
Capable NZ set to lose 20 jobs
Staff were informed of the decision on Thursday to cut the Capable NZ department from about 30FTEs to nine FTES and an additional head of college role, after a proposal was put forward in March.
Despite staff fighting for more jobs to be kept, management at Otago Polytechnic agreed on a rate of job cuts very similar to the March proposal.
A staff member, who did not wish to be named, said people were "like stunned mullets" when they heard the news.
"We expected a bit of pain, but nothing of this level.
"The staff will try to teach the material to a gold-standard level, but it becomes increasingly difficult with far less staff support."
Capable NZ allows students to apply and start any time and complete the required work from anywhere in New Zealand.
Qualifications earned through Capable NZ have the same value as those earned through normal Otago Polytechnic programmes, or other tertiary institutions.
Capable NZ had at its height more than 500 students. This had dropped to about 270 last year. The polytechnic blamed the ongoing effects of Covid-19 and the fact it was a politically fraught environment.
Otago Polytechnic deputy executive director Mark Cartwright said "despite the change in structure, it's important to emphasise there will be no cuts to existing programmes".
"We believe Capable NZ provides an important and meaningful service to our community and are committed to its continued delivery.
"The purpose of the change is to ensure we are operating in a financially sustainable way.
"We will move the Capable NZ department and all of its programmes to sit under Te Maru Pumanawa (TMP), our College of Creative Practice and Enterprise."
Former Otago Polytechnic chief executive Phil Ker said this week's announcement of cutbacks to Capable NZ, "represents a real vote of no confidence" in the department.
He said many of the problems could be traced back to the merging of the country's 16 Institutes of Technology and Polytechnics (ITPs) into the mega-polytechnic Te Pukenga.
"At the advent of Te Pukenga, Capable NZ was the largest school at Otago Polytechnic, with nationwide coverage and offering highly innovative and unique programmes. That was why it had so many staff.
"So, clearly it's fallen on hard times. What I am aware of is that there was considerable neglect on the marketing and promotion front across many aspects of Te Pukenga.
"I've got no doubts that Capable NZ would have suffered from that."
Mr Ker said despite these barriers, he was confident Capable NZ could rise again if managed properly.
"The Capable NZ approach, which is at the undergraduate level, is still highly innovative in a global context, let alone in a New Zealand context.
"It offers access to degree-level qualifications for people in work. That is as cost-effective as you can get.
"So it seems to me that any downturn could easily be counteracted by a well-planned and well-focused marketing and recruitment programme."
Staff told the Otago Daily Times they were worried about the bulk of the programme's institutional memory disappearing.
Tertiary Education Union assistant secretary Daniel Benson-Guiu said Capable NZ was unique to Otago Polytechnic in that it was neither an "on campus" course or a "work-based learning" course.
"People flocked to it outside of the polytechnic's catchment area," Mr Benson-Guiu said.
"A programme like this allows the polytechnic to have a more national focus, which is what's needed to ensure student numbers remain good."
Vocational Education Minister Penny Simmonds is due to make an announcement next month about which polytechnics will become autonomous and which ones remain in a "federation" model.
Otago Polytechnic has frequently expressed a desire to become autonomous again.
Mr Cartwright said Otago Polytechnic needed to "ensure the financial viability of our organisation to be able to stand alone".
Asked about Mr Ker's comments about the job cuts being a "vote of no confidence" in Capable NZ, Mr Cartwright said "this difficult decision is in no way a reflection of the amazing work the team does, or the unique products they offer".
"It is the result of steadily declining enrolments. The changes will ensure we are able to continue to provide these products and services in a financially viable way."
matthew.littlewood@odt.co.nz

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Otago Daily Times
8 hours ago
- Otago Daily Times
Woman with $70k student loan debt too afraid to return
By Bella Craig of RNZ A former IRD prosecutor is calling for changes to the student loan system so that Kiwis living overseas aren't put off coming home because they're worried about being arrested at the border. In April, interest rates for overseas borrowers were lifted from 3.9 percent to 4.9 percent and the late payment interest rate for all borrowers to 8.9 percent. Tax barrister Dave Ananth said this was putting people off returning to New Zealand at a time we should be encouraging skilled people to come home. A pilot who's been living in Australia for over 10 years has racked up a whopping $170,000 in student loan debt, most of it being interest. After completing his training in 2014 he struggled to find work in Aotearoa, so he headed across the ditch, where he worked as a commercial pilot for six years. When the Covid-19 pandemic hit and overseas travel all but ground to a halt, he was forced to take a low-paying job in a storage warehouse meaning he struggled to meet his loan payments. The pilot, whom Checkpoint has agreed not to name, has since resumed flying for a regional carrier, but worried about an uncertain job market and whether he'd ever pay off his loan. "This loan becomes an ongoing - it becomes a burden and it's not the fact the size of it. There's just no pathway forward as it currently stands." Checkpoint's also spoken to a woman who was unable to come home to see her sick mother as she was scared she'd be arrested at the border. When she moved to the United States 20 years ago, her student loan debt was around $15,000. That had ballooned to close to $70,000. "When they told me how much penalty fees that I had and that was 10 years ago when I first found out about the penalty fees and that was more than my initial student loan and interest combined, I just was deflated." She received emails from IRD threatening legal action if she didn't pay, but she said she couldn't afford it. "You may think, 'oh no, I'm just going to go to a different country and make all my money there'. "But at some point, in time, when you're older, you're going to want to go back to your roots and see family and friends. I just screwed that up for myself. "Just don't get yourself in this situation like so many of us have where you can't even go home and see family when they're ill. "I've been petrified something's going to happen to my mum and she's going to pass away and I'm not even going to be able to go there." After getting legal help from Ananth, IRD agreed to wipe the penalty fees so she now need only pay the original $15,000 loan and interest. Ananth, who's a tax barrister with the law firm Stace Hammond, agreed there should be penalties for failure to pay but said these should be looked at on a case-by-case basis. "A lot of them are telling me I've not heard from IRD for the last 10 years, but IRD's perspective is it's your obligation, you should contact. "[It's] that sort of 'Who should contact? I'm away, you haven't rung me, there was no emails', that sort of thing. I think both sides need to come to the table." He also wanted better communication between IRD and the student debtor. "There should be a bit of leeway to say, 'Hey, okay you come in, but come back and talk to us and see whether a hardship application can be made, whether you can pay a few $100 for a start and then we can see how you go'." "For a lot of them because the loan has been taken, 15, 20 years ago they've got their head buried in the sand, they don't want to deal with it. So, it creates a lot of anxiety, creates mental stress for a lot of people." In the year to March, there were about 80,000 overseas-based student loan borrowers with overdue repayments - that's an increase of 10 percent on the year before. In total they owed $2.3 billion. Ananth said many people had found the grass wasn't greener overseas. "Everyone doesn't go overseas straight away and then lands in this cushy, $200,000, $300,000 job." He said people working in healthcare, technology, and engineering should be prioritised to help plug gaps in the job market here. Inland Revenue said between January 23 and February 7 this year they had emailed 3502 borrowers with overdue repayments telling them they're being monitored, and that enforcement may be taken against them. That could include being arrested at the New Zealand border. But it said border arrests were a last resort, and it would work with people before taking legal action. One borrower in default had been arrested in the past year. IRD said it could consider remission of late payment interest, but on a case-by-case basis. It said borrowers often did not update their contact details when overseas making it harder for the department to contact them. The student loan base interest rate was increased by one percent in the 2024 Budget and was intended to partially cover the loss in value of the scheme due to recent high inflation. IRD did not set the student loan interest or late payment interest rates. "Student loan interest that has been correctly charged on overseas based borrowers student loan accounts cannot be written off under current legislation, nor can Inland Revenue accept any agreement that voids a borrower's liability to repay this. "We always encourage student loan borrowers to contact us directly to discuss their situation. There is no need to engage the services of a lawyer."


NZ Herald
16 hours ago
- NZ Herald
New Zealand tractor numbers fall from peak as new registrations drop
It showed the number of active tractors registered in New Zealand reached a peak of 34,549 in March 2022. By March this year, it had dropped 4.4% to 33,044. The decline in tractor numbers is largely due to the low number of new tractor registrations over time. In the 12 months to April this year, there were 1925 new tractors registered in New Zealand, down 17% from a year ago and the smallest annual total since mid-2001. Both the actual number of registered tractors and the 12-month moving average have now fallen below 33,000, the first time tractor numbers have been beneath this threshold since 2017. Olsen said the drop was being driven by a range of factors, including changes in technology and farming practices. 'Particularly the likes of larger tractors coming on stream, larger farms meaning you don't need quite as many tractors because of larger parcels of land, and also a bit more corpritisation of farming in New Zealand where people are using contractors and similar to ensure whatever they're buying tractors and otherwise are most efficiently used.' Olsen acknowledged that challenging conditions in recent years, including increased on-farm costs and higher interest rates, had put pressure on farmers and limited opportunities for new investment, with many running tractors for as long as possible. He said a level of continued concentration in farms across the country into larger farm operations may have also contributed to a rationalisation of tractor assets nationally. Farmers also seemed to be investing differently, as was evident at the recent Mystery Creek Fieldays near Hamilton. 'People are starting to increasingly embrace a much wider, more diverse set of technology in the primary sector,' Olsen said. 'You know, there were a lot more drones at Fieldays this year, a lot of talk about wearables and the importance of the productivity gains that those sort of options bring.' Tractor sales at Fieldays seemed to have been buoyed, though, by the Government's new tax incentive for farm machinery. Tractor and Machinery Association president Jaiden Drought said Fieldays had been 'fantastic'. 'Everyone went into the Fieldays very buoyant, and the show was certainly a success. 'Everyone had significantly higher inquiry - they thought that even day one of the show was better than all the days combined last year.' Drought felt the drop-off since 2022 related to post-Covid conditions, which included farmers using tractors for longer and more jobs on-farm. He said some of this market uncertainty remained, especially given the current geopolitical outlook. 'I think the trend will see an upswing in machinery sales. 'I think we're just in a little bit of a holding pattern.' He expected sales to improve in the spring. - RNZ

1News
a day ago
- 1News
Christmas opening signalled for flagship New Zealand Ikea store
New Zealand's first Ikea store is set to open its doors at Auckland's Sylvia Park in time for the busy Christmas shopping season — with Kiwi Property Group working with Auckland Transport to manage the expected influx of visitors. Speaking at the company's annual general meeting, Kiwi Property chairperson Simon Shakesheff confirmed the Swedish retailer was targeting a Christmas launch at the Mt Wellington site, located next to Sylvia Park. "IKEA is likely to open around the Christmas trading period at the end of this year, and we look forward to the strength of their brand acting as a magnet to the Sylvia Park precinct." Shakesheff said the company anticipated "great interest" in Ikea and expected it would drive retail tourism to Sylvia Park. "We are cognisant of the impacts on traffic in the surrounding area, and Kiwi Property is working closely with Auckland Transport to develop a traffic mitigation plan." ADVERTISEMENT Public transport links would be key in mitigating congestion, with the train station, motorway and bus linkages all providing access to Sylvia Park, he said. "We've made sure that accessing Sylvia Park shopping centre is as seamless as possible, with pedestrian connectivity progressing well in the form of a covered walkway between the two sites." IKEA had initially announced in January 2019 it would open a New Zealand store "in the next few years", but this was delayed by the Covid-19 pandemic. Construction on the 34,000 square-metre store began in June 2023. The store would be three floors - the bottom level a carpark followed by two levels of retail - and have a restaurant and bistro featuring its famous meatballs. Work was also completed on an external warehouse near Auckland Airport in December last year. IKEA had initially announced in January 2019 it would open a New Zealand store "in the next few years", but this was delayed by the Covid-19 pandemic. Operating in 31 markets and founded in 1943, the IKEA brand was operated by several companies with different owners. The New Zealand operation was run by Ingka Group, which represented about 90% of IKEA stores. Mirja Viinanen, chief executive of IKEA in Australia and NZ, said the store would be "showcasing the latest design and home furnishing solutions to help create a better life at home".