Leaked Cabinet paper paints bleak picture for Southern Institute of Technology

Friday, 21 June 2019

Southern Institute of Technology chief executive Penny Simmonds says it is worst case scenario for Southland if leaked details about the proposed polytechnic merger are correct.

Southland was in line to lose $24 million from its economy on the back of job losses at SIT if a draft Cabinet paper does get the green light, Simmonds said.

The National Party has seen a draft cabinet paper which describes the reforms of the tertiary sector where polytechnics, including SIT, would be centralised nationally.

Invercargill MP Sarah Dowie said the leaked cabinet document showed a wider impact on Southland with SIT set to be stripped of all of its power and assets.

* Southern Institute of Technology posts $2.8m surplus

* Southern Institute of Technology officials to seek submission clarification**

Education Minister Chris Hipkins said it appeared National had parts of a draft Cabinet paper, but it was not due to go to Cabinet on Monday as indicated by National.

'We won't be making any comment until after Cabinet has made its decisions,' he said.

Hipkins announced a proposal in February to merge 16 polytechnics and institutes, before consulting on the proposal.

The proposal was met with outrage from many Southlanders who feared what impact SIT's loss of autonomy would mean for the region.

SIT officials put a submission to Hipkins asking for SIT to remain independent, given it had proved it was financially viable.

However, Dowie said the leaked document indicated the following would happen:

Polytechnics would be merged and rebranded as the New Zealand Institute of Skills and Technology (NZIST).
Polytechnics will have their cash assets and community legacy assets ring-fenced at head office, all other assets will be taken away and consolidated.
Current boards will be removed, including local members, and will be replaced by a subsidiary board, and regional leadership groups will be advisory only.

If the leaked details were correct, Simmonds said she was disappointed Hipkins had not listened to the people through the consultation process.

The consultation period had been a waste of time and taxpayer money if those concerns of the community had not been addressed, she said.

SIT was now looking at its next steps with Simmonds vowing the organisation would continue to fight the proposal.

That would include talking with Government coalition partner New Zealand First, given Simmonds said New Zealand First had declared itself the champion of the regions.

She was worried regional New Zealand was being overlooked by the Labour-led Government and called on New Zealand First to stand up for Southland and SIT by voting against the proposal.

Simmonds will meet with New Zealand First List MP Mark Patterson on Monday to discuss the matter.

Patterson said it was only a draft Cabinet paper in place and until anything was finalised he would not comment.

Invercargill-based Labour MP Liz Craig acknowledged that National had been leaked parts of the draft Cabinet paper but said she would not comment until after Cabinet had made any decisions.

'However, I can assure you I am committed to getting the best outcome for our community,' she said.

SIT was also looking at potential legal options, Simmonds said.

Dowie said it would be disastrous for Southland and added if National was to get into Government it would overturn the polytech reforms.

The Government announced plans in February to merge 16 polytechnics and institutes and run them as part of one centralised organisation.

The merger talk came on the back of a host of polytechnics' financial struggles. Many of them were losing large amounts of money.

Although SIT has bucked that trend considering it has never made a deficit and has built up $36m in reserves.

It also owns accommodation in Invercargill and last year purchased the St John's Anglican Church on Tay St with a plan to turn it into a 'creative centre'.

SIT contributes close to $300,000 annually in sponsorship to sports and cultural activities, which has included linking with the Southland Stags, Southland Sharks, and Southern Steel as major sponsors.

SIT has close to 5000 students, with about 1000 of them international students.