Notice Type
Notice Title

The Education (2008 Fee and Course Costs Maxima) Notice 2007

Under sections 159ZA(1), 159ZA(2)(e) and 159ZA(6) of the Education Act 1989, the Minister for Tertiary Education gives notice of the proposed conditions setting limits on maximum fees that tertiary education providers may charge domestic students in 2008.
N o t i c e
1. Title-This notice may be cited as the Education (2008 Fee and Course Costs Maxima) Notice 2007.
2. Commencement-The proposed conditions outlined in this notice apply for the 2008 academic year only.
3. Proposal-I propose:
(a) to specify the conditions setting maximum limits on certain fees and course costs ("fee and course costs maxima"), as set out in Schedule 1 below, that tertiary education organisations may charge domestic students in certificate, diploma, degree-level and short award courses that receive student achievement component funding in 2008; and
(b) to specify the other conditions in relation to the fee and course costs maxima policy, as set out in Schedule 2 below, that the Tertiary Education Commission (TEC) must attach to student achievement component funding in 2008.
4. Call for submissions-Any tertiary education organisation and any other person, body or organisation having an interest in the matter is invited to make a submission on the proposed fee and course costs maxima and other proposed conditions set out in this notice.
All submissions should be sent to:
Fee and Course Cost Maxima Submissions
Tertiary Education Policy
Ministry of Education
PO Box 1666
5. Date for submissions-All submission must be received by 13 September 2007.
Dated at Wellington this 18th day of August 2007.
HON. DR MICHAEL CULLEN, Minister for Tertiary Education.
Schedule 1
Proposed Fee and Course Costs Maxima for Certificate, Diploma, Degree-Level and Short Award Courses That Receive Student Achievement Component Funding in the 2008 Academic Year
Category Description (course classification) $/EFTS GST excl.
A Arts, Advanced Studies for Teachers, Health Therapies, Humanities, Languages, Social Sciences [#03], General Education [#5.2] 3,826.00
B Architecture, Quantity Surveying (non-degree) [#02], Computer Science [#06], Fine Arts, Design [#12], Music and Performing Arts [#16], Health Related Professions [#17], Trades 1 [#21], Medical Imaging [#25], Occupational Therapy [#28], Physiotherapy [#29], Clinical Psychology [#34] 4,414.00
C Architecture, Quantity Surveying (degree) [#02], Engineering, Technology [#11], Health Sciences (excluding classifications #07, #15, #17) [#13], Midwifery (3 year) [#27], Speech Language Therapy [#32], Medical Laboratory Science [#33], Audiology [#35] 5,103.00
G Veterinary [#23] 9,812.00
H Specialist Large Animal Science [#39] 5,103.00
I Teaching: Early Childhood Education [#19.1], Teaching: Primary [#19.2], Teaching: Secondary [#20] 3,826.00
J Business, Accountancy, Office Systems/Secretarial, Management [#04], Law [#14] 4,121.00
L Agriculture and Horticulture (non-degree) [#01], Osteopathy [#3.1], Science [#18], Nursing [#24] 4,414.00
M Agriculture and Horticulture (degree) [#01], Optometry [#13.1], Dental Therapy [#17.3] 5,103.00
N Pharmacy Professionals [#31], Dietetics [#36] 5,103.00
O Medical Radiation Therapy (MRT) [#30] 5,103.00
P Trades 2 [#22] 4,414.00
Q Veterinary Science Undergraduate (years 3, 4, 5) [#23.3] 9,812.00
R Dentistry [#07] 9,812.00
S Foreign-Going Nautical [#38] 5,103.00
T Medicine years 2-3 [#15] 9,812.00
U Medical Undergraduate (years 4-6) [#37] 9,812.00
Schedule 2
Other Proposed Conditions to be Attached to Student Achievement Component Funding Paid by the Tertiary Education Commission to Tertiary Education Organisations
1. These conditions apply to fees and course costs for all provider types: Tertiary education institutions (TEIs), private training establishments (PTEs) and other tertiary education providers (OTEPs).
2. Fees for all courses that are above the fee and course costs maxima in 2008 should not increase above 2007 levels, but are not required to reduce to the relevant maximum.
3. The fee and course costs in relation to a particular course of study or training will be subject to these conditions if:
(a) the tertiary education organisation is the sole source of the item to which the cost relates;
(b) all students enrolled in the relevant course of study or training are required to pay the fee or course costs; and
(c) the charge meets the guidelines for borrowing under the compulsory fees component of the student loan scheme.
4. The following items are included in the maxima: Tuition fees, compulsory charges, examination fees, other charges associated with a programme of study, material charges, cost of field trips and any compulsory purchase of equipment or books through the organisation.
Annual Fee Movement Limit (AFML)
5. Fee movements in 2008 at a course level are limited to 5% for certificate, diploma, degree-level and short award courses that receive student achievement component funding.
6. If the application of the annual fee movement limit (AFML) on fee and course costs allows for an increase above the relevant maxima in 2008, then the provider can only increase up to the level of the maxima.
Low or Zero Fee Courses
7. If the fee and course costs for a course are less than $444.44 (GST excl.) per equivalent full-time student (EFTS) in 2007, then for 2008, the provider can increase the fee to up to $444.44 (GST excl.) per EFTS, or can increase the fee for the course by 5%, whichever is the greater.
Postgraduate Qualifications and Courses
8. Postgraduate courses are excluded from the fee and course costs maxima.
9. Postgraduate fee and course costs can be increased by $444.44 (GST excl.) per EFTS in 2008.
10. Professional masters programmes (eg MBAs) are exempt from the postgraduate fee increase limit, and are not subject to any limit on fee increases.
Exemptions for Exceptional Circumstances
11. Only TEIs may apply, on the basis of exceptional circumstances, for exemptions in 2008 from the AFML of 5%, to allow for up to an additional 5%. An AFML exemption may allow fees to increase over the relevant fee and course costs maxima. In subsequent years, these fees will be subject to the policy for fees over the maxima.
12. TEIs and PTEs may apply, on the basis of exceptional circumstances, for exemptions in 2008 to:
(a) the restriction on increasing fee and course costs to the level of the fee and course cost maxima; and
(b) the limit on postgraduate fee increases.
13. In considering "exceptional circumstances" exemptions, the TEC will use the following principles:
(a) The cost of providing the course(s) is not being met by the income from the course(s);
(b) the organisation is unable to cross-subsidise the course(s) from its total financial surplus while remaining financially viable; and
(c) not increasing fees and course costs would compromise progress towards the achievement of the Tertiary Education Strategy 2007/12, the Statement of Tertiary Education Priorities 2008/10, or other critical elements of the tertiary reforms.
14. An application for exemption will be assessed for the overall balance of the principles above. It is not sufficient to satisfy one principle, but it is not necessary to satisfy all principles to gain an exemption.
15. Where the TEC finds that a tertiary education provider is not complying with the conditions set out in this notice, it can withdraw student achievement component funding for that course. This sanction will only be exercised as a final resort, and the TEC will work with the provider to rectify any non-compliance in the first instance.
Note: Effect of this Notice
These notes do not form part of this notice, but are intended to indicate its general effect.
A. Section 159ZA(2) of the Education Act 1989 ("the Act") provides that the Minister, when determining the design of a funding mechanism, may specify the conditions that the TEC must attach to funding provided under the mechanism, including conditions that limit the fees that an organisation may charge domestic students.
B. Under section 159ZA(6) of the Act, the Minister may not specify conditions setting limits on fees until two months after the date of publication of a notice in the New Zealand Gazette that:
(i) states that the Minister proposes to specify such conditions; and
(ii) sets out the proposed conditions; and
(iii) invites submissions on the proposed conditions; and
(iv) specifies the date by which submissions must be received, which must be a date no more than 21 days after the date of the New Zealand Gazette notice.
C. The conditions setting limits on fees subsequently specified by the Minister in accordance with section 159ZA(2) of the Act will be attached as conditions on the use of funding payable by the Tertiary Education Commission to an organisation under sections 159ZC and 159ZD of the Act.
D. Under sections 227(1A) and 236C of the Act, TEIs and PTEs respectively must not charge domestic students a fee which exceeds the maximum specified as a condition on funding by the TEC under sections 159ZC and 159ZD of the Act.