Radio New Zealand - Te Reo Irirangi o Aotearoa

Union unhappy with record polytech profits

Updated at 5:44 pm on 26 September 2011

The Tertiary Education Union says profits at polytechnics are too high and need to be reined in.

Overall, the polytechnic sector recorded a $90 million surplus last year and $70 million the year before.

Radio New Zealand's education correspondent says this is equivalent to about 8.3% and 6.9% of their income respectively.

The union says some institutions are making much more than the recommended range of 3% to 5% and the money should be spent on providing good education.

Polytechnics say they are seeking higher surpluses as a buffer from financial shocks.

The Tertiary Education Comission says it has no problem with any polytechnic's surplus and says 3% to 5% is the minimum expected.

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