Wintec Performs Well During 2006 Sector Reforms

MEDIA RELEASE

May 10 2007

Wintec Performs Well During 2006 Sector Reforms

Wintec (Waikato Institute of Technology) has posted a $579,000 loss for the 2006 year, in what Wintec Chair Gordon Chesterman described in the annual report as a “mother of a year”. However Mr. Chesterman also noted that the result was “good news as we had budgeted to lose $2.8 Million.”

The deficit, he said, reflected changes in Government policy in the tertiary sector last year which hit a number of ITPs. The better than budgeted result reflected well on Wintec’s ability to adapt to a changing tertiary environment whilst still managing financial pressures.

Together with the other 19 other Crown owned institutes of technology and polytechnics throughout New Zealand, Wintec has had to realign its business to ensure that it meets the requirements of students, industry and the community.

Chesterman said while performance fundamentals were strong, Wintec’s financial performances had experienced huge swings for accounting reasons over the past three years. In 2003, the Institute reported a $14 million loss because buildings were written off after being tagged for demolition. A year later Wintec recorded a $15.6 million profit because of building revaluations.

He said revenues for the year just ended were down from $69.3 million, while operating costs fell from $67.3 million to $66.5 million. Total public equity remained largely unchanged at $100.2 million.

Chesterman said the year was characterised by a very strong performance by Wintec, with significant outcomes achieved across a number of areas. It was a very pleasing, challenging and interesting year marked by continuing change at the national level, in our region, and within the organisation he said.

“Despite ongoing uncertainty amid radical sector reform it was a year of considerable positive change, resulting from work begun in 2005 and beyond,” he said.

“The loss we reported of $579,000 is significantly lower than budgeted and, given the environment. Chesterman said the deficit reflected changes in Government policy settings in the tertiary sector. The deficit would have been greater without Government’s reinvestment through the Quality Realignment Programme - Even with that reinvestment however, the sector remained challenging.”

He said the better than budgeted result reflected well on Wintec’s ability to adapt to a changing tertiary environment whilst still managing financial pressures. The institute’s continued to focus on strengthening partnerships with key regional organisations, producing quality international on-line materials, significant training initiative offshore and modernising the campuses.

“Wintec’s $10m city campus construction is now well underway and will provide an impressive facility to support student learning in a modern, relevant and high-quality setting.

He said Wintec had also contributed expertise at a national level through Council and CEO appointments with ITPNZ Institute of Technology and Polytechnics of New Zealand and was playing an invaluable lead-role across the sector.

ends

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