The Otago Polytechnic is increasing tuition fees for 2012 by
4 % - the maximum allowed - for the second year in a row,
while the students' association has warned this will lead to
a drop in enrolments.
The polytechnic council approved the increase at its meeting
in Cromwell yesterday after a discussion about the unfairness
of Government funding cuts for the coming year.
The Government inflation adjustment is set at 2% for degree
courses only in the coming year, rather than for all courses.
Degree courses make up about half of the courses offered at
the polytechnic, so that left a shortfall in funding, Otago
Polytechnic chief executive Phil Ker said.
Inflation was forecast at 3% for 2012, while the Government
inflation adjustment was set at 2%.
Other costs were rising. The institute's insurance premium
had also doubled because of the Christchurch earthquakes,
adding a further $140,000 to find, he said.
As well, from July 2012, polytechnics had to fund the
employer contribution for KiwiSaver.
Polytechnic chief operating officer Philip Cullen said it was
always a challenge for any tertiary institution to balance
financial need with the impact on students.
"My perspective is we regrettably have no choice," he said
about the proposed increase.
In a submission from the Otago Polytechnic Students'
Association on the fees, association president Michelle Fidow
and vice-president Rebecca Hohaia said it was unfair students
were bearing the brunt of Government under-funding for
tertiary education institutes.
"Students are essentially a soft target - if you want or need
to study you have no choice other than to pay increased
fees," they said.
The polytechnic had increased fees by the maximum amount
allowable of 4% for the 2011 year and the association
recommended no increase in fees for the coming year to "place
importance on the future of New Zealand by allowing our
graduates to live with a lower amount of debt . . ."
A sustained raising of tuition fees must eventually result in
fewer enrolments, the association's submission said.
Council chairwoman Kathy Grant said she had sympathy with the
views expressed by the student association, but the
polytechnic had little option but to increase fees.
lynda.van.kempen@odt.co.nz
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