A spokeswoman from Tertiary Education Minister Steven Joyce's office confirmed last week the summer research scholarship scheme funded over the 2009-10 summer would not be repeated.
Under the scheme, 400 Otago students and 1600 nationally received 10 weeks' work and a wage of $5000 which was funded 50-50 by universities and the Government.
Although Otago was "obviously disappointed", the scheme would not be offered again, [staff] understand the Government's budget constraints, research and enterprise deputy vice-chancellor Prof Harlene Hayne said.
The matching government funding had made it possible for Otago to conduct a large number of outstanding research projects over the summer, she said.
However, some research jobs would still be available, as Otago would revert to its previous system of offering selected high-calibre students summer bursaries.