The government has unveiled plans to group the weakest polytechnics together and let the strongest stand alone. Photo: supplied
The mega polytech institution, Te Pūkenga, has recorded a healthy amount of cost saving, flying in the face of the government's claims it has failed.
The government is proposing disestablishing the New Zealand Institute of Skills and Technology.
However, the institute has tabled its 2023 Annual Report, which shows it has made more than $50 million in cost savings.
The report showed it still had an operating deficit of $37.9m at the end of 2023, but that was a significant reduction on the forecast deficit of $93.4m.
Chief executive Gus Gilmore acknowledged the hard work of staff in achieving the results.
"The financial result is the outcome of focusing on addressing financial performance through an intensive cost savings exercise, which included consolidation to reduce duplication, structural changes, vacancy management, lease reduction, property sales and programme rationalisation," he said in a statement.
Other achievements included reaching the targeted number of domestic learners and increasing international enrolments by 35 percent, he said.
Course completion rates increased from 77.2 percent in 2022 to 79.3 percent, Gilmore said.
The annual report focused on activity that took place before the coalition government stated Te Pūkenga would be disestablished.
Gilmore said Te Pūkenga was continuing to work hard to increase student numbers and cut costs.
By mid-year, Te Pūkenga had reached its targeted number of domestic learners and increased international enrolments by 35 percent, he said.
Tertiary Education and Skills Minister Penny Simmonds unveiled plans last Thursday to group the weakest polytechnics together and let the strongest stand alone. The Ministry of Education had warned the option carried risks, and recommended forming four regional groups of polytechnics instead.
She told Checkpoint that Te Pūkenga had cash assets.
"They have got significant cash assets but like any business you cannot keep running down your cash assets."
Te Pūkenga was still running a deficit although it had been much reduced, she said.
"I'd have to say that they've worked really hard to get that deficit down."
