Ten newly independent polytechnics have been given a financial boost of more than $325 million following their separation from the national mega-institute. The funding has been provided by their former parent organisation to help secure a stable start as standalone institutions.
Vocational Education Minister Penny Simmonds said the funding package was designed to ensure each organisation could operate with confidence during the early stages of independence. She said the recapitalisation covered three months of operating expenditure, along with any ring-fenced reserves or restricted funds originally held by individual polytechnics.
"Some polytechnics had significant reserves going into Te Pūkenga, while others had significant debt. Each polytechnic received three months of operating expenditure, plus their original ring-fenced reserves (if applicable) plus any other restricted funds (if applicable)," she said.
In addition to supporting polytechnics, five Industry Skills Boards have temporarily taken responsibility for seven former work-based learning divisions. These divisions were recapitalised with $62.7 million to maintain training delivery during the transition period.
Simmonds said the funding would help maintain financial stability and ensure the sustainability of training programmes while governance arrangements were finalised. She confirmed that once work-based learning activities move to a tertiary education organisation, such as a polytechnic or private training provider, any remaining funds would be returned to the Crown. However, previously agreed ring-fenced reserves would transfer to the receiving organisation.
The funding arrangements were managed by Te Pūkenga and the Tertiary Education Commission.
Among the largest allocations, Ara Institute of Canterbury received $80.8 million. The combined United and Manukau Institute of Technology received $52 million, while the Eastern Institute of Technology was allocated $34.5 million.
The Open Polytechnic and the Southern Institute of Technology each received more than $27 million. Otago Polytechnic and Waikato Institute of Technology were each granted more than $24 million. Nelson Marlborough Institute of Technology received $22.6 million, Toi Ohomai Institute of Technology was allocated $20 million, and Ucol received $11 million.
For work-based learning divisions, Competenz received $20.9 million, the Primary ITO was allocated $14 million, and EarnLearn received $8.7 million. Connexis and Careerforce each received more than $6 million, ServiceIQ received $4 million, and HITO was granted $1.7 million.