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 2011, PTEs received $300.4 million –11% of total government funding for tertiary education organisations
PTEs are operated by a wide 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 broad range of needs of learners, industries, employers, Māori and Pasifika people, and other communities and stakeholders.
From 2011 the PTE sector includes tertiary education organisations (TEOs) formerly known as ‘other tertiary education providers’, which had received funding under section 321 of the Education Act 1989.
In 2011, 348 PTEs across New Zealand received over $300.4 million of government funding. The Tertiary Education Commission (TEC) allocated funding to the sector mainly through the Student Achievement Component (SAC), Youth Guarantee, Youth Training 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 range 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
In 2011 PTE sector highlights included continued improvement against the educational performance indicators (EPIs).
In 2011 PTEs received $300.4 million (11% of all government funding for TEOs), 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 2011 included:
Unless otherwise stated, the following section describes participation and performance of SAC-eligible EFTS only.
In 2011 the largest proportion of education delivered across the PTE sector was at Levels 3–4 (52%), followed by Levels 5–6 (29%) and Levels 7–8 (17%). Enrolments at lower Levels 1–4 continued to decrease, with an overall decrease of six percent in 2011.
The largest proportions of EFTS in the PTE sector in 2011 was in Management and Commerce (23%), Society and Culture (16%), Education (12%), and Food, Hospitality and Personal Services (11%), with no significant changes in these shares compared with 2010. The majority of PTE enrolments were intramural (79%), with extramural delivery accounting for the remaining 21 percent.
Under Youth Training, 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.
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.
Participation decreased across the PTE sector and the proportion of participation by TEC priority groups was similar in 2011 to 2010. Overall, the PTE sector improved its performance on the EPIs in 2011. Course completions, qualification completions and student retention improved among all groups, with student progression similar to 2010.
TES Priority: Increasing the number of young people achieving qualifications at Level 4 and above, particularly degrees
Participation by under-25-year-olds decreased slightly overall among PTEs compared with 2010, in line with the overall decrease in EFTS the sector delivered in 2011. The decrease was primarily at Levels 1–4, while participation at Levels 7–8 rose four percent compared with 2010. As was the case in 2010, under-25-year-old participants accounted for 50 percent of all enrolments across the PTE sector in 2011. Overall, youth educational performance improved in 2011. Successful course completions increased in 2011 compared with 2010 (up from 78% to 82%), as did qualification completions (up from 74% to 78%) and student retention (up from 65% to 70%), while there was a slight decrease in student progression (down from 32% to 30%).
Youth participation at Levels 4 and above remained at 66 percent of total youth enrolments at PTEs, whilst total youth enrolments fell by 193 EFTS (down 2%) across the PTE sector in 2011. The decrease in youth participation was largely in Level 4 certificates (down 269 EFTS or 9%). Youth achievement at Levels 4 and above improved in both course completions (79% in 2010 to 83% in 2011) and qualification completions (75% in 2010 to 79% in 2011) across the PTE sector.
In 2011 the PTE sector had 812 Youth Guarantee EFTS and 9,122 Youth Training placements. Achievement by these groups showed Youth Guarantee students achieved 61 percent course completions and 50 percent qualification completions, while 39 percent of Youth Training trainees progressed to further education and 35 percent progressed into employment. There were also 8,725 FFTO placements, with 23 percent of those progressing to further education and 43 percent to employment.
TES Priority: Increasing the number of Māori students enjoying success at higher levels
In 2011 Māori learners made up 28 percent of the PTE sector’s student base, an increase from 25 percent in 2010. A higher share of Māori learners studied at Levels 5–6 (up from 5% in 2010 to 6% in 2011) and Levels 7–8 (1% in 2010 versus 3% in 2011).
Overall, Māori educational performance in PTEs continued to improve in 2011. Successful course completions increased compared to 2010 (up from 68% to 74%), as did qualification completions (up from 61% to 67%) and student retention (up from 51% to 56%).
TES Priority: Increasing the number of Pasifika students achieving at higher levels
Pasifika educational performance in PTEs improved in 2011 across all four of the education performance indicators
Pasifika participation decreased as a proportion of total enrolments compared with 2010, down to 16 percent of total enrolments across the PTE sector (17% in 2010). The majority of Pasifika students studied at Levels 3–4 (69% or 3,089 EFTS), followed by Levels 5–6 (24% or 1,086 EFTS).
Pasifika educational performance in PTEs improved in 2011 across all four of the education performance indicators. Compared with 2010, successful course completions increased (up from 73% to 80%), as did qualification completions (up from 69% to 73%), student retention (up from 62% to 66%) and student progression (up from 31% to 32%).
While 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 2011 the PTE sector received a total of $300.4 million in government funding from TEC, equating to 11 percent of all government spending on tertiary organisations. As in 2010, almost all the funds allocated to PTEs was for Teaching and Learning.
The PTE sector will continue to play an important role in: