The polytechnic sector lost millions of dollars amid falling student enrolments last year, annual reports show.

In addition, mergers have long been seen as the road to stability in the polytechnic sector.

The president of the Tertiary Education Union Sandra Grey said the polytechnic sector was being run down.

So the polytechnic sector, the university sector, they're all out separately advertising and actively trying to recruit students.

Entire polytechnic sector at risk Mr Hipkins warned that more polytechnics and institutes of technology were also at risk.

The polytechnic sector had suffered from falling enrolments in recent years and some institutes required multi-million-dollar government loans and bailouts.

However, he said he would defer a decision on the polytechnic 's future until the completion of work on the wider polytechnic sector.

A plan to avert the collapse of the polytechnic sector in New Zealand has been delivered to the Minister of Education, Chris Hipkins.

It wants the polytechnic sector to set up a national network offering science technician training, focusing on the Level 6 Diploma in Applied Science qualification.

Mr Flavell said deficits had become the reality for the vast majority of providers in the Institutes of Technology and Polytechnic sector.