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In November 1986, the Minister of Education established a Working Party to report on the management and funding of technical institutes and community colleges in New Zealand. The terms of reference were to: examine the proposed options for giving the technical institutes greater operational autonomy in order to weigh up their advantages and disadvantages including their relative costs; include the following options in its deliberations: (a) a stand alone Technical Institute Grants Authority; (b) a Technical Institute Grants Committee working in association with the Education Department; (c) a separate or sub-department of state for continuing education; and (d) a separate Polytechnic Authority for all polytechnic activities; make recommendations on: (a) the type of organisation which should be put in place; (b) when this organisation should become operational; (c) what, if any, legal changes would be required; and (d) what type of interim structure should operate until any necessary legislative changes were put in place; identify any additional costs involve in enacting the preferred option; identify any staffing implications for the Department and for the technical institutes and any new organisation that is established; and highlight any other matters considered important in relation to the Minister’s proposal to establish a Technical Institute Grants Committee.