The Tertiary Education Minister Steven Joyce has indicated that universities will have to rely more on charitable donations, commercialisation, and foreign student fees for funding when the 2010 Budget is announced.
Joyce says there is a limit to how much taxpayers could support the tertiary education sector and he believes "we're pretty close to that limit." The minister indicated alternative sources of funding for universities would become increasingly important.
Specifically, Joyce believes institutions need to look at other parts of the equation in terms of income in order to compete successfully with their international counterparts. "That means looking at their international education, both students coming in and joint ventures elsewhere; it means the philanthropic endowment funds and it also means the commercialisation of research."
Canterbury University set up a $50 million philanthropic bond offer last year, and it has had been fully subscribed with about 1000 investors. Bond-holders get 7.25 per cent interest for the first five years from their investment. The University encourages investors to donate their interest or their bond at some stage.
Canterbury is also looking into donations as a means of funding. “There are people out there who just think education is a good thing and they're happy to leave their money to education," Canterbury University Vice Chancellor Rod Carr said.
However, according to Sandra Kirby, Chief Executive of Arthritis New Zealand, “in the current state of the economy, it is not the time to add universities to the overcrowded list of organisations desperately seeking more funding through donations.”
Victoria University Vice Chancellor Pat Walsh says all universities are looking at different ways of boosting funding from other streams. "Revenue is constrained so we have to explore every possible source."
Recent figures show asix-per cent increase in international fee-paying student enrolments last year compared with 2008. Mr. Joyce believes New Zealand could still get more income from international students, and universities need to actively pursue this revenue channel.
The University of Otago did not respond to Critic’s request for comment.
University to compete with diabetics, cancer kids, puppies.
