The Crown and the Universities in New Zealand

Abstract

As "in-substance" owner of the New Zealand Universities, the Crown is exposed to considerable fiscal risk should such institutions fail. This has led to recent discussion of the possible reform of the ownership relationship between the universities and the Crown, in order to minimise Crown risk and to enhance the accountability and effectiveness of Universities. While the issue is relevant to the entire tertiary education sector, the present study examines universities in particular. Although the activities in teaching and research which these institutions perform are increasingly similar to those of non-university tertiary institutions, the distinctive internal culture of universities allows a selective research focus. This thesis examines possible reform models, their implications for both ownership monitoring and governance; and suggests a variety of criteria against which an optimal policy model may be selected. Analysis shows that the selection of the most appropriate model is critically dependent on both stakeholder viewpoint, and the relative weighting accorded the economistic criteria which have underpinned previous public sector reform, and sector-specific criteria that derive from the defining values and ideals of the universities as institutions. A cautionary note is sounded to those who seek to reform one of the world's most complex and change-resistant institutional forms.