UNZ response to UAG decisions

September 2, 2025: Universities New Zealand – Te Pokāi Tara welcomes the release today of the report of the Universities Advisory Group, the government’s response, and the draft Tertiary Education Strategy.

We look forward to reading the report and strategy in depth, alongside the decisions and associated documents released today by Hon Dr Shane Reti, Minister for Universities.

Speaking on behalf of my fellow Vice-Chancellors and Universities New Zealand, we look forward to understanding the details of the decisions and working on the constructive work programme outlined.

 We would like to acknowledge the thought and effort put into the University Advisory Group report by its members, and all those who submitted through their review process.

When the review was announced, we said it was urgently needed to address the challenges and opportunities facing our university sector. New Zealand’s universities are key to navigating the many challenges that our country faces today and in the coming decades. The review was an opportunity to explore how universities can address these.

Although no immediate changes to the funding of universities have been announced, we hope that remains a priority for government.  Better strategies and different measures will not be enough by themselves to help universities deliver the teaching and research that underpins economic growth and prosperity for this country. We note that funding mechanisms will be addressed in ongoing funding policy work and budget processes.

We are continuing to find funding challenging, in particular funding for the numbers of domestic students who want to attend our universities. Since 2018, during a period when inflation has risen 29%,  funding subsidies for teaching has increased only 18%  and funding for research has not increased at all, meaning a real decline of 29% in the activity that the Government agreed was core to economic growth with the release of the Science System Advisory Group Review report earlier this year.

The following are our initial responses to today’s announcements:

UAG report

New Zealand’s universities contributed extensively to the University Advisory Group’s review and the accompanying Science System Advisory Group review.

Our full submissions to the UAG can be found on our website:

UNZ Submissions - Universities Advisory Group

We are proud of New Zealand’s university sector and the way in which our eight institutions contribute to the fabric of our country through teaching and research.

As Vice-Chancellors we are confident that we are laying the best foundations for the future lives and careers of our students, and the social and economic wellbeing of our country.

University Strategy Group

We welcome the opportunity to advise the Minister of Universities through the three Vice-Chancellor seats on the University Strategy Group.

We note that the group’s first tasks will be to suggest solutions on issues identified by Minister Reti, such as how to deliver the Tertiary Education Strategy, the final makeup of the Performance Based Research Fund criteria, and other strategic issues relevant to the university system.

We’re pleased that the group is being formed in a way that does not undermine the autonomy of universities, and we see real value in helping the Minister to identify and navigate opportunities and issues in the university sector and to provide advice on these.

There are many issues we consider to be crucial to the future contributions of universities to New Zealanders which we would be keen to work on through this group.

These include:

• Opportunities for greater collaboration and/or connection. Examples of this might include the recent announcement of a formal collaboration between universities and Public Research Organisations: A new era of public science collaboration
• How to best prepare graduates for the future workforce and the future of work
• The importance of international education and opportunities for growth

Tertiary Education Strategy (TES) report

Universities NZ notes the release of the proposed new Tertiary Education Strategy (TES) today and looks forward to working with the Government as it is shaped into a final strategy. Among key factors we believe crucial to its success are:

• Ensuring that the TES will endure across political cycles - that we won't be looking a major resets or sharp changes in direction if and when governments change.
• How the TES will be delivered, in particular how it can be integrated with planning and strategies of other government agencies and through the proposed University Strategy Group.

What is important to us is that the actions of the strategy supports participation for people of all backgrounds and regions. It is also important to determine how the strategy is linked to economic growth and what we will do to deliver that growth by growing the workforce.

Changes to the Performance Based Research Fund

The Performance Based Research Fund (PBRF) sits at the very base of the university research system. As a devolved fund, it enables universities to decide where to best invest the funds received to produce the best outcomes.

Crucially, it is a key part of creating the country’s research workforce, by funding postgraduate and early career research. And it is a key funder of fundamental research – which is investigation aimed at expanding knowledge and understanding without immediate practical application. Fundamental research, also known as basic research, is the building block for applied research.

We believe that research funding measures need to support and incentivise activity that focuses on excellence in research. So, we look forward to working with the University Strategy Group to consider metrics that will assess a range of disciplines, from science to social sciences and humanities. The change of name to Tertiary Research Excellence Fund and the staged approach being taken to change will hopefully allow thoughtful input into secondary metrics to contribute to assessment of a range of disciplines.

Further commentary on the changes to PBRF by our Research Committee

Governance of universities

We look forward to this discussion and drawing on the insights and experience of our University Councils, academic boards and senates, and student representatives on how to deliver effective governance of what are now very large and complex organisations of national importance.

Quality Assurance

As in our submission to the UAG, we believe strongly that university autonomy is fundamental and, as legislated in the Education and Training Act 2020, Universities New Zealand remains the statutory body responsible for quality assurance in universities.

Peer review remains the gold standard for quality assurance, and we are currently reviewing our processes alongside procedures for academic audit. We look forward to sharing our progress and plans as part of the newly announced review.

 

For more information or interview requests, please contact:

Fiona Clarkson: comms@universitiesnz.ac.nz | 0276365050