The private training establishment (PTE) sector plays an important role in responding to industry need for graduates with specific skills. It offers education that is not provided by other tertiary sectors, mostly in specific vocational niches at certificate and diploma level.
In 2012, PTEs received $311.4 million – 12 percent of total government funding for tertiary education organisations
PTEs are operated by a range of companies, trusts and other entities, and offer post-school education or vocational training.
They are diverse in their scale of operation, location, ethnic makeup, culture and areas of educational expertise. Because of this, they respond to the varying needs of learners, industries, employers, Māori and Pasifika people, and other communities and stakeholders.
From 2011, the PTE sector has included tertiary education organisations (TEOs) formerly known as ‘other tertiary education providers’, which had received funding under section 321 of the Education Act 1989.
In 2012, 351 PTEs across New Zealand received over $311.4 million of government funding. The Tertiary Education Commission (TEC) allocated funding to the sector mainly through the Student Achievement Component (SAC), Youth Guarantee, and Foundation-Focused Training Opportunities (FFTO) funds.
Youth Guarantee programmes aim to improve the educational achievement of targeted 16- and 17-year-olds by enabling them to participate in a variety of vocational courses free of charge. These programmes focus on enabling young people under the age of 18 (as well as people of all ages with low or no qualifications and who are at risk of long-term unemployment) to engage in further education and training.
The Tertiary Education Strategy (TES) defines the core roles and expectations of PTEs as:
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PTEs contribute to the Government’s TES priorities by:
PTEs improved their results on the educational performance indicators for youth, Māori and Pasifika students
PTEs received $311.4 million (12% of all government funding for TEOs) in 2012, with almost all going towards Teaching and Learning. The PTE sector continued to improve against the EPIs.
Key factors that affected the operating environment of the PTE sector in 2012 included:
In 2012, the PTE sector provided a variety of tertiary education, from foundation education at Levels 1–2 to degree and post-graduate study at Levels 7–10. PTEs enrolled 48,411 students, which equates to 27,411 SAC-eligible equivalent full-time students (EFTS). In addition to SAC-eligible enrolments, there were 6,716 Youth Guarantee students, 9,430 FFTO students and 6,890 full fee-paying foreign EFTS enrolled across the PTE sector in 2012 (see figure 45).
Unless otherwise stated, the following section describes participation and performance of SAC-eligible EFTS only.
The largest proportion of education delivered across the PTE sector in 2012 was at Levels 3–4 (48%), followed by Levels 5–6 (32%) and Levels 7–8 (18%). Enrolments at Levels 3–4 continued to decrease, with an overall decrease of 4 percentage points, compared with 2011, while Levels 5–6 increased (up by 3% on 2011) (see figure 46).
The majority of delivery in the PTE sector was in Management and Commerce (21%), Society and Culture (16%), Education (13%) and Food, Hospitality and Personal Services (11%) (see figure 47). Management and Commerce and Information Technology both reduced by 15 percent and 12 percent respectively on the previous year, while Architecture and Building increased by 30 percent (156 EFTS). Most PTE enrolments were intramural (82%), with extramural delivery accounting for the remaining 18 percent.
Under Youth Guarantee and FFTO programmes, the PTE sector delivered foundation education at Levels 1–3, mainly in the Auckland, Waikato, Wellington/Kapiti and Canterbury regions.
PTEs attracted a relatively high proportion of Māori and Pasifika students, highlighting the sector’s responsiveness to the Government’s emphasis on these TES-priority groups (see figure 48).
The following section briefly highlights key aspects of the sector’s performance against the TES. Unless otherwise stated, all enrolment and achievement measures refer to SAC-eligible EFTS only.
While participation across the PTE sector declined in 2012, the proportion of participation for TES priority groups (Māori, Pasifika and under-25-year-olds) generally increased (see figure 49). Overall, in terms of educational achievement, the PTE sector improved its performance in 2012. Course completion, qualification completion and student retention each improved, while student progression dropped by 1 percentage point compared with the previous year.
TES Priority: Increasing the number of young people achieving qualifications at Level 4 and above, particularly degrees
Participation by under-25-year-olds increased by 3 percentage points compared with 2011 and made up 53 percent of total enrolments (see figure 50). Delivery for youth was primarily across Levels 3–6 (86%) and Levels 7–8 (13%).
Youth educational performance remained strong in 2012, with improvements seen across all four EPIs.
Figure 50: PTE participation and achievement by students under 25 years, 2011 and 2012
Youth participation in higher level programmes showed a slight increase from 2011, largely due to the increased enrolments across Level 5 and above (up from 6,273 EFTS in 2011 to 6,837 EFTS in 2012). The educational performance of this group continued to strengthen in 2012, with successful course completion at Levels 5–6 sitting at 83 percent and Levels 7–8 at 87 percent.
In 2012, the PTE sector also had 6,716 Youth Guarantee trainees. Over the year, Youth Guarantee trainees achieved an average of 49 credits and 0.45 qualifications. Across the PTE sector, there were also 9,806 FFTO placements, of which 23 percent progressed to further education and 41 percent to employment.
TES Priority: Increasing the number of Māori students enjoying success at higher levels
In 2012, Māori continued to make up 28 percent of total PTE enrolments. However, the volume of Māori enrolments dropped by 465 EFTS. The decrease in enrolments was mainly seen across Levels 1–4, while increased enrolments were observed across all other levels.
Educational performance for Māori improved across all EPIs, with qualification completion being the most notable, up from 67 percent in 2011 to 74 percent in 2012 (see figure 51).
TES Priority: Increasing the number of Pasifika students achieving at higher levels
Youth, Māori and Pasifika students’ educational performance improved in 2012 across the PTE sector
Pasifika enrolments showed a slight increase in 2012 to account for 17 percent of total PTE enrolments. Pasifika enrolments shifted away from Levels 3–4 (down 104 EFTS) and towards Level 5 and above (up 167 EFTS).
The educational performance for Pasifika largely improved in 2012, with the exception of successful course completion, which dropped by less than 1 percentage point to 79 percent (see figure 52).
While the TEC engages with PTEs, it does not systematically collect PTEs’ financial information. The New Zealand Qualifications Authority is the Government agency responsible for monitoring the financial viability of individual PTEs.
In 2012, the PTE sector received $311.4 million in government funding from the TEC, with almost all the funds allocated for Teaching and Learning ($310.4 million) (see figure 53).
The PTE sector will continue to play an important role in: