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Summarised by Centrist
Despite dramatic warnings that Budget 2025 could “fatally weaken” New Zealand universities, sector leaders say the system is stable, enrolments are up, and no institutions are close to failure.
The government’s decision to boost funding for STEM subjects while letting a short-term top-up expire has prompted strong criticism from union figures; however, the overall impact appears to be modest.
Otago biomedical sciences professor Craig Marshall warned the changes could “perhaps” result in the loss of a university and that students were increasingly looking overseas.
Universities New Zealand chief executive Chris Whelan pushed back. “We would have a problem if funding got so low we were not able to maintain that quality,” he said. “But I don’t think we’re anywhere near that.”
Education Minister Shane Reti confirmed the government will cover 99 percent of expected enrolments next year, with the Tertiary Education Commission funding the remainder. He said STEM investment reflected clear pathways to productivity. “We’re particularly investing in those courses that clearly have a pathway to economic gain,” he said.
University enrolments, which had declined in recent years, are now rising. The budget includes $111 million over two years to meet demand. Long-term shifts in enrolments across disciplines remain relatively minor. Science is down just one percentage point over ten years, while health has grown modestly.
