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Labour adds 'Parent Debt' to graduate-debt crisis

Labour adds 'Parent Debt' to graduate-debt crisis

In a budget more reminiscent of its user-pays failures of the 1980s Labour has furthered its agenda to privatise state debt onto the backs of individual Kiwis. The Tertiary Savings scheme, as part of the KiwiSaver plan, is an admission by Labour that they have failed to combat the student debt crisis.

"Labour has furthered its agenda to privatise government debt and education onto the backs of ordinary New Zealanders. The outcome of this Budget means that students and graduates, and now parents, will remain disappointed with Labour's lack of interest in providing high quality tertiary education." commented Rachel Dibble, OPSA president.

Ms Dibble noted that the KiwiSaver plan will see an optional 4% flat income tax on workers. Due to its flat nature KiwiSaver is a regressive tax that will benefit richer people (who least need the scheme) more than poorer people.

Students appreciate the need to save, however: "New Zealand used to have an effective and fair savings scheme for education called progressive taxation. It was a simple and effective scheme. The government calculated how much it needed to adequately provide the country's tertiary education needs, and taxed people according to what they could afford to pay. Simple really." said Ms Dibble.

New Zealand Governments used to be committed to the idea that every one no matter what their income had the right to better them selves through education. Indeed, New Zealand was once a world leader in education.

"This government may have failed in delivering those principles, but we still believe in them." said Ms Dibble.

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