All 16 of New Zealand’s polytechnics, also known as vocational education providers (VEPs), are experiencing significant financial deficits, with many in the North Island at risk of failing. The most extreme cases are the $28 million deficit for both Whitireia and WelTec in Wellington. Other institutions facing serious budget shortfalls include Waikato Institute of Technology at $22.5 million over budget, The Open Polytechnic with a $22 million loss, and Toi Ohomai with nearly $21 million in losses. Overall, these 16 polytechnics project a deficit of more than $185 million.
The prior government’s initiative was to merge all the polytechnics into a single, nationwide tertiary education provider, known as Te Pūkenga. Despite the groundwork laid for this merger, the new Coalition government has put a halt to the process, advising the establishment to dismantle. The leaked figures data show that the losses incurred by the 16 polytechnics present a significant cause for concern with more than $185 million in deficits.
There are also concerns within the sector about the operational structure of the polytechnic institutions, with several leadership roles currently vacant and a lack of clarity around who will execute government plans in the future. With the unexpected overturn of the merger process, Te Pūkenga Chief Executive Peter Winder has been made redundant, while Chairman Murray Strong and Deputy Chief Executive Megan Gibbons both recently resigned.
Tertiary Education and Skills Minister Penny Simmonds acknowledged the leaked financial figures, attributing the losses to the unified funding scheme introduced by the prior government. The current government has expressed plans to bolster the polytechnics with additional funding and aims to attract international students as part of their path to recovery. Simmonds has also emphasized her concern for regional decision-making and restoring financial stability for the institutions.
The disestablishment of Te Pūkenga has left a number of programs and initiatives in limbo, including concerns about the future of a major IT infrastructure investment and international partnerships, particularly the agreement with the China Center for International People-to-People Exchange (CCIPE) regarding vocational training. In addition, staff and educators have raised concerns about the financial implications and practicality of reverting to locally managed polytechnics with reinstated local management.
The disbandment of Te Pūkenga comes with a multitude of implications, shedding light on the intricate network of partnerships between New Zealand’s polytechnics and various Chinese education providers. The future of these arrangements remains uncertain amidst the impending merger of polytechnics into larger entities proposed by the minister.