2 November 2022
SIT Zero Fees scheme a workforce pipeline for Southland
Losing the Southern Institute of Technology’s Zero Fees scheme could cost Southland millions while cutting off a valuable workforce pipeline, a report has found.
The SIT’s Zero Fees scheme contributes about $157.1 million to the region’s economy annually, while 40% of graduates end up working in Southland, the independently produced economic impact assessment says.
The tertiary provider is waiting to hear about the future of its fees free programme after it was joined into Te Pūkenga – the national network of institutes of technologies and polytechnics.
While there was no guarantee the report would inform Te Pūkenga’s decision, acting SIT chief executive Daryl Haggerty said the institute wanted to establish the potential impact of a change.
The Tertiary Education Commission manages a national Fees Free scheme aimed at first-time learners, but the SIT Zero Fees scheme, introduced in 2001, has wider eligibility criteria and the report found more than half of the students it attracted already held tertiary qualifications and were older than 30.
Of the roughly 10,500 students enroled with SIT’s Southland campuses – 71% work while studying, with 43% of those working full time.
And the older the student, the more likely they are to take on paid employment during their studies, the report says.
Once they graduate, students go on to work in areas of high skill shortages like health and social services and education – the biggest employers of SIT graduates are the former Southern District Health Board and SIT itself.
Southland Chamber of Commerce chief executive officer Sheree Carey said it had been a “real coup” for SIT to secure the Zero Fees scheme until the end of 2023, and she hoped it would be able to hold onto the programme for longer.
Southland was a hard region to attract workers to, she said and the 40% of graduates who stayed represented a large portion of the workforce.
“We need those graduates, so long may it continue.”
SIT commissioned the economic impact report, which was produced by Business and Economic Research Limited, so regional groups can better plan for potential implications should the Zero Fees scheme end.
The report found SIT’s Southland campuses had contributed $508.5 million in GDP to Southland’s economy during the past five years.
SIT’s spend on employment and its operations equates to around $65.4 million in direct, indirect and induced spend, while student spending totals $91.7 million.
Acting chief executive Daryl Haggerty said the report confirmed how important the institute was to Southland.
Almost everyone in our community has a connection with SIT, from being a past or present student, staff member, business, or community group,” he said.
Source: stuff.co.nz – 1 November 2022