Polytech academic leader of fashion Margo Barton says she is also concerned about what a centralised structure of running the institution might mean for the show.
Dr Barton was reacting to a government proposal to establish a national governing council to manage all 16 polytechs in New Zealand.
She said the links between the event and the polytech were many, and went right back to its beginning.
The awards show had its genesis in Mittelmoda, a similar Italian show Dr Barton attended 20 years ago.
Dr Barton was then a junior lecturer at the polytechnic, which supported the trip financially.
After going to the Italian show she came back to Dunedin with the idea of having something similar here.
It is now the major event of the iD Dunedin Fashion Week.
Polytech students worked as volunteers for the event, something that led to a "meteoric" development in their designing.
"I made it compulsory after that.
"All senior students work backstage in the emerging designer awards.
"It's a really good learning platform for all the students.
"That sort of experiential learning, real life learning, is brilliant for them."
The polytechnic later came on board as a sponsor of the event.
Students from communication design did photography, and this year, students from the polytech's business school studying event management-related courses would also be volunteering.
Dr Barton said the polytechnic had a good attitude in terms of innovation, and was "agile".
Staff were always encouraged to have ideas and follow them through.
"That is the attitude that has been here right from the start.
"The autonomy we've got, I think, is important, but the biggest thing is the attitude that empowers the learners and the staff to innovate."
"I'm worried this ability will be lost because of a lot of red tape."
Dr Barton said she was also concerned about the future of the show under a new system.
The reason the emerging designer awards got "amazing applicants" from around the world was because the polytech was a member of the International Foundation of Fashion Technology Institutes (IFFTI).
Entry involved a rigorous membership application.
Gaining admittance meant a stamp of approval showing an organisation ran at a high standard, meaning others would be more likely to send their students to the awards.
"Seriously, there's competitions coming up every day for students."
"We are so lucky the students choose us."
"I worry how we will be perceived in organisations like IFFTI if we become one big thing."
