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 2014.
N o t i c e
1. Title-This notice may be cited as the Education
(2014 Annual Maximum Fee Movement) Notice 2013.
2. Commencement-The proposed conditions outlined in this notice apply for the 2014 academic year only.
3. Proposal-I propose:
(a) to specify the annual limits by which 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 (SAC) funding in 2014; and
(b) to specify the other conditions in relation to fees
that the Tertiary Education Commission (TEC) must attach to SAC and Youth Guarantee funding in 2014.
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 10 July 2013.
Dated at Wellington this 20th day of June 2013.
HON STEVEN JOYCE, Minister for Tertiary Education.
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Proposed Conditions to be Attached to Student Achievement Component Funding (SAC) and Youth Guarantee Allocated and Paid for by the Tertiary Education Commission to Tertiary Education Organisations
General
1. These conditions apply to fees and course costs
(together referred to as "fees") for all tertiary education organisations as defined in section 159B, which includes tertiary education institutions (TEIs), private training establishments (PTEs) and rural education activities programme providers (REAPs), referred to below as a "tertiary education organisation".
2. The fees 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 fees.
3. For the purposes of this policy, "fees" include the following items: 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 2014, the AMFM allows for a 4% increase on the fees, exclusive of GST, charged in 2013 for short awards, certificate, diploma, degree and postgraduate courses at New Zealand Qualifications Framework (NZQF) Level 3 or above that receive SAC funding.
Exceptions to the AMFM
5. A tertiary education organisation may apply, on the basis of exceptional circumstances, for exceptions from the 2014 AMFM of 4% for courses at NZQF Level 3 or above. 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 tertiary education organisation 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 tertiary education organisation 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 fees for a course, other than a course that is
Level 1 or Level 2 on the NZQF and funded through
the SAC funding mechanism, are less than $511.11 (GST inclusive) ($444.44 GST exclusive) per Equivalent Full-Time Student (EFTS) in 2013, then for 2014, the tertiary education provider can increase the fee to up to $511.11 (GST inclusive) ($444.44 GST exclusive) per EFTS, or can increase the fee for the course by 4%, whichever is the greater.
Fees for SAC Funded Level One and Two Provision
9. A tertiary education organisation must not charge fees to learners enrolled in 2014 in a course that is at Level 1 or Level 2 on the NZQF and funded though SAC under
the Competitive Allocation Process.
10. For all other SAC funded provision at Levels 1 and 2 that is delivered under the usual plan process, a tertiary education organisation may not charge a higher fee for any course in 2014, than it charged for the same course the last time that provider offered that course.
Youth Guarantee Programmes
11. Participants on Youth Guarantee programmes must not be charged any fees.
Sanctions
12. Where the TEC decides that a tertiary education organisation is not complying with the conditions set
out in this notice, it can withdraw SAC 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.
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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 234A 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.
E. Professional masters programmes would no longer be exempt from the limits on annual fee increases and therefore subject to the proposed annual maximum fee increase in 2014, as set out in the notice.