13 December 2001

INTRODUCTION

In 1938, Clarence Beeby was appointed Director of Education. In commenting on the primary and new intermediate school systems, he wrote, "The cause for surprise is not that [they] should have lagged along the road but that they should have gone so far, since no-one has ever quite known where they were going."

I think the late Dr Beeby would be astonished, 32 years later, if he knew just how far the tertiary sector had travelled, up many roads and highways. He would equally be dismayed, I suggest, by the fact that there had been, until today, no overall sense of strategy and direction, no purposeful linkage of tertiary education to the broader economic and social national goals. That is about to change.

TERTIARY EDUCATION REFORM

In April 2000, the Government established the Tertiary Education Advisory Commission to give us advice on where the tertiary system should be going. TEAC has since delivered an impressive series of reports that proposed a new strategic direction for New Zealand tertiary education and a range of mechanisms for getting us there.

The Government has made decisions on a number of TEAC's proposals, and two years work by the Tertiary Education Advisory Commission and Government has now reached a culmination. Last week I introduced the Tertiary Education Reform Bill into Parliament. Today I release a draft version of the Government's Tertiary Education Strategy 2002-7. It is intended to initiate a new phase of dialogue and debate about the future of our tertiary system to which I now invite you to contribute.

THE IMPORTANCE OF THE TERTIARY EDUCATION STRATEGY

Tertiary education is one of this country's major public investments in building the skills and capability needed for the future. We spend almost 2 billion dollars of taxpayers' money a year on this sector. To maximise the benefits of this important investment, a paradigm shift is required.

The tertiary education system will no longer be driven largely by the choices of consumers and providers as it was during the 1990s, when it was too narrowly focussed on student demand as the primary determinant of resource allocation.

Rather, the focus of the tertiary education system from 2002 will be to produce the skills, knowledge and innovation that New Zealand needs to transform our economy, promote social and cultural development, and meet the rapidly changing requirements of national and international labour markets.

We can all be justifiably proud of the increasing participation and diversity we have achieved in the last 12 years since the reforms of the late 80s. These new reforms will not endanger any of the gains. They will bring nation-wide strategic leadership and direction to tertiary education so that our social and economic goals can be realised.

The Tertiary Education Reform Bill gives effect to the Government's reform of the whole tertiary education system. It sets the framework for our tertiary system to enable it to meet the challenges of the 21st Century and anticipate and respond to the nation's future skill development needs.

These reforms will lead to a more connected and collaborative tertiary education sector, which is characterised by world-class excellence, greater specialisation of investment and less duplication of effort. "Excellence", "specialisation", and "differentiation" have been the watchwords of our thinking, and came through clearly as themes in the TEAC findings and recommendations.

The Tertiary Education Strategy sets the new direction and policy framework for the tertiary education system.

New Zealand needs a tertiary system that is outwardly focussed, able to meet the future development needs of our nation and which is distinctively 'New Zealand' in its style and tone.

We need a tertiary system that is 'connected' to New Zealand's national development goals, and 'connected' with other sectors of society and the economy.

At the same time, we need the business, enterprise, and industry sectors to place more value on the tertiary sector and its potential to enable them to achieve their needs for greater capability and innovation. Our national goals for a knowledge economy and knowledge society can be achieved best by interdependent and connected effort across all groups and sectors. Tertiary education may well underpin our development but we will not achieve "knowledge economy" status without a whole-economy, whole-society approach.

This is a subtle but significant way of viewing the future role of tertiary education in the whole New Zealand scheme of things. We are not a big nation, we DO need to pool our resources and work together…academics, industry, employers, trainers, trades people….to get to the goals we've set.

KEY CHANGE IMPERATIVES FOR THE TERTIARY EDUCATION SYSTEM

Above all, we must ensure that the tertiary system is responsive to the skill and research needs of business and other external stakeholders. This will require stronger linkages and networks between tertiary providers, other research providers, businesses, social services and healthcare providers, Maori and Pacific communities.

Those linkages and networks need to be multi-faceted, multi-directional, and not just flowing out of the tertiary sector itself but always connected to it.

We must improve the tertiary systems' connection to the diverse needs of learners. This creates a challenge for providers to deliver and distribute knowledge and skills in innovative ways. This also implies a shift to more diverse, but interconnected, learning pathways.

If New Zealand is to make best use of its limited resources, there needs to be a shift in focus toward providers working together and collaborating within the tertiary system. This will require increasing connection within the system, greater specialisation and reduced duplication.

To improve our global connections, tertiary providers must foster links and relationships with international education providers so that New Zealanders can access world-class qualifications, teachers and learning resources.

To respond to emerging strategic challenges, opportunities and threats, we must build the strategic capacity of the system. This will require increasingly able and visionary leadership by the governors and managers of our providers.

To achieve a knowledge society, our system needs to develop future-focussed strategies. Tertiary providers will need to look ahead and ensure they are producing the skilled people New Zealand will require in the future, as well as delivering the skills needed for today.

We can build, confidently and strategically, on the base of participation achieved since 1989 and take New Zealand to the next level in a competitive world environment.

The strength of the contribution from the tertiary system will ultimately depend on its ability to create a common culture of action, creativity, innovation and optimism.

WORKING TOGETHER

Government alone cannot meet these challenges.

We need to work together.

To achieve these challenges and shift the focus of our tertiary system to a more outward-looking direction requires an integrated and strategic effort by Government, education agencies, industry, the tertiary sector and stakeholders.

If we can make this integrated effort, our tertiary education system will show, by 2007, these outcomes…

• Better alignment between the nation's investment in tertiary education and research and economic and social priorities;
• A coherent and interconnected system that is strongly linked with industries and communities that it serves;
• Greater alignment between the outcomes of tertiary education and the achievement of national goals;
• Tertiary education more quickly shaped by national directions and priorities
• Learner needs being met and continual improvement in quality; and
• Improved effectiveness of the system and increased return on the nation's almost $2b pa investment

The Tertiary Education Strategy must address these requirements and you need to tell us, over the next few months, whether you think we are heading along the right path.

When you read this draft strategy you will find it sets the scene, provides you and your colleagues with a focus for your thinking as well as a forum for discussion. It poses questions which, hopefully, will lead you and others across the sector to come up with suggestions to guide and fulfil our need for the best possible confirmed strategy, by around the end of April next year.

STRATEGIES AND OBJECTIVES

The draft Tertiary Education Strategy identifies six strategic challenges for the tertiary system over the next five years. These are: Slide

• Develop the Skills New Zealanders need for our Knowledge Society;
• oEnsure Learning and Research for Maori Development;
• oRaise Foundation Skills so that all people can participate in our Knowledge Society;
• oEducate for Pacific Peoples' Inclusion and Development;
• oStrengthen Research, Knowledge Creation and Uptake in our Knowledge Society; and
• oEnsure System Capability and Quality for our Knowledge SocietyI will briefly outline the priorities proposed within each of these strategies in the draft document

The first challenge is to 'develop the skills and knowledge New Zealanders need for a knowledge society'. This strategy identifies the need for:

• quality generic skills development in our population which can be measured effectively in graduates,
• closer relationships between employers and education and improved skills forecasting information to ensure we develop the people that our economy needs at the right time,
• development of high-level specialist skills in areas important to national competitive advantage, and stronger incentives and improved information to help students develop the generic and high-level specialist skills they require.

The second challenge is to 'ensure learning and research for Maori development'.

• This strategy is under development in close consultation with Mäori, in order to continue the approach endorsed by the Hui Taumata Mätauranga.
• The draft strategy includes priorities that Government has initially identified as important for Mäori tertiary education. These include improved provider responsiveness to, and responsibility for, Mäori learners' needs, improved retention and improved Mäori achievement, particularly in higher levels and specialist skill areas of study;

Another challenge is to 'raise foundation skills so that all people can participate in a knowledge society'. This strategy prioritises:

• improving access for people with poor foundation skills,
• Developing more innovative and flexible teaching methods and support services, and
• Developing new national systems and assessment tools for foundation skills assurance.

We must also 'educate for Pacific peoples' inclusion and development'.

• This strategy re-emphasises the goals and targets agreed by Government in the Pasifika Education Plan and is also likely to be refined as a result of continuing dialogue with Pacific peoples.
• Some priorities that have been initially identified focus on improving system capability to meet Pacific peoples' learning needs and aspirations, improving information about tertiary study for Pacific peoples, addressing barriers to participation and achievement and encouraging Pacific students to undertake specialist skill development.

A key challenge is to 'strengthen research, knowledge creation and uptake for a knowledge society'. This strategy focuses on the research capability of the tertiary system and prioritises:

• increased accountability for research, stronger funding incentives for rewarding excellent research,
• encouraging world class clusters of specialisation and networks, improving the alignment of tertiary research with key areas of our economy and improving knowledge transfer and uptake, and
• supporting tertiary research staff and budding postgraduate researchers.

Finally, and most certainly not least, we must 'strengthen system capability and quality for a knowledge society'.

This strategy emphasises the fundamental importance of strong system capability and high quality to the achievement of all the strategies outlined above. It prioritises:

• improved strategic capacity and leadership, improved benchmark and performance information for governors and managers, improved financial performance of TEIs and accountability for public funding,
• increased differentiation and specialisation, and encouragement of small PTEs to collaborate and cluster to lift capabilities, and increased quality and venturing in export and import education.

THE TERTIARY EDUCATION SCORECARD

Within each strategy, a number of possible priority actions for implementation are proposed, as well as possible indicators for measuring the system's performance. Examples are shown here:

EXAMPLE OUTCOME INDICATORS

EXAMPLE OUTCOME INDICATORS
Develop the Skills New Zealanders need for our Knowledge Society	Measurable increases in the skills of Nzers Participation in formal industry training
Ensure Learning and Research for Maori Development	Maori Research Capability Overseas reputation of Wananga
Raise Foundation Skills so that all people can participate in our Knowledge Society	Maori graduates Significant and measurable improvement in adult literacy indicators within 5 years
Educate for Pacific People's Inclusion and Development	Higher participation and achievement Increased number of teachers at all levels
Strengthen Knowledge Creation and Uptake in our Knowledge Society	Increased research quality Strength of 2 way relationships Indicators of shorter lags = greater innovation, faster response to skill shortages
Ensure System Capability and Quality for our Knowledge Society	Financial strength Resource alignment with national priorities Strength of local & external relationships

Once these strategies and priorities are implemented by 2007, New Zealand will have achieved a tertiary education system which is effectively connected with the external stakeholders in industry, enterprise, communities it serves, collaborating within itself as a system, characterised by excellence in specialised skill and research areas, and has strong capability in foundation and core generic skills across the board.

It will be a responsive and responsible system to the learners it provides education to, and will deliver high quality qualifications to these learners that are portable across the globe. Our tertiary system will be characterised by strategic and future-focussed leadership, it will be financially and academically viable - with a strong, innovative teaching and research workforce, be made up of numerous strategic partnerships and networks of all kinds.

The Tertiary Education Strategy for 2002 - 2007 is intended to guide us in achieving this vision. The draft Strategy is not intended to be a rigid blueprint or Plan, it is intended to be a dynamic and evolving guide to the development of the system, and to shape on-going dialogue amongst system stakeholders.

We recognise that it may take longer than five years to get there, and in some areas we may make speedier progress and move onto to new challenges. The important point is that we all - students, providers, Government, industry, employers, regions, communities -have a shared sense of where we are going - and don't find ourselves echoing Beeby's 1938 comment in 2007.

STRATEGY IMPLEMENTATION

Now to explain the function of the Tertiary Education Strategy. The confirmed Strategy will guide the activities of all the Government's tertiary education agencies. The new Tertiary Education Commission will have a major role in implementing the Strategy.

The new TEC will use this Strategy to shape and drive a dialogue with providers, which for most providers will be about shaping a new way of thinking and developing new organisational strategies. Provider charters and profiles will need to reflect the Strategy.

The Strategy will inform the development of annual tertiary education priorities by the Government and the development by TEC of criteria for funding. The tertiary education priorities will shape the sector. They will form the basis for the approval of charters and profiles for all publicly funded tertiary education providers and ITOs. The legislation we have introduced to the House details the principles, contents and approval processes for charters and profiles. Work on the future funding arrangements is ongoing, and public feedback on TEAC's proposals in their fourth report is encouraged as an input to this work.

Click for full image of System overview

The final version of the Strategy to be published next April will also contain a Tertiary Education Scorecard with indicators being progressively developed to measure progress on each of the objectives of the Strategy. The Scorecard will allow the sector to constantly assess its own performance and could serve as a means for you to clear demonstrating the system's importance contribution in the process of 'nation building'.

A DRAFT STRATEGY FOR CONSULTATION

Today I am releasing a draft version of the Tertiary Education Strategy for public debate and feedback. I re-emphasise - this is a draft document. It represents our 'first cut' and 'high level' proposals on the priorities and strategies for the next five-years, informed by TEAC's recommendations, several pre-release consultation workshops, and the policy work we have undertaken since entering Government.

This document does not yet represent Government policy. It indicates the key areas for change as we understand them, and we now need to hear your views about the content from your perspective. This is an area where Government cannot develop effective policy alone. We need the engagement of a wide range of people and organisations over the next few months to ensure the final Strategy will achieve the changes our system needs.

As you can see, this draft Strategy is broad and all encompassing, and considers the challenges and priorities across the entire, diverse tertiary system and for all its key tasks and capabilities. We hope that many of you will engage with all of the proposals in the document, but also appreciate that some of you will bring focused comment on your particular areas of expertise. All feedback is encouraged and welcomed.

The consultation phase around the Strategy runs until the end of February 2002. We will hold a series of regional workshops as part of the consultation phase and encourage you to read the draft Strategy and attend the meeting in your region to discuss your comments with us directly.

Feedback on a set of focused questions included at the back of the draft Strategy is also welcomed, and we suggest you submit these via our website: www.talktertiarystrategy.minedu.govt.nz.

Once we have received feedback from stakeholders we will rework the document and a final version of the Strategy will be approved by Government in early April 2002.

Throughout the consultation period, we will also be following the precedent set by the Hui Taumata Mätauranga, and continuing a partnership approach. The Government and Mäori will dialogue about the priorities for tertiary education to identify areas of common ground, and these will be reflected in the final version of the Strategy. Officials will also be specifically engaging with Pacific peoples to inform the April version of the Strategy.

Once finalised, the Tertiary Education Strategy will go on to become the keystone of our tertiary system for the next five years. I look forward to engaging with you all in this important dialogue, and I invite you to begin the process now, with questions and comments from the floor.