Wananga confirms 300 job losses as enrolments plunge

Te Wananga o Aotearoa, the tertiary institution forced to restructure after a series of scandals and financial problems, confirmed yesterday that it expects to cut as many as 300 jobs.

Confirming a Weekend Herald report that staff were being told to expect job losses, council chairman Craig Coxhead said about 300 jobs would be cut from its 1265 staff.

Mr Coxhead said that without change there would be an operating deficit of between $13 million and $27 million.

The staff cuts are being driven by a fall in student numbers. Its forecast enrolment for 2006 is between 18,000 and 21,500 students, down from the 30,000 on which its cost structure is based.

Mr Coxhead said the wananga was tightening its belt across all activities.

"Cost reductions will come in many areas, with significant savings to be made in property, general procurement, security, vehicles, information technology and asset replacement."

Mr Coxhead said the reduced enrolment reflected a levelling off in demand for some of the larger courses and a general decline in the tertiary sector, which was down an estimated 16 per cent.

A Government inquiry into the wananga last year identified nepotism, poor record-keeping, expensive overseas travel and other problems.

Its chief executive, Rongo Wetere, resigned in December with a $120,000 six-month salary cheque after an Auditor-General's report found contracts worth millions of dollars were awarded to members of his family.

- NZPA