Falling student numbers and restructuring bite into NorthTec's finances

NorthTec suffered a $3m deficit due to student number that plummeted by almost 200 and the restructure. Photo/Michael Cunningham

Dwindling domestic student numbers and controversial restructuring that saw programmes shelved have been blamed for a $3 million budget deficit at NorthTec.

In its annual report for last year, NorthTec said the impact of its operating loss had required the polytechnic to withdraw programmes that have not received sufficient student numbers.

Last year, domestic student numbers were down by 197 — from 3941 in 2016 to 3744. The tertiary provider underwent major restructuring after financial challenges, and five programmes ceased in part or in their entirety.

The campuses at Kerikeri and Rawene are closed, or "rested" this year as they failed to meet enrolment targets.

In its annual report, NorthTec said its performance for a number of years across financial indicators had been in slow but steady decline. Costs have been higher and financial results have shown significant decline.

Chief executive Mark Ewen said the budget deficit was anticipated and, in fact, it was the clear indication that NorthTec would be operating at a loss that contributed in part to the recent restructuring.

"Enrolments are a little down on last year; this appears to be as a result of fewer school leavers and higher levels of employment.

"NorthTec is working with secondary schools, industry and iwi/hapu in our district to increase the numbers of secondary school leavers, industry training and lifelong learners who enrol in training and to progress these learners to higher level qualifications."

Ewen said many of the challenges experienced by NorthTec have affected most polytechs nationally.

NorthTec director of development, Phil Alexander-Crawford, said the ideal would be that the tertiary institution provided quality education to as many Northlanders as possible, then have some international students as part of the learning experience.

"North Tec operates under a volume based funding model as do other tertiary providers which means that each programme has a point at which it becomes viable to run dependant on enrolments and TEC funding," he said.