26 JUNE 2008 NEW ZEALAND GAZETTE, No. 104 2773

(b) all students enrolled in the relevant course of study or training are required to pay the fee or course costs; and

(c) the charge meets the guidelines for borrowing under the compulsory fees component of the student loan scheme.

4. The following items are included in the maxima: tuition fees, compulsory charges, and examination fees associated with a programme of study. The TEC may also specify additional items to be included in the maxima over and above those listed in this condition.

Annual Fee Movement Limit (AFML)

5. Fee movements in 2009 at a course level are limited to 5 percent for certificate, diploma and degree courses that receive student achievement component funding.

6. If the application of the annual fee movement limit (AFML) on fee and course costs results in an increase above the relevant maxima in 2009, then the provider can only increase up to the level of the maxima.

Low or Zero Fee Courses

7. If the fee and course costs for a course are less than $444.44 (GST excl.) per Equivalent Full-Time Student (EFTS) in 2008, then for 2009, the provider can increase the fee to up to $444.44 (GST excl.) per EFTS, or can increase the fee for the course by 5 percent, whichever is the greater.

Postgraduate Qualifications and Courses

8. Postgraduate courses are excluded from the fee and course costs maxima.

9. Postgraduate fee and course costs can be increased by $444.44 (GST exclusive) per EFTS in 2009.

10. Professional masters programmes (eg MBAs) are exempt from the postgraduate fee increase limit, and are not subject to any limit on fee increases.

Exemptions for Exceptional Circumstances

11. Only TEIs may apply, on the basis of exceptional circumstances, for exemptions in 2009 from the AFML of 5 percent, for up to an additional 5 percent increase. An AFML exemption may allow fees to increase over the relevant fee and course costs maxima. In subsequent years, these fees will be subject to the policy for fees over the maxima.

12. TEIs and PTEs may apply, on the basis of exceptional circumstances, for exemptions in 2009 to the limit on postgraduate fee increases.

13. In considering “exceptional circumstances” exemptions, the TEC will use the following criteria:

(a) The organisation is unable to support the course(s) from its net financial surplus while remaining financially viable; and

(b) not increasing fees and course costs would compromise progress towards the achievement of the Tertiary Education Strategy 2007/12, the Statement of Tertiary Education Priorities 2008/10, or other critical elements of the tertiary reforms.

14. An application must satisfy both criteria to gain an exemption.

Sanctions

15. Where the TEC finds that a tertiary education provider is not complying with the conditions set out in this notice, it can withdraw student achievement component funding for that course. This sanction will only be exercised as a final resort, and the TEC will work with the provider to rectify any non-compliance in the first instance.

Note: Effect of this Notice

These notes do not form part of this notice, but are intended to indicate its general effect.

A. Section 159L(3)(d) of the Education Act 1989 (“the Act”) provides that the Minister, when determining the design of a funding mechanism, may specify the conditions that the TEC must attach to funding provided under the mechanism, including conditions that limit the fees that an organisation may charge domestic students.

B. Under section 159M(b) of the Act, the Minister may not specify conditions setting limits on fees until two months after the date of publication of a notice in the New Zealand Gazette that:

(i) states that the Minister proposes to specify such conditions; and

(ii) sets out the proposed conditions; and

(iii) invites submissions on the proposed conditions; and

(iv) specifies the date by which submissions must be received, which must be a date no more than 21 days after the date of the New Zealand Gazette notice.

C. The conditions setting limits on fees subsequently specified by the Minister in accordance with section 159L(3)(d) of the Act must be attached as conditions on the use of funding payable by the Tertiary Education Commission to an organisation under section 159YA and 159ZC of the Act.

D. Under sections 227(1A) and 236C of the Act, TEIs and PTEs respectively must not charge domestic students a fee which exceeds the maximum specified as a condition on funding approved by the TEC under section 159YA and section 159ZC of the Act.

Revocation of Notice of Direction to Appoint a Limited Statutory Manager for the Board of Trustees of Kaikohe Intermediate School (1022)

The notice of direction to appoint a limited statutory manager for the board of trustees of Kaikohe Intermediate School (as published in the New Zealand Gazette, 24 May 2007, No. 56, page 1455) is hereby revoked under section 78M(7) of the Education Act 1989.

This notice takes effect the day after the date of its publication.

Dated at Wellington this 23rd day of June 2008.

CHRIS CARTER, Minister of Education.