Student fees leap up and GST hike still to come

Posted By TEU on Apr 22, 2010 |

Tertiary Update, Vol 13 No 14

Statistics New Zealand reported that education prices rose” 4.8 percent in the March 2010 quarter. This is the largest quarterly increase for ten years. The most significant upward contribution came from higher university fees (up 6.1 percent), which reflects higher course fees and new compulsory levies introduced by some universities to cover the costs of providing existing services to students.

Thanks to Somerslea @ Flickr for the photo

Fees for the other education classes other than primary and secondary education rose” 23.4 percent,” reflecting a reduction in government subsidies for adult and community education courses.

NZUSA co-President Pene Delaney said these increases are the direct result of continued underfunding in the tertiary sector.

“Increasing fees without any corresponding increase in government funding will mean students will again face costs rising higher than inflation. In stark contrast, the Australian government has substantially boosted its investment into both universities and student support in its last Budget,” says Mr Delaney.

Mr Delaney warns that further increases in the cost of tertiary education are on the way when the government’s proposed increases to GST flow through to student fees.

Prime Minister John Key was asked at Monday’s post-Cabinet press conference whether student allowances would get the same GST adjustment compensation package as welfare benefits. Mr Delaney is worried that Mr Key responded that he “hasn’t looked at that”. Tertiary education minister Steven Joyce has also said that he is not planning any changes to student allowances.

Also in Tertiary Update this week:

  1. Weltec saves money on staff to get strong financial result
  2. Budget to cut student loan access and raise fees
  3. It’s official: govt not funding student boom
  4. Indigenous rights treaty sets education goals
  5. Corruption and Oz universities

Other news

Dr Colin Tukuitonga chief executive at the Ministry of Pacific Island Affairs has challenged Massey University to establish itself as New Zealand’s first “Pacific University of Aotearoa” – Massey University

It has been reported in the minutes of the CPIT Council (for February) that CPIT and NMIT are discussing collaboration and the development of a joint Academic Board. Chief Executives of both institutions are “drafting a memorandum of understanding” for consideration by their respective councils. It is proposed that the next step will be a “scoping exercise to determine the type of collaboration”.

Also at CPIT, students will now be subject to “satisfactory progress” requirements to continue their studies, which will be specified for all programmes. Students can also be subject to “Non Engagement Cancellation”, whereby the institution can “cancel a student’s enrolment based on informal withdrawal or them never having attended”.

An extraordinary literary “whodunnit” over the identity of a mystery reviewer who savaged works by some of Britain’s leading academics on the Amazon website has culminated in a top historian admitting that the culprit was, in fact, his wife. – The Guardian

SIT chairperson Graham Cooney said the ministerial selection of council members could be abused in the future.”  “The ministerial appointment of the chair and deputy chair could be used at some point by a political party for the wrong reasons,” he said – Southland Times

University of Otago vice-chancellor Prof Sir David Skegg has urged the Government to invest more in universities, saying New Zealand institutions are likely to lose high calibre staff and students to Australia if it does not – Otago Daily Times

NZBioscience has reported on the recent Australian Full Court of the Federal Court of Australia case that decided whether a university or its employee owned an invention.

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:

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