There are more signs that the Government's Fees Free dreams could be fading, but the Minister responsible is still backing the scheme. 

Figures show 47,000 students and trainees used the scheme in its first year. However, $197 million originally earmarked for the scheme was redirected to apprenticeship and on-job training changes after lower-than-expected enrolments.

Education Minister Chris Hipkins was asked at select committee, whether the Government will still extend it to cover three years.

"The Coalition Government's commitment was to implement the first year free policy, which we have done."

Asked by Heather du Plessis-Allan if the policy is a flop, Hipkins says that it means that those 47,000 students will be able to move on with their lives quicker rather than being burdened by debt. 

"I certainly don't expect they would have any complaints about it."

He says that it is still delivering on what it promised to do, which is to remove the cost of tertiary education. 

"It's about making tertiary education more affordable for people." 

Hipkins did not say whether the scheme will be rolled out to the second and third years of university, but says that it remains the Labour Party's policy.

However, he says that this is a coalition government, so he would not comment on what would happen next.