The polytechnic that offered controversial tutoring in twilight golf and personal grooming is in financial strife as a result of the Government's crackdown on dubious courses.
Gisborne's Tairawhiti Polytechnic yesterday released its 2004 annual report which showed it finished the year $3.37 million in deficit.
In 2003 the polytechnic had
a profit of $9.9 million and it had been forecasting a profit of $4.2 million for last year.
The polytechnic was one the tertiary institutions caught in the Government's crackdown last year on community education courses after spending on the courses ballooned from $16 million in 2000 to about $115 million in 2004.
Tairawhiti's community enrolments soared from fewer than 3000 in 2002 to 47,410 a year later - a cash leap from $2 million to $21 million.
National education spokesman Bill English said the polytechnic now had severe financial problems because of poor Government policy and opportunism on the part of Tairawhiti. "This organisation ruthlessly exploited community education funding and now [it is] paying for it."
Tairawhiti's chief executive, Mark Chapman, says the change in financial fortune was caused by "disappointingly" low enrolments in adult and community education. The low enrolments meant the polytechnic received $16 million less in Government funding than it did in 2003.
The chairman of the polytechnic's council, Pehimana Brown, said in the report that last year had been a "very difficult year".
"The 2004 year demands have come at an enormous cost to Tairawhiti Polytechnic."
Mr Brown said it was a year of close inspection from several different bodies and the ongoing reviews and audits were endless.
"Our ability to move forward according to our strategies and action plans was severely restricted by micro-management that we were subjected to. That is why we are reporting a very unsatisfactory end-of-year report."
Mr Brown said there was still a "cloud of uncertainty" hanging over the institution about whether it would come under further scrutiny.
However, Mr Chapman said that despite the operating deficit, the polytechnic was in a still in a "very robust" position.
