More than 1000 international students were prevented from beginning their studies at the Government's mega-polytechnic Te Pūkenga due to visa processing delays.
Problems affecting the intake of students in the first semester have also left the troubled institution losing out on tens of millions it could have collected in fees.
Figures obtained by 1News reveal that while international student enrolments were up by 71% this year, with just over 2070 applications, slow visa processing meant 1400 learners were unable to start their courses in semester one.
Tertiary Education Minister Penny Simmonds said she was disappointed in the delays.
Simmonds has been working to unwind the previous government's move to establish Te Pūkenga, which involved amalgamating 16 institutions into just one.
"Te Pūkenga have estimated that that cost them about $30 million for the year and that's disappointing because they're under financial pressure," she said.
Penny Simmonds (Source: 1News)
"What we're doing is trying to put the sector into a situation where it's sustainable going forward. Obviously, a $189 million annual deficit is not sustainable."
Immigration Minister Erica Stanford said she told officials of expectations that semester two would go more smoothly for students and Te Pūkenga's balance sheet.
"I said to immigration officials, my expectation is that we will not see this again," she said.
"I've told immigration with the peak that comes now – the second semester – I expect that we are processing those visas in a timely way. And I know that they have moved resources into the processing team for students."
Cabinet close to decision on new model for polytechs
The financial blow comes at a critical time for Te Pūkenga, which was formed in 2019 and intended to address the financial struggles of the institutions that preceded it.
However, the situation has worsened since the merger.
While the Government is taking steps to address the visa processing issue, it's also working on a broader solution for the troubled tertiary education sector.
Prime Minister Christopher Luxon told 1News that the Cabinet is in the final stages of signing off on public consultation for a new model that could replace Te Pūkenga.
MP Penny Simmonds says merging the country's polytechnics wasn't the answer. (Source: 1News)
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Taranaki Chamber of Commerce chief executive Arun Chaudhari said while Taranaki employers will welcome a more regional focus, international students in particular, did not like uncertainty.
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Govt was warned polytech merger wouldn't work - National
MP Penny Simmonds says the sector had warned merging the country's polytechnics to form Te Pūkenga wasn't going to fix the sector's deficits.
July 12, 2022
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Tertiary Education Minister Penny Simmonds says reverting to the previous funding system will improve financial viability.
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However, Simmonds was unable to say whether the new model would be enough to stop the institutions from continuing to bleed out cash.
When asked about the financial outlook, she responded: "Look it's too early yet, they're doing that work at the moment and I expect to see that over the coming months."
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