In this recent BayBuzz column, EIT back in our hands, Lucy Laitinen, CEO of HB’s Regional Economic Development Agency made the case for EIT regaining its freestanding autonomy. 

Reversing the Labour regime’s consolidation of polytechs into Te Pūkenga, the Government is proposing that institutes with a pathway to financial sustainability will be allowed to stand alone while others will be grouped together in a federation.

EIT wants to stand alone.

Laitinen noted: “Back during the last restructure proposal in 2019, Hawke’s Bay and Tairāwhiti strongly argued for maintaining regional autonomy over EIT. EIT had long been financially viable and brought cash reserves of over $30 million into Te Pūkenga.” Adding that REDA and EIT are looking for reassurance that the cash reserves held by EIT, and any accrued interest, will be available for reinvestment in our region. 

However, in late September the Government released a report indicating that only two of NZ’s 16 polytechs, one of them an online school, are financially viable … with EIT not being one of those.

Subsequently, Tertiary Education Minister Penny Simmonds has walked this back a bit, saying the report did not reflect detailed analysis, which is still underway with results due before Christmas. There is also indication that funds lifted from regional polytechs to fund the Te Pūkenga consolidation would be returned in 2026 and 2026.

BayBuzz asked EIT’s Executive Director Glen Harkness to comment. Harkness, an EIT veteran, has shepherded the institute through its cyclone recovery. Here is his response:

“Since its inception almost 50 years ago, EIT has been a viable institution with annual surpluses that have enabled the institution to prosper and support its community. However, since 2019 like most education providers, EIT is facing a range of challenges that have impacted on financial performance, including a change to the funding model and enrolments, (including international), which still haven’t returned to pre-Covid levels.

“Additionally, the impacts of Cyclone Gabrielle saw a loss of income from learners and government funding with fewer enrolments. There has also been increased cost associated operating leased spaces to provide teaching while the campus is being rebuilt. The impact of which saw a deficit in 2023.

“EIT, like all Te Pūkenga business divisions is continuously looking at ways to improve their financial situation and we are working with consultants to help assess what it would take to make EIT viable. Despite the significant financial challenges driven by the cyclone EIT is working hard to return to a surplus position by 2026.”

Stay tuned.