Mrs Tolley also announced this week that Christchurch is to have a new Trades Academy, and that student places are to more than treble at the existing National Trade Academy in Christchurch, which incorporates CPIT.

The number of fees-free places for 16 and 17 year olds will increase to 2000 in 21 Trades Academies from next year.

“Schools are partnering with tertiary providers, employers and industry training organisations to give 16 and 17 year olds a more flexible way of learning, and the vocational skills which will give them more career choices,” Mrs Tolley said.

The ten new Trades Academies which will open during 2012 will involve support from UCOL in in Palmerston North and Manawatu, Horowhenua, Whanganui and the Wairarapa , NMIT in Nelson, Unitec and AUT in West Auckland, MIT in Manurewa, Otago Polytechnic in Central Otago, EIT in the Hawkes Bay, WITT in Taranaki, Te Tai Poutini on the West Coast, Wintec in Taumaranui, and the Open Polytechnic across the country.

“Local economies will also benefit from these new Trades Academies, as businesses will now have more young people with better skills ready to enter the workplace,” said Mrs Tolley.

“By 2014, 12,500 places will be available for 16 and 17 year olds in Trades Academies, Service Academies and the wider Youth Guarantee.”

Ministry of Education statistics show the average surplus as a percentage of revenue at public tertiary education providers climbing dramatically from 1.9 percent in 2006 to 5.2 percent last year.

In 2006 public tertiary education providers made a combined surplus of $66 million on revenue of $3.5 billion. Last year the same institutions made a combined surplus of $280 million on revenue of $4.4 billion.

Public tertiary institutions are supposed to meet a benchmark surplus of 3 percent of revenue each year. By exceeding that benchmark by a further 2.2 percent last year the institutions pocketed nearly $100 million dollars more than they were required to.

The large surplus last year does not seem to be a one off aberration according to TEU National Secretary Sharn Riggs. “They have grown steadily each year since 2006.”

The public institutions that have generated the largest surpluses as percentages of revenue include Waiariki (16 percent) Te Whare Wānanga o Awanuiārangi and SIT (13 percent each), WITT and UCOL (12 percent each), the Open Polytechnic, CPIT and Bay of Plenty Polytechnic (11 percent each).

“While we commend these institutions on careful and prudent management, we need to remember that surplus money is money that could have been spend saving jobs, teaching students and protecting quality education,” said Ms Riggs. “Too many good people have lost their jobs, gone without pay rises or been told to turn away students because of tight fiscal circumstances. It is galling to see that those circumstances were not so tight after all.”

Also in Tertiary Update this week

1. Negotiations across the nation
2. Voluntary student membership unlikely before election
3. Sleepover workers reject government offer

Other news

“Wanted: casual teaching staff. Postgraduate qualifications essential, PhD preferred. Minimum three hours work per paid hour; hours to be advised. No office provided. Three months work available; chance of more next year, after four months unpaid break.” Doesn’t sound very enticing, does it? But such is the lot of the sessional tutor — 70,000 in Australia, the NTEU estimates - The Melbourne Age

Two-thirds of English universities will have a maximum fee level of £9,000 and a third of them will charge the full fee for all courses. UCU said today that it was not surprised that all universities’ tuition fee hikes had been approved, leaving England as the most expensive country to study for a public degree – University and College Union

Almost a quarter of Australia’s universities expect to be over-enrolled by more than 20 per cent this year. And more than two-thirds of institutions began the year planning to take on extra students without any federal teaching subsidy to offset the cost. Australian universities are jockeying for position in next year’s demand-driven market. From next year, universities are promised teaching subsidies for every place they can fill – The Australian

Welsh ministers have been handed proposals for cutting the number of universities through mergers. A blueprint from the body that funds higher education would cut the number of universities in Wales from 11 to six. Education Minister Leighton Andrews, who last year said universities must “adapt or die”, is backing the proposals - BBC

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TEU Tertiary Update is published weekly on Thursdays and distributed freely to members of the Tertiary Education Union and others. You can subscribe to Tertiary Update by email or feed reader. Back issues are available on the TEU website. Direct inquiries should be made to Stephen Day.

The polytechnic has released a review of faculties that proposes disestablishing nearly thirty of its 146 full time equivalent lecturers.  The proposal, if it goes ahead, will see student-staff ratios increase from about 40:1 to 55:1.

TEU organiser Phil Dyhrberg says that cuts will make it harder for students to contact their lecturer.

“Fewer lecturers means less contact time for students.  One of New Zealand’s most significant distance learning providers will become more distant from its students.  That puts unnecessary pressure on lecturers and students, ” said Mr Dyhrberg.

The report plans to cut 12.8 FTE staff from the School of Business, 8.4 from the School of Information and Social Sciences and 8 staff from the School of Workplace Learning.

TEU national secretary Sharn Riggs says the cuts, like those at other polytechnics around the country, are the result of government funding cuts.

“Lecturers at polytechnics want to help people find the skills and qualifications they need to get work.  Instead, short-sighted government cuts mean that those lecturers themselves are also losing jobs,” said Ms Riggs.

In the School of Business the polytechnic is predicting 2100 EFTS next year, but intends they will be taught by 37.5 EFTS rather than the 50.3 EFTS currently employed in 2010.  That means a change in ratio from 1:42 to 1:56 (up 33 percent). Similar increases are intended for the other two schools as well.

“An institution cannot reasonable ask 114 full time equivalent lecturers to do the same job that 144 are currently doing without that converting into either an undue increase in workload or significant pressure on quality,” said Ms Riggs.

The polytechnic has released a review of faculties that proposes disestablishing nearly thirty of its 146 full time equivalent lecturers.  The proposal, if it goes ahead, will see student to staff ratios increase to 55 to 1.

TEU organiser Phil Dyhrberg says that cuts will make it harder for students to contact their lecturer.

Fewer lecturers means less contact time for students.  One of New Zealand’s most significant distance learning providers will become more distant from its students.  That puts unnecessary pressure on lecturers and students.”

The report plans to cut 12.8 FTE staff from the School of Business, 8.4 from the School of Information and Social Sciences and 8 staff from the School of Workplace Learning.

TEU national secretary Sharn Riggs says the cuts, like those at other polytechnics around the country, are the result of government funding cuts.

“Lecturers at polytechnics want to help people find the skills and qualifications they need to get work.  Instead, short-sighted government cuts mean that those lecturers themselves are also losing jobs,” said Ms Riggs.

The Employment Court has found that a staff member at the Open Polytechnic of New Zealand who subsequently joined the union was entitled to work 34 weekly duty hours as specified in the collective employment agreement, rather than the 36 hours he earlier agreed to in a letter of offer and acceptance of employment.

Chief Judge Colgan rejected the Open Polytechnic’s appeal against an earlier authority finding in favour of the union member. He said that for the polytechnic’s case to succeed the court would need to ignore a clause of the collective agreement, which specified that any previously agreed terms and conditions of employment cease to apply on the day on which the employee becomes bound by the collective employment agreement.

“The court cannot, for reasons of convenience, ignore clear and not otherwise explicable provisions of a collective agreement…. [Where] an employee elects to exercise his or her statutory right of union membership after employment commences, the Open Polytechnic is bound then to apply the 34 hour working week to such an employee, and if it wishes to increase this to 36 hours, must renegotiate that with the employee concerned.” This clause is unique to the Open Polytechnic collective.

The result means that all TEU members at the polytechnic now have a 34 hour working week.

TEU national secretary Sharn Riggs says the decision highlights the need for employers to comply with collective employment agreements and not rely on internal interpretations of how new staff are offered employment.

“The decision has reinforced the value of collective bargaining and a strong union membership.”

Also in Tertiary Update this week:

1. More investment in skills to address staff shortages
2. TEU Massey members defend right to know reason for redundancy
3. Progress on gender pay gap requires more than words
4. Can institutions buy and sell treaty claim assets?
5. Diplomas led to healthier, happier women

Other news

Staff at the University of Otago College of Education fear a cost-cutting restructuring proposal announced yesterday will result in poorer-quality programmes for teacher trainees.Staff called to a meeting yesterday were “stunned” to hear 23 of the group of about 70 teacher educators are likely to lose their jobs by the end of 2012, Tertiary Education Union southern organiser Kris Smith said last night - Otago Daily Times

The Government has backtracked on a promise of $11 million funding for a New Zealand School of Music, throwing the $60m project into doubt. Victoria and Massey, the two universities behind plans for the proposed school near Wellington’s Civic Square, say they are still planning the project but need outside support to build it – The Dominion Post

“Collaboration” is the new buzz word among tertiary institutions. Aoraki Polytechnic islinking with the Open Polytechnic of New Zealand to offer business degree study from Timaru, BOP Polytechnic  has signed a memorandum of understanding with the University of Waikato to develop and deliver health and healthcare related teaching, and Lincoln University and Telford Rural Polytechnic continue their merger plans.

Sir Wira Gardiner has been appointed by the government to chair the Tertiary Education Commission, an organisation with a $3 billion budget. The New Zealand Herald understands the Cabinet confirmed the appointment of Sir Wira, husband of National MP Hekia Parata, last week. He has been called on as a fix-it man for both major political parties in the past, and his appointment could signal more emphasis on cost savings and quality control in the tertiary sector – New Zealand Herald

Global private education provider Navitas will slash staff numbers at La Trobe University’s International College by at least a third, with the loss of 43 or more jobs. The Melbourne-based university will have to pick up the redundancy costs under its deal with Navitas to privatise the business – The Australian

There is both a demand and a need for the Centre for New Zealand Studies in London, according to a review instigated after the decision to close it. The centre at Birkbeck College, University of London, was set up in 2007. A memorandum of understanding was signed between the New Zealand government and Birkbeck, and the New Zealand government donated £100,000 to the centre in April 2008. But last autumn, less than three years after its opening, Birkbeck announced its intention to wind down the centre. Despite international criticism of the move, the centre’s library was disposed of and its staff sacked – Times Higher Education Supplement

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TEU Tertiary Update is published weekly on Thursdays and distributed freely to members of the Tertiary Education Union and others. You can subscribe to Tertiary Update by email or feed reader. Back issues are available on the TEU website. Direct inquiries should be made to Stephen Day, email: http://scr.im/stephenday

“We don’t accept that a university education is a prerequisite for a good job, and we don’t think our school system should function as if it is”, he said.

The links and transitions between secondary and tertiary education, particularly for students who are not succeeding or participating in secondary school, has been an area of focus for both this government and the previous one. The prime minister noted that the government planned to introduce both legislative and funding changes.

“We will also be continuing the reforms necessary to support our Youth Guarantee policy of providing 16- and 17-year-olds with the option of pursuing their education in the setting which best suits their needs, be it a school, polytechnic, workplace or other training provider.”

TEU national president Dr Tom Ryan hopes that the prime minister’s continued interest in skills and trades training for young new Zealanders will mean an expansion of the youth guarantees programme.

“This year the Youth Guarantees scheme is in a small pilot phase which is available only through selected providers – in regions that government has deemed in high need. If the scheme were to become more universal it would give many more young New Zealanders the chance to learn skills and contribute to their local communities and economies.”

ALSO: Listen to the minister of tertiary education” Steven Joyce and” other commentatorsdiscuss this issue on National Radio this morning.

A Department of Labour report,” Māori in the New Zealand Labour Market, shows that there has been a strong growth of Māori employed in education, including tertiary education, over the last five years. However there are likely to be job losses for Māori education workers in the upcoming eight years.

The recently released report provides a detailed examination of Māori in the labour market including educational, employment, unemployment and population trends. It also seeks to capture the impact of the current economic downturn on the Māori labour market.” 

Between 2004 and 2009 the number of Māori employed in education increased from 19,800 to over 22,000, an increase of 12 percent – slightly higher than the 11 percent rate of increase for non-Māori in working in education over the same period.

However, the department forecasts that the outlook is less positive for Māori education workers, with the number employed likely to fall by an average of 0.6 percent per year until 2018. That would equate to more than 130 Māori education workers losing their job each year until 2018.

The report also notes that the total median hourly earning for Māori workers in all jobs has failed to grow as fast as it has for non-Māori workers.”  In 2004 Māori were paid an average of $1.50 less per hour than non-Māori workers.”  Last year that gap had increased to $2 per hour. Māori women’s median hourly earnings from wages and salaries were $16.43, compared with $18.22 for all women. For Māori men, median hourly earnings were $18.31, compared with $20.53 for all men.” 

Also in” Tertiary Update“ this week

1. ITP MECA dispute enters new year
2. UNESCO calls for renewed effort on Education For All
3. Massey, Canterbury and Otago to exclude more students
4. Aoraki Polytechnic buys PTEs
5. US colleges feel pinch despite federal money

Other news

1. Plans by a United States university to open a” physiotherapy school in Queenstown“ which could initially cater for 25 students have been placed on hold -” The Otago Daily Times
2. At least 80 universities in Britain may” abandon postgraduate research“ as funding is concentrated on centres of global excellence -” The Australian
3. Universities Australia has warned this year’s” big expansion of places is unsustainable“ and the sector will face a challenge to maintain quality and expand unless backed by additional teaching and infrastructure money -” The Australian
4. Humanities departments in former polytechnics should” bear the brunt of funding cuts“ to higher education in Britain, the House of Lords heard this week -” Times Higher Education

TEU Tertiary Update is published weekly on Thursdays and distributed freely to members of the Tertiary Education Union and others. You can subscribe to Tertiary Update by email or feed reader. Back issues are available on the TEU website. Direct inquiries should be made to Stephen Day, email: http://scr.im/stephenday

The TWG is set to release its recommendations by the end of this year, and is tipped by the business media to recommend cutting New Zealand’s top income tax rate from 38 percent to 30 percent, to align it with the company rate. The estimated NZ$1.6 billion ($1.1 billion) annual cost could be made up by increasing the sales tax, and imposing a land tax or levies on capital gains from investment property.

Finance Minister Bill English said he is” open-minded on what new taxes could be introduced.

“The only proposition that’s been ruled out is a capital gains tax on people’s individual home,” Mr English told reporters after his speech to the working group conference this week. “We’ve avoided ruling anything else out.”

In contrast to many of his comments throughout this year, the finance minister said that New Zealand was in comparatively good financial state and should be looking to ‘reinforce its status as a low-tax country’:

“While our public finances aren’t in great shape, they are not as bad as other countries, and there is an opportunity for us to enhance our relative position as a low-tax country.”

TEU president Dr Tom Ryan warned that low taxes would probably mean low investment in important public infrastructure like tertiary education.

“Achieving lower taxes may be an admirable aim, but not if it undermines important social and economic institutions like universities, polytechnics and wānanga.”  It’s almost inevitable that bodies like Taskforce 2025 and the Tax Working Group, which advocate lower taxes, also want to reduce government investment in education.”

“Whether a lower tax regime is designed by Don Brash or by Bill English, disinvestment in education can only result in our tertiary system falling further behind that of Australia, and never catching up with it,” said Dr Ryan.

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“They’ll provide more career choices for 16 and 17 year olds, and give them greater opportunities to develop their knowledge, skills and talents through trades and technology programmes” said Mrs Tolley.

The five academies selected from 113 expressions of interest from providers across New Zealand are: Northland College, Waikato Institute of Technology and Cambridge High School, Wellington Institute of Technology, Taratahi Agricultural Centre and Catlins Area School.

“Trades academies, based on partnerships between schools, tertiary institutions, industry training organisations and employers, will give students a head-start in an industry-related career, earning both NCEA credits and a tertiary qualification,” said Mrs Tolley.

The Minister also announced that six additional proposals put to the Ministry by education providers will also be developed with a view to establishing trades academies. They include proposals from Christchurch Polytechnic Institute of Technology and Eastern Institute of Technology. The Ministry of Education will now work with all eleven applicants on their business plans.

“This government is committed to bringing out the best in our young people. Trades academies will enable more students to gain qualifications which will set them on a strong career path and help them achieve in their chosen field,” concluded Mrs Tolley.

The 28 providers will provide places for 2000 student places across New Zealand in 2010 and 2011. In return the government is providing funding of $52.7 million over two years.

“We are delivering on our promise to help 16 and 17 year olds who are at risk of disengaging from education or training,” said Mrs Tolley.

“The jump-start to the Youth Guarantee was a key part of the Prime Minister’s Jobs Summit earlier this year. It’s aimed at young people who are ready to move beyond school, but who still want to study and learn practical skills. It will provide them with an opportunity to participate in a range of vocational programmes, free of charge, at selected private training establishments, institutes of technology and polytechnics.”

Youth Guarantee places were allocated to regions of high need, based on the number of unemployed young people in the population and the quality of the proposals.

Of the 28 providers eighteen are polytechnics and ten are private training enterprises.”  The only two polytechnics that appear not to have been funded are Western Institute of Technology and the Open Polytechnic.

In Taranaki, where 30 student places are allocated, only one provider has been funded to deliver the youth guarantee education.”  In all other regions the minister has opted for a mix of public and private providers.