NZ Restores Regional Control Over Polytechnics, Strengthens Industry Role in Vocational Training

Under the previous model, Te Pūkenga—the national body overseeing the country’s polytechnics—centralized control and removed decision-making from regional institutions.

New Zealand’s vocational education system is undergoing a major transformation as the Government fulfils its promise to dismantle Te Pūkenga and restore regional decision-making for the country’s polytechnics. The move, announced by Vocational Education Minister Penny Simmonds, marks a decisive shift back to a locally governed and industry-led model of education that aims to reconnect training institutions with the communities and industries they serve.

A Return to Regional Leadership

Minister Simmonds described the reform as an “important milestone” in rebuilding a vocational education and training system that is “locally and industry-led, regionally responsive, and future focused.” She emphasized that vocational education forms the backbone of New Zealand’s skilled workforce—training people who “make our roads, build our houses, run our farms, fix our machinery and care for our people.”

Under the previous model, Te Pūkenga—the national body overseeing the country’s polytechnics—centralized control and removed decision-making from regional institutions. According to Simmonds, this structure “failed students and employers, and weakened local communities.” The Government’s latest reform aims to reverse that, “giving regions control, restoring financial accountability, and strengthening industry leadership in work-based training.”

Legislative Overhaul: The End of Te Pūkenga

The Education and Training (Vocational Education and Training System) Amendment Bill formally disestablishes Te Pūkenga and replaces it with a structure centered on regional autonomy and industry collaboration. The legislation will initially re-establish ten regionally governed polytechnics, with more expected to follow. Each institution will have its own local governance structure to better align with the specific training and economic needs of its region.

Complementing these polytechnics will be eight new Industry Skills Boards, responsible for leading qualification development, setting industry standards, and managing work-based training during a transitional period. These boards will represent major sectors such as construction, agriculture, engineering, healthcare, and manufacturing, ensuring that education outcomes remain closely aligned with the needs of employers.

The new framework will become operational on 1 January 2026, beginning a two-year transition during which the Industry Skills Boards will manage existing work-based training arrangements. This period will allow for the smooth transfer of programmes, staff, and assets from Te Pūkenga to the new regional institutions.

Strengthening Local and Industry Partnerships

Minister Simmonds said the Government’s approach restores the essential partnerships between regional training providers and the industries that rely on them. “This reform delivers a stable, practical, and future-focused vocational education system,” she stated. “It allows local providers to respond to regional needs, employers to shape training, and learners to gain skills that lead to real jobs.”

The changes also promise improved financial sustainability for polytechnics. Under Te Pūkenga, a number of institutions struggled with funding inefficiencies and inconsistent performance metrics. By devolving control back to the regions and industries, the Government aims to ensure resources are better allocated and directly tied to local labour market demands.

Transition and Long-Term Vision

Most staff, functions, and assets from Te Pūkenga will be transferred to the new polytechnics, minimizing disruption to students and educators. The transition is being managed to preserve educational continuity while establishing a new governance and funding model. A small number of polytechnics will initially remain within Te Pūkenga during the transition but are expected to move toward independence as they achieve financial stability.

Cabinet has already confirmed the ten polytechnics that will operate as stand-alone institutions and identified which will form part of a new polytechnic federation, allowing them to share resources and expertise while maintaining autonomy. Cabinet also finalized the composition of the Industry Skills Boards earlier this year.

Building a Future-Ready Workforce

The broader goal of these reforms, Simmonds emphasized, is to make vocational education fit for the future. By aligning training more closely with regional industries and local economic development, the Government hopes to create a system that supports both job growth and national productivity. The new model is designed to provide learners with clearer pathways to employment, while ensuring that industries can access the skilled workers they need.

“We’re rebuilding a system that works for apprentices, students, employers, and communities,” said Simmonds. “This is about delivering real skills, real jobs, and real value to support this Government’s focus on growth.”

As New Zealand moves forward with these sweeping reforms, the emphasis will be on restoring trust in vocational education—returning power to local hands, empowering industries to lead training, and ensuring that learners acquire skills that directly contribute to regional and national prosperity.