Reform of polytechs proposed

Polytechnics will merge into a single entity under a massive overhaul of the sector proposed by Education Minister Chris Hipkins.

With polytechnics and training organisations facing what one commentator called a ‘‘perfect storm’’ of demographic shift and government policy changes, Hipkins yesterday released his proposal to strengthen the ‘‘broken’’ sector.

Three key proposals – merging polytechs, creating a new vocational education funding system, and making industry training organisations responsible for 140,000 trainees and apprentices to better align on and offthe-job education – aim to prepare the system for a future economy in which Kiwis are likely to retrain throughout their working lives.

Merging the 16 polytechs into a single entity, tentatively called the New Zealand Institute of Skills & Technology, is a step further than the consolidation of core academic functions that polytechs and the Tertiary Education Commission had suggested, but Hipkins said it would help address ‘‘weak governance and management capabilities’’ in the sector and reduce the cost to taxpayers.

The sector as a whole lost $53 million in 2017, and four polytechs – Greymouth’s Tai Poutini Polytechnic, Wellington’s Whitireia and WelTec, and Unitec in Auckland – together received $100m in Crown bailouts last year. A Cabinet paper said future finances were not looking any better. Public consultation is open for six weeks until March 27.