An underwhelming number of people signing up for the Government's fees free tertiary education policy.

More than $38 million has so far gone into bringing a modest increase in students, between one and two hundred people, to just some tertiary learning centres.

Universities New Zealand director Chris Whelan stopped short of saying the policy is an abject failure but acknowledges it's not going to plan.

"Ultimately if your goal is to increase numbers overall of numbers that are going into tertiary education, then yes you would have to say it is not working at the moment."

LISTEN ABOVE AS CHRIS WHELAN SPEAKS WITH MIKE HOSKING