Chris Hipkins is defending the polytech merger, as the Government pushes ahead with unwinding it

Ten of the country's 16 former polytechs are being re-established as standalone entities.

Hipkins says the 300-million the last government spent setting it up Te Pukenga went towards paying off debts and setting up the new enrolment systems, so it hasn't been wasted.

But the Labour Leader the new system was starting to have a positive impact.

He believes smaller institutions should be able to lean on the larger ones, making the system more viable.