Aoraki Polytechnic is exploring a merger with Christchurch Polytechnic and Institute of Technology (CPIT) as it faces another multi-million dollar deficit this year.
The idea of merging the two institutions, which has its main campus in Timaru, and has campuses in Oamaru and Dunedin, has encountered difficulties in recent years, with falling student numbers and large deficits.
In a statement released to media yesterday, it said the new entity would be a ''Canterbury-wide polytechnic'', making no mention of its Otago campuses.
Asked whether the Otago campuses would be part of the new entity, the polytechnic's chairwoman Janie Annear and chief executive Alex Cabrera emailed a joint response saying: ''These are all questions that can't be answered for some time.
''First we have to investigate and develop the project to see what shape and form a new entity might take and whether it is viable or not.''
''It will be business as usual for our staff and students next year,'' they said.
This year there were 179 equivalent full-time equivalent students enrolled at its Dunedin campus, compared to 189 last year.
Ms Annear said the investigation into a merger came after it had already worked closely with CPIT over the past 18 months, including by sharing administrative resources.
''We will develop this project over the next six months and will assess whether being part of a new entity could create more opportunities for our students and our economy, and deliver the financial sustainability we need.''
''We are in the difficult position of wanting to be able to stand alone, but we cannot keep eroding our reserves without the certainty that we can become sustainable in the near future.''
The polytechnic had not broken even on its core business - delivery of courses from its campuses - for ''many years''. It ran a $3 million deficit last year and was forecasting a similar result this year.
