Tertiary Education Minister Pete Hodgson has floated the idea of a new Government fund to help tertiary institutions pay for major capital projects.
He was ‘‘keen to progress'' the establishment of a national tertiary sector capital fund similar to the health capital fund he oversaw when he was health minister, he told the Otago Daily Times yesterday.
Tertiary institutions were generally expected to manage capital works programmes within existing funding envelopes, Mr Hodgson said.
He still felt that was ‘‘the right way to go'' but the future might also include a different funding scenario, he said.
‘‘The question is whether we should run a tertiary sector capital fund along the same lines as the health sector fund and how a tertiary fund might operate. These questions have no answers yet, but I am keen to progress investigations.''
He expected to make ‘‘significant progress'' by the end of this year.
Mr Hodgson made his comments when asked whether the Government might help the University of Otago extend its dental school. It is the only dental school in New Zealand.
Almost 500 students and 60 researchers are squeezed into a 46-year-old building designed for 200 students, but the university says it cannot afford the estimated $50 million needed to build and equip a new wing.
It wants the Government to contribute because of the dental school's national training and research role.
Mr Hodgson could not give any assurances the Government might contribute, or whether the university might win money from a tertiary capital fund.
University vice-chancellor Prof David Skegg said yesterday he was ‘‘very encouraged'' to hear Mr Hodgson's comments.
‘‘I am very encouraged to hear he is keen to establish a fund. Some major capital projects are just too difficult for tertiary institutions to fund - too big.''
