Under sections 159L(3)(d) and 159M(b) of the Education Act 1989, the Minister for Tertiary Education, Skills and Employment gives notice of the proposed conditions setting limits on the annual increases that tertiary education organisations may make to fees charged to domestic students in 2015.
It also specifies the conditions under which specified education funds are allocated by the Tertiary Education Commission (TEC) to tertiary education organisations (TEOs).
N o t i c e
1. Title-This notice may be cited as the Education
(2015 Annual Maximum Fee Movement and Fee Limits) Notice 2014.
2. Commencement-The proposed conditions outlined in this notice apply for the 2015 academic year only.
3. Proposal-I propose to specify conditions under section 159L(3)(d) that the Tertiary Education Commission (TEC) must attach to funding provided under the relevant funding mechanisms, in particular:
(a) to specify the annual limits by which TEOs 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 2015; and
(b) to specify the other conditions in relation to fees
that the TEC must attach to SAC funding; and
(c) to specify the conditions that the TEC must attach to specified education funds outlined in this notice.
4. Application-The conditions set out in this notice refer to:
(a) Fees as including 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.
(b) TEOs, as defined in section 159B, include tertiary education institutions (TEIs), private training establishments (PTEs) and rural education activities programme providers (REAPs).
5. Call for submissions-Any TEO 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 and Fee Limits Submissions
Tertiary Education Policy
Ministry of Education
PO Box 1666
Wellington 6140
Email: tertiary.strategy@minedu.govt.nz
6. Date for submissions-All submissions must be received by 29 May 2014.
Dated at Wellington this 8th day of May 2014.
HON STEVEN JOYCE, Minister for Tertiary Education, Skills and Employment.
--
Proposed Conditions to be Attached to Student Achievement Component Funding (SAC) Allocated and Paid for by the Tertiary Education Commission (TEC) to Tertiary Education Organisations (TEOs)
General
1. These conditions apply to fees charged for SAC-funded provision in all TEOs.
2. The fees in relation to a particular course of study or training will be subject to these conditions if:
(a) the TEO 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.
Annual Maximum Fee Movement (AMFM)
3. For 2015, the permitted AMFM is a 4% increase on the fees, exclusive of GST, charged in 2014 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
4. A TEO may apply, on the basis of exceptional circumstances, for exceptions from the 2015 AMFM of 4% for courses at NZQF Level 3 or above. Any exceptions granted will not exceed an additional 4% increase.
5. 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 3-8, 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 TEO 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 2014/2019.
6. An application must satisfy all criteria to gain an exception.
Low or Zero Fee Courses
7. 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 2014, then for 2015, 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
8. A TEO must not charge fees to learners aged under
25 years old enrolled in a course that is at Level 1 or Level 2 on the NZQF and funded through the Student Achievement Component (SAC) fund under the "Plan Allocation Process".
9. For all other SAC funded provision at NZQF Levels
1 and 2 that is delivered under the usual plan process, a TEO may not charge a higher fee for any course in 2015 than it charged for the same course, the last time that provider offered that course.
Proposed Conditions to be Attached to Specified Funds that are Allocated and Paid for by the Tertiary Education Commission to TEOs
10. A TEO may not charge fees to learners enrolled in 2015 in the courses funded by funds specified in paragraph 11.
11. Specified funds:
(a) Youth Guarantee Programme;
(b) Gateway;
(c) Maori and Pasifika Trades Training;
(d) Intensive Literacy and Numeracy, Refugee English Fund;
(e) Intensive Literacy and Numeracy, English for Speakers of Other Languages;
(f) Intensive Literacy and Numeracy;
(g) Workplace Literacy and Numeracy;
(h) Adult Literacy Educator Grants;
(i) Search and Rescue (Adult and Community Education);
(j) Emergency Management (Adult and Community Education).
Sanctions
12. Where the TEC decides that a TEO is not complying with the conditions set out in this notice, it can withdraw 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
("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.