Witt's financial cloud darkens

The cloud hanging over Witt's future financial viability darkened again yesterday.

After posting its first surplus in seven years, the Taranaki Polytechnic was told it must carry on the same trend until the end of 2011 despite facing massive funding cuts.

At the same time, the body which controls polytechs has reported to the government it has serious doubts about the institution's financial viability.

To meet the conditions of its $11.9 million debt write-off, Witt has been told it must make a 3 per cent surplus in 2011 – the same year its budget will be slashed by a minimum of $2.2 million.

If it fails to achieve the financial target it could have the debt slapped back on its books.

Education Minister Anne Tolley has already put $5 million back on the Witt balance sheets, in August, to be paid back between 2020 and 2025.

The news about the funding requirements came hand-in-hand with a report by the Tertiary Education Commission which doubted Witt's ability to stay viable following the 2011 "revenue shocks".

Although many members felt they were backed into a corner, Witt's council has responded by creating a "ginger group" to find other ways of raising revenue as it could no longer rely solely on money from its government allocation.

Council chairwoman Mary Bourke put the challenge to the group to find a way to make Witt "sexier".

"I acknowledge the hard work that has been done behind the scenes to save the dollars that we have, but it's not hard work that makes the institution look sexy, to make people come and work here and study here," she said.

However, it seems no matter which way Witt turns it is blocked by bureaucracy and the bevy of rules governing tertiary organisations and student fees.

Almost without exception any ideas brought up by council members at the meeting had to be shut back down.

For example, restaurateur Craig Macfarlane suggested buying commercial property, running a conference centre or buying a farm (like the rugby union) to generate extra revenue.

"That's the kind of model Witt has to look at. The TEC are forcing our hand, they're minimising funding all the time so we have to do something else instead."

But, just like when the polytech was offered funding from the TSB Trust (which is still being worked on), each suggestion posed more barriers than bridges.

Witt chief executive Richard Handley said the main problem was, again, working around the rule which says subsidised students cannot be on the same course as fully-paid pupils and cannot apply for student loans or allowances.

The only way around the rules would be to create an entirely new section of the polytech which ran full cost-recovery courses, such as those at the NZ Institute of Highway Technology, Mr Handley said.

The overwhelming feeling among the group was to turn to the wider community for support and to use their entrepreneurial skills to solve the problem.

The ideas committee, or ginger group, will now be put together by Ms Bourke of council members, business leaders and those from the wider community.

- © Fairfax NZ News