Part 3: Relationship between the Ministry of Education and the Māori Education Trust
3.1
The Ministry has had a funding relationship with the Trust since the Trust was
established.
3.2
The Ministry’s relationship with the Trust (and, before the Trust, with the
Māori Education Foundation – see Appendix 3 on page 44) has been managed
through a variety of contractual arrangements. These arrangements have
included purchase agreements and, since 1993-94, contracts for service.
3.3
The diagram below summarises the scholarship schemes covered in the scope
of the inquiry, their funding, and the contractual relationships between the
entities.
Figure 1
Scholarship schemes, their funding, and contractual relationships
3.4
Scholarships for Māori and Pacific Island students are funded through Vote
Education: Benefits and Unrequited Expenses. The Ministry contracts the
services of the Trust to administer scholarship schemes funded through this
appropriation.
3.5
The Ministry, through Vote Education: Benefits and Unrequited Expenses, was
funded $5,544,000 in the 2003-04 financial year for certain scholarships. The
appropriation is described as:
Programmes to provide scholarships and bursaries to Māori and Pacific secondary students, according to established criteria. The programmes include Manaaki Tauira, Māori Education Trust and Polynesian and Pacific Island Education Foundation Scholarships, Ngarimu VC and Māori Battalion Memorial Scholarship Fund, and Māori and Polynesian Scholarships.3
Figure 2
Scholarships administered by the Māori Education Trust
| Scholarship type | Amount (inc GST) |
|---|---|
| Manaaki Tauira scholarships | $4,300,000 |
| Māori Education Trust scholarships subsidy | $664,000 |
| Māori and Polynesian Scholarships for Higher Education | $526,000 |
| Ngārimu VC and 28th (Māori) Battalion Memorial Scholarship Fund | $54,000 |
| TOTAL | $5,544,000 |
3.6
The Māori Education Trust scholarships subsidy referred to in Figure 2 is paid
by the Ministry for the Trust’s own scholarships. It arises from the scholarships
contract between the 2 entities. The subsidy is based on the level of certain
qualifying income generated by the Trust, and capped at a maximum of
$664,000 each year. The subsidy is discussed in detail in Part 7 of this report.
3.7
Vote: Education also includes funding, within Non-Departmental Output Class
O6: Management of Grants and Contracts, to purchase administrative services
from the Trust in relation to the scholarship schemes.
3.8
The Trust was awarded the contract for administration of the Manaaki Tauira
scholarship scheme in July 2002.4 The Manaaki Tauira contract is for a 3-year
period, ending in June 2005, and includes $360,000 each year for
administration.
3.9
The current contract with the Ministry, under which the Trust provides
administration services in relation to the Ngārimu VC and 28th (Māori)
Battalion Memorial Scholarship Fund, Māori and Polynesian Scholarships for
Higher Education, and Māori Education Trust scholarship schemes, is also for
a 3-year period (ending 28 February 2005). This contract includes $169,050
each year for administration.
3: The total appropriation included a further $75,000 for Polynesian and Pacific Island Education Foundation Scholarships. These scholarships are administered by the Pacific Islands Polynesian Education Foundation and are outside the scope of this inquiry.
4: Specialist Education Services had previously managed the contract.