The implicit message here seems to be, "let everyone pass through the system regardless of how qualified they actually are, but we'll have to lower the bar to keep grades and graduation rates high."
In a society where there seems to be an increasingly prominent discussion about the (ir)relevance of university degrees, it seems astonishing that they would hold such a position. It's debatable whether there was ever a time when having a university degree actually meant you had a very high likelihood of being "ready to move into the workforce, ready to move into graduate or professional school.", but this certainly doesn't help...