Education Act changes give corporate welfare to the wealthy

23 September 2016

Education Act changes give corporate welfare to the wealthy

Funding private companies the same as public universities and polytechnics is neither equitable nor wise, says TEU national president Sandra Grey.

The tertiary education minister has announced that he plans to amend the Education Act so that private tertiary enterprises (PTEs) will get the same rate of funding as universities and polytechnics.

Grey says this gives the shareholders of those private companies a massive corporate subsidy that could be better spent on New Zealand students.

"Universities and polytechnics are not the same as private companies. They have a legal duty to teach New Zealanders of all backgrounds, to protect academic freedom, and to strengthen our country with strong research."

"PTEs only have a duty to return a profit to their shareholders. Unfortunately, recent fraud cases show that many PTEs are meeting that duty by teaching their students as cheaply and quickly as possible."

Grey says the Tertiary Education Union opposes to the minister's proposed changes to the Education Act.

"We need to protect our public education system. These changes undermine our public education and transfer public money to wealthy people who want to get wealthier."

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