1 00:00:00,120 --> 00:00:02,720 Speaker 1: Turns out Treasury warned the government that breaking up to 2 00:00:02,759 --> 00:00:07,040 Speaker 1: Pukinger could leave polytechs worse off. Documents released to news 3 00:00:07,040 --> 00:00:09,520 Speaker 1: Talks would Be say the changes may not even fix 4 00:00:09,600 --> 00:00:12,760 Speaker 1: the financial problems that they had before the merger to 5 00:00:12,800 --> 00:00:15,880 Speaker 1: begin with. Penny Simmons as the Vocational Education Minister joins 6 00:00:15,920 --> 00:00:17,920 Speaker 1: us now Minister, good morning. 7 00:00:18,440 --> 00:00:19,320 Speaker 2: Good morning, Ryan. 8 00:00:19,440 --> 00:00:20,640 Speaker 1: Did you see these documents? 9 00:00:21,640 --> 00:00:23,759 Speaker 2: Oh, yes, of course I saw them. Yes, But we 10 00:00:23,800 --> 00:00:27,120 Speaker 2: had a range of advice from Treasury over a number 11 00:00:27,160 --> 00:00:30,520 Speaker 2: of months, and more recent advice than what they gave 12 00:00:30,600 --> 00:00:31,960 Speaker 2: us in March as well. 13 00:00:32,080 --> 00:00:35,080 Speaker 1: What did the more recent advice say, Look. 14 00:00:35,920 --> 00:00:39,559 Speaker 2: Treasury Is concern, of course, is whether the sort of 15 00:00:40,040 --> 00:00:42,279 Speaker 2: work that we've been doing, the financial work we've been 16 00:00:42,280 --> 00:00:46,280 Speaker 2: doing over the last eighteen months with financial advisors, with 17 00:00:46,440 --> 00:00:52,040 Speaker 2: each polytechnic getting their pathway to viability, whether the polytechnics 18 00:00:52,040 --> 00:00:55,280 Speaker 2: would be able to undertake that. That's why we pushed 19 00:00:55,280 --> 00:00:58,240 Speaker 2: the decisions out right till July, to make sure that 20 00:00:58,280 --> 00:01:02,080 Speaker 2: we could see they were making progress on those pathways 21 00:01:02,120 --> 00:01:06,319 Speaker 2: to viability. So if we did nothing, Treasury would be 22 00:01:06,400 --> 00:01:09,479 Speaker 2: quite right, there'd be quite a high level of risk. 23 00:01:09,760 --> 00:01:12,520 Speaker 2: But we haven't done nothing. We've spent eighteen months, as 24 00:01:12,560 --> 00:01:17,440 Speaker 2: I said, with financial advisors working with each individual polytechnique, 25 00:01:17,600 --> 00:01:20,240 Speaker 2: getting rid of programs that aren't viable, getting rid of 26 00:01:20,280 --> 00:01:26,199 Speaker 2: access at staffing levels, reducing unnecessary expenditure, and bringing discipline 27 00:01:26,319 --> 00:01:31,360 Speaker 2: back to and a business like operation back to the polytechnic. 28 00:01:31,560 --> 00:01:34,520 Speaker 2: So that work that we've been doing, as well as 29 00:01:34,640 --> 00:01:39,319 Speaker 2: identifying over one hundred million dollars worth of unused or 30 00:01:39,480 --> 00:01:42,880 Speaker 2: underused assets that need to be sold as well and 31 00:01:43,000 --> 00:01:48,280 Speaker 2: sourcing the additional twenty million that we reprioritize from back 32 00:01:48,320 --> 00:01:53,360 Speaker 2: office TC to support some of the unviable strategic provision 33 00:01:53,440 --> 00:01:56,880 Speaker 2: that we need in certain geographic regions, but also that 34 00:01:56,960 --> 00:02:00,960 Speaker 2: we need for specific delivery and for exams, pul forestry 35 00:02:01,120 --> 00:02:04,080 Speaker 2: and the primary sector. So we've done a lot of 36 00:02:04,120 --> 00:02:07,200 Speaker 2: work to make sure that the polytechnics are and the 37 00:02:07,280 --> 00:02:10,320 Speaker 2: best possible financial state to stand up. 38 00:02:10,440 --> 00:02:11,400 Speaker 1: So we won still got. 39 00:02:11,280 --> 00:02:11,680 Speaker 2: A lot to do. 40 00:02:11,840 --> 00:02:14,440 Speaker 1: We won't need to subsidize any of them. 41 00:02:15,040 --> 00:02:16,680 Speaker 2: We've still got a lot of work to do on 42 00:02:16,919 --> 00:02:18,400 Speaker 2: how much that aren't stood up. 43 00:02:18,320 --> 00:02:20,160 Speaker 1: How much well I look for because the contingency is 44 00:02:20,160 --> 00:02:21,760 Speaker 1: one hundred and sixty odd million. 45 00:02:21,560 --> 00:02:25,600 Speaker 2: Right, one hundred and fifty seven. No, we're not anticipating 46 00:02:25,680 --> 00:02:28,280 Speaker 2: having to go beyond that. We're hoping we won't have 47 00:02:28,400 --> 00:02:29,320 Speaker 2: to use all of that. 48 00:02:30,200 --> 00:02:32,320 Speaker 1: Okay, let's say we use one hundred and fifty seven 49 00:02:32,400 --> 00:02:36,959 Speaker 1: million of contingency. That's a lot of money. Will these 50 00:02:37,000 --> 00:02:40,000 Speaker 1: polytechs be in a better financial position after we've spent 51 00:02:40,040 --> 00:02:41,880 Speaker 1: that money than they would before we spent it. 52 00:02:42,840 --> 00:02:45,120 Speaker 2: Yes, they will because we've done all this work. And 53 00:02:45,200 --> 00:02:50,000 Speaker 2: remember that Taipukingha had said they needed nearly another billion 54 00:02:50,080 --> 00:02:54,519 Speaker 2: dollars over the next ten years to be operational. So 55 00:02:54,600 --> 00:02:55,239 Speaker 2: what about. 56 00:02:55,040 --> 00:02:57,640 Speaker 1: This thing the Greens are saying that they're disestablishing some 57 00:02:57,680 --> 00:03:01,200 Speaker 1: of them in person teaching, including cutting some programs. This 58 00:03:01,320 --> 00:03:04,720 Speaker 1: is a Northland around forestry and horticulture, is that true. 59 00:03:05,440 --> 00:03:08,320 Speaker 2: That's the work that we're putting the twenty million into 60 00:03:08,680 --> 00:03:12,040 Speaker 2: areas that we need to keep face to face in 61 00:03:12,240 --> 00:03:15,200 Speaker 2: areas like the far North and the East Coast where 62 00:03:15,240 --> 00:03:18,040 Speaker 2: there are a high number of young people not in 63 00:03:18,360 --> 00:03:19,519 Speaker 2: educational employment. 64 00:03:19,680 --> 00:03:22,720 Speaker 1: So you won't cut There'll be a guarantee you won't 65 00:03:22,720 --> 00:03:26,800 Speaker 1: cut in person teaching of horticulture and forestry in the 66 00:03:26,840 --> 00:03:27,440 Speaker 1: North and in. 67 00:03:27,400 --> 00:03:30,680 Speaker 2: The East if the numbers are there to do it. 68 00:03:31,000 --> 00:03:33,560 Speaker 2: But we're not going to subsidize courses that have got 69 00:03:33,600 --> 00:03:36,720 Speaker 2: two or three people in them. That just doesn't make sense. 70 00:03:36,800 --> 00:03:41,160 Speaker 2: So if there are numbers, if there's demand for the courses, 71 00:03:41,280 --> 00:03:44,880 Speaker 2: and they're not viable because of the nature of the delivery, 72 00:03:45,160 --> 00:03:47,280 Speaker 2: then that's what the Strategic Fund is for. 73 00:03:47,640 --> 00:03:51,200 Speaker 1: Penny. Appreciate your time, Penny Simmons, the Vocational Education Ministry. 74 00:03:51,520 --> 00:03:54,680 Speaker 2: For More Family Edition with Ryan Bridge. Listen live to 75 00:03:54,840 --> 00:03:58,000 Speaker 2: news talks there be from five am weekdays, or follow 76 00:03:58,040 --> 00:03:59,560 Speaker 2: the podcast on iHeartRadio.