The Taratahi Agricultural Training Centre board of trustees today called in voluntary liquidators Grant Thornton who said in a statement that a combination to declining student numbers and reduced funding could not be financially sustained.
The Farmers Weekly has been told the Tertiary Education Commission (TEC) had reduce by $5000 per student its funding for Taratahi for the coming year.
This is in addition to an unknown amount of private debt, understood to be for the purchase of land, and $4m it still had to repay the Government for over payment of courses it did not deliver between 2009-14.
Taratahi, which celebrates its centennial next year, owns two farms, leases five and manages one other, operates residential campuses at Reporoa, Masterton and Balclutha and 10 non-residential campuses.
Education Minister Chris Hipkins said in a statement the Government was working to secure Taratahi’s home farm near Masterton.
In July 2017 Taratahi took over the Telford training farm in South Otago from Lincoln University which had run into financial difficulties. Telford had been required to refund $1.5m to the Government for under delivery of courses by third party providers.
The National Party’s Agricultural spokesman Nathan Guy said Taratahi sought $4 million to keep afloat but this was refused by the Government.
A statement from Grant Thornton said Taratahi had invested heavily on student support and learning and had reduced costs.
“However, despite both Government subsidies and cashflow from its farming operations, the costs of educating each student still exceeded the funding based on its operating model.”
Interim liquidator David Ruscoe said he was working with the board, management, TEC, NZ Qualifications Authority, Ministry for Social Development, Ministry for Primary Industry and other agencies to support students and staff.
Students were being contacted with future study options.
“We understand that wages and salaries are up to date and funds are being received from stock sales and Fonterra payments to keep the organisation running as per normal over the Christmas break.”
Taratahi board chairwoman Mavis Mullens said in a statement she was concerned for the staff, students, animal welfare, creditors and partners.
Hipkins, Agricultural Minister Damien O’Connor and Federated Farmers board member Chris Lewis all spoke of the need to address future funding of vocational or sub degree level primary sector training.
O’Connor said he was committed to working with the sector and industry to deliver sustaining primary sector training.
Lewis said the industry desperately needs trained young people and the sector must find a sustainable model to provide those workers.
“We have got to sit down with Damien O’Connor and map out the future of farm training in NZ and get a road map for the future.”
Lewis said an issue needing addressed was that training providers like Taratahi were having to pay to help an element of students with social issues for which they are not funded.
He hopes staff and student could be picked up by other providers.
Hipkins said the current vocational training model for the primary industry is broken.
“The Government is committed to finding a solution that will see a continuation of training for students.
“We are looking at new models of primary industry training provision as part of the Vocational Education Review.”
The National Party’s education spokeswoman Paula Bennett said at a time when the Government is encouraging people in to training through its first years’ free fees policy, it would not step in to stop the country’s largest primary sector provider from going in to liquidation.
