Ministry of Education officials warned against awarding a $170 million school lunch contract to a group of providers with troubling track records just weeks before the deal was signed, newly released documents reveal.
The contract, covering the supply of free lunches to schools across New Zealand, was granted in late 2024 to the School Lunch Collective—a group including Libelle Group, Compass Group, and Gilmours. Internal memos show that officials urged the Ministry’s operations leader, Sean Teddy, to exclude the group from consideration due to “serious concerns” over past performance, including food safety issues and poor-quality meals.
Despite these warnings, the Ministry proceeded with the contract. Associate Minister of Education David Seymour defended the decision, saying that problems identified with Libelle Group had been addressed and that the programme was now running successfully at a reduced cost.
One principal who raised the alarm, Andy Ashworth of Murchison Area School, previously described the meals as “appalling,” reporting incidents where children ate melted plastic that had fused with the food. His school is among those that terminated their lunch contracts after repeated safety and quality issues.
Documents show that by the end of 2023, Libelle Group faced 163 complaints, including food safety breaches that left dozens of children and staff ill. Compass Group also faced criticism, with 79 incidents reported. Officials flagged financial instability within Libelle months before it went into liquidation in March 2025, owing $14 million. Compass later acquired its assets to ensure continuity.
Despite assurances of improvements, 31 schools opted out of the programme in early 2024. A recent survey at Murchison Area School revealed that 78% of students and whānau did not want to continue with the scheme, citing poor food quality and safety fears.
Principals like Ashworth and Peggy Burrows from Haeata Community Campus say the concerns raised in official memos mirror their own experiences on the ground. Burrows noted that ministerial claims of success do not align with daily realities in schools.
The Auditor-General has launched an investigation into the planning and procurement of the school lunch programme, as questions grow over how concerns were handled and the decision-making behind the $170 million contract.