Minister Steven Joyce has today announced his intention to establish a new polytechnic in the region by merging the Bay of Plenty Polytechnic and the Waiariki Institute of Technology.

The Tertiary Education, Skills and Employment Minister's announcement comes just a day after New Zealand Union of Students and the Tertiary Education Union suggested a decision needed to be made.

Bay of Plenty Polytechnic's merger with the Waiariki Institute of Technology has been confirmed. Photo: File.

Both organisations will be disestablished and merged into the new institution from May 2016.

'After carefully assessing the merger application, I'm confident this new combined institution will provide significant benefits for learners across the Bay of Plenty including improved access to education, improved academic quality and more of the skills that will help graduates obtain and maintain employment,” Joyce says.

'It will be able to better meet the needs of industries, businesses and communities across the whole region, and will be able to drive the skill development sought in the new Bay of Plenty Tertiary Strategy and the Bay of Plenty Regional Action Plan.”

The new institution will maintain an equitable distribution of leadership, corporate and academic functions across the two existing hub campuses in Rotorua and Tauranga. Impacts on staff will be minimised.

Centres of Excellence will be established based around key courses and qualifications.

The centres will be linked to key industries in the region including tourism and hospitality, forestry and wood processing, marine and aquaculture, and transport and logistics.

'I'm pleased the new institution will develop a strong relationship with the University of Waikato,” he says.

'This will see the partnership already formed between Bay of Plenty Polytechnic and the University in Tauranga extended to Rotorua. This will be particularly relevant to progressing freshwater research in the Rotorua area.”

There were 106 submissions received during the public consultation that were considered alongside the business case and additional information supplied by both councils about the proposal to merge.

While there were a greater number of negative submissions, few made any specific comments in relation to the business case.

It is intended the new institution will commence operations in place of the existing polytechnics on May 1, 2016. Until a new name is confirmed, the interim title will be Waiariki Bay of Plenty Polytechnic.

'I am currently considering ministerial appointments to the new combined council. It's critical that the best representatives be appointed,” Joyce says.

'They must reflect industry, sub regional, cultural, community and iwi interests. They will need a range of skills to achieve the transition and establish effective relationships across the wider region. I attend to announce the appointments in February.”

Once appointed, the new council will establish a constitution, appoint additional members and appoint a chief executive.

An Establishment Committee has been set up to manage the transition, led by Ian Turner and Graeme Nahkies, the chairs of the current Bay of Plenty Polytechnic and Wairaiki Councils.

The committee will be responsible for planning, preparation and communications with staff, student and stakeholders.

Local MP Todd Muller says the merging of the two organisations is a welcome step forward for better vocational outcomes for the region.

'We've seen remarkable job growth in the Bay this year with hot demand for more workers. This merger will help develop a skilled workforce for our key industries,” Muller says.

'By better meeting the needs of industries, businesses and communities across the whole region we will be able to drive the skill development sought in the new Bay of Plenty Tertiary Strategy and the Bay of Plenty Regional Action Plan.”

Rotorua Mayor Steve Chadwick is also pleased with the announcement.

'What's been announced today reflects that the decision-makers have listened to our community and our concerns, and also that they've worked with iwi and when we see the board composition that will help us to understand and see how that's reflected,” Mayor Chadwick says.

'I'm pleased the unique differences of our communities of interest have been taken into account.

'I think it will give us what we need – certainty for our students and to both institutions so they can now move ahead.”

Chadwick says she was pleased a working party would be formed to develop the detail of how to make the merger happen.

'This is about investment in our kids so that they have the skills to take up the jobs we're going to need for growth in Rotorua,” Chadwick says.

'That will be about spa, health and wellness, tourism generally and the wood industry – those are our unique products here.”