Waikato lunch supplier losing four schools, 15 staff under Govt changes

Friday, 25 October 2024

Te Puna Kai Catering director Nicole Rakena says changes and budget cuts won't do the Ka Ora, Ka Ako school lunches programme any good.

A school lunch supplier will shed staff and go from making 1000 meals a day to 180 after Government changes to the programme.

Te Puna Kai Catering will lose all but one of the five Waikato schools it provides lunch for under the Ka Ora, Ka Ako programme.

Owner Nicole Rakena said that means 15 of her staff will lose their jobs.

They’re unlikely to be the only ones, as the Ministry of Education says 49% of suppliers “will not be approached about extensions to their contracts in 2025”.

The lunch programme was redesigned and the consortium of Compass Group, Libelle and Gilmours has won the contract to feed to 176,000 students across the country for $3 a meal.

Waikato Times visited Te Puna Kai Catering at Morrinsville Primary earlier this year. Pictured are Ngaire Anstis and Cameron Vos serving butter chicken.

Associate Education Minister David Seymour said this leveraging of private sector expertise was “setting a precedent for the government working with businesses to achieve better results.”

In Waikato, Rakena said after previous announcements she “knew I was going to lose the high school. Obviously I was gutted about that”.

“With this change I’ve lost four schools, Huntly, Waipā and Taupiri, as well as Ngāruawāhia High School.”

Rakena said her company’s role was taken over by Libelle Catering.

Te Puna Kai Catering director Nicole Rakena says she's lost four out of five schools under the changes to the Ka Ora, Ka Ako lunch programme.

Her staff will be offered positions at Libelle under the Vulnerable Workers Act, but Rekena said none feel a great desire to work there.

Another big company providing meals under the new model is Compass Group. Both Compass Group and Libelle have been catering to New Zealand schools for years, but neither have a great track record.

Business Desk journalist Cécile Meier investigated whether Kiwi schools were happy with the quality of Libelle and Compass Group.

She found that from 2022 to 2024, Libelle lost one third of its schools, and Compass Group lost one quarter, due to performance issues.

David Seymour tries a new school lunch prepared by a chef. Seymour praises the meal, giving it a solid 9.5/10 for its great flavours and textures.

Libelle had to undergo a performance management plan with the Ministry of Education this year, and responded to Business Desk saying they “were privileged to work with the ministry closely and welcomed the opportunity to improve our services”.

Rakena said the schools she’ll have to leave behind, Huntly, Taupiri and Waipā, are familiar with Libelle, and would rather continue with Te Puna Kai.

And she says it’s ironic that Education Minister David Seymour cited food wastage as a downfall of the previous Ka Ora, Ka Ako programme, when Libelle creates more waste than small independent caterers.

When catering at Morrinsville Primary, the only school where Te Puna Kai continues, Rakena said waste is minimal, and any scraps on plates go into the pig bin.

“It's really difficult as a provider, and as someone who prides myself in the quality of what we do,” Rakena said.

The kids of Morrinsville Primary look forward to their tasty lunches. Pictured are Mackenna Lett, left, and Casey Noonan in March 2023.

“Because that’s what didn't work about the programme at the start, was the huge providers that did it en masse and that's why there was so much waste.”

Rakena’s staff aren’t the only ones out of a job due to the changes. Business Desk also reported that 75 suppliers will lose their contracts at the end of this year.

Sean Teddy, the Ministry of Education’s leader of operations and integration, said the ministry understands this is a tough time for suppliers who are not part of the new model.

“Our focus is on making sure students get high-quality meals at an affordable cost,” Teddy said.

“51% of suppliers will retain some or all their business with the Ministry of Education. The remaining suppliers (49%) will not be approached about extensions to their contracts in 2025.”

The media spokesperson for Libelle and Compass Group has been contacted for comment.