Minister mum on which polytechnics to stand alone

Penny Simmonds. PHOTO: ODT FILES
Penny Simmonds. PHOTO: ODT FILES
Six polytechnics could be stand-alone by the start of next year, but Tertiary Education Minister Penny Simmonds is shying away from saying which ones.

She is leading the break-up of mega-polytechnic Te Pukenga and moving towards a model where the financially strongest polytechnics can eventually stand on their own and the rest become part of a federation model overseen by the Open Polytechnic.

She told RNZ this week she expected six polytechnics could be stand-alone by January next year, and a further three at the end of 2026.

But when the Otago Daily Times approached Ms Simmonds yesterday to name which polytechnics could be successful, she did not name them.

"Cabinet will make final decisions about the proposed reforms after the cost out exercise has been completed.

"We need to restore our polytechnics to their rightful place as anchors of learning opportunities for individuals, and as a regional development tool for communities and industries.

"For those regions where ITPs are facing serious financial issues, especially where programmes have been running with very low student numbers, this may mean fewer programmes are offered entirely face-to-face on campus and there is more use of blended delivery [i.e. face-to-face and online delivery]."

Ms Simmonds also said all polytechnic divisions were looking at land and buildings that were surplus to their needs, as "sales of these will assist with taking costs out of their operations".

Information provided to the ODT showed the Otago Polytechnic division ran an unaudited deficit of $8.3 million last year, and its net cash position was likely to be about -$23m.

Megan Pōtiki. PHOTO: SUPPLIED
Megan Pōtiki. PHOTO: SUPPLIED
Southern Institute of Technology (SIT) ran a deficit of $9.9m and had a positive net cash position of $30m.

Otago Polytechnic Te Pukenga executive director Megan Potiki said it could not gauge whether it was guaranteed to be successful at standing alone, because the consultation document did not offer any criteria.

"Independent consultants are still assessing Otago Polytechnic’s financial viability, and the outcome remains unknown at this stage.

"We fully support the independent assessment and are confident that this process enables us to work towards a sustainable solution for Otago Polytechnic’s financial future. Throughout this process, we remain committed to providing the same high level of support to our learners and community partners.

"We are continuing to offer a wide range of hands-on programmes to both national and international learners and we look forward to welcoming new learners in 2025. Our learners are at the heart of everything we do, and our work-ready graduates receive resounding endorsements from employers."

The minister’s consultation process on the proposed changes wraps up next week, but Tertiary Education Union co-secretary Daniel Benson-Guiu said the minister’s remarks had effectively overridden this consultation.

"The minister sent officials around the country to engage at enormous expense yet she has predetermined the outcomes of this consultation.

"This consultation is a sham — the meetings with communities are not yet completed."

The minister was making things up as she went along, he said.

"She knows staff, students and industry received the proposal and the subsequent ‘engagement’, if we can call it that, like a cup of cold soup.

"The minister, indicating there will be cuts, indicating there will be a different governance model in some regions, is interfering with how the sector should run. She’s no longer the chief executive of SIT.

"Ms Simmonds is a minister with a pet project, she has been unable to demonstrate that this model would work without severe cuts to staff or without selling assets."

matthew.littlewood@odt.co.nz

 

 

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