers guidance services to help workers displaced by COVID-19 understand their skills, develop a clear careers plan, gain the confidence and understanding to search for a new job, and then get back into work ($3.370 million increase)
• provision for initiatives to alleviate teacher supply pressures in Budget 2019 ($2.048 million increase)
• provision from the COVID-19: Response and Recovery Fund for building the capability of providers and expanding the range of government-funded Adult and Community Education to better meet the learning needs of New Zealanders ($1.781 million increase)
• a transfer in 2020/21 to non-departmental output expense Access to Tertiary Education to support the Southern Institute of Technology to deliver primary industry training programmes at Telford for 2020 and 2021 ($1.255 million increase)
• transfers from 2019/20 into 2020/21 for work programmes disrupted due to the COVID-19 lockdown:
  • literacy and numeracy provision ($5.645 million decrease)
  • industry training-related projects ($3.540 million decrease)
  • increased investment in Gateway and Trades Academy places by 2,000 from 7,250 to 9,250 per annum ($1.384 million decrease)
• a transfer of $5 million per annum (from the Student Achievement Component) from 2021/22 to Non-Departmental output expense Tertiary Sector / Industry Collaboration Projects for the operation of Centres of Vocational Excellence to drive innovation and excellence in teaching and learning and improve links to industry and communities ($5 million decrease)
• reduced provision for Information and Communications Technology Graduate Schools ($2.233 million decrease), and
• provision in 2020/21 from the COVID-19: Response and Recovery Fund to provide funding for learners to access English language courses, including partners and dependants of New Zealand citizens and residents on specific visas, who intend to live in New Zealand long-term ($1.500 million decrease).

Conditions on Use of Appropriation