Open letters to the Tertiary Education Commission and the Minister of Education.
To the CEO of the Tertiary Education Commission, Tim Fowler, Education Minister Jan Tinetti, Finance Minister Grant Robertson and Prime Minister Chris Hipkins,
VUWSA, OUSA, VUW and Otago Tertiary Education Unions urgently call on you to save our universities and tertiary education in Aotearoa.
The government has a critical opportunity to fulfil its responsibility of safeguarding Te Herenga Waka - Victoria University of Wellington and Otago University, staff, current and future generations of students and the entire tertiary education sector. By taking immediate and decisive action, we can prevent these staff cuts and establish a sustainable funding model that avoids such risks to tertiary education in the future.
The proposed job cuts across the tertiary sector represent more than job losses; they signify the erosion of teaching quality, research excellence and student services. This issue transcends the experiences of current staff and students. Given the magnitude of the current funding gap and the fact it will take generations to rebuild high-quality capability in the tertiary sector, government inaction will result in severe social, economic, and cultural consequences for our local communities and Aotearoa for decades to come.
We call upon the Tertiary Education Commission and Minister of Education to:
Immediately lift the debt ceiling for Te Herenga Waka - Victoria University of Wellington and Otago University to provide short-term relief.
Commit to sustainable and increased funding to Te Herenga Waka - Victoria University of Wellington and Otago University to prevent staff cuts in the long-term.
Commence four-way discussions among student associations, the Tertiary Education Union, Vice Chancellors and the government to establish a sustainable funding model for universities.
This issue is not about the budgetary responsibility of universities; it is a consequence of government underfunding of universities for the past decade. With the Tertiary Education Union, Student Associations and Vice Chancellors speaking in unison, the gravity of the situation cannot be ignored. We are willing to come to the table and determined to find a sustainable solution. We need the government to join us in this endeavour.
Last week at a forum hosted by OUSA at Otago University, Prime Minister Chris Hipkins attributed the proposed staff cuts to the institutional autonomy of universities, asserting that they were “best placed to make cut-back decisions.” However, the government cannot evade responsibility for these staff cuts, as it controls nearly 80% of universities’ funding and has been complicit in perpetuating under-investment in tertiary education for universities, staff and students. The government bears both immediate and long-term responsibility to protect universities, staff and students.
The chronic underfunding of universities below inflation reflects an unsustainable and fragmented funding model that fails to meet the needs of staff and students. This year, the government was prepared to allocate $355 million towards universities, but it reallocated those funds due to a decline in student numbers. The government cannot feign surprise and evade accountability for this current situation. As the cost-of-living rises and student financial support remains inadequate, student enrolments have been falling since 2005. At the same time, government funding per student has plummeted by an alarming 20% in real terms over the past decade compared to Consumer Price Index increases.
In 1996, Grant Robertson, former NZUSA and OUSA president, highlighted that “students were not satisfied that universities had made all the efficiency gains they could, but the real problem was inadequate government funding of tertiary institutions.” In 2001, Chris Hipkins, former VUWSA president, called for serious change to the tertiary sector, stating, “The days when University Councils were encouraged to act like businesses and return substantial surpluses are over.” Two decades later, the message remains unchanged, but now it resonates within a context where we are witnessing the consequences of inaction.
We implore the Labour government to prioritise its belief in the essential role of education as a public good and take immediate action to prevent staff cuts and program losses.
Victoria University of Wellington Students’ Association, Otago University Students’ Association, VUW Tertiary Education Union Branch President Dougal McNeill, University of Otago Tertiary Education Union Branch Co-Presidents Brandon Johnstone and Craig Marshall, as well as additional supporters listed below.
To the CEO of the Tertiary Education Commission, Tim Fowler, Education Minister Jan Tinetti, Finance Minister Grant Robertson and Prime Minister Chris Hipkins,
The financial challenges facing New Zealand universities are significant and must be addressed urgently.
The chronic underfunding of universities is increasingly threatening our stability. Both Te Herenga Waka—Victoria University of Wellington and the University of Otago are being forced to make decisions that impact the lives and careers of their staff and students. We understand the importance of adapting to the needs of society. However, the scale of the funding gap we face, and the fact that it will take generations to rebuild high-quality capability, means that actions today are likely to have detrimental social, economic and cultural consequences for our local communities and for Aotearoa New Zealand for many decades. Universities are fundamental for developing the research and skills that underpin our understanding of ourselves, technological progress, the ability to navigate social change and complexity, and responses to environmental and cultural challenges. New Zealand universities address these areas in a New Zealand context and invest in the young people who provide leadership for our country in the future.
To fulfil this role, our submission to the government is that universities need to be funded in line with inflation. Nearly 80% of universities’ income comes from the Government—as support for student tuition and research funding—or is controlled by Government in the form of tuition fees for students. Per student funding has been dropping in real terms for years—in the last decade, it has fallen 20% in real terms compared to increases in the Consumer Price Index. At the same time, costs have continued to rise.
This issue is not about the budgetary responsibility or management of universities. Autonomy only exists when an institution has the resource to invest in the things it deems important—universities do not currently have that ability.
We fully support the open letter that the Tertiary Education Union and the Victoria and Otago University Students’ Associations have sent to the Tertiary Education Commission and government ministers on funding of universities. We need to establish a sustainable funding model that safeguards the future of a high-quality university system, which meets the needs of Aotearoa New Zealand. We need a national conversation around what is important for Aotearoa, for our young people, for our education and our research, and a commitment to achieving the outcomes that are identified.
We are ready to join this conversation, alongside staff and students, and with the government.
Nic Smith, Vice-Chancellor, Te Herenga Waka—Victoria University of Wellington
Helen Nicholson, Acting Vice-Chancellor University of Otago
Read PDF version here.
