For the purposes of this provision, an asset is defined as any item with an individual asset/serial number.  For example, if an institution is upgrading the computers in its student hub it will be looking to dispose of, say 40 assets, not one.  As long as each individual asset has a current market value of less than the Asset Disposal Limit (ADL) for that institution, the institution doesn’t need the Secretary for Education’s consent to dispose of all the computers at the same time.

Any questions on the Asset Disposal Limit can be sent to camenquiries@tec.govt.nz.

The disposal of individual assets with a market value greater than the ADL for an institution requires consent from the Secretary for Education. 

If your TEI wishes to dispose of an asset with a market value greater than its ADL, you should write to the Manager, Monitoring and Crown Ownership (MCO), TEC enclosing all relevant supporting documents.

You should provide the following information about the asset and the TEI’s reasons for the disposal, as relevant, either in the request or as attachments:

• a description of the asset (photographs can be helpful)
• the rationale for the application
• authority to act – evidence of the TEI council’s decision on the asset’s future, including a description of the options the council considered
• the market value of the asset and indicative costs of sale
• how the net proceeds of sale will be applied
• any implications of the disposal for the delivery of educational or research programmes
• an outline of the sale process
• any other information considered relevant or helpful
• the date by which consent is needed.

For further information or any queries about getting consent to sell plant and equipment and other non-land and building assets, with a market value greater than their ADL, email camenquiries@tec.govt.nz.

MCO will assess your application and supporting documents provided before making any recommendation to the Secretary for Education to grant or decline the request under Section 282(4)(d) of the Education and Training Act 2020 (the Act). Our assessment will focus on the educational and financial impacts, including financial viability and the ability of your TEI to fund replacement assets if required.  We will also check the assets are not being sold below market value (without good reason) and that the proceeds are being appropriately reinvested.

Once the Ministry of Education (MoE) receives MCO’s assessment and recommendation it will determine whether consent is to be provided.

If you provide all the necessary information with your application, a consent can generally be issued within a month of the MCO receiving your request.  Consent is required before you carry out the proposed transaction. Retrospective consents cannot be provided. If you need a consent more urgently, you should highlight that in your application.

Through Section 282(7) the Secretary may impose conditions on any consents granted. Any conditions would depend on the type of asset being disposed of.  You must comply with the conditions and tell the Secretary when the transaction has been completed and how the proceeds, if any, have been dealt with.