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RNZ News
15-07-2025
- Business
- RNZ News
Minister defends Te Pūkenga breakup, saying rural education will not suffer
Penny Simmonds. Photo: RNZ / Mark Papalii Vocational Education Minister Penny Simmonds is confident her approach to polytechnics will not impact training in the regions, pushing back on criticism from the union. Simmonds on Monday unveiled the polytechnics that would emerge from breaking up Te Pūkenga, the mega-institute set up under Labour with the aim of making the sector more cost-effective. That merger in 2020 combined 16 polytechnics and nine industry training organisations, with most retaining their branding and continuing to operate but using Te Pūkenga as a "head office". Simmonds' proposed approach makes nine of those polytechnics independent once more, beginning operations from 1 January. Three of them will become a "federation", with the Open Polytechnic leading and providing services to Otago Polytechnic and the Universal College of Learning (UCOL). A further five polytechnics - NorthTec in Northland, Western Institute of Technology at Taranaki (WITT), Whitireia and WelTec in Wellington, and Tai Poutini Polytechnic on the West Coast - would be required to show a path to financial sustainability or face either closure or mergers. Simmonds signalled on Monday they would all likely be included in the federation. The former Industry Training Organisations would be replaced with Industry Skills Boards. Tertiary Education Union national secretary Sandra Grey is adamant the approach will be a disaster for regional education, saying the sector's become a political football. She told Morning Report it was important for polytechnics to be financially viable, but the funding model had not worked and needed to change. The $16.6m surplus Te Pūkenga reported last month was only possible because of drastic cuts and there was more to come, she said. "We've seen hundreds of jobs cut, dozens of dozens and dozens of courses go just to ensure they could reach this day... five polytechnics still have very uncertain futures, and we've got hundreds of job cuts coming just to meet the demands of the minister." "The only courses are [that] surviving are those that can get lots and lots and lots of students... I was at the Western Institute of Technology in Taranaki yesterday and one of the courses going is the course in agriculture - given that community is full of dairy farms, you cannot tell me they don't want agriculture courses." That agriculture course needed to be small because the students were working with heavy machinery like chainsaws and tractors, she said. "You can't have hundreds of students in a classroom when that's the activity you're doing, and that's what the minister's got to look at: a fit-for-purpose model that allows courses to run to meet community needs." Simmonds later acknowledged courses like that would need to be smaller, but said $20 million over two years had been set aside to support polytechnics to run them. "They have to have smaller classes for health and safety, and so that's what that additional funding is: to support them to be able to continue with those smaller classes that aren't viable but are really strategically important," she said. "It does give recognition to those areas where we really need to have training, but it can't be viable under the current funding system." She said the funding was specifically for regions like the Far North and East Coast that had a high need for such courses. She was confident her model would not impact rural training. "No, it won't. Because by putting the Federation in place, the regions are going to have access to online delivery through the Open Polytechnic and are going to have a wider range of programs available to be able to deliver blended delivery to smaller cohorts of classes." Otago Polytechnic also criticised the federation model , saying it would risk undermining its achievement rates, teaching quality and independence. Simmonds backed the federation as a solution to that rural-urban divide. "Putting the Federation in place, the regions are going to have access to online delivery through the Open Polytechnic and are going to have a wider range of programs available to be able to deliver blended delivery to smaller cohorts of classes. "Otago, for example, were running courses with quite small numbers in Central Otago. This gives them an opportunity to run those courses with blended delivery using the open polytechnics, online sources, resources. "The reality is, you can't run a course with five or six people in it on campus, fully sourced, fully staffed. But if you can have access to online learning as well, you can have that blended delivery online and on campus with smaller cohorts." She said Otago had "a little bit of work to do to get to a surplus", and the government could look at taking them out of the federation once that was achieved. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
22-05-2025
- Business
- Scoop
Tertiary Study Subsidy Boost In Priority Subjects
Minister for Universities Hon Penny Simmonds Minister for Vocational Education The Government is backing the tertiary system with new investment in study that delivers the greatest value for students and for New Zealand, Minister for Universities Dr Shane Reti and Minister for Vocational Education Penny Simmonds announced today. 'Budget 2025 invests an extra $398 million in tertiary education over the next four years. We need to grow our domestic pipeline of skilled workers to support the growing economy,' Dr Reti says. Ms Simmonds says, 'When considering subsidies, we focused on workforce demand areas where study adds the greatest value – both for students planning their futures, and for the wider economy that relies on their skills. 'These subjects often lead to rewarding careers and contribute to productivity and growth in sectors like health, energy, infrastructure and digital technology,' she says. The Budget tertiary system investment includes: · $213 million to provide a 3 per cent increase in tuition and training subsidies in many subjects across all levels of tertiary study. The extra funding will be ongoing from 2026. · $64 million for an additional 1.75 per cent lift in tertiary education subsidies at degree level and above in high demand 'STEM' subjects (Science, Technology, Engineering and Maths), along with Initial Teacher Education and other priority health workforce areas. This is on top of the broader 3 per cent increase, meaning that, in total, the STEM and other higher-priority subjects will attract a 4.75 per cent tuition cost subsidy increase at degree level and above. $111 million to fund forecast enrolment in 2025 and 2026. This includes ongoing funding for another 175 Youth Guarantee students a year – this scheme provides fees-free tertiary tuition at Levels 1–3 to help young people move to higher-level study or work. Budget 2025 proposes an annual maximum fee rise of 6 per cent for 2026 to further help providers manage cost pressures and maintain quality delivery. 'The proposed maximum rate reflects that fees have lagged behind inflation in recent years, making it harder for providers to maintain course quality. I will consult on the proposed fee increase later in 2025 through a notice published in the New Zealand Gazette,' Mr Reti says. 'Together, the targeted funding rate increases, and the proposed fee increase will support tertiary education and training providers to sustain the quality of provision and further invest in priority areas,' the ministers say. Changes to funding for vocational education and training will provide some additional support during the transition away from Te Pūkenga to the redesigned system. The new Industry Skills Boards will receive ongoing funding of $30 million a year for industry-led standards-setting alongside Budget funding for a one-off $10 million in 2025/26 towards establishment costs. 'Provider-based delivery in priority areas, including engineering, trades and primary industries will receive a boost to funding rates. There will also be funding available for two years from 2026 for institutes of technology and polytechnics during their transition to greater independence,' Ms Simmonds says. 'In developing the Budget package, we have reprioritised funding to focus on core activities and to further support frontline tertiary education services. 'Taken together, these initiatives support a sustainable tertiary education and training sector that will lift student achievement and contribute to growing the New Zealand economy.'
Otago Daily Times
20-05-2025
- Business
- Otago Daily Times
Bill passes first reading to disestablish Te Pūkenga
Penny Simmonds. Photo: supplied Legislation to disestablish New Zealand's centralised vocational education and training system passed its first reading in Parliament yesterday. "Today, we've taken a major step forward toward a vocational education and training system that works for learners, employers, industries and local communities," Vocational Education and Training Minister Penny Simmonds said. "The Bill, which has passed its first reading, will return decision-making to where it belongs — in the hands of regional polytechnics and industry. "This is a common sense reset that ensures polytechnic education and training is responsive to regional needs and work-based learning for apprentices and trainees is led by the industries that rely on it." The Education and Training (Vocational Education and Training System) Amendment Bill proposes a structural reset of vocational education, focusing on two key priorities: restoring local decision-making for polytechnics, and giving industry greater leadership in standard-setting and work-based learning. Among the key changes in the Bill are: • Disestablishing Te Pūkenga and creating a network of regional polytechnics, which will operate as standalone institutions or within a federation. Te Pūkenga will remain as a transitional entity for one year to manage unallocated programmes and activities. • Replacing Workforce Development Councils with new Industry Skills Boards, effective January 1, 2026. These statutory bodies will be governed primarily by industry representatives and responsible for setting standards, undertaking workforce planning and advising the Tertiary Education Commission on relevant funding matters. • Transferring work-based learning functions from Te Pūkenga to Industry Skills Boards for up to two years, allowing time for new delivery arrangements across polytechnics, private training establishments and Wānanga to be developed. •Amending training levy provisions to enable Industry Skills Boards to levy industry members, subject to industry support. Ms Simmonds said implementation would take up to two years, with the first group of polytechnics and new Industry Skills Boards in place from January 1. — APL
Scoop
20-05-2025
- Business
- Scoop
Bill To Reset Vocational Education Passes First Reading
Press Release – New Zealand Government Today, weve taken a major step forward toward a vocational education and training system that works for learners, employers, industries and local communities, Vocational Education and Training Minister Penny Simmonds says. Minister for Vocational Education Legislation to disestablish New Zealand's centralised vocational education and training system has passed its first reading in Parliament, Vocational Education and Training Minister Penny Simmonds says. 'Today, we've taken a major step forward toward a vocational education and training system that works for learners, employers, industries and local communities,' Ms Simmonds says. 'The Bill, which has passed its first reading, will return decision-making to where it belongs — in the hands of regional polytechnics and industry. 'This is a commonsense reset that ensures polytechnic education and training is responsive to regional needs and work-based learning for apprentices and trainees is led by the industries that rely on it.' The Education and Training (Vocational Education and Training System) Amendment Bill proposes a structural reset of vocational education, focusing on two key priorities: restoring local decision-making for polytechnics, and giving industry greater leadership in standard setting and work-based learning. Among the key changes in the Bill are: Disestablishing Te Pūkenga and creating a network of regional polytechnics, which will operate as standalone institutions or within a federation. Te Pūkenga will remain as a transitional entity for one year to manage unallocated programmes and activities. Replacing Workforce Development Councils with new Industry Skills Boards, effective 1 January 2026. These statutory bodies will be governed primarily by industry representatives and responsible for setting standards, undertaking workforce planning, and advising the Tertiary Education Commission on relevant funding matters. Transferring work-based learning functions from Te Pūkenga to Industry Skills Boards for up to two years, allowing time for new delivery arrangements across polytechnics, private training establishments, and Wānanga to be developed. Amending training levy provisions to enable Industry Skills Boards to levy industry members, subject to industry support. Ms Simmonds says implementation will take up to two years, with the first group of polytechnics and new Industry Skills Boards in place from 1 January 2026. 'Industry knows the skills it needs. That's why we're putting them back in charge of standard setting and qualification development for their industry,' Ms Simmonds says. 'This is about building a stronger, more relevant system — one that sets our people and our economy up for future success. 'We look forward to hearing what New Zealanders think during the select committee process so that we can get on with the changes.'
Scoop
20-05-2025
- Business
- Scoop
Bill To Reset Vocational Education Passes First Reading
Hon Penny Simmonds Minister for Vocational Education Legislation to disestablish New Zealand's centralised vocational education and training system has passed its first reading in Parliament, Vocational Education and Training Minister Penny Simmonds says. 'Today, we've taken a major step forward toward a vocational education and training system that works for learners, employers, industries and local communities,' Ms Simmonds says. 'The Bill, which has passed its first reading, will return decision-making to where it belongs — in the hands of regional polytechnics and industry. 'This is a commonsense reset that ensures polytechnic education and training is responsive to regional needs and work-based learning for apprentices and trainees is led by the industries that rely on it.' The Education and Training (Vocational Education and Training System) Amendment Bill proposes a structural reset of vocational education, focusing on two key priorities: restoring local decision-making for polytechnics, and giving industry greater leadership in standard setting and work-based learning. Among the key changes in the Bill are: Disestablishing Te Pūkenga and creating a network of regional polytechnics, which will operate as standalone institutions or within a federation. Te Pūkenga will remain as a transitional entity for one year to manage unallocated programmes and activities. Replacing Workforce Development Councils with new Industry Skills Boards, effective 1 January 2026. These statutory bodies will be governed primarily by industry representatives and responsible for setting standards, undertaking workforce planning, and advising the Tertiary Education Commission on relevant funding matters. Transferring work-based learning functions from Te Pūkenga to Industry Skills Boards for up to two years, allowing time for new delivery arrangements across polytechnics, private training establishments, and Wānanga to be developed. Amending training levy provisions to enable Industry Skills Boards to levy industry members, subject to industry support. Ms Simmonds says implementation will take up to two years, with the first group of polytechnics and new Industry Skills Boards in place from 1 January 2026. 'Industry knows the skills it needs. That's why we're putting them back in charge of standard setting and qualification development for their industry,' Ms Simmonds says. 'This is about building a stronger, more relevant system — one that sets our people and our economy up for future success. 'We look forward to hearing what New Zealanders think during the select committee process so that we can get on with the changes.'
