Penny Simmonds. Photo: Phil Smith
The government is considering creating a new type of tertiary institution that apparently combines universities and apprenticeship-style training.
The revelation comes in a Cabinet paper that also shows the government will halt funding for the bodies that oversee industry qualifications and standards for the last six months of the year, so it can meet its savings targets.
The paper, 'A redesigned vocational education and training system - legislative framework', was considered by the Cabinet Social Outcomes Committee in mid-December and proactively released just days ago.
It covered the disestablishment of Te Pūkenga, the mega-institute that combined polytechnic and workplace training and education, by 31 December 2026, and its replacement with stand-alone polytechnics and a new system for work-based industry training.
"I am proposing legislative changes to enable institutes of technology and polytechnics (currently business divisions of Te Pūkenga) to stand alone, be part of a federation, merge with other tertiary education institutions, or be sold," the paper from Tertiary Education Minister Penny Simmonds said.
"I have also sought advice on options for a new type of dual-sector entity.
"The proposed legislation would also allow for any of Te Pūkenga's existing vocational provision to be transferred to a university. I will later consider other ways to enable more formal dual sector entities to exist."
Asked to clarify what was meant by "dual-sector entity", Simmonds told RNZ in a statement "a combined university vocational entity".
She said she did not expect Te Pūkenga programmes being moved to universities.
'University' was a protected term reserved for institutions focused on advanced learning and research. Only eight New Zealand institutions were allowed to call themselves universities.
Sector groups contacted by RNZ said they did not know what type of arrangement the government was considering.
Tertiary Education Union president Sandra Grey said the country did not need another type of tertiary institution. She said it would be easier to alter the funding system to ensure universities received funding for apprenticeship-style programmes.
"Universities do do vocational training. We do need more collaboration, but we don't need more entities. What we need is a system that allows people to work together and that means a funding model that isn't, 'I'm going to grab every student, every bit of money I can from the government,' but one that says how does the system actually work.
"I think it's a very crowded space already. We're a very small nation, we have eight universities, we have 16 spaces that are polytechnics and we have three wānanga . We don't need more entities. We don't need more money going into governance boards or senior leadership teams. What we need is more money going into working together, making sure that we teach courses that work for our students.".
Concern over end of Workforce Development Councils
The paper also warned there were risks in the government's plan to end Workforce Development Council (WDC) funding on 1 June 2025 and replace them six months later with Industry Skills Boards.
"The gap between funding ending for WDCs on 1 June 2025 and their replacement by Industry Skills Boards on 1 January 2026 may affect WDCs' ability to carry out their statutory functions," the paper said.
"Risk is that key staff will leave as WDCs wind down and industry will be unsupported for six months until Industry Skills Boards are established."
The paper said some WDCs had sufficient reserves to bridge the gap, and it might be possible to reprioritise underspends from elsewhere in the tertiary education budget.
"A gap in funding is necessary if we are to achieve our savings targets," the paper said.
Simmonds said in a statement: "Funding for WDCs cease in June but there will be funding available for them to carry out core functions until 1 January 2026 when ISBs start. That funding will be a combination of reserves held by WDCs and reallocation of [Tertiary Education Commission] funding. There will be approximately $30 million saved."
Certified Builders chief executive Malcolm Fleming told RNZ it was worried about the funding gap
"It will reduce services, services that we value in the industry, and it is going to create further disruption to an already disrupted vocational education system."
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