Chippie’s mega merger needs a half billion bailout

reports:

Te ūkenga – the organisation that now runs the country's polytechs – needs a further cash injection of almost half a billion dollars, according to figures seen by Stuff.

A yet-to-be-published business case from the Crown entity says its “preferred option” is for a further $422.6 million over four years from 2023, including $285.8m to integrate IT systems, $60m for ‘transformation programme management' and $26.8m for ‘people change costs'.

The document also outlines an option where 487 full-time equivalent (FTE) staff will be made redundant by 2026, with 104 losing their jobs by the end of next year.

So the merger of polytechs was because they had a projected of $50 million and this merger was meant to save money. But it turns out the merged entity needs $500 million from the long suffering taxpayers.

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