Source: Tertiary Education Commission
They are required to comply with statutory processes relating to the disposal of assets, or interests in assets, and the leasing of land or buildings.
Capital Asset Management
The Government sets out its expectations for Capital Asset Management (CAM) in Cabinet Office Circulars. We monitor the performance of TEIs against those expectations.
Further information: Capital Asset Management for TEIs
Disposal of assets
Section 282(4) of the Education and Training Act 2020 (the Act) requires that TEIs get a written consent from the Secretary for Education to sell or otherwise dispose of assets or interests in assets, and to grant leases of land and buildings they own.
Under Section 282(5) of the Act the Minister may determine a value threshold below which a TEI may dispose of, mortgage, or otherwise charge an asset without the consent of the Secretary for Education. The Minister issued a determination for the disposal of assets.
Section 282(5) also states that the granting of a lease for a total term of 15 years or less doesn’t need the consent of the Secretary for Education.
Capital project and expenditure thresholds for Te Pūkenga—New Zealand Institute of Skills and Technology
Section 327 of the Education and Training Act 2020 imposes a specific requirement on Te Pūkenga—New Zealand Institute of Skills and Technology to obtain the written consent of the Secretary for Education (the Secretary) for capital projects of Te Pūkenga or a Te Pūkenga subsidiary.
Under section 327(1), a capital project may be undertaken by Te Pūkenga or a Te Pūkenga subsidiary only if:
a. the cost of, or level of risk of, the project to Te Pūkenga is below thresholds set by the Secretary under 327(2); or
b. the project is within a capital plan of Te Pūkenga approved in writing by the Secretary; or
c. Te Pūkenga has obtained the written consent of the Secretary for the project.
Under section 327(2), the Secretary must consult with Te Pūkenga before setting thresholds for the purposes of subsection (1)(a).
The Secretary has consulted with the Te Pūkenga council on interim thresholds for 2022.
The interim thresholds set by the Secretary for the purposes of section 327(1)(a) will be published on behalf of the Ministry of Education here.
Interim Thresholds for Approval of Capital Expenditure by the Secretary of Education (PDF, 395 Kb)
These interim thresholds will remain in place until further work establishes how thresholds will work for Te Pūkenga in the longer-term.
Exemption doesn’t apply to disposals of land and buildings
The Minister’s determination for the disposal of assets doesn’t apply to disposals (including demolitions) of land and buildings. All disposals of land and buildings (including interests in land, such as easements) owned by TEIs require the Secretary for Education’s consent.
TEIs can’t sell Crown-owned land and buildings. For information on options available to TEIs for the Crown-owned land and building assets they manage see Crown-asset transfer and disposal.
Consents for disposals of assets
For information on how to apply for consent to sell, or grant a long-term lease for, land or buildings owned by a TEI see Sale or long-term lease of land and buildings.
For information on how to apply for consent to demolish a TEI or Crown-owned building see Demolitions of buildings.
For information on consents, including thresholds determined by the Minister, for the sale of plant and equipment and other assets (such as financial assets, computers and art or library collections) see Sale of plant and equipment and financial assets.
