Proposal to merge all NZ polytechs

New Zealand's 16 polytechnics could be brought together as one entity if reform proposals for the sector revealed today by the Government are implemented.

Provisionally called the "New Zealand Institute of Skills & Technology'', the new body would manage capital and operational budgets, staffing, student and learning management systems for all polytechnics.

It would also see courses provided on a national basis. Details of the cost of the proposed changes - and any possible job cuts or changes to course provision - have not released.

At a media briefing this afternoon, Education Minister Chris Hipkins said the costs and risks of not acting were significant.

"The financial instability and structural issues within the current model mean the status quo is not sustainable.''

Mr Hipkins said Southland-based SIT's free fees and accommodation programmes should not be disrupted by the changes.

The Government wanted to preserve "unique regional arrangements'' while streamlining administration costs, he said.

No institutions were named as facing possible closure, but Mr Hipkins suggested the future of satellite campuses might be considered. 

In 2017-18 Tai Poutini Polytechnic has received a $8.5 million capital injection and $25 million debt write-off, Unitec Institute of Technology was granted a $50 million concessionary loan, and Whitireia received a $15 million capital injection.

Demands on the public purse of that magnitude meant today's proposals went further than advice given from previous  reviews undertaken by the Tertiary Education Commission and the Ministry of Education, Mr Hipkins said.

"The proposals are ambitious, but necessary . . . it's time to reset the whole system and fundamentally rethink the way we view vocational education and training, and how it's delivered.'' 

The lead up to today's announcement has been a nervous time for polytechnic staff - many of whom feared job losses would ensue from the reforms.

Discussion documents released today said polytechnic staff would become emnployees of the new, national institution.

"There would be a plan for transferring to the new institution that would involve work with the Tertiary Education Union, the Tertiary Institutes Allied Staff Association and other relevant unions.

"If you're a member of staff at an ITP, we recognise that all of these changes would have a significant impact on you and that times of change can create anxiety.''

Students were told it should be business as normal for them this year, but if the proposals went ahead study in 2020 and beyond would be via enrolment with NZIST.

"The development of courses and programmes would be consolidated, improving consistency and freeing up resources to expand front-line delivery,'' Mr Hipkins said.

"There will be more sharing of expertise and best-practice, and more use of online, distance, and blended learning.''

The NZIST would be governed by a national council appointed by the Minister of Education.

That council would oversee a single, combined, management team and balance sheet.

In a nod to the provinces, discussion documents suggested the government could locate national office functions in one or more regions.

The Cabinet paper on the proposals prepared by Mr Hipkins was also released today.

It said a "substantial change and transition process'' would be needed to create the NZIST, but further details of the required funding were redacted.

"These proposed changes are substantial,'' the paper said.

"They will require legislative change, significant organisational change for Institutes of Technology and Polytechnics, other vocational education training providers and Industry Training Organisations, and a redesign of the funding system.

"While change on this scale will be disruptive, it will strengthen the vocational education system for the long term.''

Treasury's comments said it was concerned Cabinet was being asked to agree to "a significant in-principle decision'' without a clear indication of the likely overall financial implications.

"We do not think that sufficient analysis has been undertaken on the options for enduring funding system changes proposed for consultation,'' it said.

"We consider that consulting on these funding system changes is likely to create sector expectations about future funding, without Cabinet having oversight of the associated financial implications.''

Civic leaders have also watched anxiously for today's announcement, concerned at the impact reform might have on local economies.

Mr Hipkins said he wanted to ensure a strong regional influence in NZIST, and intended to set up "Regional Leadership Groups'' to identify the needs of local economies, and provide a link between local government, employers, iwi and communities.

He said he wanted to maintain and grow education in the regions, but also to remove "duplication and inefficiency in programme development.''

The Government envisaged that the NZIST - and perhaps also wananga - could host "Centres of Vocational Excellence'' in areas of study of particular importance to New Zealand.

"They could potentially also cover key types of educational delivery, or activity,'' discussion documents said.

"We envision these would be located across the country, including in regional New Zealand.''

A consultation period on the proposals is now under way, with a deadline of March 27 for submissions.

"The Government won't make any decisions until we have heard and carefully considered feedback from this consultation process,'' Mr Hipkins said.