Tertiary Education Union organiser Kris Smith said liquidators had advised staff by letter that pay was being suspended from the end of this week but that they were not being made redundant.
She understood there were approximately 200 staff across all Taratahi campuses in Wairarapa, South Otago, Taupo and non-residential campuses in Northland, Auckland, Waikato, Bay of Plenty, Taranaki, Manawatu, Hawke’s Bay and Southland.
In the week before Christmas the Taratahi Board of Trustees called in liquidators Grant Thornton because of the financial impact of declining student numbers, debt servicing requirements and reduced funding.
Part of that debt was refunding the Tertiary Education Commission (TEC) more than $6 million for over-funding courses at Taratahi and Telford that it did not deliver.
Smith agreed with comments by politicians and farming leaders that the funding model for primary sector training was flawed and she called on the Government to forgive Taratahi’s debt, so staff could retain their jobs and students study in the coming year.
The first residential students are expected on campus at the end of this month but there is no certainty another provider will step in to run its programmes.
Invercargill-based Southern Institute of Technology (SIT) was interested in taking over the Telford campus from Lincoln University, which it divested about 16 months ago, but missed out to Taratahi.
SIT chief executive Penny Simmonds said in a statement the education provider was again interested in picking up all or some of the programmes but was waiting for direction from the liquidator.
“SIT is very mindful of the uncertainty for Taratahi and Telford students and we are keeping in touch with the relevant people and organisations, including TEC, New Zealand Qualifications Authority, TEU and local politicians. However, at this stage we are waiting on direction from the liquidators and are unable to offer any further information.”
