Polytech refuses to reimburse students for cancelled course

The Southern Institute of Technology (SIT) has no legal obligation to pay students' back fees and costs for a course it cancelled, despite the Ombudsman recommending it does, says its defiant chief executive, Penny Simmonds.

Ombudsman Mel Smith took the unusual step of informing Prime Minister Helen Clark of SIT's refusal to repay the students despite his recommendation, and Tertiary Education Minister Steve Maharey will now meet the Ombudsman over the issue.

Six students had complained to the Ombudsman that they were not able to get a National Diploma in Social Services in 2000 despite having completed the first year of a National Certificate in Social Services in 1999.

When the course was cut, the students started legal action against the institute, saying it was liable for ending their study. However, they dropped it after being told they were unlikely to succeed.

Mr Smith said the students' complaint to him was different -- they said the institute's offer of a free course in another area as compensation was unreasonable.

He agreed, saying the offer of a year's free course of study was "inadequate and unreasonable" and recommended the institute pay them the course fees and related expenses -- about $21,000 in total.

However, Ms Simmonds said SIT was under no legal obligation to pay and it would be inappropriate to do so.

"It's public money and as chief executive I am obliged to use money to deliver education and meet any legal obligations," she said.

"It would be inappropriate to do anything other than that."

Ms Simmonds said she did not have the "luxury" of being able to pay money out on moral or ethical grounds.

"We have to always remember that it's public money."

Mr Maharey today said Ms Simmonds' attitude made it clear SIT would not follow the Ombudsman's recommendation, and he was powerless to make it.

"I'm now confronted with a situation where what we thought was an effective and useful way of going about handling tertiary complaints is now frustrating the Ombudsman," he told National Radio.

The law may have to be changed and the sector consulted again as a result of the matter. The sector had agreed the Ombudsman would deal with student complaints, he said.

He could not offer the students any assurance they would get their money back.

"What I can tell those students is that I take their situation very seriously, the Ombudsman took their situation seriously, we thought we had effective agreement with the sector on this, we don't appear to and I want to make it effective," he said.

- NZPA