Minster gives Unitec a lifeline

Auckland tertiary education institute Unitec will receive a $50 million loan from the Government to tide it over a time of ‘‘extreme financial difficulty’’.

Announcing the decision yesterday, Education Minister Chris Hipkins acknowledged Unitec’s staff and students had faced an ‘‘uncertain and difficult time’’.

Unitec describes itself as New Zealand’s largest institute of technology, with more than 20,000 students. Last year, it reported a deficit of $31m. Projections for this year and next year indicated a $46m hole in its budget.

The loan would give the stability needed ‘‘to get through this immediate period’’, Hipkins said. ‘‘Students can be assured that they can complete their courses and future students should have the confidence to enrol.’’

Last month, Unitec council was dissolved and Murray Strong appointed as commissioner to address financial difficulties.

Similar steps may now be taken at Wellington’s Whitireia and WelTec. The institutes, which operate under a joint council, received a $15m grant in yesterday’s announcement.

Hipkins also asked the Tertiary Education Commission to open consultation on a proposed dissolution of the council and appointment of a commissioner.

He said Unitec and Whitireia had unique issues but were not alone in facing falling student numbers. Unitec had a drop of 658 full-time equivalent students last year. Across the country, there were about 5000 fewer full-time students. However, Unitec had an uptick in enrolments this year, reporting a 5 per cent rise in domestic enrolments for this year.

Unitec’s interim chief executive Merran Davis said this reflected a shift to more part-time study and cautioned part-time students did not bring in the same revenue as full-time students.