Government Unwinds Te Pūkenga Merger, Restores Regional Governance for 10 Polytechnics

The New Zealand government has announced a major shift in the country's vocational education system, restoring regional governance for 10 polytechnics and reversing the controversial merger that created Te Pūkenga. This move marks a significant step in the government's plan to return control of training and education to local communities.

Starting January 1, 2026, 10 polytechnics will regain their regional autonomy, allowing them to better respond to local employer needs and student demands. The government has described this as a “major milestone” for the vocational education sector, emphasizing the need for a system that is “locally led, regionally responsive, and future focused.”

Vocational Education Minister Penny Simmonds, who has been critical of the previous Labour government’s approach, stated that the merger into Te Pūkenga “dismantled regionally-led vocational education” and that the current government is now “restoring it.”

The polytechnics returning to regional governance include Ara Institute of Canterbury, Eastern Institute of Technology, Nelson Marlborough Institute of Technology, Southern Institute of Technology, Toi Ohomai Institute of Technology, Waikato Institute of Technology, Unitec Institute of Technology, Manukau Institute of Technology, Otago Polytechnic, and Universal College of Learning. The Open Polytechnic of New Zealand will serve as the “anchor polytechnic” of the new federation, coordinating programs and services through online learning resources.

However, some polytechnics will remain within Te Pūkenga for now as they work toward financial viability. These include NorthTec, Western Institute of Technology at Taranaki, Whitireia Community Polytechnic, Wellington Institute of Technology, and Tai Poutini Polytechnic. The government has stated that decisions on their future will be made in the first half of 2026.

Te Pūkenga will act as a transitional entity for up to a year, managing unallocated programs and supporting a smooth handover. The changes are part of broader legislation currently under consideration by the Education and Workforce Select Committee, which allows for mergers or closures if a polytechnic cannot achieve financial viability.

Minister Simmonds has been overseeing the dismantling of Te Pūkenga, a mega-merger that was established in 2020 under the previous Labour government. She has previously called the merger an “abject disaster” and a “financial mess” that has left the system in debt. Despite the recent reforms, Te Pūkenga’s chief financial officer warned that the government may still need to provide further financial support to the struggling institutions.

With over 250,000 students in the vocational education system each year, the government believes these changes will offer greater flexibility, financial sustainability, and ensure that training remains aligned with employment needs.