The merger of the Bay's two largest tertiary institutions has come under scrutiny from Labour's David Cunliffe (pictured), who says the country's polytechnics are under funding pressure.
The Bay of Plenty Times reported on June 17 that the Bay of Plenty's two largest tertiary institutes, Bay of Plenty Polytechnic and Waiariki Institute of Technology, were looking to merge by the beginning of next year.
Mr Cunliffe, Labour's tertiary education spokesman, said the institutes were the latest victims of National's "chronic underfunding of regional polytechs" and that they were being "forced to merge".
He said he hoped the merger was happening for the right reasons, to serve the Bay's students better, and not because of funding cuts to polytechnics throughout the country.
"Their funding has been cut and has been under pressure for some time.
"Labour will be watching closely to make sure it doesn't lead to less services."
Tertiary education, skills and employment Minister Steven Joyce said Mr Cunliffe had "completely got the wrong end of the stick".
He said Bay of Plenty Polytechnic and Waiariki had decided themselves to explore a merger to be better able to serve the people of the Bay and the proposal had a lot of support across the region.
"The merger plan has nothing to do with funding and it wasn't sought by me as minister. Both current organisations are profitable. At this stage this is just a proposal, but I look forward to receiving the business case. I will be assessing it based on providing the best possible service for students."
Dr Neil Barns, the Government-appointed deputy council chair of both institutions, said both councils agreed combining the institutions was the best path to achieving educational outcomes to support a stronger future regional economy.
The new institution could be established as early as January.