Gareth Hughes

Todays decision to link tertiary education funding to performance is another big fail from the Minister of Tertiary Education, the Green Party said today.

Mr Joyce announced today that, as of 2012, five percent of providers' funding will be based on performance criteria such as course completion, progression to higher study, and the number of students retained in study

"Instead of giving tertiary education providers the funding they need to produce graduates who can build a smart and prosperous economy for New Zealand, Steven Joyce has chosen to place another burden on the shoulders of universities," Green Party tertiary education spokesperson Gareth Hughes said.

"He's already made it harder to get to tertiary study, harder to stay in tertiary study, and more expensive to stay in tertiary study. Now he is making it harder for providers to maintain funding.

"Mr Joyces' plan threatens funding cuts for under achievement without the realisation that underfunding will actually cause under achievement.

Mr Hughes said that purpose of tertiary education was to be the critic and conscience of our society, not money making machines that churn out industry focused graduates.

"We spend $3000 less than the OECD average per student. We need to stop shuffling money around and start putting money in," Mr Hughes said.

"Australia is spending $5.3 billion extra on tertiary education over the next 6 years.

"Compared with other OECD countries we are ranked 18th out of 30 for the proportion of our population with a tertiary degree at 27 percent. Australia is aiming for 40 percent.

"How are we going to catch Australia by cutting funding when the gap is widening?

"Adequately funded providers play a big role in building strong educated communities which ends up being better for New Zealand," Mr Hughes said.