Tertiary Education Minister Steven Joyce says he would like to include millions more dollars in a competitive tender for tertiary education subsidies that has alarmed polytechnic leaders.
Expressions of interest in tendering for $40 million in government subsidies that currently go to polytechnics and wananga closed on Friday.
Polytechnics are worried they will now lose funding to private tertiary institutions.
But Mr Joyce says he would like to go further.
Each year the government spends $115 million on level one and two courses and the $40 million is part of that.
Mr Joyce says he would like to eventually open more of that funding to competitive tender.
He says a tender will help the government to get the best price and quality.