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School resources to continue after wind down

School resources to continue after wind down

The production of high-quality educational resources, including the renowned School Journal, will continue after the Government’s decision to wind down the operations of government-owned Learning Media, Finance Minister Bill English and Education Minister Hekia Parata say.

Learning Media today announced the decision because it is apparent the company is not financially viable.

“We are still working through the precise nature of the wind down, but it will involve government support to enable an orderly transition over the next few months, subject to successful commercial negotiations” Mr English says.

“We are disappointed that Learning Media has come to this situation. Since losing the exclusive contract to supply the Ministry of Education in 2011, Learning Media’s annual revenue has fallen by around 25 per cent.

“The company had made progress in adapting to the more competitive government contracting environment, introduced to ensure the most cost effective provision of services across the government sector.

“It has worked to restructure its operations and broaden its business strategy to adapt to this new environment, but unfortunately it has not been sufficient to ensure its long term survival.”

Ms Parata says the impact of this decision on staff is of paramount concern.

“We will work with staff to provide transition pathways where possible to ensure their skills and capabilities remain available to the education sector,” she says.

“Decisions on what will happen to the company’s current assets, including its educational resources, will be made as part of the wind down process.

“However, the Ministry of Education has guaranteed that it will provide support to ensure schools continue to receive all publications and resources as expected, and to minimise any disruption resulting from the company’s wind down.”

ends

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