Up to 700 new places at polytechnics and technology institutes

An $8 million funding boost will help high-performing polytechnics and institutes of technology collectively provide up to 700 new places to help cope with forecast enrolment growth next year, Tertiary Education Minister Anne Tolley announced today.

"This one-off funding will be available to deal with expected increases in student enrolments in 2010 resulting from the impact of the economic downturn on youth employment opportunities," Mrs Tolley says.

"This extra $8 million was unspent funding previously allocated to the sector and returned to the Tertiary Education Commission. I expect it to support 600-700 new places, based on current average funding rates.

"I have asked the TEC to work with high-performing institutions to decide how best to invest the money," Mrs Tolley says.

"This will help the sector manage expected growth and help more young people get into meaningful education and training," Mrs Tolley says. "At this time of relatively limited opportunities, it is more important than ever that the courses offered deliver maximum benefit to students."

The TEC approves the overall funding for individual polytechnics through plans developed by each institution. These plans generally run for three years, but they are updated each year. Institutions are expected to manage their enrolments to remain within this overall funding allocation.

Under the capped funding system introduced in 2008, any funding response to enrolment pressure is managed through each Budget process. The current policy limits unfunded students to 3 per cent of an institution's total funding, to manage student loans and allowances costs.

"The TEC will allocate funding to those polytechnics that are facing enrolment demand from young people and that have additional enrolments this year in courses at Level 4 and above on the National Qualifications Framework. Decisions on successful institutions will be made later this year," Mrs Tolley says.