30 Mar 2012

Polytechnics to take over failed IT trainer

7:47 pm on 30 March 2012

Students at IT training business, Computer Power Institute, say they are relieved that two polytechnics are working to take over the failed company.

Whitireia Community Polytechnic and the Wellington Institute of Technology are finalising a deal to take over Computer Power's courses and its 750 students at campuses in Auckland, Wellington and Christchurch.

Computer Power students say the news is a relief although they are unhappy they have had to endure two weeks of uncertainty before learning of the deal.

They say government departments clearly knew the institute was in financial trouble as early as last year and could have done more about it.

Liquidators say Computer Power has substantial debts, including more than $8 million owed to the Inland Revenue Department.

Meanwhile, the Association of Private Education Providers is keeping a close eye on the situation.

It says private sector funding is capped at $150 million a year and Computer Power's allocation of $2.5 million should be redistributed to other private providers.