Aspire2 is closing its Wellington campus which it acquired through its merger with Queens Academic Group, as the private education sector frets about the impact of any further immigration clampdowns.

One of the country's largest private education providers, Aspire2, will close one of its campuses – axing its previous plan to double its size.

Chief executive Clare Bradley said the closure of its "start-up" campus on Cuba St in Wellington illustrated the impact that tighter immigration policies could have on the international education industry, which contributed $4.5 billion to the economy.

The campus used to have between 100 and 150 students taught by about a dozen fulltime and part-time teachers but had been indirectly impacted by a dramatic drop in the number of student visas issued to Indian students, she said.



That drop followed a decision by the previous government to tighten up English-language requirements and monitoring.



READ MORE

* Jacinda Ardern indicates big immigration cuts coming

* Labour unveils plans to stop foreign students' 'backdoor immigration' rort

* New school to cater to the rising demand for tradies in Auckland



"The bottom dropped out of the market due to the policy resets in the Indian market," Bradley said.



Aspire2 was now concerned by suggestions the new Government could halve the number of new student visas it issued, and potentially restrict the ability of foreign students to work during and after their study.

SUPPLIED Aspire2 chief executive Clare Bradley says foreign education is a "momentum" business that couldn't quickly recover from any major blow.

Prime Minister Jacinda Ardern has targeted a 20,000 to 30,000 drop in annual net migration, with the Labour Party expressing concern before the election that foreign students were rorting the student visa scheme as a "backdoor" into New Zealand.



Foreign students currently have the right to work for up to 20 hours a week during their studies, fulltime during holidays, and for between a year and four years afterwards in a job related to their field of study.

The Labour Party signalled before the election that it would stop issuing student visas for courses below a bachelor's degree that were not independently assessed by the Tertiary Education Commission (TEC) and NZQA to be of a high quality.

Government agency Education New Zealand – which helps market the country as a destination for international students – is understood to have embraced a mantra of "quality rather than quantity" in response to the new government's agenda.

GRANT MATTHEW/STUFF Education Minister Chris Hipkins said the Government was not rushing to make decisions about student visas and would consult with the education sector to find the "right balance".

Bradley said there were some small private training establishments (PTEs) that were providing low-quality education, but believed that issue was confined to a "very small number" of students and could be addressed by providing more resources to NZQA and TEC to monitor providers.

Aspire2 hoped to be consulted at an early stage by the Government in decisions that might affect the sector and was keen to ensure "low quality courses" were not mixed up with "low-level courses" which were sometimes equated to courses at NCEA level 6 and below, she said.

"'Low quality' education is people sitting in classes with terrible teaching and awful material with no real skills being imparted."

The international education industry was not a tap that could be quickly turned on again if it was turned off, she said. Rather, "consistency" of government policy was important, she said.

PTEs relied on partner businesses overseas which invested in understanding what New Zealand and its qualifications had to offer, and in promoting the country as a destination.

If they felt that effort had been wasted, they might instead direct their attention to other markets such as Canada and Australia long term. 'It is a momentum game," she said.

Bradley did not believe foreign students were putting significant pressure on the local housing market – given the type of purpose-built accommodation they tended to occupy – "or driving cars on Auckland motorways".

If New Zealand reduced students' work rights it would be "shooting itself in the back of the head", she said.

"All we are urging is caution when it comes to policy settings."

Education Minister Chris Hipkins said the Government was not rushing to make changes.

"We plan to talk to and work with the sector to achieve the right balance for the long term success of the sector and New Zealand.

"Our priority is to drive out low quality providers, who are damaging New Zealand's reputation internationally, while we are very keen to work with those – at all levels – who want to do well," he said.

Bradley said Aspire2 had between 3500 and 4000 foreign students enrolled in its classes, down from about 5000 a year ago, taught by 450 staff.

It had planned to move its Wellington campus to a facility twice the size that it has already leased on Kent Tce to achieve scale in the city.

But the company's board had decided to abandon the move and shut down the existing campus by Easter in response to the changed environment, she said.

Only 14 students remained in Wellington, finishing their courses.

The challenges Aspire2 was having finding a new party to take over the lease for its unused Kent St facility, which had been purpose-fitted for teaching was "quite a potent message about what is happening in Wellington for education providers", Bradley said.

Nationwide, Aspire2's biggest faculty is business studies, which accounts for more than a third of its students. It also provides courses in IT, English, hospitality, engineering, cooking and health management.

The company was getting its first course at NZEA Level 8 accredited, in e-business, to broaden the options it offered students, Bradley said.