Dunedin student leaders are nervous a move to end compulsory membership of their associations will force them to downsize or even close.
Last week, Act MP Sir Roger Douglas' private members' Bill was pulled from a ballot in Parliament.
If it is passed, it would result in membership of student associations becoming voluntary, rather than compulsory.
That would spell disaster for Dunedin's two associations, the Otago University Students Association (OUSA) and the Otago Polytechnic Students Association (OPSA), which offer a variety of advocacy, recreational and social services.
If the Bill passed, "OPSA won't be here", acting president Meegan Cloughley said, while OUSA president Edwin Darlow said the voluntary membership would put valuable services in jeopardy.
OPSA had an operational budget of about $440,000 last year and raised most of that - around $335,000 - from membership fees.
At present, membership fees were able to be added to student loans, and Ms Cloughley said she would find it difficult to ask students for fees in cash if the student loan option was removed.
"Students struggle financially without us requesting more money from them. Aren't we doing more damage to students if we go asking for more money?"
OUSA is a major organisation which, among other functions, owns and runs the University Bookshop, runs a media company, has a part share in the University Union building and, with OPSA, has a part share in the Unipol gymnasium.
Its operating and capital budget last year was $2.3 million, of which almost all was covered by membership fees.
While OUSA would survive voluntary membership, a "significant proportion" of the budget would be lost and it would have to consider selling some assets, Mr Darlow said.
When Australia introduced voluntary student membership support, services were "decimated" and universities had to "pick up the slack" when student associations withdrew from offering services, he said.
In this country, a nationwide referendum held in 1998 resulted in 79% of students voting to remain with a universal membership model.
Young Nats president Alex Mitchell believed the issue was about "freedom of association".
"We don't see why students are the only group in society who are forced to join a union when they don't have any say on how the money is spent.
"Student union representatives are elected by a tiny body and every single member of the body has to pay a levy every year," he said.
