Hutchison Paul: Questions for Oral Answer — Questions to Ministers Questions to Members 
Hutchison Paul: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:646;Page:15265] 
9.  
Dr PAUL HUTCHISON (National—Port Waikato) 
 to the  
Minister for Tertiary Education 
: Does he have confidence in the Tertiary Education Commission; if so why? 
Hon PETE HODGSON (Minister for Tertiary Education) 
: 
 Yes; because the tertiary education commissioners are committed and hard-working. 
Dr Paul Hutchison 
: If as the annual report states 2006-07 was the “busiest year in TEC’s history” why was the Tertiary Education Commission so busy and managed so poorly that the commission’s staff turnover that year was a massive 25.5 percent? 
Hon PETE HODGSON 
: Because the Tertiary Education Commission was formed from various people out of the Ministry of Education and a whole lot of people from Skill New Zealand who were scattered all around the country. Quietly initially that was rationalised and in the very busy year that the member speaks of it was rationalised quickly. That is why. 
Su’a William Sio 
: Has the Minister seen any advice on whether small polytechnics should be taken over by big ones? 
Hon PETE HODGSON 
: Yes I have. Less than a month ago National’s spokesperson Dr Paul Hutchison said that failing regional polytechnics should be taken over by more successful ones. He has managed to contradict himself since—most recently yesterday when he said that one regional polytechnic should receive more funding. This Government sees our network of polytechnic provision as very important and we will continue to strive for improvements in polytechnics’ sustainability and in their responsiveness to the skills needs of their stakeholders. 
Dr Paul Hutchison 
: Can the Minister confirm that during the last 18 months of what has been described as one of the biggest tertiary education reforms ever there has been a change in the chair of the Tertiary Education Commission and two changes of Minister and there is about to be a change of chief executive officer; is that not abysmal succession planning? 
Hon PETE HODGSON 
: I thank the member for his attention to the detail of the portfolio but the fact of the matter is that all of these transitions have been quite seamless. If the member would like I could go through the changes in the National Party leadership of recent years. 
Dr Paul Hutchison 
: Can the Minister name any successful business that underwent a major reform during which its staff turnover was 25.5 percent the chair changed and the departure of the chief executive was timed so that she was not around to take any responsibility for the changes she had made—any example? 
Hon PETE HODGSON 
: Fonterra and Telecom would do for starters. The point is that the Tertiary Education Commission has undoubtedly been through a very busy period it continues to be in a busy period and the transition is going quite well. 
Dr Paul Hutchison 
: Why did the Tertiary Education Commission have such a blowout in its personnel spending that it was forecast to spend $26.5 million but actually spent $34.5 million—nearly $10 million more of taxpayers’ money than had been budgeted? 
Hon PETE HODGSON 
: I am afraid I cannot give the member a detailed accurate answer to that question. But I will say that the capital reserves of the Tertiary Education Commission were run down over that time on purpose. I will also say that the commission is now close to where it needs to be. 
Dr Paul Hutchison 
: What sort of mess is the Tertiary Education Commission in when the select committee warned the commission in the 2005-06 year that it was worried about the large amount of money being spent on contractors and when despite that warning and despite the commission itself having hundreds of staff it spent 350 percent more money on contractors and consultants last year than it had budgeted for? 
Hon PETE HODGSON 
: The member does not get it. I will be brief. The long and the short of it is that when the Tertiary Education Commission was set up it was not fit for today’s purpose. Therefore an awful lot of bureaucrats had to lose their jobs. 
Hon Member 
: What? 
Hon PETE HODGSON 
: A whole lot of bureaucrats had to lose their jobs and other differently skilled bureaucrats were taken on and in the meantime a bit of contracting out occurred. That is roughly the story. 
Dr Paul Hutchison 
: I seek leave to table the Tertiary Education Commission’s annual report which shows a blowout of 350 percent in expenses. 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? Yes there is objection. 
Dr Paul Hutchison 
: I seek leave to table the  
New Zealand Education Review 
 article entitled “TEC 25 percent staff turnover”. 
Document not tabled.