Polytech further in red

Taranaki’s polytech ended 2017 with a $3.6 million deficit, more than $1m further in the red than predicted.

The Western Institute of Technology (Witt) at Taranaki’s 2017 annual report revealed the shortfall, which was $1.2m more than the figure of $2.4m forecast in November.

During the year the institute had experienced a drop of about 382 full-time students, 22 per cent, due to a fall in demand for the qualifications it offered and was a trend experienced around the country. In December Witt announced four staff were being made redundant and six courses would be cut in 2018.

A spokesman for the polytech said it would be fair to say the November forecast was optimistic. ‘‘There were significant additional costs to meet which were higher than expected and the level of income was significantly lower than expected,’’ he said.

The institution failed to meet targets in enrolments for classes for which funding had been approved in the second half of the year which directly impacted on its bottom line.

Chief executive Barbara George said the news was not all bad with only a $250,000 deficit budgeted for the year ending December 31, 2018 and the institute was tracking to that.

She said the increased 2017 deficit would not affect the institute going forward as it had healthy cash reserves. Student numbers were tracking well against the budget for 2018, she said. International student numbers, which had been the hardest hit, slumping from around 176 full-time students in December 2016 to 134 in November 2017 or 23 per cent, were now increasing.