Radio New Zealand - Te Reo Irirangi o Aotearoa

Canterbury University forecasts big deficit

Updated at 9:56 pm on 1 December 2011

Spiralling insurance costs and a decline in student enrolments has led the University of Canterbury to forecast a budget deficit of more than $17 million next year.

Student numbers have dropped significantly since February's earthquake and the university is estimating tuition fees will be down about $5 million.

Insurance costs have risen by almost $4 million to $6.2 million.

Vice Chancellor Rod Carr says the overall impact on the budget won't be known until March, as there are still more students to confirm their attendance for 2012.

Dr Carr says, normally, the university would have to operate at a surplus of 3% but earlier this year it asked the Minister of Tertiary Education to support the institution as it struggled with various post-quake challenges.

He says that indicated the university would take five years to break even and seven before it was able to reach the 3% surplus that would allow it to fund its own full portfolio of capital investments and equipment purchases.

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