Students say the Government needs to accompany funding increases for science and engineering enrolments with limits on the fees for these subjects.
The government subsidy for engineering enrolments has increased 10.8 percent over the last three Budgets, while the science subsidy has increased 12.5 percent. But universities are not using that money to lower the fees they charge.
The Union of Students Associations says the Government needs to cap or reduce fees in the target areas if it wants to boost enrolments.
Universities say they are using the increases to improve facilities.
Tertiary Education Minister Steven Joyce said he is rebalancing the funding system so institutions do not concentrate on subjects that are cheap to teach.