Minister defends Pacific Polytech funding cut

Pacific Polytech should not be significantly affected by its Government grant being reduced from $7 million last year to $500,000 this year because the institution receives funding from two Government sources.

Finance Minister Esrom Immanuel revealed this today while explaining the sharp reduction in this year's Budget Estimates under Head 21, Programme 8, Higher Education Institutions.

"The allocation is done independently by the Higher Education Commission," Mr Immanuel said.

"They have a methodology that they normally use, and that's what was provided last year and this year as well, but that is just the Government grant assistance," he said.

He said the operating grant was only one component of the institution's funding.

"All those institutions, TVET and including the Fiji National University (FNU), they also get the scholarship from Tertiary Scholarships and Loans Service (TSLS) for every student.

"So they are getting two income directly from the government to assist them operate, and also the scholarship is provided by TSLS," Mr Immanuel said.

He said Pacific Polytech received funding through two streams: a direct operating grant from the Higher Education Commission and scholarship payments from the TSLS for each sponsored student.

"I don't think that should not be a problem since there are two sources of income," he said.

Under the new Budget, FNU received $36.9 million, the University of the South Pacific received $27 million, while Pacific Polytech and Pasifika Communities University each received $500,000.

Mr Immanuel said the real issue affecting higher education institutions was student enrolment numbers rather than the grant amount, noting that enrolments had doubled in the first semester of the year.

The $7 million grant previously attracted controversy after a parliamentary report, which was later withdrawn, recommended a Commission of Inquiry into its allocation.