Otago Polytechnic, SIT to return to regional governance

Otago Polytechnic and the Southern Institute of Technology will be among the ten institutes to return to regional governance, the government has announced. 

The ten polytechnics will be re-established from January 1, 2026, Vocational Education Minister Penny Simmonds said. 

"This is a major milestone in building a vocational education system that’s locally led, regionally responsive, and future focused."

The polytechnics were put under one national institute, Te Pūkenga, by the previous Labour government. 

"We campaigned vigorously against Labour’s reforms which saw all New Zealand polytechnics merged into one unwieldy and uneconomic central institution, Te Pūkenga, taking away the ability of regions to respond to local training and employer needs. 

"Labour dismantled regionally-led vocational education – and we are restoring it," Simmonds said.

The ten polytechnics returning to regional governance are:

• Ara Institute of Canterbury (Ara)

• Eastern Institute of Technology (EIT)

• Nelson Marlborough Institute of Technology (NMIT)

• Southern Institute of Technology (SIT)

• Toi Ohomai Institute of Technology

• Waikato Institute of Technology (Wintec)

• Unitec Institute of Technology (Unitec) and Manukau Institute of Technology (MIT), which will stand up as a single entity

• Otago Polytechnic

• Universal College of Learning (UCOL)

• The Open Polytechnic of New Zealand

The Open Polytechnic of New Zealand will be the anchor polytechnic of the new federation, which includes Otago Polytechnic and UCOL.

The government said the federation would coordinate programmes and other services, including shared academic boards.

These changes are part of legislation before Parliament. The Education and Workforce Select Committee is reviewing the Bill, which is expected to pass in October.

The ten new polytechnics will begin operating from January 1, 2026.

Just last week Te Pūkenga warned MPs the government would have to bail out struggling polytechnics despite its reforms.

Te Pūkenga will continue to operate as a "transitional entity" for up to a year, allowing for a "smooth handover", and the new legislation allowed for mergers or closures if polytechnics were not able to achieve viability.

"With more than 250,000 students in the vocational education system each year, these changes offer greater flexibility, financial sustainability, and ensure training remains relevant to employment needs," Simmonds said.

Prime Minister Christopher Luxon said vocational education - and the polytechnic sector - mattered deeply to communities, the economy and the country's future.

'Turbulent' time

Luxon said the vocational education system had been through a "turbulent few years".

"The last government's Te Pūkenga reforms intended to strengthen the system, but what we've seen instead is a model that's become too centralised, too removed from local communities, and ultimately too slow to respond to regional training and employer needs. It's not good enough."

He added it was a "good day for communities" getting back their polytechnics "as we had said before the election".

Simmonds rejected assertions there'd been a lack of consultation with Māori, saying she'd engaged with the education group of the Iwi Leaders Forum.

In selecting 10 polytechnics, Simmonds explained those institutes had financial pathways to "affordability" whereas the other four had "got some work to do, they've got some unique challenges". She explained those challenges were unique to those institutes and their communities, like being small or needing to shift campuses.

Simmonds acknowledged Te Pūkenga was in surplus, but said that was because the "duplication of bureaucracy" in the head office had gone. Asked whether these reforms recreated that duplication, Simmonds said that was not the case.

"The main purpose of the federation is to support the smaller polytechnics that don't have the capacity themselves, particularly in online learning."

On whether all polytechnics would be operational in two years time, Simmonds said that was "their responsibility".

Those who were still facing "unique challenges" had been given a business case with a pathway to financial viability "if they stick to it.".

 - Additional reporting RNZ