Advice to the vocational education minister released under the Official Information Act showed the decision to not allow Otago Polytechnic to stand alone was made despite it being assessed as "financially viable" along with six other institutions.
The advisers from a special vocational education working group gave Ms Simmonds the option of all seven viable institutions - including SIT and Otago Polytechnic standing alone - but recommended the pair be linked together as part of three regional groupings.
Otago Polytechnic and SIT should also be grouped with the Open Polytechnic.
Ms Simmonds went on to ignore that advice and linked Otago Polytechnic with Palmerston North-based Universal College of Learning (UCOL) and Lower Hutt-based Open Polytechnic; and approved SIT, which she was formerly the chief executive of for 20 years, standing alone.
Green MP Francisco Hernandez said the situation was a mess that benefited no-one in vocational education.
"Advice shows that Otago Polytech was considered ‘viable’, even prior to the extensive and disruptive cuts that Otago was forced to undertake thanks to the lack of support."
Otago Polytechnic executive director Dr Megan Pōtiki saw the advisory group’s recommendations this week.
"This only adds to our confusion about the decision announced last Monday.
"In none of the four options shortlisted by the advisory group was Otago Polytechnic listed as a ‘non-viable’ entity.
"We are deeply concerned that Otago Polytechnic has been unfairly singled out, in a decision which appears to have favoured some organisations for reasons other than financial viability."
Dr Pōtiki said she was pleased the option of merging Otago Polytechnic and SIT was not adopted.
"Both organisations have long and proud histories of providing quality tertiary education in our respective regions, but we have clear differences in our programme strengths and styles of operations.
Dr Pōtiki said Otago Polytechnic should be in surplus by the end of the year.
"We are again asking the minister to release the criteria she used for making these decisions, and to clearly communicate why Otago Polytechnic was singled out to be moved out of the ‘viable’ category and included as part of a federation."
Ms Simmonds said the debt and cash reserves of both SIT and Otago Polytechnic when they went into Te Pūkenga contributed to the decision.
Otago Polytechnic had $16.1 million debt and $1.3 million in cash reserves, SIT had no debt and $40.1 million in cash reserves, of which $15.6 million were ring-fenced.
"The paper you are referring to is an early piece of advice and there were several updates made. Otago Polytechnic is one of the 10 institutions being re-established and will stand alone within the new federation of polytechnics.
"It was not grouped with SIT or the Open Polytechnic in a combined entity because the final decision adopted the proposed federation model rather than other options proposed during consultation."
