The Government's sudden cancellation of the tertiary education funding increase is a reckless move that risks widespread job losses and service reductions across New Zealand's universities.

“Now that the Government has delayed this crucial review of the sector’s long-term funding, universities are left with no clear path forward. The immediate consequence will be substantial job cuts and slashed services, directly affecting students' learning experiences and weakening New Zealand’s future workforce,” Labour tertiary education spokesperson Deborah Russell said.

“Not only that, but the cancellation of this funding also poses a significant threat to New Zealand's research and development sector, as universities play a pivotal role in driving innovation and economic growth through research initiatives,” Deborah Russell said.

In 2023, New Zealand’s universities were set to announce massive job cuts, but a $128 million funding boost passed by all parties kept the sector afloat through 2025. This funding was designed as a stop-gap measure until there could be a comprehensive review of the sector’s long-term funding system, aimed at preventing drastic cuts in the future.

“By scrapping that funding before completing the review, National is effectively choosing to pull the plug on vital funding that universities are counting on, leaving institutions scrambling to cover costs and reassessing key services for future academic years.

“The Government claims to be focused on economic growth, but National’s choices have already plunged New Zealand into the sharpest recession in 30 years, with 33,000 more people out of work. The last thing we need now is to cut opportunities for our future workforce,” Deborah Russell said.