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Otago Daily Times
3 days ago
- Business
- Otago Daily Times
New med school to save $50m a year, govt claims
Nearly $2billion could be saved by 2042 if a new medical school to train rural doctors is created in Hamilton, the detailed business case for the project says. Made public at 6.45pm yesterday, a document dump including the business case reveals the cost of producing GPs at a new medical school at the University of Waikato would be $50million a year cheaper than doing it through existing medical schools. It was announced on Monday the government had decided to approve the country's third medical school, to be built in Hamilton. Over 16 years from 2026 to 2042 the total cost of medical education at Waikato, including capital costs that include building a new school, would be $9.1b, it says. It would cost $10.9b over the same period to increase the intake of students at existing medical schools and $10.2b if a new medical training programme focused on rural health, jointly run by the universities of Otago and Auckland was established. The Waikato option would also be the cheapest for the Crown in terms of its ongoing contribution to operating costs at $37.2m a year, compared with $45.5m a year for increasing intake at existing medical schools. But there are concerns the actual costs are still unknown. Green MP Francisco Hernandez said the government's decision to "dump" the business case after work hours on a Friday was "deeply insulting to the public". "This is not the actions of a government that is confident in the business case — and judging from what I've read so far they're right to not be," he said. Rather than engaging in good faith with Otago and Auckland universities and running an open process for a new graduate programme, the government had "deliberately stacked the deck to produce the outcome they want". "The cost benefit analysis also assumes no further cost escalations — and with the Minister [of Health] refusing to rule out further funding — we just don't know how deep the government's blank cheque will extend to back this flawed proposal," Mr Hernandez said. "Finally, the cost benefit analysis fails to even consider the issue of [the] benefits of training more Māori or Pasifika doctors — perhaps because [Waikato University] vice-chancellor [Neil] Quigley has reportedly ruled out a programme like [Māori and Pacific Admission Scheme] to boost Māori and Pasifika doctors and the government has failed to make that a condition of this handout." Dunedin MP Rachel Brooking said the Waikato medical school was pitched to the National Party as a "present" to them when in office. "Decisions about the future of New Zealand's medical workforce should be made on more robust grounds," she said. "It's important we take the time to analyse the business case before commenting, which we will do in due course." Taieri MP Ingrid Leary said she was not surprised information was redacted from the business case. "I've got numerous official information documents that are heavily redacted and I'm concerned but not surprised that this remains the pattern [of the government]." She said she felt it had been shown the new medical school was "effectively a done deal" well before the public announcement, due to the government's coalition agreements. "The timing of the release of critical documents on a significant issue is deeply cynical and, along with the heavy redactions, makes me wonder what the National government is trying to hide?"
The Spinoff
15-07-2025
- Business
- The Spinoff
Te Pūkenga loses over $80m in funding, 855 staff ahead of disestablishment
The exact number of job losses at Te Pūkenga can now be revealed, as the mega vocational education institute prepares to be split into 10. Mega-institute Te Pūkenga has lost over $80m in funding and one in 10 staff as the nation's largest vocational education provider prepares to be split into 10 polytechnics from the start of 2026, documents released under the Official Information Act show. The government is currently unwinding a 2020 merger of the nation's polytechnics into one entity, moving to a system of 'regional governance' in the hopes of making the sector more financially viable. The documents, released by the Ministry of Education and Tertiary Education Commission to the Greens' vocational education spokesperson Francisco Hernandez and shared with The Spinoff, reveal that staffing numbers at Te Pūkenga dropped by 855 last year, from 10,480 in 2023 to 9,625 in 2024. This equates to about one in 10 roles being cut, including 540 staff at tertiary education institutes and 190 full-time roles (previous documents released by Te Pūkenga projected job losses to be over 150). A separate document confirmed a drop of over $80m in funding for Te Pūkenga this year, from $949,682,296.25 in 2024 to $869,307,291.80 in 2025. This follows the institute making its first ever surplus last year to the tune of $16.6m, after spending $9.5m across its entire network on 288 redundancy payouts. Hernandez said the 'lack of support and ad hoc planning' of the disestablishment of Te Pūkenga had seen the sector, its workers and learners be '[thrown] to the wolves'. 'The cuts to courses, in-person training and teaching staff necessary for the government's new model to add up are undermining vocational education for all learners,' Hernandez said. On Monday, vocational education minister Penny Simmonds confirmed the next steps of the disestablishment of Te Pūkenga would be to break the institute into 10, including a 'federation' which will see The Open Polytechnic absorb Otago Polytechnic and the Universal College of Learning (UCOL) from January 1, 2026. The federation will share online resources, an academic board and other supports to smaller polytechnics which do not have the capacity or financial ability to provide services, at a cost. The 10 polytechnics also include Ara Institute of Canterbury, Eastern Institute of Technology, Nelson Marlborough Institute of Technology, Southern Institute of Technology, Toi Ohomai Institute of Technology, Waikato Institute of Technology, and a single entity combining Unitec Institute of Technology with Manukau Institute of Technology. Meanwhile, North Tech, Taranaki's Western Institute of Technology, Tai Poutini Polytechnic, and Whitireia Community Polytechnic and Wellington Institute of Technology remain within Te Pūkenga. Simmonds said a decision on whether these institutes will be closed or merged would be decided in the first half of 2026, though they would 'most likely need federation support'. The Tertiary Education Union has expressed concern that courses being dropped during the disestablishment process are those that can't accommodate large class sizes, such as agriculture. But Simmonds said that $20m per annum had been set aside for the next two years to support certain regions such as Northland and the East Coast, which had a high need for courses that can't be financially viable through student numbers. About $100m worth of Te Pūkenga assets have been identified for sale, with the funding to be returned to Te Pūkenga, she said. Simmonds, a former chief executive of the Southern Institute of Technology (SIT), told The Spinoff she understood the number of jobs lost to be in the 'several hundreds', and it had been a 'really tough time' for those affected, but they were a part of the 'financial pathway to viability'. She said Otago Polytechnic, whose executive director Megan Pōtiki told RNZ it was 'deeply disappointed' to be included in the federation, has 'a little bit of work to do to get to a surplus' and could be removed from the federation if they met this expectation. Tertiary Education Union national secretary Sandra Gray told The Spinoff about 10% of the vocational education workforce had disappeared, and she expected another 400 roles were in scope to change. A 'huge amount' of burnout had been felt by those who had stayed, she said, and all staff were currently at the maximum of their timetable teaching hours while they picked up the duties of leaving staff. 'We have staff working at the top end of the workloads, having to work evenings and weekends just to stand still,' she said. 'When you're overworked, you can't put time into each student, you can't work in the way you want.' Gray said the federation system would be a 'one-size fits all model of blended learning' which she doubted would achieve its purpose. She saw 'no sense' in any polytechnic wanting to be a part of the federation as it would come at the loss of staff and other resources, while paying to access 'someone else's products'. Even if the four institutes that remained with Te Pūkenga were folded into the federation, Gray doubted the system would be economically viable. Contrary to the minister's position that the un-merging of Te Pūkenga would restore decision-making powers back to the regions, many polytechnics had been 'left in the cold', Gray said. 'They're the ones who are with their students every day, and yet someone in Wellington who once ran a polytechnic is the only one making decisions for everybody without proper consultation … there's no local autonomy at all.'
Scoop
13-07-2025
- Politics
- Scoop
Submissions Show Overwhelming Opposition To RSB
The Green Party is calling on Cabinet to stop the Regulatory Standards Bill, after only 19 of a total 208 submissions heard over the course of last week's submissions process supported the Bill. 'It couldn't be clearer that by a huge proportion, New Zealanders do not want this Bill passed,' says the Green Party's Regulation Spokesperson, Francisco Hernandez. 'Christopher Luxon and his Cabinet should see the writing on the wall here, listen to the people of New Zealand and put a stop to this deeply unpopular legislation. 'An emphatic 87% of submitters opposed the bill, and only 9% were for it. What's the point of all that consultation if it's going to be ignored anyway? 'After all those hours, all that engagement, all those expert submissions, to go ahead and pass this legislation shows this government's lack of interest in listening to expertise and experience. It's also hugely wasteful. 'Where are Seymour's yellow tape scissors now? Likely dulled by all the cuts being made to crucial public services. 'This Bill risks causing deep divisions, not least because of constitutionally significant ramifications for Te Tiriti o Waitangi and for Aotearoa, which is why the Waitangi Tribunal has warned it is a violation of the Treaty. 'As lawmakers we must listen to the overwhelming evidence, the mass of public opinion and expert advice. Stop this Bill now,' says Francisco Hernandez.
Otago Daily Times
16-06-2025
- Politics
- Otago Daily Times
Claim govt setting up polytechs to fail
The government has been accused of setting up polytechnics to fail after the revelation that almost one in 10 jobs have been cut in the past year. Papers released under the Official Information Act showed staff figures at Te Pukenga dropped from 10,480 in 2023 to 9625 in 2024, a cut of about 8%. While the data did not break down into individual units, the information comes as Otago Polytechnic looks to slim down, announcing changes to the Capable NZ programme last week, and cutting nine courses before last Christmas. Te Pukenga was formed in 2020 by bringing together the country's 16 institutes of technology and polytechnics (ITPs). Green MP Francisco Hernandez said the staff cuts had been demoralising. "The damage of the government's destructive reforms to Te Pūkenga and their underfunding of our tertiary sector are being felt right across the country, with nearly one in 10 jobs being lost at Te Pūkenga. "These cuts will not just hurt staff and students but also the regional communities that depend on Te Pūkenga to deliver skills, jobs and training to our regions." He said communities were already feeling the impacts. Recent reports of cuts to Capable NZ were on top of cuts already made to courses such as the horticulture, health and English language programmes. "Instead of forcing critical polytechs to cut staff and programmes to stay afloat under the government's new model, the government needs to recognise the valuable work that polytechs and universities do and give them the resourcing and support they need to succeed." The government introduced legislation breaking up Te Pukenga last month, but it is not yet known which polytechnics would stand alone and which would be absorbed into the federation model. Vocational Education Minister Penny Simmonds said the government asked the Tertiary Education Commission to work with Te Pūkenga to support polytechnics in reviewing their operations — an exercise that "really should have taken place when Te Pūkenga was established", she said. "While the operational decisions are made by the institutions themselves, I believe it's appropriate that each polytechnic is taking the steps needed to ensure their long-term viability. "These decisions are never easy, but they are necessary to build a more stable and sustainable vocational education system." Asked about the potential loss of institutional memory at the polytechnics, Ms Simmonds conceded it could be an issue. "We need to ensure that as we transition into a new system, we retain the best of what our institutions and people have built over time. "That's why we are taking a measured approach to reform — ensuring there is continuity, while also creating a system that is better aligned with the needs of learners, employers, and regional economies." Tertiary Education Union assistant general secretary Daniel Benson-Guiu said the "real concern" was that nothing had been formally established to replace Te Pukenga. Several "strategic" courses had already faced cuts, he said. "We would like to see a vocational education system that can cater for all of the communities. "With these cuts, the government is setting itself up to fail." Ms Simmonds said the reforms to the system would make it more efficient. "It will be up to each polytechnic to manage its workforce in a way that reflects its financial situation, enrolment patterns, and local training needs. "Under the new system, I expect institutions to be more accountable and better equipped to make prudent, forward-looking staffing and operational choices."
Otago Daily Times
04-06-2025
- Health
- Otago Daily Times
Waikato University pressing on with med school plan
The University of Waikato is pressing ahead with its third medical school proposal, despite all indications it is now on life support. The Otago Daily Times has obtained a document advertising the position of an "independent commissioning agent" for the project. Interested parties have until the end of the month to submit applications, and a decision is due to made before July 4. "It is important to note that this procurement exercise is being conducted in parallel to the approval of the detailed business case being considered by government for a proposed medical school," the document said. "As such, there is no commitment that this contract will be awarded should the business case not be approved." A firm preference is placed on those with previous experience within the sector. "We are seeking respondents that have demonstrable experience in successfully delivering independent commissioning agent services on projects with a similar nature to ensure a seamless set-up and handover of the building to the university." The role would last about two and a-half years, depending on how long the first stage took to complete. It does not mention a salary band. There was also a outlay plan for stage 1 of the "division of health" precinct, which would provide teaching and learning facilities for the proposed new medical school and support the division's existing programmes in nursing, midwifery and pharmacy. "The division is in a strong growth phase and has more than 1000 equivalent fulltime students in these existing programmes," a Waikato University spokeswoman said. Green MP Francisco Hernandez said there was a level of desperation to these documents. "Aotearoa desperately needs more doctors and medical professionals, but unfortunately this government is just tinkering around the issue while at its core the problem gets worse. "The Health Minister should do the right thing and kill off this zombie project once and for all rather than keeping it in limbo. "Setting up a new medical school at a university with no track record of delivering medical graduates and which will require substantial levels of capital investment is a bad use of time and resources." The Waikato Medical School proposal has proved controversial — the existing medical schools at Otago and Auckland Universities argue they can deliver more medical school students more cheaply and efficiently. National campaigned on the third medical school at the 2023 election, but Act New Zealand made it part of its coalition agreement it would not like the project to go ahead without a detailed cost-benefit analysis. When asked about progress on the project, and when the government would likely announce an outcome, Health Minister Simeon Brown reiterated the proposal remained under "active consideration". This is despite the fact no extra money exists in the Budget for the project for this year. Documentation from Treasury, the Tertiary Education Commission and Ministry of Education have all expressed concern about the cost of the project, the logistical hurdles in establishing it and the speed at which the government hoped to complete it. An Otago University spokeswoman said ministers had been clear both before and after the Budget no final decisions had been taken on the proposal for a third medical school. "Already this year we have taken 10 more domestic students, and we will take another 10 students next year. "Otago is able to immediately increase our medical intake from 323 to 348 students, raising it to 450 from 2027. "This increase in students would not require any new capital funding as we would largely reconfigure use of existing facilities and resources."
