New entity recommended to administer school property portfolio

The ministerial inquiry into the school property system has recommended that responsibility for the portfolio should be given to a new entity for management.

The inquiry, commissioned by Minister Erica Stanford earlier this year and headed by former Foreign Affairs Minister Murray McCully, concluded that the current system is “lose-lose-lose”.  

The report found there was too much bureaucracy, placing undue burden on schools. The report said most educators wanted “simple, functional, cost-efficient and based on repeatable or standardised designs” for school buildings. However, it also criticised the current one-size approach, saying it didn’t recognise “the diverse needs of different schools across New Zealand”. 

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It released six recommendations for the Ministry of Education. In addition to a new entity, the report recommends: 

• Clarifying roles and responsibilities for funding, planning and delivery of school property.

• Reviewing and simplifying the current funding model for state schools.

• Implementing clear processes for regular reporting and priority-setting to promote accountability, transparency, clarity of expectations, and value for money.

• Establishing a transition board and transition unit to oversee and coordinate the establishment of a new school property entity.

• Undertaking a range of immediate actions during the transition period to simplify the operating model and ensure value for money.

The government has decided on a phased approach to these recommendations. This includes an “interim improvements” phase where management of the property portfolio would be consolidated within the Ministry of Education. This includes appointing a two-year term functional chief executive “with expertise in delivering infrastructure to have responsibility for all operational aspects of school property”. This role would be supported by an independent investment panel.  

Finally, the government will decide next year whether to create a permanent entity to manage the school priority portfolio.  

Education Minister Erica Stanford said the report confirmed the government “inherited a struggling system”, saying the promised projects were “over scoped and couldn’t be delivered. 

“The gap between what schools were led to expect of delivery compared with the reality of the funding available, has resulted in a huge loss of confidence in the current system and uncertainty for school communities.” 

Labour’s education spokesperson Jan Tinetti said schools should have certainty rather than leaving final decisions to be made on future budgets.   

“Labour was already growing the use of off-site manufacturing for classrooms and other government build programmes, driving the uptake of offsite manufacturing by government agencies by a minimum of 10 percent year on year.”