The government is moving ahead with its long-signalled plan to re-establish polytechnics merged under Labour into the super-institute Te Pūkenga.
Vocational Education Minister Penny Simmonds confirmed 10 polytechnics are returning to "regional governance" as part of the government's plan to build a vocational education system that's "locally led, regionally responsive and future-focused".
Labour combined 16 polytechnics and nine workplace training providers at the beginning of 2023.
The coalition government moved quickly when it came to power, agreeing as part of its 100-day plan to begin the process of disestablishing the mega institute.
The announcement comes after listening to "extensive industry feedback" Simmonds said, and the changes were part of legislation currently before Parliament.
"We campaigned vigorously against Labour's reforms which saw all New Zealand polytechnics merged into one unwieldy and uneconomic central institution, Te Pūkenga, taking away the ability of regions to respond to local training and employer needs," Simmonds said on Monday.
"Labour dismantled regionally led vocational education - and we are restoring it".
She said she was confident the coalition's plan will set the sector up for "long-term economic and learning success".
The ten polytechnics returning to regional governance, which will begin operating from 1 January 2026, are:
- Ara Institute of Canterbury (Ara)
- Eastern Institute of Technology (EIT)
- Nelson Marlborough Institute of Technology (NMIT)
- Southern Institute of Technology (SIT)
- Toi Ohomai Institute of Technology
- Waikato Institute of Technology (Wintec)
- Unitec Institute of Technology (Unitec) and Manukau Institute of Technology (MIT), which will stand up as a single entity
- Otago Polytechnic
- Universal College of Learning (UCOL)
- The Open Polytechnic of New Zealand
NorthTec, Western Institute of Technology at Taranaki (WITT), Whitireia Community Polytechnic and Wellington Institute of Technology (Whitireia and WelTec), and Tai Poutini Polytechnic (TPP) will remain within Te Pūkenga for now as they "work toward viability, with decisions due in the first half of 2026".
Penny Simmonds. Photo: RNZ / Angus Dreaver
There will be an "anchor" polytechnic of the new federation - the Open Polytechnic of New Zealand. That federation will coordinate programmes and other services, including shared academic boards, Simmonds explained.
"It will provide a low overhead way for polytechnics to create more efficient business models than they could on their own through the use of online learning resources and programmes."
Just last week Te Pūkenga warned MPs the government would have to bail out struggling polytechnics despite its reforms.
Te Pūkenga will continue to operate as a "transitional entity" for up to a year, allowing for a "smooth handover", and the new legislation allowed for mergers or closures if polytechnics were not able to achieve viability.
"With more than 250,000 students in the vocational education system each year, these changes offer greater flexibility, financial sustainability, and ensure training remains relevant to employment needs," Simmonds said.
Prime Minister Christopher Luxon said vocational education - and the polytechnic sector - mattered deeply to communities, the economy and the country's future.
'Turbulent' time
Luxon said the vocational education system had been through a "turbulent few years".
"The last government's Te Pūkenga reforms intended to strengthen the system, but what we've seen instead is a model that's become too centralised, too removed from local communities, and ultimately too slow to respond to regional training and employer needs. It's not good enough."
He added it was a "good day for communities" getting back their polytechnics "as we had said before the election".
Simmonds rejected assertions there'd been a lack of consultation with Māori, saying she'd engaged with the education group of the Iwi Leaders Forum.
In selecting 10 polytechnics, Simmonds explained those institutes had financial pathways to "affordability" whereas the other four had "got some work to do, they've got some unique challenges". She explained those challenges were unique to those institutes and their communities, like being small or needing to shift campuses.
Simmonds acknowledged Te Pūkenga was in surplus, but said that was because the "duplication of bureaucracy" in the head office had gone. Asked whether these reforms recreated that duplication, Simmonds said that was not the case.
"The main purpose of the federation is to support the smaller polytechnics that don't have the capacity themselves, particularly in online learning."
On whether all polytechnics would be operational in two years time, Simmonds said that was "their responsibility".
Those who were still facing "unique challenges" had been given a business case with a pathway to financial viability "if they stick to it.".
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