The Tertiary Education Commission (TEC) faces a pressing need for a comprehensive review of the Tertiary Payment System (TPS) as an increasing number of universities express their desire to exit the scheme. This growing discontent stems from concerns over the TPS’s rigidity, lack of flexibility, and its inability to cater to evolving needs within the higher education sector.
Universities argue that the current system stifles innovation and restricts their ability to respond effectively to the changing demands of students and employers. The fixed funding model, based on student enrolment numbers, fails to incentivize universities to offer specialized programs or embrace new teaching methodologies. Furthermore, the absence of performance-based funding mechanisms creates a disincentive for universities to strive for excellence and improve academic outcomes.
The exodus from TPS could have significant consequences for the higher education landscape. The loss of key institutions could lead to a fragmented system with uneven access to quality education. Moreover, the financial strain on remaining participants could lead to further cuts in research and development, hampering New Zealand’s competitive edge in the global knowledge economy.
The TEC must act swiftly to address the concerns raised by universities. A thorough review of the TPS, encompassing stakeholder engagement and independent expert analysis, is crucial to ensure its long-term sustainability and effectiveness. The review should consider introducing greater flexibility, incorporating performance metrics, and exploring alternative funding models that promote innovation and excellence within the higher education sector.
Failure to address these issues will leave the TPS vulnerable to further erosion, ultimately undermining the quality and accessibility of tertiary education in New Zealand.
