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Otago Daily Times
15-07-2025
- Business
- Otago Daily Times
Local decisions from polytechnics back in local hands
Regional governance of polytechnics will grow the economy, Minister for Vocational Education Penny Simmonds writes. Vocational education is one of the most important tools we have to grow our economy, support local jobs and give New Zealanders practical pathways into meaningful work. That is why this government is making big, necessary changes to rebuild a system that works — for learners, for employers and for the future of New Zealand. From January 1, 2026, regionally governed polytechnics will be re-established, subject to legislation currently before Parliament. This is a major step forward in restoring local decision-making and ensuring our vocational training system is responsive, flexible and financially sustainable. Under the overly centralised model of Te Pūkenga, it has been difficult for polytechnics to meet the real needs of their communities. Local employers, industries and learners have told us clearly: one-size-fits-all doesn't work. It is time for change. Returning decision-making to the regions is where those closest to local labour markets understand what skills are needed and how best to deliver them. Regional polytechnics will once again be able to tailor training to the priorities of their communities — and they will do so in partnership with employers and industry leaders. That is great news for Otago, where Otago Polytechnic helps power the regional economy by equipping people with the skills employers need. Restoring local governance means Otago Polytechnic can now respond more directly to economic demand and growth opportunities. The government is phasing in these changes carefully to ensure stability and success. While some polytechnics will be ready to transition to regional governance from January 1, others will stay within Te Pūkenga for now as they work towards financial and operational viability. Decisions on their future will be made in the first half of next year. These reforms are part of the Education and Training (Vocational Education and Training System) Amendment Bill, which is currently before the education and workforce select committee. We expect the Bill to pass in October, following a thorough public consultation process. I want to thank all those who took the time to make submissions. Your feedback has shaped a better, stronger model that reflects the needs and ambitions of local communities. Te Pūkenga will continue to operate as a transitional entity for up to a year, to manage unallocated programmes and support a smooth handover. The legislation also provides tools for responsible management, including provisions for mergers or closures where a polytechnic cannot return to financial viability. Vocational education serves more than 250,000 learners every year. That's a quarter of a million people building their futures, their industries and their communities. Our job is to make sure they are getting the right skills, in the right place, at the right time. This is about more than education. It is about regional jobs, stronger local economies and ensuring industries have access to the skilled workforce they need to grow. Regional polytechnics don't just train people — they employ thousands across the country and they help regions thrive. We are rebuilding a vocational education system that delivers on its promise — equipping people with the skills they need, supporting local businesses and backing regional success. That's the kind of system New Zealand deserves. And that's exactly what we are building. • Penny Simmonds, the National MP for Invercargill and Minister for Vocational Education, is a former chief executive of SIT.
NZ Herald
13-07-2025
- Business
- NZ Herald
EMA urges collaboration for effective vocational education reform
EMA pushes for industry partnership in New Zealand vocational training reform. Photo / NZ Herald Opinion by Joanna Hall Joanna Hall is the Advocacy & Stakeholder Engagement Lead of Employers & Manufacturers Association (EMA). THE FACTS After years of sweeping reforms, financial pressures and structural upheaval, New Zealand's vocational education and training (VET) system stands at a critical crossroads. The Education and Training (Vocational Education and Training System) Amendment Bill now before Parliament offers an opportunity to rebuild confidence, lift quality and finally deliver
Otago Daily Times
10-07-2025
- Politics
- Otago Daily Times
Polytech bail-outs lie ahead, Te Pūkenga warns
PHOTO: ODT FILES Te Pūkenga's managers have warned MPs the government will have to bail out struggling polytechnics despite its reforms. Meanwhile, Nelson's mayor Nick Smith appealed to the government to save the region's polytechnic from inclusion in a federation of weak institutions. Appearing before the Education and Workforce Select Committee the mega-institute's chief financial officer James Smith said the changes, which included disestablishing Te Pūkenga, would leave in place a volume-based funding system. He said that would lead to the institutes making the same poor investment decisions that prompted the creation of Te Pūkenga as a means of ensuring their long-term viability. "The system remains a simplistic, inefficient volumetric system with no ability to adjust price based on scale. We expect that these issues will persist under the structural changes enabled under the bill. We also expect because of this that the government will be relied upon for further ad hoc financial support for ITPs (Institutes of Technology and Polytechnics) in the future," he said. Smith said "unhealthy race to the bottom behaviour" was likely to re-emerge and polytechnics needed stronger incentives to collaborate with one another. He said the government's Education and Training (Vocational Education and Training System) Amendment Bill also watered down institutions' obligations to underserved learners such as Māori and Pacific communities. "This tempering of obligations, along with reductions in targeted funding for these learner groups from 2026 will maintain or worsen the current education disparities that exist in the tertiary education system," he said. Drew Mayhem from the Tertiary Education Union also cast doubt on the long-term viability of the government's plan. "Splitting out the work-based learning component and putting it in direct competition with the polytechnics that you're trying to stand alone, that's not sustainable," he said. Nelson mayor Nick Smith told the committee the creation of Te Pūkenga had been bad for the region's local polytechnic, the Nelson Marlborough Institute of Technology (NMIT). He said his greatest fear was that NMIT would be among the former polytechnics placed into a federation rather than being allowed to stand-alone after Te Pūkenga was disestablished. Smith said he had heard that NMIT was "on the margins" of inclusion in the federation and wanted government to consult with mayors and iwi before making that decision. He said he was not expecting NMIT would emerge with all of the $20 million in cash reserves that it took into Te Pūkenga, but understood about $9m remained. Smith said that money should be transferred to the re-established institution.
Scoop
10-07-2025
- Business
- Scoop
Relevant Skills In Short Supply
Legislation aimed at improving NZ's vocational education and training system needs to focus on delivering the right skills needed for business and employment growth, BusinessNZ says. BusinessNZ says New Zealand's new vocational education system should not be dominated by polytechnics to the detriment of work-based training and should focus on delivering better-skilled graduates who are more likely to get a job. BusinessNZ's submission to the Education & Workforce Select Committee on the Education and Training (Vocational Education and Training System) Amendment Bill says many of the skills that people currently get trained in are not the skills needed by business, and this is holding back graduates from successfully gaining employment - an industry-led, government-enabled vocational system for setting standards is required, to allow for more relevant, up-to-date skills to be taught. The Bill also allows for a training levy to be imposed on businesses, however BusinessNZ says its members strongly oppose this provision, as they believe the system first requires significant improvement to achieve the business and employment outcomes required from vocational training.
Scoop
17-06-2025
- Politics
- Scoop
Supported Learners Carry The Burden Of Minister's Delusion
Minister of Vocational Education Penny Simmonds told the Education and Workforce Select Committee yesterday that she thinks most polytechnics are overstaffed, describing what she considers high staffing levels as 'abysmal'. Te Hautū Kahurangi | Tertiary Education Union is pointing to cuts currently proposed to educational opportunities for supported learners as a prime example of the human cost of her delusion. Weltec and Whitieria are proposing to disestablish both of their existing Level 1 Certificates in Skills for Living; and Skills for Learning and Working for Supported Learners. Along with the four full time equivalent staff members, the greater Wellington region will lose the only programmes of this kind for learners with disabilities if the proposal goes ahead. Kaiwhakahaere | Organiser Drew Mayhem says 'there is considerable demand for both these programmes within the community. Student numbers have not decreased. These cuts are purely due to the government's inability and unwillingness to provide a level of baseline funding that will avoid further contraction of the sector before it is in a permanent death spiral.' Te Pou Ahurei | National Secretary Sandra Grey says 'the Minister uses an 18:1 student/staff ratio as a blunt instrument to measure viability but this misses the point of why we need polytechnics. If 12 disabled young people want to gain work skills in Porirua, why wouldn't we fund that? By her reckoning those 12 young people miss out on the future they deserve and 12 businesses miss out on great workers.' 'Furthermore, the Minister's Education and Training (Vocational Education and Training System) Amendment Bill, if passed, will only further destabilise the provision of vocational education, as the bill provides no clarity on what the future of the sector looks like beyond closures and possible privatisation. New Zealanders deserve better. They were promised regional autonomy but instead are having our tertiary providers hollowed out from within.' To have your say on the Bill, click here for the TEU's submission guide, and here to make your submission by midnight tonight.
