Otago Institute of Design

The government has withdrawn an offer of capital funding for Otago Polytechnic's share in a building to house the Otago Institute of Design, after the polytechnic failed to accept a key condition of the offer.

The previous government agreed to a suspensory loan of up to $12.5 million, subject to Otago Polytechnic agreeing to certain terms and conditions.

"Otago Polytechnic did not accept a key condition of the funding offer made in 2008 by the previous government," says Tertiary Education Minister Anne Tolley.

"The polytechnic requested that this condition be varied, and Cabinet considered this request.

"However, after careful consideration, the government has decided that it is not willing to vary this condition and therefore the offer has been withdrawn.

"These are tough economic times and they call for tough decisions. We have a limited pool of funding in all sectors of the economy and all proposals have to stack up in terms of the current economic climate."