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06 DECEMBER 1, 2018 Educationlink Government urged to fund Varsities in ‘real terms’ It is time for this Government to play its part in helping ensure that the University sector remains a viable and successful part of this country’s education and research system. Ensuring sufficient funding to maintain aviable, internationally competitive University sector is key to this. This year, the Student Achievement Component (SAC) funding went up 1.6% (originally 0% in the Budget) and in class / for work / at home LOW COST* Professor Rod Carr Enrol now for courses in February 2019 Learn English with us To contact your centre www.englishlanguage.org.nz *Many courses are free Domestic Student Tuition Fees rose by 2%. This was helpful, but really just means that the sector will slip backwards more slowly than would otherwise be the case. Spiralling costs To put the increases in context, sector operating costs rose 15.5% between 2013 and 2017, despite initiatives to manage down costs, such as widely publicised restructurings and asset disposals. The single largest component of this increase was salaries, at 58% of sector costs. These rose 13.5% between 2013 and 2017—exactly in line with wider New Zealand increases in earnings of 13.5% over the same period. By contrast, CPI rose only 5.15% between 2013 and 2017—but CPI does not pick up costs such as personnel, information technology, building maintenance, insurance or construction. Simply increasing University sector funding by CPI won’t go nearly far enough in helping the sector cover its costs. Funding and control Overall, 78% of New Zealand University funding comes either directly from the Government (SAC funding, PBRF and other research funding), or is subject to Government control (increases in domestic student fees). The financial health of universities, and their ability to meet the needs of students and the community, is thus significantly in Government hands. That responsibility has been abrogated for the last 20 years by successive governments restricting student-related funding increases to CPI at best. Most of the University sector’s other revenue is generally tagged to specific purposes. For example, most research funding is tagged to specific research activities and little, if any of it, can be used to offset increases in general overhead costs. If part or all of the funds are not used for the specific purpose, they are either not drawn down or the unused component must be returned. Influencing factors New Zealand universities depend greatly, therefore, on some combination of the following to ensure they can cover costs: 1. Price/rate increases in tuition fee rates charged to domestic and international students; SAC funding rates per student; Performance Based Research Fund (PBRF) funding levels 2. Volume increases, through growth in numbers of domestic and international students. Demographic factors mean that domestic student numbers are projected, at best, to remain flat until 2023. International student numbers have been increasing around 3% per annum for the past few years. Work across the sector and with Government means that we are cautiously optimistic that similar growth should be achievable for the next few years. International student fees We believe, however, that international student fees are already at about the maximum that the market will bear. Any increases to these are likely to be generally in line with inflation or they may even fall a little as the market becomes more competitive. We are also highly dependent, possibly too much so, on the Chinese market at a time when China is making enormous investments in its own University sector. New Zealand’s universities therefore rely heavily on Government increasing rates for domestic student fees, SAC funding rates and overall funding for PBRF. Greatest threat The greatest threat to the sector is now potentially that of neglect by the Government. Universities still generate surpluses. We manage our balance sheets well. We have strong governance and management. Because of factors such as these, we think there is a risk that the Government will neglect the pressing challenges of universities while focusing new investment primarily on the parts of the tertiary system that have already become problematic. To ensure that New Zealand continues to benefit from astrong effective University sector and to prevent that sector becoming a financial burden in future, we need this Government to commit to maintaining sector funding in real terms. Raising revenue We intend to do our part by continuing to seek efficiencies, savings and revenue where possible—but we can’t do it by ourselves. If the Government committed to simply increasing student fees, tuition subsidies (SAC funding) and core research funding (PBRF) annually by a percentage that better matches the real cost pressures faced by universities, that would be enough. Universities could cover additional cost increases through efficiencies and additional income in other areas. Varsities at risk Without this, universities run the real risk of hitting a tipping point in the next few years—where declining rankings lead to a flight in key staff and afall in student numbers. This would be nearly impossible to recover from and would see the University sector join the Institutes of Technology and Polytechnic (ITP) sector in requiring large Government bail-outs and interventions. Professor Rod Carr is Vice-Chancellor, University of Canterbury. RVS Heat Recovery Ventilation Fresh filtered air for a healthier, drier and warmer home. • Fresh filtered air • Reduces moisture • Reduces Mould and Condensation. We use Dry Air from Roof Cavity and replace your home air. • Super energy efficient The ultimate home ventilation system that provides fresh filtered air. RVS Ventilation removes both moisture and stale indoor air and effectively recovers heat from both outgoing stale air AND from damp areas such as kitchens and bathrooms. www.relianceventilation.com We are your local Mitsubishi Electric Ventilation Specialist. Call us for your free in-home quote 0800 787 111 Unit No. 42/18 Lambie Drive Manukau, Auckland
DECEMBER 1, 2018 Secondary Teachers to strike next year RNZ, Wellington Educationlink 07 Secondary teachers have rejected a pay offer from the government and authorised strike action in the first term of next year. The Post Primary Teachers Association (PPTA) had asked for a single increase of 15% and in response, the government offered its members a 3% pay increase for three consecutive years. PPTA president Jack Boyle said that teachers voted overwhelmingly to reject the current offer. He said that the sector faces unprecedented, growing teacher shortages and it was becoming harder to attract people into teaching. Realistic wages “The key part of why we asked for 15% is to re-establish relativity with the median wage, such as it was the last time that we were able to overcome significant shortages; so fewer people coming in - more of them going, so that number then was 1.74 times on average the median wage. That is what we are asking for with that 15%, whether it is overnight, whether that it over a period of time, that is up to the negotiators. “We are passionate about our work and feel a responsibility to our students and their families. We have made this decision because the government has given us no other options,” he said. PPTA Vice-President Melanie Webber and President Jack Boyle at the steps of Parliament in Wellington (Photo for RNZ by Rebekah Parsons-King Complete Correction Mr Boyle said that a complete correction is needed since the sector has been neglected for a decade. “We know that it is not Jacinda Ardern’s government’s fault that we are in this position - a decade of neglect and underfunding has brought us here, but it is their responsibility to remedy it. We need urgent action if we are to recruit, support and retain a home-grown teaching workforce for now and into the future,” he said. Secondary teachers plan to take a one day strike in the first term of 2019. Minister’s remarks Education Minister Chris Hipkins said that bargaining with the Secondary Teachers Union was not as advanced as the Primary Teacher Union. “We welcome PPTA back to the negotiating table, which is scheduled to happen soon.” On November 23, the final two of 35 paid union meetings for members were held and the Wellington and West Coast branches cast their votes. Aotea College Science and Chemistry teacher Anna Greaney said that the revised offer was pitiful. She teaches two classes, with 29 and 30 students, which she said were ‘too big.’ “In a practical science subject, that is not okay. It is about not having enough equipment and having eyes on 30 different children doing 30 different experiments all at the same time. Practically, for health and safety, it has got to be an issue,” she said. “Offer, a Joke” English and Media Studies teacher Jordan Murray said the offer was a joke. Secondary teachers at the meeting (Photo for RNZ by Emma Hatton) “They are not addressing the things that we feel are important: class sizes, the time that we need to be able to do our job properly. We can get paid as much as they want, but if we don’t have the time, we can’t do the job properly,” he said. The initial offer The Education Ministry made its initial offer to the PPTA in late September. A new offer was made in November, but it was slammed as being ‘almost identical’ to the first. The latest offer is worth $405 million and would see all trained secondary teachers’ base salaries increase by 3% every year for three years. ‘Moral failure’ Mr Boyle said that it was ‘a moral failure’ and recommended that members voted against it. “We see that it was last minute, half-hearted and disrespectful. Much of what was in the offer - many of the items - lacked enough detail to put it in front of you for genuine consideration,” he said. Wellington Regional Union Chairperson Ahmad Osama agreed, but did not want to preempt the vote. “We have got a shortage of teachers; we have got big class sizes, we do not have enough relievers in the relief pool, and there are many other issues that we are trying to deal with,” Mr Boyle said. Indian Newslink has published the above Report and Pictures under a Special Agreement with www.rnz.co.nz GROCERY TENANT WANTED This award-winning development islooking for ahigh quality grocery operator in Sugartree Lane, apedestrian lane linking Union and Nelson Streets inAuckland’s CBD. By 2019 over 10,000 people will live or work close toSugartree Lane and currently there isnolocal supermarket. Sugartree Lane has a400m 2 space perfectly suited for agrocery store selling fresh fruit and vegetables, meat and delicatessen. Don’t miss out, call today to view. Julie Warbrick 022 639 3028 | julie@sugartree.co.nz SUGARTREELANE.CO.NZ
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