Sunday Star-Times

Free tertiary study: south shows how

If Southland can offer free tertiary education, why is it so expensive elsewhere? Julian Lee reports.

- Executive director of Universiti­es New Zealand Chris Whelan

The Tamils in India and Sri Lanka have a saying – you can’t have a moustache and drink soup too.

Labour leader Andrew Little would understand. One of his big election promises this year is free tertiary education. His soup? A cost to the taxpayer of $1.2 billion.

But has Little considered that the Tamils don’t get it right all the time? Is it possible to drink at least some soup with a moustache?

Taxpayers already hand over plenty of cash to tertiary institutio­ns. Last year the Tertiary Education Commission gave $2.8 billion – almost 4 per cent of the total Government budget – to universiti­es and polytechni­cs across the land.

Only one tertiary institute uses that money to provide free education. The Southern Institute of Technology.

The only requiremen­ts are that students have to be New Zealand citizens or residents, attend class, pass a certain grade and pay for course materials.

SIT’s ‘‘Zero Fees’’ was launched in 2001 when chief executive Penny Simmonds realised that all the polytechni­c needed was a cash injection to bring the student roll up to critical mass.

Invercargi­ll Mayor Tim Shadbolt stepped in and helped arrange a $7.2 million cash injection from the local community. SIT is in a unique position. It's in a region and a market where salaries are lower.

The zero fees programme has become completely self-sustaining, relying mostly on its annual government grant.

So why can’t the other 23 universiti­es and polytechni­cs in New Zealand pull it off with the funding they get?

One of the main reasons seems to be a fairly simple one. The wages bill. SIT spends 43 per cent of its budget on staff while the others spend closer to 60 per cent.

Average staff wages at SIT are $61,878 compared to Auckland University’s $118,351. Meanwhile, the national median income for a New Zealander is $45,800.

The Sunday Star-Times contacted New Zealand’s eight universiti­es and 18 polytechni­cs for comment. Most did not respond.

Executive director of Universiti­es New Zealand Chris Whelan said it was practicall­y impossible for universiti­es to offer free education with the existing government grants.

One of the main reasons is that salaries and the costs of courses and research are higher at universiti­es than at polytechni­cs.

Whelan explained it helps is located in Invercargi­ll.

‘‘SIT is in a unique position. It’s in a region and a market where salaries are lower.

‘‘SIT’s funding reflects that most of its courses are classroom-based, subdegree qualificat­ions with no that SIT research requiremen­ts. So they do not require a research-intensive teaching and learning environmen­t.‘‘

Otago Polytechni­c chief executive Phil Ker justified the higher costs there by claiming students received a high-quality service.

‘‘90 per cent of our students complete their qualificat­ions and 98 per cent of our graduates are in work, study or both. We have an employer approval rating of 92 per cent and an overall student satisfacti­on rate of 93 per cent.’’

A spokeswoma­n for Northland Polytechni­c said it would struggle to compete with SIT’s achievemen­t.

‘‘SIT is in a unique position in that the community decided to do the zero fees.

‘‘That’s their own initiative clearly it has worked.’’ All figures are from 2015, the available. and latest

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 ?? FAIRFAX NZ GEORGE HEARD / ?? Amy McMullan and Peter Bradley are losing their home help.
FAIRFAX NZ GEORGE HEARD / Amy McMullan and Peter Bradley are losing their home help.
 ?? FAIRFAXNZ PHOTO: ?? Penny Simmonds, chief executive of the Southern Institute of Technology.
FAIRFAXNZ PHOTO: Penny Simmonds, chief executive of the Southern Institute of Technology.

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