KEY POINTS:

• Food service provider Libelle Group went into liquidation this morning.
• Libelle is contracted to deliver about 125,000 meals daily as part of the Government’s Ka Ora, Ka Ako Healthy School Lunches programme.
• Associate Education Minister David Seymour said the liquidation process would not materially impact the provision of school lunches.

The Government has faced further scrutiny in Question Time today after a provider for the much-maligned school lunch programme, responsible for 125,000 meals daily, announced liquidation.

The school lunch programme has been beset by a myriad issues since launching this year, including incidents of unappetising, late or absent food deliveries and overheated lunches that left one child with second-degree burns.

A livestream of Question Time can be viewed from the top of this article.

Prime Minister Christopher Luxon said in the House “the school lunches programme is not at risk” after it emerged a key provider was being placed into liquidation.

Questioned by Labour leader Chris Hipkins about the programme and its numerous issues — including a child being burned — Luxon said the incident last week “was unacceptable”.

“David Seymour is working through the issues. This is a minister who is working very hard through some challenging issues,” Luxon said.

Members of the Opposition repeatedly interjected during Luxon’s response, calling for him to take “some leadership” and sort the scheme out.

Luxon said he had been assured children would still get their lunches.

“The school lunches programme is not at risk.”

Speaking after news of the liquidation, Seymour — the associate education minister — said he was still confident in the long term that the programme would be “very good” for the education system.

“In the fullness of time, I’m very confident people will see the full record and see that we’ve actually acted very well, sometimes with some difficult circumstances.”

He would not comment on how Libelle Group got into trouble as there were “sensitive commercial matters being worked through”.

“If I start casting aspersions on that, I may interrupt the process that’s under way, but, nonetheless, in the fullness of time, all of those details will be revealed.

“I think people will say, ‘Actually, you know, David Seymour, the Ministry of Education, the Government, we’re doing the right thing at the right time’.”

Seymour said keeping a continuous supply of school lunches for children was now key.

“Our number one priority through all of this has been maintaining the volume and improving the quality.

“The quality will improve, the volume will be maintained, and we will see children that are prescribed to get these lunches getting these lunches.”

Government-funded school lunch supplier tipped into liquidation

Robert Campbell and David Webb of Deloitte NZ today confirmed they had been appointed liquidators of Libelle Group.

Libelle Group is contracted by Compass Group NZ Ltd to deliver about 125,000 meals daily as part of the Government’s Ka Ora, Ka Ako Healthy School Lunches programme.

Compass Group, a global catering company, leads the School Lunch Collective, which was awarded the $85 million annual school lunch contract last year.

The liquidators said they had immediately engaged with Compass to support continuity of service.

“The liquidators are undertaking a full and urgent review of all of Libelle’s operations, with our immediate focus being working with Libelle’s employees and affected stakeholders to ascertain the way forward, including ensuring students around New Zealand continue to receive their school lunches,” liquidator David Webb said.

Libelle has offered residential catering, tuckshop solutions and school catering services for the past 20 years.

Seymour said the liquidation process would not materially impact the provision of school lunches.

“This is a commercial matter between Compass and Libelle. Compass has assured the ministry that any disruption will be minimised, and the liquidation process will not materially impact the provision of school lunches.

”To ensure the uninterrupted delivery of the school meals provided by Libelle central production kitchens, the Compass Group has told the ministry that it will assume operations during this transition and take responsibility for providing meals every school day.”

Compass boss Paul Harvey said his priority remained ensuring 120,000 students continue to receive nutritious meals every school day through the Ka Ora, Ka programme.

“Deloitte, as liquidator, has asked Compass Group to help manage the transition and ensure stability while exploring options for Libelle’s future. To minimise disruption, Compass has taken immediate steps to support Libelle, including ensuring staff wages are paid and keeping kitchen facilities running,” Harvey said.

“We recognise the vital role that Libelle’s staff and partners play in delivering school lunches, and we are committed to ensuring the future of Libelle as part of the programme and supporting its people through this process.”

- More to come