Polytechnics face pinch after course clampdown

By HELEN TUNNAH

Polytechnics have had tens of millions of dollars in "windfall" funding slashed from their budgets over the next three years, raising worries about the financial viability of the sector.

National Party figures show the Manukau Institute of Technology alone may lose $9 million by the end of next year after the Government's clampdown on courses such as twilight golf and learning Maori by radio singalongs.

Tairawhiti Polytechnic's budget for community education courses is predicted to drop from $21 million last year to just $5 million in 2006.

While the Government has said the $144 million three-year cuts to the suspect courses pose no "immediate" viability worries, National's education spokesman, Bill English, says the impact will be felt within two to three years.

A tightening of the rules around community education courses was announced when it was revealed some institutions had claimed huge increases in adult student numbers.

That meant the polytechnics also received big increases in taxpayer-funded subsidies for the courses.


Christchurch Polytechnic claimed 79,000 people had signed on to office studies courses last year, and was paid more than $10 million.

Tairawhiti's community enrolments soared from fewer than 3000 in 2002 to 47,410 a year later - a cash leap of $2 million to $21 million.

Mr English said polytechnics would have to cut courses, but generally those courses had few costs associated with them. However, the revenue drop would be large.

"The community education party is over, and it is going to put financial pressure on them."

Education Minister Trevor Mallard said yesterday it was not expected that there would be "any immediate viability concerns for tertiary institutions".

Polytechnics spokesman Jim Doyle said institutions such as Tairawhiti were not "dancing in the streets" about the cuts but would survive.