Peter Schwerdtfeger, David Lillis and John Raine: New Zealand’s Tertiary Education Sector in Deep Financial Crisis

...the historical telos of universities as depositories of our collective cultural wisdom and knowledge is thus changed from forms of debate and free speech to those of multiple truths and power plays to impose dominance. In this way, the universities and those academics within them are transformed from fallible but authoritative judges and teachers of the sum of human knowledge to being part of a broader political struggle between a binary of oppressed versus the oppressors.
- Doug Stokes in "Against decolonisation" (p. 81-82)

Universities losing their Best People

As we write, several universities in New Zealand are facing severe financial problems and cuts to expenditure.

Consequently, redundancies for front-line academic and administrative staff appear to be inevitable.  Some tertiary education providers have already gone through a similar painful exercise (for example, Auckland University experienced 300 redundancies in 2021). In fact, universities in New Zealand, Australia and the United Kingdom seem to have gone through redundancy rounds on a more-or-less regular basis over recent decades. These job cuts not only lead to the loss of some of our best, internationally highly-acclaimed and high-performing academics, with concomitant loss of expertise in important research areas, but also give rise to permanent damage to our universities’ national and international reputations, and further declines in the international rankings [1].

New Zealand universities are already facing serious problems in recruiting high-profile researchers from overseas. The current situation shows clearly that in many cases academic positions cannot be secured long-term in New Zealand, as they are elsewhere in the world, making it impossible to build up significant high quality research programmes and knowledge hubs in New Zealand. One may reasonably ask if our tertiary education sector has already become terminally ill, or if the sector can be revived to recover some of that which we have lost over recent decades. Universities used to be great places to work, full of ideas and academic scholarship and thriving intellectually, and had real student engagement and thought leadership. However, as a nation, we now seem to have given up our expectations in higher education [2].

Let’s start with a detailed analysis of what has gone so wrong in New Zealand’s tertiary education sector over the past few decades:

Our Low Level of Investment

·        According to OECD data, expenditure on tertiary educational institutions as a percentage of GDP in New Zealand is low and has been low for the past 20 years. Total spending on University and other research organisations by Government and the private sector is less than 1.5% of GDP, compared to the OECD average of 2.5% [3,4]. The more recent financial crisis in tertiary education stems from the border closures following the Covid outbreak, leading to a significant loss of international students, a loss from which the sector has been very slow to recover – much slower than in Australia, for instance. The Labour Party’s failure to address this drop in income adequately is incomprehensible. Without doubt, ways could have been found to manage Covid quarantine to enable the flow of international students to continue, but, even without this,  Government could have limited the damage to international student business by

Ø  Opening New Zealand’s border more quickly to avoid the loss of international students to the USA, UK, Canada and Australia who opened up more rapidly.

Ø  Ensuring that the Department of Immigration had the skills and capacity to process high volumes of student visa applications.

·         Government’s announcement of an additional $128m in funding for the tertiary education sector for 2024-25 barely starts to address the problem. To see this point, consider the loss in revenue from not adjusting adequately for inflation in the sector. This amounts to over $500m over the past three years. Returning the underspend from Fees-Free student enrolments due to the lower than expected student numbers entering the university, should have been postponed until after the election.

·        The “bums-on-seats” model, which drives the bulk of university funding through enrolment-related Government funding and student fees revenue, not only leads to mediocrity in teaching but lacks appreciation of the other important function of a university, which is research. Applicants to the Marsden Fund, MBIE Endeavour programme and other funds have an embarrassingly low success rate (half of what is common elsewhere) because of under-funding of research by Government and the consequent heavy over-subscription of grant applications. The intense competition between researchers and between institutions to obtain funding, and the pressure from these institutions because of the large funded overheads they receive (typically 117% of personnel costs), creates a toxic research environment of winners and losers. Not receiving a major research grant can be used as a rationale for staff redundancies, with severe consequences for the research groups and students involved. The hunt for research dollars has led to an overall decline in traditional university subjects, such as physics, languages, literature and music. Can a university without a physics department justify the name “University”?  Moreover, the Labour Government has fostered post-modernist ideologies within the sector, rather than addressing directly the significant funding problem.

The Damage caused by Postmodernism

Postmodernism is a late 20th century philosophical movement that questions fundamental assumptions of Western philosophy from the 17th century and through the 19th century. Postmodernism rejects the notions of rationality, objectivity and universal truth, instead emphasizing the diversity of human experience and multiplicity of perspectives. Unfortunately, this movement is damaging our universities in relation to the delivery of both high-quality education and excellent research.

At this time Universalism (the notion that some ideas have universal application or applicability) is being called into doubt. Promulgating critical theory, ideologues within the social sciences and humanities assert that science is simply one knowledge system among many, and exists in relation to western society. In this world view, the universalism that enables science to inform other societies and cultures is cast as nothing more than a form of injustice and a tool of colonialism.

Currently we are replacing core liberal principles, essential for scientific and technological advances, with principles derived from postmodernism and Critical Social Justice. Such principles claim routinely that world science is racist, patriarchal, colonial and a tool of oppression.

Scientific realism is based on the idea that the world is an objective and independent reality, and that our scientific theories are our best means of understanding and describing this reality. According to scientific realism, scientific theories do not simply describe our current observations and measurements, but rather they describe the underlying structure and patterns of the world that give rise to these observations and measurements. Doug Stokes in "Against decolonisation” (p. 84-85)

The Critical Issues

·        Universities’ CEOs (Vice Chancellors) are becoming ever more powerful and disconnected from academic expertise and needs. Academic boards or senates often have no power to overturn questionable strategies and financial decisions, as management separates academic from operational decision-making. That is, academics - those working at the coal face - have little or no input on operational or financial decisions, despite their expertise and experience, and have to endure the often-serious consequences of questionable managerial decisions driven by objectives outside the remit of the Act that defines universities in New Zealand. Those objectives are largely teaching and research. Initiatives outside research and teaching increase the risk of financial loss to institutions. Examples include:

Ø  Rebranding.

Ø  Launching overseas campuses.

Ø  The purchase of expensive administrative software packages of limited academic use – justifiable only if a realistic administrative cost-benefit analysis is positive.

Ø  Selling strategic assets such as land. While driven by financial exigencies, the wisdom of selling land, especially in New Zealand’s largest city, must be questioned, as it may limit future expansion in an area of population and tertiary education market growth. 

·        Current financial models used by the universities include little or no differentiation between more laboratory-intensive subjects (such as chemistry, physics and engineering) and other less expensive areas (such as the humanities) that have few, if any, laboratory requirements. The now near-universal space-charging model is crippling these important subjects.

·        The closure of strategically important programmes is inexcusable. As an example, we mention Victoria University’s theatre programme and the Physics section (and now apparently Engineering and Conservation Ecology) at Massey University. The VUW closure was only stopped when it was reported on the Sunday Programme on TV1. But who is fighting on behalf of basic physics education in New Zealand [5]?

·        There has been a move to more digital off-campus learning (e.g. Digital+ at Massey University), despite the well-known fact that students suffer mentally from not experiencing the social life and a face-to-face teaching environment on campus. The damage to students’ mental health of such an approach is now well documented [6] and the reason why Germany has moved away from digital learning.

·        The deletion of courses with low enrolments makes it now almost impossible to teach more specialised subjects which are perceived to be more difficult for students (e.g. Massey’s No and Low Enrolment Policy).

·        The unions (TEU) are not powerful enough to seriously challenge managerial decisions by universities. The payment of union fees seems to offer little success in protecting staff jobs. Furthermore, the imbalance in power of academics compared to the CEOs to (legally) challenge universities’ decisions has made many academics very disillusioned, as they feel that they are unable to participate effectively in academic decision-making. It seems that the traditional authority of the Academic Board has to a significant extent been lost over the last 20 years. Distrust of academics being involved in academic decision-making is a key issue with current University leadership. It appears that bureaucrats have created an ivory tower of their own - indeed more than 60% of university staff in New Zealand do not have teaching and research responsibilities (carrying a performance-assessed research portfolio).

·        The commodification of tertiary education currently appears to have failed as a business model in New Zealand. Certainly, it appears that capital investment decisions at some Universities around new buildings and campuses have been faulty in retrospect, and too often the academic voice has been ignored by management during the new facilities design process.

·        The current ratio of non-academic to academic staff of 1.5 in New Zealand [7], does not make the life of academics any easier. On the contrary, too much time is spent on compliance activities to the great detriment of the core functions of teaching and research. This outcome is a natural consequence of growth in the non-revenue earning administrative areas of the university, and reflects the similar increase in the cost to New Zealand’s productivity of growth in central government bureaucracy.

·        Concerning support for Science, Technology, Engineering and Mathematics (STEM) - the much-heralded knowledge wave of over 20 years ago has all but evaporated. We are demonstrably becoming a less well-educated society in terms of science and mathematics education. Moreover, we see an increasing decline in teaching standards, as students are less well-grounded in core subjects such as mathematics and literacy. This decline has consequences for the workforce, as students are now less well equipped for an internationally-competitive market. As an example dear to one of us, chemistry courses now require little or no knowledge of calculus, thus depriving students of important knowledge in core physical chemistry subjects such as quantum theory or molecular dynamics/kinetics (the very heart of chemical reactions) and underpinning much of modern advanced technology.

·        The relatively common lack of strong academic leadership, matched by poor vision within University administrations, has emerged because most academics have given up on aspirational debate a long while ago and simply follow the flow. Particularly disappointing is the lack of critique on this situation from many academics through fear of repercussions. There is more than enough evidence of universities limiting freedom of speech [8]. Academics are often told to be silent or live with the consequences. We could cite several examples of academics being investigated for serious misconduct for speaking out in public. Bullying and harassment are thriving in New Zealand [9], despite the public sector and universities having policies in place against such asocial and unethical behaviour. Unfortunately, even some academics and students have joined the chorus of the cancel-and-consequence culture movement. As a prime example, we mention the petition and ongoing vitriol against the “Listener Seven”, who raised valid criticism of the intrusion of post-modernist ideologies into science disciplines.

·        The indigenisation, decolonisation and postmodernist Matauranga Māori movement in New Zealand has been commented on unfavourably in overseas reports [10]. This anti-western, anti-science movement is also taking place in other countries such as India, where teaching the Periodic Table is posed as nothing other than a “tool of colonisation”.  A similar education debacle is seen in the school science curriculum here in New Zealand, where one form of traditional knowledge of centuries ago is accorded equality of status with modern science. It is clear that if such postmodernist movements, headed by people with little knowledge of and even antipathy towards the basic sciences, will lead to widespread international condemnation and embarrassment [11].  Of course, all of this will have a sharp negative impact on students and a longer-term impact on New Zealand’s already very low productivity.

·        While we strongly support the economic and cultural benefits of international student enrolments, the current over-reliance on international students has led to high financial risk to our universities. In this area, a reassessment of the overall financial model and better long-term planning are needed from Government and universities [12].

·        Universities have preferred suppliers for goods and travel, which has eliminated important competition. This situation leads in some cases to over-charging, imposing considerable costs on universities every year.

The Way Forward

We believe that the list of issues outlined here are serious, and are interfering substantially with academic achievement. If we consult a doctor and explain all evident symptoms of an illness, we can then discuss possible treatments. We need to see such consultative dialogue reinforced at our universities.

So, how can we cure the tertiary education sector?

·         Government needs to review the university sector and its managerial structure. It needs to invest more in our universities, but should also discourage unnecessary spending by university management and link Government funding support to containment of university administrative costs, and universities’ political neutrality. What must be avoided is any move towards greater central government oversight of the universities. The centralisation of the polytechnics as Te Pukenga has been a strategic and financial disaster.

·         Move back into a merit-based university system, free of political and ideological influence [13].

·         Regain trust in academic decision-making by making the academic voice more widely heard. Academic boards and Senates should not just be rubber-stamping bodies, but should have the power to stop questionable managerial decisions on academic matters.

·         Teaching content should be decided by academics who are well-trained in the disciplines and subjects, and not driven by current short-lived policies or ideologies that may lead to permanent damage to our University system.

·         We must retain core subjects that are needed to maintain the character of our universities, such as literature, languages, music, fine arts, and the sciences. Moreover, while academic jobs cannot be guaranteed in times of crisis, every effort must be made to protect positions of high-performing academics, research teams and front-line administrative staff to maximise organisational stability.

·         While academic performance is reviewed both internally and externally (for example, through the Performance Based Resea     rch Fund) on a regular basis, university managers seem not to be subject to transparent assessment procedures. University surveys often paint a negative picture of the managerial structure, but with no consequence. There should be greater accountability for managerial and decision-making errors.

·         Universities should accept the basic human right of freedom of speech, and this includes the right of staff to criticise their own institution. Top-down managerial limitation of academic freedom in teaching and research must be limited.  One of the writers (PS) of this blog has had to face many rude remarks about his own research activities in the fundamental sciences as being of no use to New Zealand society, despite receiving many international accolades. This utilitarianism in the sciences has been criticised by many [14], and appears to be an example of a growing inward-looking cultural revisionist view of what should be the character of a New Zealand University.

Activists impose decolonisation as part of a counter-power move to push back against what they claim is knowledge power plays of historically tainted thinkers and institutions. In short, if all knowledge is out of, it becomes politically acceptable to impose your agenda in the name of social justice and a form of restorative activism. Decolonisation is thus an explicitly political power play. Doug Stokes in "Against decolonisation” (p. 83-84)

Epilogue

If New Zealand wants to become a thriving and well-educated society, we had better do something fast to improve the current unsustainable situation in the tertiary education sector. And the Universities need to be reminded of a poem by Bertolt Brecht:

“Who built the seven gates of Thebes? The books are filled with names of kings. … And Babylon, so many times destroyed. … Each page a victory. At whose expense the victory ball? Every ten years a great man, Who paid the piper? So many particulars. So many questions.”

………………………………………………………………………………………..

The opinions expressed here are those of the writers, and not of the Universities with which they are or were formerly affiliated.

Peter Schwerdtfeger is a distinguished professor in theoretical chemistry and physics and Head of the New Zealand Institute for Advanced Study at Massey University.

Dr David Lillis is a retired researcher, statistician and academic manager who also worked for several years in research evaluation for the Foundation for Research, Science and Technology.

John Raine is an Emeritus Professor of Engineering and held Deputy and Pro Vice Chancellor roles across three New Zealand Universities. His responsibilities have included research, research commercialisation and internationalisation.

 

References

[1] THE World University Rankings, https://www.timeshighereducation.com/world-University-rankings (2023)

[2] John Raine, David Lillis, and Peter Schwerdtfeger, “Where are our Universities Heading?” Breaking Views, 28th June 2023. https://breakingviewsnz.blogspot.com/2023/06/john-raine-david-lillis-peter.html#more (Reprinted in Bassett Brash and Hide 29th June 2023)

[3] Spending on tertiary education, OECD (2024). https://data.oecd.org/eduresource/spending-on-tertiary-education.htm

[4] Budget a chance to unlock Universities’ full potential to enhance New Zealanders’ wellbeing and prosperity, 2022. 
https://www.Universitiesnz.ac.nz/latest-news-and-publications/budget-chance-unlock-Universities%E2%80%99-full-potential-enhance-new

[5] N. Gaston, When downsizing means destroying our Universities (2023) 
https://www.auckland.ac.nz/en/news/2023/06/08/downsizing-Universities.html

[6] S. Stieger, D. Lewetz, D. Willinger, Face‑to‑face more important than digital communication for mental health during the pandemic, Scientific Reports 13, 8022 (2023). 
https://doi.org/10.1038/s41598-023-34957-4

[7] NZ Universities and non-academic staff - how many is too many?, The New Zealand Initiative (2023). https://www.nzinitiative.org.nz/reports-and-media/opinion/nz-Universities-and-non-academic-staff-how-many-is-too-many/

[8] Report on the State of Academic Freedom in New Zealand Universities. The Free Speech Union (2023). https://www.fsu.nz/academic_freedom_survey_2023_report_cover_note

[9] D. Lillis, Workplace Bullying in New Zealand (2023). https://breakingviewsnz.blogspot.com/2022/01/david-lillis-workplace-bullying-in-new.html

[10] Jerry Coyne: A good summary of the mess that is science education in New Zealand, Breaking Views, 23rd September 2023. https://breakingviewsnz.blogspot.com/2023/09/jerry-coyne-good-summary-of-mess-that.html

[11] Peter Schwerdtfeger, John Raine, David Lillis. “Post-modernism and the Degrading of Education in New Zealand“. Breaking Views, 24th July 2023
https://breakingviewsnz.blogspot.com/2023/07/peter-schwerdtfeger-john-raine-and.html (Reprinted in Bassett Brash and Hide 25th July 2023)

[12] David Lillis, John Raine, Peter Schwerdtfeger. “Funding of Research in New Zealand” Breaking Views, 18th August, 2023. https://breakingviewsnz.blogspot.com/2023/08/david-lillis-john-raine-and-peter.html (Reprinted in Bassett Brash and Hide 19th August, 2023 )

[13] D. Abbot et al. In Defense of Merit in Science. Controversial_Ideas 3, 1 (2023).

[14] Daniela Kneißl, Helmut Schwarz, Fundamental Research Needs Excellent Scientists and its Own Space, Angewandte Chemie Int. Ed. 50, 12370 (2011). 
https://onlinelibrary.wiley.com/doi/10.1002/anie.201108152