Polytechs set to compete for international students in bid to survive post-Te Pūkenga

Monday, 8 September 2025

Polytechs are being urged to enrol more numbers of international students to ensure they are financially viable once they stand alone following the disestablisment of Te Pūkenga.

The future success of polytechnics in the South Island will hinge on their ability to attract international students — with one being told it needs to increase numbers by more than half to help it remain financially viable.

However, education officials have warned that such growth targets are “overly optimistic”.

The plans for all polytechs, carried out by four consultancies in 2024 — which underpin their future viability following the disestablishment of Te Pūkenga at the end of this year — were publicly released by the tertiary education provider on September 1 following an investigation by the Ombudsman.

Southern Institute of Technology chief executive Daryl Haggerty says efforts are already in place to meet the financial plans laid out last year.

A financial improvement plan developed by consultants for Te Pūkenga for the Southern Institute of Technology (SIT) forecasts an increase in international enrolments of 57% in 2025 and 22% in 2026.

SIT, based in Invercargill, has lowered tuition fees, offered scholarships for selected courses, engaged with several high commissioners and international partners, and launched a 2026 international prospectus to fulfil the plan, said operations manager Daryl Haggerty.

Nelson-Marlborough Institute of Technology’s (NMIT) plan includes a 10% increase in international students, while Ara Institute of Canterbury is planning for a 15% increase.

Mayors on the West Coast are among a working group who want to meet with Minister of Vocational Education Penny Simmonds, pictured, to ensure vocational training remains in the region.

Otago Polytechnic’s plan forecasts annual growth in international student enrolments of 22% “through increasing capacity and capability of the international recruitment team”.

However, executive director Megan Pōtiki suggested the polytech had found a different way to achieve financial stability without having to enrol so many international students this year.

Briefings to the Minister for Vocational Education Penny Simmonds from the Tertiary Education Commission (TEC), released to The Press under the Official Information Act, consistently raise concerns about forecasts in the plans as “overly optimistic”.

A briefing from October 2024 from TEC chief executive Tim Fowler to Simmonds said the “base case forecasts are heavily reliant on what we consider are overly optimistic enrolment growth forecasts”.

Ara will be a standalone polytech from January 1 following the disestablishment of tertiary education provider Te Pūkenga.

Fowler said the forecasts reflected a “grow to viability” approach, which is “inconsistent with historical trends and is unlikely to be achieved across every [polytech].”

Key targets for financial viability in the consultants’ plans include achieving a net surplus of 2%, having staffing costs of less than 60% of operating revenue, and having an academic student to staff ratio of 19 to 1.

The plans did not forecast growth in domestic enrolments at Ara, NMIT and Otago Polytech, but SIT was planning for an increase of 5% in 2025 followed by annual rises of 1%.

Other key elements included programme and staffing cuts, asset and property sales, hiring freezes and strict cost controls.

Ara, SIT and NMIT were given the green light to stand alone from the start of 2026 by Simmonds in July.

Tai Poutini Polytech* on the West Coast was to remain with Te Pūkenga as it works towards financial viability until a Government decision on its future in the first half of 2026.

Otago Polytech are to be part of a federation while they work towards financial viability.

Ara Institute of Canterbury executive director Darren Mitchell says programme offerings and facilities in South Canterbury are being reviewed.

The review and plan for Tai Poutini Polytech (TPP) was heavily redacted, but said TPP would need additional funding of $4 million to $6m per year to remain viable.

“Financial forecasts and its current balance sheet position indicate TPP will never be viable as a standalone entity.”

A group including West Coast mayors and MP Maureen Pugh are working on a proposal to retain vocational education provision on the coast.

Grey mayor Tania Gibson said they have requested a meeting with Simmonds and are awaiting a reply.

The plan for Ara throws doubt over the future of the Timaru campus, noting there is “surplus land and buildings that could be deemed not fit for purpose”.

“Further consideration needs to be given to the sale of these assets and required campus delivery, ensuring an alignment with Ara’s intended future delivery in South Canterbury.”

Nelson Marlborough Institute of Technology executive director Olivia Hall says some programmes have been saved because of high levels of student enrolment.

Ara executive director Darren Mitchell said Ara was reviewing programme offerings and facilities in South Canterbury “to ensure they continue to meet regional needs in a sustainable and effective way”.

NMIT chief executive Olivia Hall said proposed closures of some courses identified in the improvement plan did not need to go ahead.

“Strong enrolments and changes within programme areas increased the viability of a number of programmes, allowing fewer closures than originally proposed.”

Green Party education spokesperson Lawrence Xu-Nan says the plans rely on reversing a long-term trend of declining student numbers.

She said NMIT planned for 10% annual growth in international enrolments but achieved a 23% increase in 2025 due to “strong marketing and student support, and recovery of international education post-Covid”.

Simmonds said she was confident the new “regionally governed” polytechnics would be able to deliver financially sustainable plans.

“It is true that enrolments — both domestic and international — are a key part of the picture, but they are not the only lever. Polytechnics will have the ability to tailor their delivery models, including blended and shared services, to meet regional demand.”

Simmonds said her office was in contact with the West Coast working group, and she expected to meet with them “once their proposal is ready for formal discussion”.

“The Government is committed to ensuring that West Coast learners and employers continue to have access to high-quality vocational education.”

Legislation to establish a new vocational education system passed its first reading in Parliament, followed by select committee hearings. A second reading of the bill is expected before October.

Labour’s vocational education spokesperson Shanan Halbert said he had asked the minister for the business case behind the reforms but she had not provided it.

“She hasn’t provided us with the information that gives us confidence that polytechs can run independently and, as a result, we will see more cuts to staff, to courses and campuses across the country.”

He said further cuts would increase inequitable access to education and lead to further privatisation of the sector.

Green Party education spokesperson Lawrence Xu-Nan said the plans relied on reversing years of declining student numbers, and the only ‘plan B’ was to make more cuts.

*CORRECTION: An earlier version of this story incorrectly said Tai Poutini would be part of a federation following the disestablishment of Te Pūkenga. Tai Poutini will remain part of Te Pūkenga for now. (Amended 12.47pm, September 8, 2025)