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The UUP's Basil McCrea also gave predictions from Stranmillis College for the year 2011-12 which suggest that almost 2, 000 students will be applying for only 233 places.
BBC: Newly-graduated teachers
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Representatives of Stranmillis University College have been advised to find an alternative to a merger with Queen's University "rather than flog a dead horse".
BBC: MLAs criticise Stranmillis merger plans
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Mr Farry informed MLAs there was not sufficient support within the assembly to pass the legislation required to merge Stranmillis University College and Queen's University Belfast.
BBC: Northern Ireland Assembly
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Northern Ireland currently has two: Stranmillis and St Mary's College.
BBC: Newly-graduated teachers
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The SDLP's Pat Ramsey was concerned that the minister might be deploying "social engineering" to achieve his aims regarding both Stranmillis and St Mary's University College, the Belfast-based Catholic teacher training college.
BBC: Employment and learning committee
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The minister said Stranmillis had effectively become a non-denominational college when the Protestant "transferors" left the board of governors.
BBC: Northern Ireland Assembly
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Mr Farry turned to the wider picture of the teacher training system, and Stranmillis's counterpart in the Catholic sector, St Mary's University College.
BBC: Northern Ireland Assembly