The Headlines
New Zealand's new era
New Zealand has voted for change with a new government on the way. What does this mean for the country's higher education, and more specifically, international education?
By Seb Murray
"We know that education featured as an important priority for all three parties."
In October, the political landscape of New Zealand underwent a major shift as citizens voted for a change in government. The National Party, bolstered by support from the ACT and New Zealand First parties, emerged triumphant, ousting the Labour government from power.
The change in governance has ignited high expectations within New Zealand’s higher education sector, signalling a renewed emphasis on global education. As the National Party assumes power, Chris Whelan, Chief Executive at Universities New Zealand, underscores the sector’s anticipation. “We know that education featured as an important priority for all three parties, and we expect to see a renewed focus on international education and international connections,” he says.
Despite the optimism, the specific priorities of the new government are yet to be fully unveiled, leaving room for speculation within the education sector. “It is too early to say where the new government is likely to focus initially,” Whelan notes.
The National Party’s election manifesto contains a comprehensive vision for the international education sector, centred around four key areas. Each area addresses specific challenges faced by the sector, aiming to not only strengthen international education but also position it as a crucial driver of economic growth. The economy has slowed sharply following actions to stem inflation from the country’s central bank.
Quicker visa processing
The first initiative tackles the crucial issue of visa processing for international students. Recognising the time constraints associated with choosing a study destination — given fixed start dates for most courses — the National Party pledges to expedite visa processing through a fast-track system.
Despite a target of 30 weekdays, currently, 90 percent of applications take 44 weekdays for processing, making New Zealand potentially less appealing to potential international students. To address this, the proposed priority visa processing system, available for an additional fee, aims to streamline standard applicants within a swift two weeks, a significant improvement from the existing target.
This expedited processing not only aligns with the urgency students face in making timely decisions but also addresses concerns about delays, making New Zealand a potentially more attractive destination to study.
Spouses or partners of international students on higher level courses will be allowed to work
The proposals come after unexpected declines in student enrolments and increased financial pressures
Employment during and after studies
The second proposal seeks to enhance work opportunities for international students and their partners during their studies. Currently, New Zealand allows a maximum of 20 hours part-time work per week during the academic year and 40 hours per week during the summer, a limit lower than that of some competitor countries such as Australia. Recognising the need to align with global standards and enhance New Zealand’s competitiveness, the National Party plans to raise the current limit on part-time employment hours from 20 to 24.
This expansion aims not only to attract more overseas students but also to alleviate the financial pressures they many face during their studies, creating a more supportive environment.
The third proposition introduces measures to simplify the process for students to secure employment after graduation — a critical factor for prospective overseas students when deciding where to study. The National Party aims to broaden existing work rights, guaranteeing a minimum post-study work duration of 12 months for overseas students pursuing courses in areas where there are skills shortages, such as freight and logistics.
Additionally, spouses or partners of international students on higher level courses will be allowed to work during their studies and the proposal establishes a pathway to residency for those students studying in fields with skills gaps. This approach could not just enhance New Zealand’s appeal as a study destination, but also help to ensure that graduates more easily transition into the workforce, contributing to the slowing national economy.
Students will be able to work up to 24 hours per week during study under new proposals
Diversifying incoming students
Lastly, recognising the challenge of over-reliance on a limited number of countries for international student recruitment, the National Party’s fourth proposal aims to diversify the nations targeted. A report cited in the party’s manifesto underscored concerns about the lack of diversity in New Zealand’s international student population, with 80 percent of those students originating from just nine countries in 2022.
This situation is an apparent result of deliberate efforts by Education New Zealand, a government agency, to predominantly focus recruitment on Asia. In contrast, competitor nations have successfully attracted students from a more extensive array of countries.
While experts note these manifesto pledges could still change, they offer insight into the new government’s thinking on key issues facing higher education in New Zealand. The proposals come after unexpected declines in student enrolments and increased financial pressures for the nation’s universities.
QS Insights Magazine previously reported that international student enrolments remain below pre-COVID-19 levels. As of March 2023, around 34,000 international student visa holders were in the country, still well below the 2018 figure of 125,000.
Over the past three years, the higher education industry in New Zealand has grappled with problems arising from the COVID-19 pandemic. The country’s borders were closed for nearly three years, severely limiting deliberate policy changes in the education space. As Whelan at Universities New Zealand notes, “the tertiary education sector has been dominated by disruptions arising from COVID-19”, suggesting scope for strategic policy changes.
Money issues
The National Party’s vision for the recovery of the international education sector is rooted in its economic thinking. It anticipates that supporting the sector’s revival will not only enhance export revenue but also generate employment and strengthen global connections, fostering overall economic growth in New Zealand.
Before the pandemic, international education stood as New Zealand’s fifth-largest export, contributing a substantial NZ$3.7 billion (US$2.3 billion) to the economy and sustaining at least 6,000 jobs. However, the sector’s GDP contribution witnessed a significant decline to NZ$800 million (US$293 million) last year. “New Zealand has been in recession, the cost of living continues to rise faster than wages, and mortgages are unaffordable. We need to get sectors that can provide much-needed export earnings like international education back on their feet as soon as possible,” Penny Simmonds, the National Party’s Tertiary Education spokesperson, said in a statement.
The party’s manifesto underscores the role of international education in strengthening New Zealand’s global ties. Exposure to diverse ideas and perspectives, along with the establishment of international networks, is seen as crucial for the success of New Zealanders on the global stage.
Moreover, the income derived from increased international fees would enable universities and other tertiary institutions to provide higher-quality education and services, all while maintaining lower costs for domestic students, the party claims.
The party’s manifesto underscores the role of international education in strengthening New Zealand’s global ties. Exposure to diverse ideas and perspectives, along with the establishment of international networks, is seen as crucial for the success of New Zealanders.
The coalition pact includes a pledge to shift fee waivers from the first year to the concluding year of tertiary studies
Jonathan Boston, Emeritus Professor of Public Policy at Victoria University of Wellington, highlights the fundamental challenge facing New Zealand universities — funding. “While the incoming National-led government is committed to tax cuts and additional public expenditure, its funding priorities largely exclude tertiary education and research and development,” he says. “However, there is speculation that the new government may decide to remove the limit on fee increases for domestic students from 2025, providing universities with an opportunity to raise additional revenue.”
The outgoing Labour government initiated a review of tertiary funding in mid-2023 and pledged an additional NZ$128 million (US$78.9 million) for the sector. According to Professor Boston, changes to funding categories for different courses may be on the horizon. “This may potentially help with alleviating pressures in some disciplinary areas where current public subsidies and fees are misaligned with the costs of delivery,” he says.
The funding review reflects the evolving approach to tertiary education in New Zealand under the previous Labour government. In particular, the “Fees Free” legislation introduced in 2018, has been a significant policy shift. This saw the government pay for the first year of tertiary education, though it was suspended in 2020 because of the pandemic. Yet while the policy remains popular for reducing student debt, Whelan says its impact on enrolment numbers is uncertain.
In any case, the coalition pact among the three now-governing parties includes a pledge to modify the policy, shifting the waiver of tuition charges from the initial year to the concluding year of tertiary studies. Rearranging this could motivate students to successfully complete their courses, yet it might also serve as a financial obstacle for those embarking on new courses.
The new government has also set its sights on disbanding Te Pūkenga, a merger of the country’s 16 polytechnics and nine industry training organisations. The educational centrepiece of previous prime minister and former education minister, Chris Hipkins, the institution had a tumultuous history, with several CEOs and budget deficits in its short existence.
Overall, it’s clear the changes anticipated for New Zealand’s education sector are vast and multifaceted. From visa processing reforms to enhancing work opportunities, the potential changes aim to boost the international education sector, positioning it as a major driver of economic growth. Time will tell whether these proposals are enacted, changed or disbanded.