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An English language course credited with helping new arrivals get jobs is set to be cut in a Government crackdown of the sector.
The ban stops the Auckland campus of the Porirua-based Whitireia Community Polytechnic from accepting domestic students. It will only take foreign fee-payers from the end of next year.
It is part of a Tertiary Education Commission national push for institutes of technology and polytechnics to "focus delivery on their home region" and only accept students from the institute's home city, in this case Porirua. It aims to reduce duplication and competition.
It is expected to hit other institutes of technology and polytechnics that have expanded geographically with competing courses but university branch campuses are understood not to be affected.
Manukau Institute of Technology and Unitec spokespeople said the out of region provision was not an issue because the organisations had focused on their home area.
Whitireia Community Polytechnic Auckland campus manager Paul Maguiness said it must pull the plug on offering an intensive general English certificate to permanent resident students from the end of next year.
While the course will continue for foreign fee-paying students, he expected the campus to shed 25 staff once the change happened.
Mr Maguiness said about 400 "new New Zealanders" enrolled in the English course a year, including resettled refugees, and 80 per cent went on to jobs.
He said the Queen St campus, set up for international students about five years ago, got just over $5000 in Government funding for each domestic student on the course.
The funding covered the polytechnic's costs and the course was not designed to turn a profit from the domestic students, he said.
"The reason that we are doing it is that there is a desperate need, both economic and social, in Auckland's high migrant population."
He said the campus should qualify for a specialist exemption because the course was unusual.
"Our particular mode of delivery and educational programme is designed specifically for this group of students."
Graduating student Giorgi Beldishevski, 39, said he could not string together a sentence in English when he arrived at short notice from the former Soviet republic of Georgia 16 months ago to join family.
An emergency surgeon in his homeland, the Royal Oak resident enrolled at Whitireia's English course in Auckland a year ago.
"I've already managed it but for other people, it will be bad," said the father of two.
The Tertiary Education Commission's tertiary network director David Nicholson said the measures were not aimed at cost-cutting.
He said the Government had increased its spending on the sector between 2006 and next year.
"The tertiary reforms are about aligning planning and funding of tertiary education provision and ensure high quality provision."
He said Whitireia agreed last year to focus on greater Wellington and arranged a gradual decline of domestic students in Auckland to accommodate those completing their studies.