The new mega polytech is trying to reduce a forecast $110m deficit by $60m. Each institution being rolled into Te Pūkenga needs to make a 3% saving to achieve it, writes Anna Rawhiti-Connell in The Bulletin.

All institutions need to make a 3% saving

Once heralded as a “big win” for Hamilton, it’s safe to say the mega polytech Te Pūkenga is now, as RNZ’s Jane Patterson writes, “beset with difficulties”. Te Pūkenga chair Murray Strong and acting chief executive Peter Winder appeared in front of the education select committee yesterday where they outlined how they were going to try and reduce a forecast $110m deficit to “closer to $50m”. Also under scrutiny at the hearing was exactly what the institute would look like, how it would be staffed and how many people faced losing their jobs. The “quantum” of any job losses had not yet “been determined”, said Strong.

Well-run polytechs being penalised

Each of the 16 institutions being rolled into Te Pūkenga needs to make a 3% saving. “That’s not insignificant, given that we’re halfway through the year,” said Winder. The National Party has said well-run and managed polytechs are being “punished” by the decision to make all 16 cut their budgets. It’s worth watching the video on that story link, as National’s tertiary education spokesperson Penny Simmonds tries to determine whether an acting-acting CEO will be put in place and paid, when the acting CEO Peter Winder goes away for two weeks. Simmonds is formerly the chief executive of Southern Institute of Technology (SIT). Incidentally, SIT, which is famous for its zero fees pledge, as plugged by mayor Tim Shadbolt, may look at introducing fees across several courses that are currently free as part of the merger.

CEO still on leave, on full pay 

Murray Strong also confirmed at the select committee hearing that chief executive Stephen Town is still on leave, on full pay. Town’s contract ends in July next year, but Strong refused to go into details around his personal leave which, as chair, he had signed off. Strong was asked whether the $13,000 a week being paid to Town while he was on leave was coming out of cuts to the head office budget. Te Pūkenga announced four days ago that they were making $8m in cuts to head office costs as part of efforts to reduce the deficit.

“Complex, confusing and unsettling” transformation noted by CEO in mid-2020

In a report for Reseller News in May, Rob O’Neill noted that there are 140 different information and communication systems being used across 24 organisations at Te Pūkenga. O’Neill also notes that Town wrote in mid-2020 that Te Pūkenga’s transformation “is going to be complex and at times confusing and unsettling”, and that his role is “to minimise confusion, maximise clarity, and make sure we take everyone with us on the journey”.