Estimates of appropriations

Vote Tertiary Education - Education and Workforce Sector - Estimates 2020/21

Vote Tertiary Education#

APPROPRIATION MINISTER(S): Minister of Education (M26)

APPROPRIATION ADMINISTRATOR: Ministry of Education

RESPONSIBLE MINISTER FOR MINISTRY OF EDUCATION: Minister of Education

Overview of the Vote#

The Minister of Education is responsible for appropriations in Vote Tertiary Education for the 2020/21 financial year covering the following:

  • a total of just over $16 million for services from the Ministry of Education
  • a total of nearly $75 million for services from the Tertiary Education Commission
  • a total of nearly $14 million for establishing a single national vocational education institution
  • a total of nearly $32 million for services from Education New Zealand
  • a total of just over $3,016 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 $358 million for first year fees-free study for eligible students, apprentices and trainees
  • a total of just over $20 million for scholarships and other awards in the tertiary sector, and
  • a $10 million capital contribution to the cost of rebuilding the earthquake-damaged science facilities at Lincoln University.

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

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

  2019/20 2020/21
Titles and Scopes of Appropriations by Appropriation Type Final
Budgeted
$000
Estimated
Actual
$000
Budget
$000

Departmental Output Expenses

     

Stewardship and Oversight of the Tertiary Education System (M26)

This appropriation is limited to providing advice and services to support Ministers to discharge their portfolio responsibilities relating to tertiary and international education, as well as administrative and oversight activities including research and monitoring the tertiary education system.
- - 16,087

Establishing a Single National Vocational Education Institution (M26)

This appropriation is limited to expenses incurred in establishing a single national vocational education institution.
6,000 6,000 -

Total Departmental Output Expenses

6,000 6,000 16,087

Non-Departmental Output Expenses

     

Access to Tertiary Education (M26)

This appropriation is limited to improving access to tertiary education and training.
29,484 26,791 26,992

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

This appropriation is limited to giving effect to the Tertiary Education Strategy by effectively investing in, monitoring, informing and influencing the tertiary education and careers systems, managing the Crown's ownership interest in tertiary education institutions, and providing advice and support to Ministers.
72,238 70,238 74,707

Centres of Research Excellence (M26)

This appropriation is limited to the purchase of cooperative and collaborative tertiary research in areas of research strength in the tertiary education sector through the contestable Centres of Research Excellence Fund.
24,900 24,900 74,700

Establishment of a Single National Vocational Education Institution (M26)

This appropriation is limited to operating funding for establishing a single national vocational education institution.
11,100 11,100 13,900

International Education Programmes (M26)

This appropriation is limited to delivery of services in respect of international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of delivering an excellent student experience, achieving sustainable growth and developing global citizens.
34,014 34,014 31,797

Tertiary Education Research and Research-Based Teaching (M26)

This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations and supporting Wananga research capability.
331,000 331,000 321,000

Tertiary Sector / Industry Collaboration Projects (M26)

This appropriation is limited to funding activities that improve the relevance to industry of tertiary education provision.
32,232 25,828 33,030

University-led Innovation (M26)

This appropriation is limited to supporting universities to attract entrepreneurial academics to drive collaboration between universities and established and emerging businesses.
9,979 7,526 10,000

Total Non-Departmental Output Expenses

544,947 531,397 586,126

Benefits or Related Expenses

     

Scholarships for Inbound International Students (M26)

This appropriation is limited to scholarships available to international students wishing to study in New Zealand.
600 600 300

Tertiary Scholarships and Awards (M26)

This appropriation is limited to providing scholarships and other awards in the tertiary sector to students, researchers and teachers, within New Zealand and internationally.
16,035 16,035 19,868

Awards for Outbound New Zealand Students (M26)

This appropriation is limited to awards granted to provide assistance to scholars, researchers and teachers to undertake placements abroad and to participate in reciprocal education exchange arrangements with partner countries in selected areas of priority study, teaching and research.
3,984 3,984 -

Total Benefits or Related Expenses

20,619 20,619 20,168

Non-Departmental Capital Expenditure

     

Support for Lincoln University (M26)

This appropriation is limited to the rebuild of the science facilities at Lincoln University.
5,000 5,000 10,000

Support for a Single National Vocational Education Institution (M26)

This appropriation is limited to capital injections for a single national vocational education institution.
10,000 10,000 -

Support for Tai Poutini Polytechnic (M26)

This appropriation is limited to a capital injection into Tai Poutini Polytechnic to support its cash flow.
7,250 7,250 -

Support for Unitec Institute of Technology (M26)

This appropriation is limited to providing a loan facility for Unitec to support its cash flow and manage normal operations and restructuring costs.
15,000 15,000 -

Support for Whitireia New Zealand (M26)

This appropriation is limited to providing a capital injection for Whitireia New Zealand to support its cash flow and manage normal operations and organisational change.
5,000 5,000 -

Total Non-Departmental Capital Expenditure

42,250 42,250 10,000

Multi-Category Expenses and Capital Expenditure

     

Tertiary Tuition and Training MCA (M26)

The single overarching purpose of this appropriation is to fund tertiary tuition and training that leads to improvements in New Zealanders' skill levels.
2,826,598 2,776,598 2,908,420

Non-Departmental Output Expenses

     

Community Education

This category is limited to funding for adult and community education and literacy, numeracy and English language provision.
78,138 78,220 81,891

Tertiary Education: Student Achievement Component

This category is limited to funding for teaching and learning services for enrolled students in approved courses at tertiary education organisations to achieve recognised tertiary qualifications.
2,107,315 2,130,642 2,168,941

Training for Designated Groups

This category is limited to the purchasing and arranging of training linked to the New Zealand Qualifications Framework and the purchase of both on-job and off-job training places, including delivery of fully or partially funded training places and other industry-training related projects.
299,035 294,379 299,475

Non-Departmental Other Expenses

     

Fees-free Payments

This category is limited to ensuring fees-free study for eligible students, apprentices and trainees.
342,110 273,357 358,113

Stewardship of the Tertiary Education System MCA (M26)

The single overarching purpose of this appropriation is to provide services that contribute towards a well-functioning tertiary education system.
18,557 18,557 -

Departmental Output Expenses

     

Policy Advice

This category is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on Tertiary Education and international education related matters.
8,321 8,321 -

Research, Data Analysis and Monitoring

This category is limited to the production and dissemination of research and data analysis, monitoring and reporting on tertiary education at a system-wide level, and the provision of services (other than policy advice) to support the work of other agencies and Ministers in discharging their responsibilities for tertiary education and international education related matters.
10,236 10,236 -

Total Multi-Category Expenses and Capital Expenditure

2,845,155 2,795,155 2,908,420

Total Annual Appropriations and Forecast Permanent Appropriations

3,458,971 3,395,421 3,540,801

Supporting Information#

Part 1 - Vote as a Whole#

1.1 - New Policy Initiatives#

Policy Initiative Appropriation 2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000
Administration of the Interim Code of Practice for the Pastoral Care of Domestic Tertiary Education Students in 2020 (see also Vote Education in the Education and Workforce Sector)

Tertiary Tuition and Training MCA

         
Training for Designated Groups (1,465) - - - -
Non-Departmental Output Expense          
Cost Adjustment for Tuition Subsidies

Access to Tertiary Education

- 188 376 376 376
Non-Departmental Output Expense          

Tertiary Sector / Industry Collaboration Projects

- 41 82 82 82
Non-Departmental Output Expense          

Tertiary Tuition and Training MCA

         
Community Education - 562 1,134 1,134 1,134
Non-Departmental Output Expense          
Tertiary Education: Student Achievement Component - 17,030 34,058 34,058 34,058
Non-Departmental Output Expense          
Training for Designated Groups - 2,316 4,630 4,630 4,630
Non-Departmental Output Expense          
Crown Support for Southern Institute of Technology to Operate Telford in 2020 and 2021

Access to Tertiary Education

3,422 1,255 - - -
Non-Departmental Output Expenses          

Tertiary Tuition and Training MCA

         
Tertiary Education: Student Achievement Component (3,422) (1,255) - - -
Non-Departmental Output Expense          
Crown Support for Whitireia Community Polytechnic

Support for Whitireia New Zealand

5,000 - - - -
Non-Departmental Capital Expenditure          
Extending the Pilot of the Community Organisation Refugee Sponsorship Category (see also Vote Education and Vote Labour Market in the Education and Workforce Sector, Vote Health in the Health Sector, and Vote Social Development in the Social Services and Community Sector)

Tertiary Tuition and Training MCA

         
Community Education - - 283 283 283
Non-Departmental Output Expense          
Further Crown Support for Tai Poutini Polytechnic

Support for Tai Poutini Polytechnic

7,250 - - - -
Non-Departmental Capital Expenditure          
Lincoln University Science Facilities Rebuild: Capital Funding Confirmation

Support for Lincoln University

(60,000) (5,000) 25,000 30,000 -
Non-Departmental Capital Expenditure          
Raising the Profile and Strengthening the Pipeline into Vocational Education (see also Vote Education in the Education and Workforce Sector and Vote Social Development in the Social Services and Community Sector)

Administration of and Support for the Tertiary Education and Careers Systems

1,050 2,005 700 700 -
Non-Departmental Output Expense          

Tertiary Tuition and Training MCA

         
Fees-free Payments (4,022) (6,033) (2,200) (700) -
Non-Departmental Other Expense          
Re-Allocation of Youth Guarantee Fees- Free Places to Fund Additional Trades Academy Places (see also Vote Education in the Education and Workforce Sector)

Tertiary Tuition and Training MCA

         
Training for Designated Groups (6,823) (13,646) (13,646) (13,646) (13,646)
Non-Departmental Output Expense          
Reform of Vocational Education - Management of Fiscal Implications

Establishing a Single National Vocational Education Institution

6,000 - - - -
Departmental Output Expense          

Stewardship and Oversight of the Tertiary Education System

- 850 - - -
Departmental Output Expense          

Administration of and Support for the Tertiary Education and Careers Systems

7,950 9,700 - - -
Non-Departmental Output Expense          

Establishment of a Single National Vocational Education Institution

11,100 13,900 - - -
Non-Departmental Output Expense          

Tertiary Sector / Industry Collaboration Projects

3,700 5,000 5,000 5,000 5,000
Non-Departmental Output Expense          

Support for a Single National Vocational Education Institution

10,000 - - - -
Non-Departmental Capital Expenditure          

Stewardship of the Tertiary Education System MCA

         
Policy Advice 1,500 - - - -
Departmental Output Expense          

Tertiary Tuition and Training MCA

         
Tertiary Education: Student Achievement Component - - (5,000) (5,000) (5,000)
Non-Departmental Output Expense          
Support for Tertiary Students Affected by Provider Failure

International Education Programmes

1,500 1,000 750 750 750
Non-Departmental Output Expense          
Total Initiatives   (17,260) 27,913 51,167 57,667 27,667

Summary of Financial Activity

  2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
  Actual
$000
Actual
$000
Actual
$000
Actual
$000
Final Budgeted
$000
Estimated
Actual
$000
Departmental
Transactions
Budget
$000
Non-
Departmental
Transactions
Budget
$000
Total
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000

Appropriations

                       
Output Expenses 462,149 489,386 528,202 536,414 569,504 555,954 16,087 586,126 602,213 550,936 537,353 535,653
Benefits or Related Expenses 18,190 17,612 17,837 20,598 20,619 20,619 N/A 20,168 20,168 19,868 19,868 19,868
Borrowing Expenses - - - - - - - - - - - -
Other Expenses - - - 35,000 - - - - - - - -
Capital Expenditure 85,825 19,100 6,450 102,050 42,250 42,250 - 10,000 10,000 30,000 30,000 -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - - - N/A - - - -
Multi-Category Expenses and Capital Expenditure (MCA)                        
Output Expenses 2,463,396 2,465,672 2,421,636 2,322,133 2,484,488 2,503,241 - 2,550,307 2,550,307 2,580,630 2,583,589 2,584,746
Other Expenses - - 129,982 283,539 342,110 273,357 - 358,113 358,113 382,016 387,639 388,339
Capital Expenditure - - - - - - N/A - - - - -

Total Appropriations

3,029,560 2,991,770 3,104,107 3,299,734 3,458,971 3,395,421 16,087 3,524,714 3,540,801 3,563,450 3,558,449 3,528,606

Crown Revenue and Capital Receipts

                       
Tax Revenue - - - - - - N/A - - - - -
Non-Tax Revenue 15,478 8,296 8,760 24,790 4,195 4,195 N/A 3,266 3,266 3,266 3,266 3,266
Capital Receipts - - - - - - N/A - - - - -

Total Crown Revenue and Capital Receipts

15,478 8,296 8,760 24,790 4,195 4,195 N/A 3,266 3,266 3,266 3,266 3,266

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

  2015/16
Adjustments
$000
2016/17
Adjustments
$000
2017/18
Adjustments
$000
2018/19
Adjustments
$000
2019/20
Final Budgeted
Adjustments
$000
2019/20
Estimated
Actual
Adjustments
$000

Appropriations

           
Output Expenses 12,458 12,788 12,352 15,598 18,557 18,557
Benefits or Related Expenses - - - - - -
Borrowing Expenses - - - - - -
Other Expenses - - - - - -
Capital Expenditure - - - - - -
Intelligence and Security Department Expenses and Capital Expenditure - - - - - -
Multi-Category Expenses and Capital Expenditure (MCA)            
Output Expenses (12,458) (12,788) (12,352) (15,598) (18,557) (18,557)
Other Expenses - - - - - -
Capital Expenditure - - - - - -

Total Appropriations

-

-

-

-

-

-

Crown Revenue and Capital Receipts

           
Tax Revenue - - - - - -
Non-Tax Revenue - - - - - -
Capital Receipts - - - - - -

Total Crown Revenue and Capital Receipts

- - - - - -

The adjustments in the table above reflect that the Stewardship of the Tertiary Education System MCA, with two departmental output expense categories (Policy Advice and Research, Data Analysis and Monitoring) has been converted into a single departmental output expense appropriation. The reorganisation of appropriations for 2020/21 is set out in Part 1.4 - Reconciliation of Changes in Appropriation Structure.

The prior year information in the Summary of Financial Activity table has been restated to reflect the current Vote structure.

Significant changes in departmental and non-departmental appropriations related to tertiary and international education between 2015/16 and 2023/24 are discussed briefly below.

Departmental Output Expenses

Movements in departmental output expenses largely relate to:

  • participation in the Organisation for Economic Co-operation and Development's (OECD's) Programme for the International Assessment of Adult Competencies (PIAAC) from 2019/20 to 2022/23
  • implementation of the Government's first-year fees-free policy from 1 January 2018, and
  • implementation of 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. Three significant non-departmental output expenses were transferred to the Tertiary Tuition and Training multi-category appropriation from 2016/17.

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, provision for about 5,500 more apprentices by 2020, and the establishment of Information and Communication Technology Graduate Schools
  • additional funding for research, including increasing the Performance-Based Research Fund from 2018 and increasing the number of Centres of Research Excellence from 2015, including the establishment of one focused on Maori research in 2016
  • additional funding for International Connections for New Zealanders, including Centres of Asia-Pacific Excellence from 2017
  • funding from 2017 to help New Zealand universities recruit world-leading entrepreneurial academics
  • integrating Careers New Zealand into the Tertiary Education Commission from 2017/18
  • implementation of first-year fees-free policy from 1 January 2018
  • additional English language course provision following the response to the Syrian refugee crisis and an increased quota of refugees to 1,000 places from 2018/19 and to 1,500 per year from July 2020
  • reallocation of under-utilised Youth Guarantee fees-free places to fund 2,000 additional Trades Academy places in Vote Education from 2020, and
  • initial operating funding from 2019/20 to 2020/21 for the establishment and core capability of a single national vocational education institution and to support it to plan and design its network transformation programme.
Benefits or Related Expenses

Changes in benefits or related expenses are largely related to:

  • addressing pressures on Medical Trainee Intern Grants from 2017/18
  • recategorising the Prime Minister's Scholarships for Asia from non-departmental output expense International Education Programmes, expanding the fund and establishing the Prime Minister's Scholarships for other regions from 2016/17
  • 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, 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 (under the Tertiary Tuition and Training multi-category appropriation), and
  • provision for impairment of the concessionary loan by the Crown to Unitec Institute of Technology in 2018/19.
Non-Departmental Capital Expenditure

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

  • assisting Canterbury tertiary education institutions 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, Unitec Institute of Technology in 2018/19 and 2019/20, and Southern Institute of Technology to operate Telford in 2020 and 2021, and
  • funding in 2019/20 for initial capitalisation and information management capabilities for a single national vocational institution.
Crown Revenue

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

1.4 - Reconciliation of Changes in Appropriation Structure#

    Old Structure New Structure
2019/20 Appropriations
in the 2019/20 Structure
2019/20
(Current)
$000
Appropriations to which
Expenses (or Capital
Expenditure) have been Moved from or to
Amount
Moved
$000
2019/20 Appropriations
in the 2020/21 Structure
2019/20
(Restated)
$000
2020/21
$000

Multi-Category Expenses and Capital Expenditure

           

Stewardship of the Tertiary Education System MCA

           

Departmental Output Expenses

    -

Departmental Output Expense

   

Policy Advice

8,321 Transferred to Stewardship and Oversight of the Tertiary Education System (8,321)      

Research, Data Analysis and Monitoring

10,236 Transferred to Stewardship and Oversight of the Tertiary Education System (10,236)      
    Transferred from Policy Advice category of the Stewardship of the Tertiary Education System MCA 8,321

Stewardship and Oversight of the Tertiary Education System

18,557 16,087
    Transferred from Research, Data Analysis and Monitoring category of the Stewardship of the Tertiary Education System MCA 10,236      

Benefits or Related Expenses

     

Benefits or Related Expense

   

Tertiary Scholarships and Awards

16,035 Transferred from Awards for Outbound New Zealand Students 3,984

Tertiary Scholarships and Awards

20,019 19,868

Awards for Outbound New Zealand Students

3,984 Transferred to Tertiary Scholarships and Awards (3,984)   - -
Total Changes in Appropriations 38,576   -   38,576 35,955

These appropriation structure changes from 2020/21 relate to Cabinet's directive to consolidate appropriations as the first step of modernising the public finance system.

The Stewardship of the Tertiary Education System MCA (with two categories Policy Advice and Research, Data Analysis and Monitoring) has been converted into a single departmental output expense appropriation. There is no longer a requirement for policy advice to be separated from related outputs.

The Awards for Outbound New Zealand Students which is less than $4 million per annum has been merged with the larger Tertiary Scholarships and Awards. The scope statement for Tertiary Scholarships and Awards has been broadened to cover awards in the tertiary sector to students, researchers and teachers, within New Zealand and internationally.

Explanations of the reasons for changing the appropriation structure are noted in the details of each appropriation in Parts 2-4.

1.5 - Relationship between Individual Appropriations and the Work Programmes#

Vote Tertiary Education Government's Objectives for Education
Titles of Appropriations by Appropriation Type Learners at the Centre Barrier-free Access Quality Teaching and Leadership Future of Learning and Work World Class Inclusive Public Education
Departmental Output Expenses          
Stewardship and Oversight of the Tertiary Education System X X X X X
Non-Departmental Output Expenses          
Access to Tertiary Education   X      
Administration of and Support for the Tertiary Education and Careers Systems X X X X X
Centres of Research Excellence         X
Establishment of a Single National Vocational Education Institution X X X X X
International Education Programmes X     X  
Tertiary Education Research and Research-Based Teaching     X   X
Tertiary Sector / Industry Collaboration Projects     X X X
University-led Innovation     X X X
Benefits or Related Expenses          
Scholarships for Inbound International Students X        
Tertiary Scholarships and Awards   X X    
Non-Departmental Capital Expenditure          
Support for Lincoln University         X
Multi-Category Expenses and Capital Expenditure          
Tertiary Tuition and Training MCA X X X X X

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Stewardship and Oversight of the Tertiary Education System (M26)

Scope of Appropriation
This appropriation is limited to providing advice and services to support Ministers to discharge their portfolio responsibilities relating to tertiary and international education, as well as administrative and oversight activities including research and monitoring the tertiary education system.
Expenses and Revenue
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation - - 16,087
Revenue from the Crown - - 15,337
Revenue from Others - - 750
Comparators for Restructured Appropriation
  2019/20 2020/21
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote Tertiary Education: Stewardship of the Tertiary Education System MCA 18,557 18,557 -

Total

18,557

18,557

16,087

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
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The satisfaction rating given by the Minister of Education with the overall performance of the Ministry (see Note 1).

7 7 7

Internal quarterly assessment of the quality of the Ministry's policy advice (see Note 2).

Mean of 3.5 out of 5 Mean of 3.5 out of 5 Mean of 3.5 out of 5

Satisfaction of the portfolio Minister with the policy advice service (see Note 3).

Baseline year Baseline year Maintain or improve

Forecasts of student loans and student allowances are accurate within an agreed average of actual values.

Accurate within ± 3% of actual values Accurate within ± 3% of actual values Accurate within ± 3% of actual values

The satisfaction rating given by the Minister of Education on the quality of monitoring advice provided by the Ministry about Crown agencies (see Note 1).

7 7 7

The quality and range of the Ministry's analytical outputs is assessed through an independent expert review (see Note 4).

Quality is assessed as 'Good' or better Quality is assessed as 'Good' or better Quality is assessed as 'Good' or better

The satisfaction rating given by Ministers for the quality and timeliness of support for Ministerial delegations and visits (see Note 1).

7 7 7

The percentage of Ministerial correspondence replies, Parliamentary question replies and Ministerial Official Information Act replies completed within the timeframes agreed between the Ministry and the Office of the Minister.

95% 95% 95%

Percentage of Ministerial Correspondence replies, Parliamentary question replies and Ministerial Official Information Act replies provided that are factually accurate, meet any legislative requirements, and contain no avoidable errors, as measured by acceptance rates by the Office of the Minister.

95% 95% 95%

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
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Programme for International Assessment of Adult Competencies 2019/20  1,679  859  3,092  -  -
Reform of Vocational Education - Fiscal Implications 2019/20 1,500 850 - - -
Financial Impacts of the 100 Days Tertiary Education Package 2018/19 3,000 2,000 2,000 2,000 2,000
Reasons for Change in Appropriation

This is a new appropriation in 2020/21 created by converting the Stewardship of the Tertiary Education System MCA, with two departmental output expense categories (Policy Advice and Data Analysis and Monitoring) into a single departmental output expense appropriation. The reorganisation of appropriations for 2020/21 is also set out in Part 1.4 - Reconciliation of Changes in Appropriation Structure.

The $2.470 million decrease in this appropriation for 2020/21 compared to the equivalent appropriation in 2019/20 is due to:

  • transition to post-implementation baseline funding for the fees-free policy ($1 million)
  • the progression of the Programme for International Assessment of Adult Competencies (PIAAC) ($820,000), and
  • the progression of the Reform of Vocational Education work programme ($650,000).

Part 3 - Details of Non-Departmental Appropriations#

3.1 - Non-Departmental Output Expenses#

Access to Tertiary Education (M26)

Scope of Appropriation
This appropriation is limited to improving access to tertiary education and training.
Expenses
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 29,484 26,791 26,992
Components of the Appropriation
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Equity Loading 17,662 16,636 17,277
Maori and Pasifika Trades Training Top Up 8,400 6,733 8,460
Grant under section 321 of the Education Act to Southern Institute of Technology 3,422 3,422 1,255
Total 29,484 26,791 26,992
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
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Maori and Pasifika Trades Training

     

Percentage of learners per calendar year progressing from Maori and Pasifika Trades Training to New Zealand Apprenticeships and managed apprenticeships, other industry training at Level 3 and above, or further study at New Zealand Qualifications Framework Level 4 and above (see Note 1).

Improve on last year's result Not improved on previous year's result (35%) At least 35%

Note 1 - 2019/20 Final Budgeted Standard and 2019/20 Estimated Actual refer to the 2019 calendar year. 2020/21 Budget Standard refers to the 2020 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
Provider 2019/20
Final Budgeted
$000
2019/20
Estimated Actual
$000
2020/21
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Universities (8) 12,373 10,150 11,106 Plans up to 3 years
Wananga (3) 2,565 1,643 1,475 Plans up to 3 years
Institutes of Technology and Polytechnics (including the New Zealand Institute of Skills and Technology) (17) 12,324 13,380 12,513 Plans up to 3 years

Non-Government Organisations

       
Private Training Establishments 2,222 1,618 1,898 Plans up to 3 years
Total 29,484 26,791 26,992  

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Cost Adjustment for Tuition Subsidies 2020/21 - 188 376 376 376
Crown Support for Southern Institute of Technology to Operate Telford in 2020 and 2021 2019/20 3,422 1,255 - - -

Previous Government

           
Maori and Pasifika Trades Training Contingency Funding Drawdown 2016/17 2,400 2,400 2,400 2,400 2,400
Reasons for Change in Appropriation

The $2.492 million decrease in this appropriation for 2020/21 is due to a combination of:

  • a transfer of $3.422 million in 2019/20 and $1.255 million in 2020/21 from non-departmental output expense Tertiary Education: Student Achievement Component (in the Tertiary Tuition and Training MCA) for a grant under section 321 of the Education Act to support the Southern Institute of Technology to deliver primary industry training programmes at Telford in 2020 and 2021 ($2.167 million decrease)
  • a transfer from 2018/19 to 2019/20 for the Learner Success work programme with a focus on driving better outcomes for Maori and Pacific learners through existing equity funding ($513,000 decrease), and
  • a 1.6% increase in tuition and training subsidy rates from 1 January 2021 for Equity Loading and Maori and Pasifika Trades Training Top Up funding ($188,000 increase).
Conditions on Use of Appropriation
Reference Conditions
Section 159L Education Act 1989 Funding is allocated by the Tertiary Education Commission in accordance with funding determinations issued by the Minister of Education.

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

Scope of Appropriation
This appropriation is limited to giving effect to the Tertiary Education Strategy by effectively investing in, monitoring, informing and influencing the tertiary education and careers systems, managing the Crown's ownership interest in tertiary education institutions, and providing advice and support to Ministers.
Expenses
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 72,238 70,238 74,707
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
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of Tertiary Education Commission-funded tertiary education organisations who agree that auditing processes were made transparent and information was accessible throughout the process (see Note 1).

Improve on previous year's result Improved on previous year's result At least 82%

Percentage of tertiary education organisations who agree that the Tertiary Education Commission's investment toolkit and plan guidance were very useful to prepare their investment plans (see Note 1):

     
  • toolkit
Improve on previous year's result Improved on previous year's result At least 34%
  • plan guidance
Improve on previous year's result Improved on previous year's result At least 35%

Percentage of careers system stakeholders who agree that the Tertiary Education Commission online information and tools are useful (see Note 1).

Improve on previous year's result Improved on previous year's result At least 78%

Percentage of payments the Tertiary Education Commission makes to tertiary education organisations that are made within agreed timeframes.

100% 99.85% 100%

The overall satisfaction rating given by the Minister of Education on the Tertiary Education Commission (see Note 2).

Maintain or increase Maintained previous year's result 7

Note 1 - The Tertiary Education Commission is unable to report 2019/20 estimated actual percentages as results data is not available. Progress is measured through annual customer surveys held between April and June each year. No data is collected during the year.

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 2018/19 result was 7 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
Provider 2019/20
Final Budgeted
$000
2019/20
Estimated Actual
$000
2020/21
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Tertiary Education Commission 72,129 70,129 74,598 Ongoing

Non-Government Organisations

       
Maori Education Trust 109 109 109 Ongoing

Total

72,238

70,238

74,707

 

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Raising the Profile and Strengthening the Pipeline into Vocational Education 2019/20  1,050  2,005  700  700  -
Reform of Vocational Education - Management of Fiscal Implications 2019/20 7,950 9,700 - - -
Financial Impacts of the 100 Days Tertiary Education Package 2017/18 3,720 3,720 3,720 3,720 3,720

Previous Government

           
Funding to Support the Changes to the Careers System 2017/18 13,500 13,500 13,500 13,500 13,500
International Connections for New Zealanders 2016/17 - 125 - - -
Engineering Education to Employment 2016/17 400 - - - -
Reasons for Change in Appropriation

The $2.469 million increase in this appropriation for 2020/21 is due to a combination of:

  • provision for the Reform of Vocational Education work programme ($1.750 million increase)
  • provision for initiatives to raise the profile and strengthen the pipeline into the vocational education system ($955,000 increase)
  • provision to pilot delivery of the Work Connect career mentoring programme for Pacific migrants through to June 2021 ($224,000 increase)
  • provision for managing International Connections for New Zealanders in 2020/21 ($125,000 increase)
  • provision for the Engineering Education to Employment initiative to increase the number of engineering graduates in 2019/20 ($400,000 decrease), and
  • provision for co-ordination of search and emergency management training in 2019/20 ($185,000 decrease).

Centres of Research Excellence (M26)

Scope of Appropriation
This appropriation is limited to the purchase of cooperative and collaborative tertiary research in areas of research strength in the tertiary education sector through the contestable Centres of Research Excellence Fund.
Expenses
  2019/20 2020/21 2021/22 2022/23 2023/24
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 24,900 24,900 74,700 49,800 49,800 49,800
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
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Centres of Research Excellence annual reports are reviewed and appropriate action is taken (see Notes 1 and 2).

Achieved Achieved Achieved

Note 1 - 2019/20 Final Budgeted Standard and 2019/20 Estimated Actual refer to the 2019 calendar year. 2020/21 Budget Standard refers to the 2020 calendar year.

Note 2 - Annual reports are reviewed against milestones and key performance indicators set in research 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.

Service Providers
Provider 2019/20
Final Budgeted
$000
2019/20
Estimated Actual
$000
2020/21
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Tertiary Education Institution hosts of Centres of Research Excellence (varies between 7-11 during the period) 24,900 24,900 74,700 1 January 2021

Total

24,900

24,900

74,700

 
Reasons for Change in Appropriation

The $49.800 million increase in this appropriation for 2020/21 is due to the signing of the 2020 round of contracts for the Centres of Research Excellence occurring after 30 June 2020 and the $24.900 million expense being recognised in 2020/21 rather than 2019/20. Cash flow to the Centres of Research Excellence in 2020 is unaffected.

Establishment of a Single National Vocational Education Institution (M26)

Scope of Appropriation
This appropriation is limited to operating funding for establishing a single national vocational education institution.
Expenses
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 11,100 11,100 13,900
What is Intended to be Achieved with this Appropriation

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

How Performance will be Assessed and End of Year Reporting Requirements
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The New Zealand Institute of Skills and Technology submits reports that show it is meeting the targets and milestones in its funding agreement with the Crown.

New measure New measure Achieved
End of Year Performance Reporting

Performance information for this appropriation will be reported by the New Zealand Institute of Skills and Technology in its annual report.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Reform of Vocational Education - Management of Fiscal Implications 2019/20 11,100 13,900 - - -
Reasons for Change in Appropriation

The $2.800 million increase in this appropriation for 2020/21 is due to the initial phasing of provision for the establishment and core capability of a single national vocational education institution and to support it to plan and design its network transformation programme over 2019/20 to 2020/21.

International Education Programmes (M26)

Scope of Appropriation
This appropriation is limited to delivery of services in respect of international education, including promotion, information, research and professional development, both in New Zealand and overseas, for the purpose of delivering an excellent student experience, achieving sustainable growth and developing global citizens.
Expenses
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 34,014 34,014 31,797
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
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

The economic contribution from New Zealand's international education sector (see Note 1).

$5,100 million $4,190 million $4,940 million

Percentage of facilitated customers that agree Education New Zealand's services and support have added value to their organisation (see Note 2).

At least 75% At least 85% At least 85%

The percentage of international students who were very satisfied with their overall experience.

Revised measure 63% At least 63%

The percentage of international students enrolled to study outside Auckland (see Note 3).

Increase compared to 2018 Increase compared to 2018 Increase compared to 2019

Note 1 - The 2025 target is $6 million (International Education Strategy, Goal 2).

Note 2 - '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 3 - 2019/20 Estimated Actual refers to the 2019 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
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Support for Tertiary Students Affected by Provider Failure 2019/20 1,500 1,000 750 750 750
Export Education Levy: Addressing Pressures and Consultation on Proposed Increases 2018/19 2,000 - - - -
Reprioritisation - Education New Zealand Contribution to the Kea Network, New Zealand Story and Chair of Malay Studies 2018/19 (275) (275) (275) (275) (275)

Previous Government

           
Strengthening the Foundations for Sustainable Growth of International Education 2017/18 1,700 1,700 1,700 1,700 1,700
Reasons for Change in Appropriation

The $2.217 million decrease in this appropriation for 2020/21 is due to a combination of:

  • a temporary advance to the Export Education Levy Fund in 2019/20 (funded by capital withdrawals from the Ministry of Education) to meet unexpectedly high international student reimbursement costs ($2 million decrease)
  • provision to support international tertiary students if they are affected by failure of Private Training Establishments reduced from $1.500 million in 2019/20 to $1 million in 2020/21 ($500,000 decrease), and
  • a transfer to the Ministry of Business, Innovation and Employment for The New Zealand Story initiative in 2019/20 ($283,000 increase).

Tertiary Education Research and Research-Based Teaching (M26)

Scope of Appropriation
This appropriation is limited to funding research and research-based teaching on the basis of measured research quality in tertiary education organisations and supporting Wananga research capability.
Expenses
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 331,000 331,000 321,000
Components of the Appropriation
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Performance-Based Research Fund      
  • Quality Evaluation
173,250 173,250 173,250
  • Research Degree Completions
78,750 78,750 78,750
  • External Research Income
63,000 63,000 63,000
Wananga Research Capability Fund 6,000 6,000 6,000
Grant under section 321 of the Education Act to Te Wananga o Raukawa 10,000 10,000 -
Total 331,000 331,000 321,000
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
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Research degree completions (measured by Performance-Based Research Fund (PBRF)-eligible research degree completions) (see Note 1).

Previous year actual ± 5% Previous year actual ± 5% Previous year actual ± 5%

Percentage increase in amount of external research income for PBRF-eligible providers (see Note 1).

2% 3% - 5% 3% - 5%

Note 1 - 2019/20 Final Budgeted Standard and 2019/20 Estimated Actual refer to the 2019 calendar year. 2020/21 Budget Standard refers to the 2020 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
Provider 2019/20
Final Budgeted
$000
2019/20
Estimated Actual
$000
2020/21
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Universities (8) 306,435 303,324 305,045 Investment plans up to 3 years
Wananga (3) 16,517 16,823 6,756 Investment plans up to 3 years
Institutes of Technology and Polytechnics (including the New Zealand Institute of Skills and Technology) (17) 7,528 9,226 7,970 Investment plans up to 3 years

Non-Government Organisations

       
Private Training Establishments 520 1,627 1,229 Investment plans up to 3 years

Total

331,000

331,000

321,000

 

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Drawdown the Wananga Research Aspirations Contingency 2018/19 14,500 4,500 4,500 - -

Previous Government

           
Increasing the Performance-Based Research Fund 2017/18 15,000 15,000 15,000 15,000 15,000
Reasons for Change in Appropriation

The $10 million decrease in this appropriation is due to a grant under section 321 of the Education Act 1989 to Te Wananga o Raukawa in 2019/20 only.

Conditions on Use of Appropriation
Reference Conditions
Cabinet decision Funding in this appropriation is provided as part of the bulk grant to tertiary education organisations to recognise research performance. All degree-awarding tertiary education organisations are eligible for funding.
  The Performance-Based Research Fund is allocated on the basis of three measures:
 
  • Quality Evaluation - a periodic peer assessment of the research contribution of individual teaching and research staff (this will comprise 55% of funding in 2020 and 2021)
 
  • Research Degree Completions - a measure of the number of research-based post-graduate degree completions (this will comprise 25% of funding in 2020 and 2021)
 
  • External Research Income - a measure of income received for the purposes of conducting research (this will comprise 20% of funding in 2020 and 2021).

Tertiary Sector / Industry Collaboration Projects (M26)

Scope of Appropriation
This appropriation is limited to funding activities that improve the relevance to industry of tertiary education provision.
Expenses
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 32,232 25,828 33,030
Components of the Appropriation
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Centres of Asia-Pacific Excellence 9,875 9,875 10,000
Maori and Pasifika Trades Training 8,771 6,534 8,954
National Centre for Tertiary Teaching Excellence 3,556 3,556 3,556
Quality Teaching Agenda 2,520 2,520 2,520
ICT Graduate Schools (Development and Delivery) 1,610 1,610 1,500
Engineering Graduates 700 233 -
Establishment of Centres of Vocational Excellence 2,000 - 5,000
Establishment of Workforce Development Councils 1,700 500 -
Other Funding 1,500 1,000 1,500
Total 32,232 25,828 33,030
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
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Number of domestic equivalent full-time students in Information and Communication Technology Graduate Schools per calendar year (see Note 1).

Improve on previous year's result Not improved on previous year's result (195) At least 195

Centres of Asia Pacific Excellence annual reports are reviewed and appropriate action is taken (see Notes 1 and 2).

Achieved Achieved Achieved

Note 1 - 2019/20 Final Budgeted Standard and 2019/20 Estimated Actual refer to the 2019 calendar year. 2020/21 Budget Standard refers to the 2020 calendar year.

Note 2 - Annual reports are reviewed against milestones and key performance indicators set in annual 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.

Service Providers
Provider 2019/20
Final Budgeted
$000
2019/20
Estimated Actual
$000
2020/21
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Universities (8) 17,696 17,770 18,033 Range from 3 to 6 years
Wananga (3) 874 329 821 Plans up to 3 years
Institutes of Technology and Polytechnics (including the New Zealand Institute of Skills and Technology) (17) 8,785 5,028 5,402 Plans up to 3 years

Non-Government Organisations

       
Industry Training Organisations and Workforce Development Councils 1,700 792 6,043 Plans up to 3 years
Private Training Establishments 3,177 1,909 2,731 Plans up to 3 years

Total

32,232

25,828

33,030

 

The table above shows the main service providers for this appropriation.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Cost Adjustment for Tuition Subsidies 2020/21 - 41 82 82 82
Home-Based ECE Review - Improving the Quality of Home-Based Early Childhood Education 2019/20  500  500  -  -  -
Reform of Vocational Education - Management of Fiscal Implications 2019/20 3,700 5,000 5,000 5,000 5,000
Reprioritisation of Funding - Information and Communication Technologies (ICT) Graduate Schools 2018/19 (161) (271) (271) (271) (271)
Maori and Pasifika Trades Training: Improving Learner Support from 2019 2018/19 2,762 1,904 1,904 1,904 1,904

Previous Government

           
International Connections for New Zealanders 2016/17 9,875 10,000 10,000 10,000 10,000
Reasons for Change in Appropriation

The $798,000 increase in this appropriation for 2020/21 is mainly due to a combination of:

  • provision for the establishment of Centres of Vocational Excellence ($2 million in 2019/20 and $5 million in 2020/21) and Workforce Development Councils ($1.700 million in 2019/20 only) as part of the Reform of Vocational Education ($1.300 million increase)
  • a transfer from non-departmental output expense Tertiary Education: Student Achievement Component (in the Tertiary Tuition and Training MCA) to maintain current funding for Maori and Pasifika Trades Training (MPTT) consortia ($1 million increase)
  • a 1.6% increase in tuition and training subsidy rates from 1 January 2021 for MPTT funding ($41,000 increase)
  • the transfer of under-utilised 2018/19 MPTT Tools Grant funding from benefit or related expense Support to Apprentices to this appropriation in 2019/20 to support MPTT consortia ($858,000 decrease), and
  • funding in 2019/20 for polytechnics to conclude the Budget 2015 Engineering to Employment initiative to raise engineering graduate numbers ($700,000 decrease).
Conditions on Use of Appropriation
Reference Conditions
Section 159L Education Act 1989 Funding is allocated by the Tertiary Education Commission in accordance with funding determinations issued by the Minister of Education.

University-led Innovation (M26)

Scope of Appropriation
This appropriation is limited to supporting universities to attract entrepreneurial academics to drive collaboration between universities and established and emerging businesses.
Expenses
  2019/20 2020/21 2021/22 2022/23 2023/24
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 9,979 7,526 10,000 9,350 4,359 4,359
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
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Entrepreneurial Universities' annual reports are reviewed and appropriate action is taken (see Notes 1 to 3).

Achieved Achieved Achieved

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

Note 2 - 2019/20 Final Budgeted Standard and 2019/20 Estimated Actual refer to the 2019 calendar year. 2020/21 Budget Standard refers to the 2020 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
Provider 2019/20
Final Budgeted
$000
2019/20
Estimated Actual
$000
2020/21
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Universities (8) 9,979 7,526 10,000 Plans up to 5 years

Total

9,979

7,526

10,000

 
Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Reprioritisation of Funding - Entrepreneurial Universities 2018/19 (855) - (650) (5,641) (5,641)

Previous Government

           
Building Entrepreneurial Universities 2016/17 10,834 10,000 10,000 10,000 10,000

Scholarships for Inbound International Students (M26)

Scope of Appropriation
This appropriation is limited to scholarships available to international students wishing to study in New Zealand.
Expenses
  2019/20 2020/21 2021/22 2022/23 2023/24
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 600 600 300 - - -
What is Intended to be Achieved with this Appropriation

This appropriation is intended to achieve an increase in New Zealand's economic value from international students studying in New Zealand.

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 the New Zealand International Student Doctoral Research Scholarship under the Education Act 1989.

Current and Past Policy Initiatives
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Reprioritisation of Funding - New Zealand International Doctoral Research Scholarships 2019/20 (200) (500) (800) (800) (800)
Reasons for Change in Appropriation

The $300,000 decrease in this appropriation for 2020/21 is due to the funding for New Zealand International Doctoral Research Scholarships being phased out. No new scholarships have been awarded since 2017.

Tertiary Scholarships and Awards (M26)

Scope of Appropriation
This appropriation is limited to providing scholarships and other awards in the tertiary sector to students, researchers and teachers, within New Zealand and internationally.
Expenses
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Total Appropriation 16,035 16,035 19,868
Comparators for Restructured Appropriation
  2019/20 2020/21
Vote, Type and Title of Appropriation Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Vote Tertiary Education: Benefits or Related Expense: Awards for Outbound New Zealand Students 3,984 3,984 -

Total

20,019

20,019

19,868

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 Act 1989.

Reasons for Change in Appropriation

The former Awards for Outbound New Zealand Students appropriation, that totalled less than $4 million per annum, has been subsumed into the larger Tertiary Scholarships and Awards. The reorganisation of appropriations for 2020/21 is also set out in Part 1.4 - Reconciliation of Changes in Appropriation Structure.

3.5 - Non-Departmental Capital Expenditure#

Support for Lincoln University (M26)

Scope of Appropriation
This appropriation is limited to the rebuild of the science facilities at Lincoln University.
Capital Expenditure
  2019/20 2020/21 2021/22 2022/23 2023/24
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000
Estimated
$000
Estimated
$000
Estimated
$000
Total Appropriation 5,000 5,000 10,000 30,000 30,000 -
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
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Achieving business case milestones in the rebuild of science facilities at Lincoln University.

Achieved Achieved Achieved
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
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Lincoln University Science Facilities Rebuild: Capital Funding Confirmation 2019/20 (60,000) (5,000) 25,000 30,000 -

Previous Government

           
Lincoln University Science Facilities: Crown Capital Investment 2019/20 65,000 15,000 5,000 - -
Reasons for Change in Appropriation

The $5 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.

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

Multi-Category Expenses and Capital Expenditure#

Tertiary Tuition and Training (M26)

Overarching Purpose Statement
The single overarching purpose of this appropriation is to fund tertiary tuition and training that leads to improvements in New Zealanders' skill levels.
Scope of Appropriation
Non-Departmental Output Expenses
Community Education
This category is limited to funding for adult and community education and literacy, numeracy and English language provision.
Tertiary Education: Student Achievement Component
This category is limited to funding for teaching and learning services for enrolled students in approved courses at tertiary education organisations to achieve recognised tertiary qualifications.
Training for Designated Groups
This category is limited to the purchasing and arranging of training linked to the New Zealand Qualifications Framework and the purchase of both on-job and off-job training places, including delivery of fully or partially funded training places and other industry-training related projects.
Non-Departmental Other Expenses
Fees-free Payments
This category is limited to ensuring fees-free study for eligible students, apprentices and trainees.
Expenses, Revenue and Capital Expenditure
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Total Appropriation

2,826,598 2,776,598 2,908,420

Non-Departmental Output Expenses

     
Community Education 78,138 78,220 81,891
Tertiary Education: Student Achievement Component 2,107,315 2,130,642 2,168,941
Training for Designated Groups 299,035 294,379 299,475

Non-Departmental Other Expenses

     
Fees-free Payments 342,110 273,357 358,113
Components of the Appropriation
  2019/20 2020/21
  Final Budgeted
$000
Estimated Actual
$000
Budget
$000

Community Education

     
Adult and Community Education 23,794 24,081 24,108
Literacy and Numeracy Provision 38,188 37,607 39,838
English for Speakers of Other Languages 14,022 15,199 15,936
Immigration Levy 426 426 426
Emergency Management Pool 1,708 907 1,583

Tertiary Education: Student Achievement Component

     
Provision at Levels 1 and 2 83,710 81,776 83,836
Provision at Levels 3 and above      
  • Universities
1,223,399 1,284,829 1,258,902
  • Institutes of Technology and Polytechnics (including the New Zealand Institute of Skills and Technology) (17)
481,548 448,823 498,876
  • Wananga
124,420 117,875 128,640
  • Private Training Establishments
187,437 191,215 194,047
Information and Communications Technology Graduate Programmes 4,517 1,829 2,318
Grants under section 321 of the Education Act 2,284 4,295 2,322

Training for Designated Groups

     
Industry Training Fund 185,870 189,145 192,861
Youth Guarantee 91,542 84,949 84,337
Gateway 21,623 20,285 22,277

Fees-free Payments

342,110 273,357 358,113
Total 2,826,598 2,776,598 2,908,420
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
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Percentage of Student Achievement Component-funded and Youth Guarantee-funded learners who complete 75% of their courses (see Note 1).

Improve on previous year's result Not improved on previous year's result (73%) At least 73%

Note 1 - 2019/20 Final Budgeted Standard and 2019/20 Estimated Actual refer to the 2019 calendar year. 2020/21 Budget Standard refers to the 2020 calendar year.

What is Intended to be Achieved with each Category and How Performance will be Assessed
  2019/20 2020/21
Assessment of Performance Final Budgeted
Standard
Estimated
Actual
Budget
Standard

Non-Departmental Output Expenses

     

Community Education

     

This category is intended to achieve improvement in literacy and numeracy skills for learners who have low skills in these areas by funding foundational learning programmes.

     

Percentage of learners accessing the desired range (hours) of provision (see Notes 1 and 2):

     
  • Intensive Literacy and Numeracy
Improve on previous year's results Not improved on previous year's result (62.6%) At least 62.6%
  • Workplace Literacy and Numeracy (tertiary education organisation-led)
Improve on previous year's results Not improved on previous year's result (60.8%) At least 60.8%
  • English for Speakers of Other Languages.
Improve on previous year's results Not improved on previous year's result (95.6%) At least 95.6%

Tertiary Education: Student Achievement Component

     

This category is intended to achieve learners' attainment of recognised tertiary qualifications by funding education and training opportunities.

     

Qualification Completion (cohort based) (see Note 1) - Percentage of Student Achievement Component-funded students completing qualifications:

     

Level 4 to 7 non-degree:

     
  • all learners
Improve on previous year's result Improved on previous year's result (58.2%) At least 58.2%
  • Maori learners (relative to combined non-Maori and non-Pacific learners' results) (see Note 3)
Improve on previous year's result Improved on previous year's result (+2% points) Maintain no parity gap
  • Pacific learners (relative to combined non-Maori and non-Pacific learners' results) (see Note 4).
Improve on previous year's result Previous year's result not maintained (-2.1%) No more than -2.1% points

Level 7 degree and above:

     
  • all learners
Improve on previous year's result Not improved on previous year's result (60.7%) At least 60.7%
  • Maori learners (relative to combined non-Maori and non- Pacific learners' results) (see Note 3)
Improve on previous year's result Not improved on previous year's result (-16%) No more than -16%
  • Pacific learners (relative to combined non-Maori and non-Pacific learners' results) (see Note 4).
Improve on previous year's result Not improved on previous year's result (-16.5%) No more than -16.5% points

Training for Designated Groups

     

This category is intended to achieve an increase in the number of young people and employees with qualifications valued by employers through investing in training.

     

Industry Training (cohort based) (see Note 1) - Percentage completing programmes:

     
  • all learners
Improve on previous year's result Improved on previous year's result (68%) At least 68%
  • industry trainees
Improve on previous year's result Not improved on previous year's result (70%) At least 70%
  • apprentices
Improve on previous year's result Improved on previous year's result (61%) At least 61%
  • Maori (relative to combined non-Maori and non-Pacific learners' results) (see Note 4)
Improve on previous year's result Improved on previous year's result (-6% points) No more than -6% points
  • Pacific (relative to combined non-Maori and non-Pacific learners' results) (see Note 6)
Improve on previous year's result Maintained previous year's result (1% point) Maintain no parity gap

Youth Guarantee - Percentage of Youth Guarantee learners completing qualifications at Level 2 or 3 (see Note 1).

Maintain or improve on previous year's results Improved on previous year's result (60%) At least 60%

Non-Departmental Other Expenses

     

Fees-free Payments

     

This category is intended to contribute to removing barriers to participation by making tertiary education more affordable.

     

Average fees-free payment per learner for first year of education or training (see Note 7).

At least $5,759 $5,787 $5,787

Note 1 - 2019/20 Final Budgeted Standard and 2019/20 Estimated Actual refer to the 2019 calendar year. 2020/21 Budget Standard refers to the 2020 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 - 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 there to continue to be no parity gap.

Note 4 - 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 5 - 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 6 - 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 there to continue to be no parity gap.

Note 7 -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.

Service Providers for the Multi-Category Appropriation
Provider 2019/20
Final Budgeted
$000
2019/20
Estimated Actual
$000
2020/21
Budget
$000
Expiry of
Resourcing
Commitment

Crown Entities

       
Universities (8) 1,425,472 1,445,418 1,467,966 Plans up to 3 years
Wananga (3) 185,951 158,041 170,596 Plans up to 3 years
Institutes of Technology and Polytechnics (including the New Zealand Institute of Skills and Technology) (17) 648,488 568,718 682,056 Plans up to 3 years
Schools 25,694 23,718 27,134 Plans up to 3 years
Government Training Establishment 1,316 2,133 2,912 Plans up to 3 years

Non-Government Organisations

       
Private Training Establishments 346,419 364,237 314,563 Plans up to 3 years
Rural Education Activities Programmes (13) 2,797 2,653 2,493 Plans up to 3 years
Employers 9,226 10,283 8,230 Plans up to 3 years
Community Education Providers 2,766 3,349 27,629 Plans up to 3 years
Industry Training Organisations 178,469 198,048 204,841 Plans up to 3 years

Total

2,826,598

2,776,598

2,908,420

 

The table above shows the main service providers for this 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
Policy Initiative Year of
First
Impact
2019/20
Final Budgeted
$000
2020/21
Budget
$000
2021/22
Estimated
$000
2022/23
Estimated
$000
2023/24
Estimated
$000

Current Government

           
Cost Adjustment for Tuition Subsidies 2020/21 - 19,908 39,822 39,822 39,822
Extending the Pilot of the Community Organisation Refugee Sponsorship Category 2020/21 - - 283 283 283
Refugee Quota Increase: Increased Settlement Services 2020/21 - 1,157 1,688 3,220 3,377
Reform of Vocational Education - Management of Fiscal Implications 2019/20 - - (5,000) (5,000) (5,000)
Crown Support for Southern Institute of Technology to Operate Telford in 2020 and 2021 2019/20 (3,422) (1,255) - - -
Raising the Profile and Strengthening the Pipeline into Vocational Education 2019/20 (4,022) (6,033) (2,200) (700) -
Re-Allocation of Youth Guarantee Fees- Free Places to Fund Additional Trades Academy Places in Vote Education 2019/20 (6,823) (13,646) (13,646) (13,646) (13,646)
Administration of the Interim Code of Practice for the Pastoral Care of Domestic Tertiary Education Students in 2020 2019/20 (1,465) - - - -
Teacher Supply - Continuing to Increase the Levels of Teacher Supply for the Future 2019/20 2,624 5,268 7,316 9,364 9,364
Increasing Tertiary Education Tuition and Training Subsidies - Maintaining Quality Tertiary Education 2019/20 22,111 44,222 44,222 44,222 44,222
Home-Based ECE Review - Improving the Quality of Home-Based Early Childhood Education 2018/19 608 1,803 2,004 623 623
Reprioritisation of Funding - Information and Communication Technologies (ICT) Graduate Schools 2018/19 (978) (3,009) (5,031) (5,031) (5,031)
Reprioritisation of Funding - Fees-Free Tertiary Education and Training 2018/19 (41,968) (42,854) (33,484) (29,361) (29,361)
Streamlining Secondary-Tertiary Learning Opportunities from 2019 2018/19 (7,500) (7,500) (7,500) (7,500)  
Extending the Seven EFTS Borrowing Limit for Students in Long Programmes 2018/19 (3,877) (4,220) (4,442) (4,682) (4,682)
Computers in Homes 2018/19 1,072 500 - - -
Reprioritisation - Tertiary Tuition and Training Multi-Category Appropriation 2018/19 (24,700) (24,700) (24,700) (24,700) (24,700)
Financial Impacts of the 100 Days Tertiary Education Package 2017/18 404,700 447,100 471,700 471,700 471,700
Community Organisation Refugee Sponsorship Category 2017/18 53 - - - -

Previous Government

           
The Next Three-Year (2016/17 to 2018/19) Refugee Quota Programme 2018/19 1,050 1,575 1,575 1,575 1,575
Funding for Employment-based Initial Teacher Education 2017/18 (1,896) (703) - - -
Tuition Subsidy Increase 2017/18 19,810 19,810 19,810 19,810 19,810
Expanding the Youth Literacy and Numeracy Assessment Tool 2017/18 (330) (330) (330) (330) (330)
New Funding for Targeted Tuition Subsidy Increases 2016/17 5,000 5,000 5,000 5,000 5,000
More New Zealand Apprentices 2016/17 6,300 7,200 7,200 7,200 7,200
Utilise Headroom Arising from Reduced Demand for Tertiary Education 2016/17 (20,000) (20,000) (20,000) (20,000) (20,000)
Reasons for Change in Appropriation

The $81.822 million increase in this appropriation for 2020/21 is mainly due to a combination of:

  • provision for the first-year fees-free policy ($41.514 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 1.8% from January 2020 (Budget 2019 $22.111 million increase) and 1.6% from January 2021 (Budget 2020 $19.908 million increase)
  • provision for initiatives to alleviate teacher supply pressures in Budget 2019 ($2.644 million increase)
  • a transfer of $4.677 million funding over two years ($3.422 million in 2019/20 and $1.255 million 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 for 2020 and 2021 ($2.167 million increase)
  • a transfer in 2019/20 to Vote Education non-departmental output expense Quality Assurance (in Oversight and Administration of the Qualifications System MCA) to fund the New Zealand Qualifications Authority to administer the Interim Code of Practice for the Pastoral Care of Domestic Tertiary Students in 2020 from under-utilised Youth Guarantee fees-free funding ($1.465 million increase)
  • provision for an increase in the refugee quota programme ($1.381 million increase)
  • 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 ECE qualification ($1.195 million increase)
  • reduced contribution for employment-based initial teacher education in Vote Education from $1.896 million in 2019/20 to $703,000 in 2020/21 ($1.193 million increase)
  • a transfer of under-utilised Youth Guarantee fees-free funding to Vote Education non-departmental output expense Secondary-Tertiary Interface to fund additional Trades Academy places from 2020 ($6.823 million decrease)
  • reduced provision for Information and Communications Technology Graduate Schools ($2.242 million decrease)
  • a transfer of $12.955 million funding (from under-utilised Fees-free Payments) over 2019/20 to 2022/23 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 ($2.011 million decrease), and
  • a transfer (from savings in Student Achievement Component Level 1-2) to non-departmental output expense Tertiary Sector / Industry Collaboration Projects to maintain current funding for Maori and Pasifika Trades Training consortia until 2022 ($1 million decrease).
Conditions on Use of Appropriation
Reference Conditions
Section 159L Education Act 1989 Funding is allocated by the Tertiary Education Commission in accordance with funding determinations issued by the Minister of Education.
  Tertiary Education: Student Achievement Component provides for the Government's share of the cost of delivering courses to students. The amount that a provider receives through this component is calculated on the basis of the nature of the programme and the approved volume of teaching and learning.