Tertiary Education Minister Steven Joyce announced yesterday the Government would fund an extra 2895 university places for New Zealand students next year and in 2012.
Because most of those who enrol next year will still be studying in 2012, the decision will mean about an extra 1500-1600 students across New Zealand's eight universities.
In its May Budget, the Government announced it would fund 675 extra places for domestic university students next year.
The 2895 places were on top of the May figure, Mr Joyce said.
The number of additional places each university will get will not be finalised until early next month.
But if Otago receives an equal share of the extra places, its domestic roll could increase by about 280 students and its government funding could be boosted by about $5.4 million over two years.
Vice-chancellor Prof Sir David Skegg said yesterday the university was looking forward to discussing the allocation of extra places it might receive.
"[We] welcome today's announcement and we are pleased the Government has made this decision."
However, despite additional places being available, Prof Skegg said enrolment caps introduced partway through this year for a wide range of undergraduate programmes and the Summer School would remain in place next year and beyond.
The extra 2895 university places will cost the government $55 million over two years, money Mr Joyce said had been reallocated from funding changes within the industry training sector.
The money had been reinvested in the university sector to meet the strong demand for full-time study places due to jobs being more difficult to get because of the current economic environment and because of a "demographic blip" in the number of school leavers.
None of the extra student places announced yesterday will go to polytechnics, a decision which Otago Polytechnic chief executive Phil Ker said yesterday was "extremely disappointing".
Like universities, polytechnics were facing roll-growth pressure, particularly from students wanting to enrol in multi-year degree programmes, he said.
"This was an opportunity for the Government to address exactly the same issue in the polytechnic sector as it says the university sector is facing... Unfortunately, it has chosen not to do that."
Last year, Otago Polytechnic was the top-performing tertiary institution in the country for students completing degrees.
Its completion rate of 91% was 21% higher than the polytechnic sector median and 14% higher than the University of Otago, which was best-performing university in that category.
"We are a top performer in degrees - exactly the [study] area the Government wants to encourage - and we desperately want extra places. Yet we have been given none. I feel despondent that this polytechnic will ever see its place in the sun," Mr Ker said.
