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INL March 1 2019 Digital Edition

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04<br />

MARCH 1, <strong>2019</strong><br />

Homelink<br />

Polytechnics to merge into a New Institute of Skills<br />

Education Minister Chris Hipkins<br />

(Photo for RNZ by Richard Tindiller<br />

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The government has proposed<br />

merging all 16 polytechnics<br />

in the country into a single<br />

National Institute and radically<br />

reforming industry training<br />

organisations.<br />

Education Minister Chris Hipkins<br />

said the Plan was challenging but necessary<br />

for shoring up a sector that<br />

had suffered falling enrolments and<br />

multimillion dollar deficits.<br />

Mr Hipkins said that the proposal<br />

included creating a New Zealand<br />

Institute of Skills and Technology<br />

that would have asingle Governing<br />

Council and would manage all 16 institutes’<br />

capital and operational budgets,<br />

staffing, and computer systems<br />

for managing their courses.<br />

He said that would solve the sector’s<br />

financial problems and make<br />

better use of taxpayer funding.<br />

Consolidated Organisation<br />

“A consolidated organisation would<br />

make better strategic use of capital,<br />

achieve greater efficiency in programme<br />

design, development and<br />

delivery, and reduce replication of<br />

back-office functions,” Mr Hipkins<br />

said in a Paper to the Cabinet.<br />

The Plan also suggested stopping industry<br />

training organisations from arranging<br />

and paying for training and<br />

paring back their role to setting standards<br />

and qualifications and advising<br />

the Tertiary Education Commission<br />

under the new title of Industry Skills<br />

Bodies.<br />

Mr Hipkins said that tertiary institutions<br />

would take over the job of organising<br />

and providing work-based<br />

Proposal<br />

for Public<br />

Consultation<br />

industry training and that would be a<br />

big challenge.<br />

“Providers would take responsibility<br />

for approximately 140,000 trainees<br />

and apprentices in addition to the<br />

approximately 110,000 vocational education<br />

learners they already serve<br />

(based on 2017 figures). This would<br />

require increased capability and capacity.<br />

This change will promote better<br />

alignment between on- and off-job<br />

education and training, and stabilise<br />

provision of vocational education<br />

across the economic cycle,” the<br />

Cabinet paper said.<br />

Negative response expected<br />

The paper said industry training<br />

organisations (ITOs) might respond<br />

negatively to the proposals, but they<br />

included asignificantly increased<br />

leadership role for the industry.<br />

Mr Hipkins said that the proposed<br />

changes would be disruptive but the<br />

current model was not sustainable.<br />

He said the amalgamation of polytechnics<br />

might result in more or fewer<br />

main campuses in the regions and<br />

some of the institutes might need<br />

more financial support before the<br />

changes were implemented.<br />

Mr Hipkins’ Cabinet Paper showed<br />

the Treasury was worried that it was<br />

not clear how much the proposals<br />

would cost.<br />

“We are concerned that Cabinet is<br />

being asked to agree to asignificant<br />

in-principle decision without a clear<br />

indication of the likely overall financial<br />

implications of the changes proposed,<br />

including short-term transition<br />

costs, and enduring funding changes,”<br />

the Paper said.<br />

Last year the government loaned<br />

$50 million to Unitec and gave $15<br />

million to Whitireia in Porirua after<br />

the two institutions ran into serious<br />

financial problems. The money<br />

was on top of abailout for the West<br />

Coast’s Tai Poutini Polytechnic in<br />

February that included an $8.5 million<br />

capital injection and a write-off<br />

of $25 million owed to the Tertiary<br />

Education Commission.<br />

The Auditor-General warned in<br />

November last year that polytechnics<br />

were under pressure and needed<br />

first-rate governance.<br />

The most recently available financial<br />

results for polytechnics showed<br />

nine of the 16 institutions made deficits<br />

and 11 suffered falling enrolments<br />

in 2017.<br />

Consultation on the proposals close<br />

on <strong>March</strong> 27, <strong>2019</strong>.<br />

-Published under aSpecial<br />

Agreement with www.rnz.co.nz<br />

Additional Reading: The devil in the<br />

details of the proposed Mega-Poly<br />

under Educationlink<br />

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