Notice Type
Departmental
Notice Title

The Education (2012 Annual Maximum Fee Movement) Notice 2011

Under sections 159L(3)(d) and 159M(b) of the Education Act 1989, the Minister for Tertiary Education gives notice of the proposed conditions setting limits on the annual increases that tertiary education organisations may make to fees and course costs charged to domestic students in 2012.
N o t i c e
1. Title-This notice may be cited as the Education (2012 Annual Maximum Fee Movement) Notice 2011.
2. Commencement-The proposed conditions outlined in this notice apply for the 2012 academic year only.
3. Proposal-I propose:
(a) to specify the conditions setting annual limits that tertiary education organisations can increase fees charged to domestic students enrolled in courses that are leading to short awards, certificate, diploma, degree and postgraduate qualifications that receive student achievement component funding in 2012; and
(b) to specify the other conditions in relation to fees that the Tertiary Education Commission (TEC) must attach to student achievement component funding in 2012.
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 annual maximum fee movement (AMFM) and other proposed conditions set out in this notice.
All submissions should be sent to
Annual Maximum Fee Movement Submissions
Tertiary Education Policy
Ministry of Education
PO Box 1666
Wellington 6140
Email: tertiary.strategy@minedu.govt.nz
5. Date for submissions-All submissions must be received by 21 July 2011.
Dated at Wellington this 30th day of June 2011.
HON STEVEN JOYCE, Minister for Tertiary Education.
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Proposed Conditions to be Attached to Student Achievement Component Funding Allocated and
Paid for by the Tertiary Education Commission to Tertiary Education Organisations
General
1. These conditions apply to fees and course costs for all provider types: tertiary education institutions (TEIs), private training establishments (PTEs) and rural education activities programme providers (REAPs).
2. 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; and
(b) all students enrolled in the relevant course of study or training are required to pay the fee or course costs.
3. For the purposes of this policy, the following items
are included in the definition of "fees": tuition
fees, compulsory course costs, 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 Maximum Fee Movement (AMFM)
4. For 2012, the AMFM allows for a 4% increase on the fees and course costs, exclusive of GST, charged in 2011 for short awards, certificate, diploma, degree and postgraduate courses that receive student achievement component funding.
Exceptions to the AMFM
5. TEOs may apply, on the basis of exceptional circumstances, for exceptions from the 2012 AMFM
of 4%. Any exceptions granted will not exceed an additional 4% increase.
6. In considering exceptional circumstances, the TEC will use the following criteria:
(a) The organisation is unable to support the course(s) while remaining financially viable;
(b) for courses at NZQF levels 1-8, the completion
rate for the course met or exceeded the median performance benchmark for that level in the previous year;
(c) the TEO can demonstrate that the qualification of which the course is a part is in some way unique or special, for example, that there are no local alternatives to the course available; and
(d) that not allowing an exception will prevent the provider from making a significant contribution to the achievement of one or more of the Government’s priorities, as set out in the Tertiary Education Strategy 2010/15.
7. An application must satisfy all criteria to gain an exception.
Low or Zero Fee Courses
8. If the fee and course costs for a course are less than $511.11 (GST incl.) ($444.44 (GST excl.)) per Equivalent Full-Time Student (EFTS) in 2011, then for 2012, the provider can increase the fee to up to $511.11 (GST incl.) ($444.44 (GST excl.)) per EFTS, or can increase the fee for the course by 4%, whichever is the greater.
Youth Guarantee Programmes
9. Participants on youth guarantee programmes funded through the student achievement component are not to be charged any fees or compulsory course costs.
Professional Masters Programmes
10. Professional masters programmes (eg MBAs) are exempt from any limit on fee increases.
Pilot training
11. Providers of pilot training programmes are subject to the following conditions:
(a) Providers may not include the costs associated with meeting a solo flight hours requirement as a tuition fee for the purposes of this notice;
(b) providers that deliver pilot training that is funded by the TEC within the set EFTS cap may not charge fees in 2012 of more than:
(i) $28,000.00 (GST incl.) ($24,347.83 (GST excl.)) per EFTS for training in fixed wing aircraft or;
(ii) $50,000.00 (GST incl.) ($43,478.27 (GST excl.)) per EFTS for training in helicopters;
(c) for the avoidance of doubt, the AMFM of 4% still applies to individual courses; and
(d) paragraphs (a) and (b) above do not apply in the cases of students who were enrolled in affected programmes in 2011.
Sanctions
12. Where the TEC finds that a tertiary education organisation 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 159L(3)(d) 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 159M(b) 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 159L(3)(d) of the Act must be attached as conditions on the receipt of funding payable by the Tertiary Education Commission to an organisation under sections 159YA and 159ZC of the Act.
D. Under sections 227(1A) and 236C of the Act, TEIs and PTEs respectively must not charge domestic students a fee that exceeds the maximum specified as a condition on funding approved by the TEC under sections 159YA and 159ZC of the Act.