Export education levy sends wrong message, says industry body

The export education levy should be used to develop the industry, not to boost government revenue, a government-recognised export education body argues.

The government is using money from the controversial levy to recover its costs from the collapse of Auckland's Paramount Institute - $524,288 to reimburse tuition fees for the affected international students and $106,428 to pay for their homestay expenses.

Robert Stevens, chief executive of Education New Zealand, said the government's action was the "worst possible option".

"Taking money from sound, law-abiding institutions to potentially bail out institutions that must have flouted the regulations if a bail out is required is sending the message to industry that you will be penalised if you comply, and can evade your responsibilities if you do not.

"It is analogous to sending all motorists a traffic ticket if one of them gets caught speeding," Mr Stevens said.

"The public interest in international education is best served by developing the industry, not by diverting its hard won resources into the Treasury's coffers. A far better plan would be to invest in industry good activities such as expanded marketing programmes and product research."

Meanwhile, latest figures show international student numbers up overall, but falling in the school and English language sectors. Education New Zealand data shows growth in the number of international students studying at tertiary level, particularly in universities, but a 17 percent fall in the school sector (including a 38 percent decrease in students from China) and a 24 percent drop in the number of student weeks in English language schools. Mr Stevens said the figures were in line with international trends.

Association of Private Providers of English Language chairperson Patrick Ibbertson said the Education New Zealand numbers understated the downturn because they included cumulative re-enrolments of students who had come to New Zealand at the height of the education boom and who were only halfway through their stay.

In contrast, the number of first-time students to secondary schools is expected to drop a further 30 percent, and first year undergraduate enrolments could drop by up to 50 percent in 2005, with another fall in 2006, he said.

Mr Ibbertson said English language schools had laid-off nearly half their teachers in the past two years.

More Education New Zealand information.

A government statement on the Paramount Institute.

An Education Forum hot topic on the export education levy.