New Zealand Bails Out Financially Strapped Universities

New Zealand proposed a multi-million-dollar rescue for cash-strapped universities on Tuesday, in the hope of preventing employment and course cuts at institutions battling to recover from the pandemic.

More tuition subsidies will cost NZ$128 million (US$79 million) according to the finance and education departments.

Following the Covid-19 border closures, some of New Zealand’s leading universities are grappling with low domestic enrollment numbers and a slower-than-expected return of overseas students.

Otago University in Dunedin and Victoria University of Wellington in Wellington both recently indicated that hundreds of jobs could be jeopardized and courses eliminated owing to funding problems.

Education Minister Jan Tinetti stated that the one-time boost will benefit New Zealand’s degree providers over the next two years.

“This funding will help maintain the quality and breadth of higher education offerings and research capability in our tertiary institutions”, Tinetti continued.

“This is vital for our students, our tertiary workforce, our broader research system, and for economic and social wellbeing in New Zealand”, Tinetti added.

She noted that the funding bump will not solve all of the problems that universities are facing, but it should make a difference.

The Tertiary Education Union’s Julie Douglas welcomed the government’s move as ‘better late than never’ and was cautiously optimistic that the extra money would be enough to keep some universities from having to make cuts.

“However, because it is not targeted at the institutions that are most in need, we are concerned the money may be spread too thin”, she said.

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