Invercargill leaders vow to fight against SIT being part of merger

Thursday, 1 August 2019

Southern Institute of Technology chief executive officer Penny Simmonds talks about todays decision by the Government on the proposal to centralise 16 polytechnics and training institutes.

Invercargill leaders have vowed to fight a Government decision to centralise the Southern Institute of Technology [SIT] with 15 other polytechnics and training institutes nationwide.

Mayor Tim Shadbolt said he was in 'absolute disbelief they could do such a terrible thing to our city' and said legal action would be taken against the decision.

'They have really ripped the heart out of Invercargill with this announcement.'

In the announcement on Thursday, Education Minister Chris Hipkins confirmed sixteen New Zealand polytechnics would merge into one national institute which at the moment has been given the title of New Zealand Institute of Technology.

In documents outlining the Government's decision, it said; 'the Government is committed to ensuring that high-quality vocational education will be available to all regions. To do this, we're bringing together the existing 16 institutes of technology and polytechnics to operate as a national campus network.'

SIT officials and many Southland leaders, including Shadbolt, had expressed concerns during the consultation period that SIT would lose its autonomy.

* Leaked Cabinet paper paints bleak picture for Southern Institute of Technology

* Southland stands up for Southern Institute of Technology**

Shadbolt said the Invercargill City Council would hold a meeting at 5pm on Thursday to decide what action to take.

SIT had been a funder of many projects in Southland and the sponsor of sporting teams, he said.

'Then there's the impact it's going to have on jobs, the impact on student numbers, this affects the whole of the local economy.

'It's just unbelievable they could come up with a plan like this and there's still no detail.

'We will be getting a legal opinion on where we stand and fighting it in the courts.'

Shadbolt would seize 'every opportunity' he could to oppose the decision, including by making his feelings known to Prime Minister Jacinda Ardern when he is speaks at a function in Auckland next week.

SIT chief executive Penny Simmonds said she was blindsided by Thursday's announcement.

Simmonds said discussions with New Zealand First and Green MPs in the lead up to the announcement had her feeling confident the proposal would be watered down and SIT would retain its autonomy.

She said they would continue to fight the decision and added there was still a lot of water to flow under the bridge before the changes would be put into legislation.

'Hopefully as we go through that legislative process through the select committee, that's where New Zealand First and the Greens are going to exert their influence and ensure that embedded in the legislation is a requirement to allow that regional autonomy. It's certainly not there at the moment,' Simmonds said.

The new Institute was scheduled to start on April 1 next year which would mean the SIT board would be disestablished with SIT to become a regional campus under the national umbrella.

SIT's $36 million cash reserves would be ring fenced to be spent in Southland, however, it would be the national head office which decide what that money would be spent on.

When asked if legal action was a possibility for the SIT, Simmonds responded saying they were looking at all of their options at the moment.

Simmonds wanted to ensure SIT staff and students that it was business as usual at the moment and the focus was on making sure SIT's success did not dip despite the uncertainty.

Staff were 'gobsmacked' by Thursday's news although Simmonds said the announcement was light on detail around several areas and what it could potentially mean for jobs.

Invercargill MP Sarah Dowie said she was furious at the decision and if National was returned to power it would return the SIT back to Southland.

'It's absolutely disgraceful, they are taking away our autonomy.'

The Government was 'stealing our assets and ripping the special character of our polytech away', she said.

'It is National's position we will give [SIT] back to Southland and we will give apprentices back to industry.'

The decision would cost jobs and negatively affect the Southland economy, Dowie said.

The decision making powers at the SIT would be made at a hub level and its competitive advantage would be lost, she said.

'They are marginalising a successful polytech and pulling it down to my mind, a very socialist model of medocrity.'

Dowie questioned why Southland list MPS Dr Liz Craig and Mark Patterson didn't 'cross the floor' when the decision was made, saying she couldn't understand how they 'couldn't effectively advocate what this means for Southland'.

The Government documents released on Thursday outline a plan where the Institute's national office will be responsible for setting strategy, reducing duplication in areas such as consistent programme design and development, and ensure that the regional operations take a 'network-wide view' to investment.

The process now is to set up an Establishment Unit to prepare for the new Institute which will then be set up in 2020.

'In the meantime, the current ITPs and ITOs will continue as they are, so that learners and employers can continue to learn and to train staff.'

Hipkins said the New Zealand Institute of Skills and Technology (NZIST) head office is going to be based outside Auckland and Wellington, which may hold opportunities for the regions.

Labour List MP Dr Liz Craig, who is based in Invercargill, said SIT was incredibly important to the people of Southland.

In coming days she would continue to talk with Hipkins about how we ensure Southland retained the ability to decide how SITs ring-fenced cash reserves were used, 'so we can continue offering the kinds of incentives, like Zero Fees and Accommodation Bursaries, that have brought so many students to the south'.

Craig said she had also been speaking to Hipkins about Southland's need to have its own regional skills leadership group, so its workforce needs weren't lost in those of the wider Otago-Southland region.

With SIT recently taking over primary industry training at Telford, she would continue to highlight how ideally placed SIT would be to host a centre of vocational excellence, 'so we can continue playing a leading role in the delivery of vocational education and training nationally'.

Mark Patterson, NZ First List MP based in Clutha-Southland, said there was water to go under the bridge in terms of how it shaped out.

Patterson had been pushing to retain some autonomy for the SIT and Otago polytechnics.

He said the announcement showed there was an intention to have regions still drive their own destiny in terms of working with local businesses to match demand for skills and in delivery of training.

'There was always going to be an overarching framework, it was what degree of regionalisation and autonomy we could keep,' he said.

'Now we have got time to work out how that settles into a workable model.'

Clutha-Southland MP Hamish Walker said the announcement was incredibly disappointing and raised uncertainty for Telford's future.

'Today's announcement of the Government's reform of vocational education through the centralisation of polytechs is another blow to rural and regional New Zealand.

'It is the people in regions who know the needs of their people best, not a long list of public servants in Wellington.'

Community assets would be taken away, decision-making powers would be lost and as a result, Telford would be disadvantaged, he said.

'Telford's long-term proposal was turned down because of this reform which will now cause further damage to Clutha-Southland and its workforce.'

'This creates further uncertainty for staff and students at Telford who have already been through enough.'

Otago Southland Employers' Association chief executive Virginia Nicholls has raised concerns about the merger.

'It is hard to see how a centralised, single entity for Polytechnics and Institutes of Technology will be better placed to respond to regional or specialised demands than regionally-based providers.

'Otago Polytechnic and the Southern Institute of Technology have proven their ability to listen to and work with industry sectors to deliver innovative skills-based programmes that meet our region's needs,' Nicholls said.