Hipkins’ polytechnic merger

PHOTO: ODT FILES
PHOTO: ODT FILES
Comment on the merger of polytechnics and industry training boards was conspicuously hard to find when the virtues of new Prime Minister Chris Hipkins were laid out.

No doubt, Labour was keen to give minimal mention to the unwise changes and the costly and delayed transition that was taking place under Mr Hipkins’ watch as minister of education.

The media, in the traditional honeymoon period for new prime ministers, had other focuses. Mr Hipkins, at least for now, received a free pass.

But the merger, ill-thought-out from the start, has been a dog.

It has taken towards four years, has already built an expensive bureaucracy and it will do little to help those who really matter, the "learners". The establishment budget from the Government to the end of last year was $121million (although costs also have been put at $200million), and a lot more is going to be needed.

A report towards the end of last year said, in an unpublished business case, Te Pukenga’s "preferred option" is for a further injection of $422.6million over four years from this year. This includes $285.8million to integrate IT systems, $60million for "transformation programme management and $26.8million for "people-change costs".

The expenses are staggering.

In the middle of last year, Te Pukenga’s council admitted it had not listened in the way that it should and had not used the tremendous expertise across the network to best advantage over the previous two years.

The high performers, such as Otago Polytechnic and Invercargill-based Southern Institute of Technology (SIT), are being dragged down to a mediocre average at best.

They are now "business units" of the national organisation headquartered in Hamilton, becoming subsidiaries from April 2020. They will have their own boards of directors but with little power.

They have been operating co-branded, although the Otago Polytechnic sign disappeared sometime last year, without publicity, from the Logan Park side of Forsyth Barr Stadium. It was replaced by Te Pukenga.

Southern polytechnics have deep and proud histories and high awareness and trust in the community and among potential students. Nevertheless, degrees, diplomas and other qualifications will be from Te Pukenga, not yet well known or respected, for new students from this year.

Southland also fears the imminent loss of its free-fees policy as standardisation across the country is imposed. That innovative point of difference brought money, vitality and youth to Invercargill.

Bureaucrats love to claim they favour innovation and flexibility. While it makes sense to consolidate course structures across New Zealand, bright ideas — such as Otago’s micro-credentials — are less likely to emerge. And if they do, the layers of management and distant control will stifle.

Not only has the head office a stack of expensive executives, but Te Pukenga is also appointing four regional managers and eight "co-leaders", all $200,000 to $350,000 jobs.

Meanwhile, polytechnics in time of change and disruption and while a stack of vague strategies is produced, lose many of their best staff. It is only since last September that details down the organisation finally are being worked through.

It was easy for Labour and Mr Hipkins to announce the merger of 16 polytechnics and nine industry training organisations.

"Delivery" has been another matter altogether.

Mr Hipkins was implacable and inflexible when changes were suggested by former Otago Polytechnic head Phil Ker early in the process.

National’s Penny Simmonds, a former SIT head, has consistently pointed out flaws in the plans and their implementation.

While National has indicated the merger should be reversed, that would again incur huge expense.

But will the costs of Te Pukenga be such that that is what is required?

Hopefully, at least, it might be possible to unwind in stages the worst of the highly centralised system.

Amid the changes and the challenges, the Otago and Southland "business units" are somehow going to have to seek to hold on to some of their esprit de corps, their parochialism and the pride that has made them respected places to work and study.