Te Pūkenga

[2] In February 2019, the Government announced that the country's sixteen Institutes of Technology and Polytechnics (ITPs) would merge to form the new organisation; the merger was effective on 1 April 2020.

[6][7] In early December 2023, the incoming National-led coalition government confirmed it would be dissolving Te Pūkenga and replacing the mega polytechnic with eight to ten institutions.

The details were outlined in a cabinet paper and this included "a programme of change for the institute of technology and polytechnic (ITP) subsector and for vocational education more generally".

[27] On 11 July, the National Party's tertiary education spokesperson Simmonds criticised the Te Pūkenga model for failing to improve struggling polytechnics while discouraging good performers.

The editorial also described the creation of Te Pūkenga as part of the Labour Government's centralisation policies alongside the former district health boards and the Three Waters reform programme.

[29] In mid-July 2022, the 16 polytechnics and four industrial training organisations commenced "combined branding" to raise awareness of their planned merger into Te Pūkenga in early January 2023.

Acting CEO Winder stated that the mega polytechnic would provide campus-based, online, and job-based training while reducing duplication of resources and competition between local institutions.

Hipkins defended his Government's polytechnic merger policy, stating that the previous model had created unnecessary competition and was not delivering the skilled workers that employers and businesses needed.

By contrast, TEC chief executive Tim Fowler expressed confidence in Te Pūkenga's leadership while Tertiary Education Union national president Tina Smith opined that the new polytechnic system was preferable to the previous model of "competing fiefdoms.

[35] On 10 July, the Waikato Times reported that a memo by Tertiary Education Commission deputy chief executive Gillian Dudgeon to the Education Minister Hipkins identified several problems facing the national polytechnic provider including a lack of leadership, a deficit of NZ$110 million due to a 12% drop in enrollments compared with 2021 (which exceeded the organisation's budget of NZ$57.5 million), and inaction over improving Te Pūkenga's financial state.

[36] On 27 July, Education Minister Hipkins ruled out calls by former Te Pūkenga senior executive Merran Davis to place a commissioner in charge of the entity at the time.

[39] On 3 August 2022, Chairperson Murray Strong apologised to Te Pūkenga staff members for not listening to their concerns, appreciating their expertise, and for delays in transitioning into a single institution.

Strong and acting chief-executive Winder also appeared before Parliament's education select committee to answer questions about delays in the transition process, how it was dealing with its financial constraints, and working with staff members.

[44] In early September 2022, Newsroom reported that the delayed public consultation on Te Pūkenga's organisational structure had failed to allay staff concerns about job security.

Te Pūkenga also revised its forecast annual deficit to NZ$63 million, which included staff resignations and "one-off" land sales which had not been finalised.

Tertiary Education Union president Tina Smith reported that many staff were anxious about the uncertainty and lack of information about their job specifications within the organisation's operating structure.

National Party tertiary education spokesperson Simmonds criticised Te Pūkenga's efforts to reduce its deficit via redundancies and asset sales as an unsustainable financial model.

The Union also expressed concerns about scant information about Te Pūkenga's direction, staff's place in the new organisation, and insufficient funding, and the loss of operational knowledge caused by job redundancies.

[46] On 21 October, Acting CEO Winder stated that Te Pūkenga would consider staff redundancies as a means of reducing the organisation's deficit by NZ$35 million.

[47] As part of the cost-cutting exercise, Te Pūkenga's subsidiary Otago Polytechnic confirmed that it would undergo a NZ$2.7 million cost cut, which raised concerns about job security among staff.

[51] In late August 2023, Radio New Zealand reported that the Tertiary Education Commission had wanted more job cuts in back-office and managerial roles than the 400 previously announced.

[54] On 13 March 2023, Chief Executive Winder issued a statement telling Te Pūkenga staff including academics that they were "public servants" and had to remain "politically neutral" ahead of the 2023 New Zealand general election.

Similarly, Public Service Commissioner Peter Hughes stated that Te Pūkenga was a tertiary institute and was thus not subject to the Commission's code of conduct or general election guidance.

[56] In mid October 2023, Radio New Zealand reported that plumbers, gasfitters and drainlayers were unhappy with the quality of training provided by Te Pūkenga for their apprentices.

[57] On 8 December, Tertiary Education Minister Penny Simmonds confirmed that the National-led coalition government would be dissolving Te Pūkenga and replacing it with eight to ten institutions.

Simmonds stated that the Government would no longer centralise vocational training and education and asked Te Pūkenga to halt its transformation efforts and review the number of jobs.

In response, Simmonds told the Otago Daily Times that she did not have clear timeframe for disestablishing Te Pūkenga and establishing new polytechnics since that would require legislative change.

[65][66] These consultants will also be tasked with facilitating a major cost-cutting exercise after forecasts revealed that Te Pūkenga's constituent polytechnics face four years of financial losses including an NZ$118 million deficit for 2024.

A TEC spokesperson said that these consultants were picked "due to both their knowledge of the tertiary sector, their significant experience in restructuring and turning around underperforming businesses and ability to work within tight timeframes.

Civil Contractors New Zealand chief executive Allan Pollard expressed disappointment at the Government's plans to dissolve the Workforce Development Councils, which he said allowed the industry to give input into the skills and training of workplace trainees.