Te Pūkenga 2023 Annual Report Released Showing More Than $50m In Cost Savings

Te Pūkenga - New Zealand Institute of Skills and Technology has released its 2023 Annual Report, showing more than $50 million in cost savings.

In the first year of reporting with all its 25 polytechnics and work-based training organisations under the one entity, the report shows an operating deficit of $37.9 million at the end of 2023, a significant reduction on the forecasted deficit of $93.4 million for the year.

When revaluation of land and buildings are taken into account, the year-end result is in fact a $35.6 million surplus.

Te Pūkenga Chief Executive Gus Gilmore acknowledged the hard work of staff in achieving the results.

"The financial result is the outcome of focusing on addressing financial performance through an intensive cost savings exercise, which included consolidation to reduce duplication, structural changes, vacancy management, lease reduction, property sales and programme rationalisation.

"The shortfall in income was primarily due to falling domestic enrolments, which affected the whole tertiary education sector. We were pleased with the strong growth in international students of 86% (5,315 EFTs) on the same time the year before," says Mr Gilmore.

"The work our team has done in this area continues to show positive growth in international learners in 2024 while Work Based Learning divisions made a surplus of $122.4 million." Learner satisfaction increased to over 90% in 2023 (up from 89.1% in 2022) following a strong focus on improving learner support services. For example, a partnership with Te Whatu Ora to provide new and improved mental health and addiction services for ākonga resulted in over 6,500 ākonga accessing 14,959 enhanced mental health services sessions.

Course completion rates increased from 77.2% in 2022 to 79.3%.

"The increase in both student satisfaction and course completion rates is commendable given our ākonga were still dealing with the impacts of Covid-19," says Mr Gilmore.

The Annual Report focusses on 2023 activity before the new coalition Government communicated in December that Te Pūkenga should begin preparation for disestablishment.

In December 2023, Te Pūkenga Council received a Letter of Expectations from the new Minister for Tertiary Education and Skills, Hon. Penny Simmonds confirming the Government's intention to disestablish Te Pūkenga and establish regionally based vocational education entities. As a result, all transformation work ceased, including the Tāraia te anamata | Creating Our Futures unified structure and phase two of the Digital group restructure.

"Looking back on the year 2023, our kaimahi can be proud that we have delivered exceptional vocational education with good outcomes for our learners and employers, and significantly improved our financial performance, during a time of immense change and ongoing uncertainty. We thank kaimahi for their continued commitment, hard work and manaakitanga in a period of further change for the sector.

"While we work towards disestablishment, our focus remains on ensuring learners, employers and staff are well supported as we continue to deliver quality vocational education and training - on-campus, online and on-the-job," says Mr Gilmore.

The first year as a national organisation enabled Te Pūkenga to develop major commercial partnerships to deliver education and training needs with national employers, including the New Zealand Air Force, Fonterra, Air New Zealand, and the Ministry of Social Development (MSD).

It also sparked an agreement with the Chinese Government’s Centre for International People-to-People Exchange to enhance vocational training in areas such as cross credits, student exchanges, academic visits and developing talent in seven key fields of study: early childhood education, tourism and hospitality, culinary arts, aged healthcare, veterinary science, cross border e-commerce and electric vehicle technology.

Other international agreements Te Pūkenga signed were partnerships with industry giants Microsoft and Amazon Web Services to develop ICT skills and career opportunities for ākonga and kaimahi across the network and into new career pathways through micro-credentials and providing internship opportunities with local IT businesses.

Mr Gilmore said Te Pūkenga continues to work hard to increase learner numbers and cut costs. "By June 2024 we have reached our targeted number of domestic learners and increased international enrolments by 35%. Our cost cutting exercise is also continuing and together these elements have combined to deliver a YTD surplus of $28.5 million when compared to the operating deficit of $37.9 million at year end 2023.

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