Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Government And Opposition Miss The Point On Loans

25 February 2000


Both Labour and National make valid points about the student loan scheme but both also miss the point says United New Zealand leader, Hon Peter Dunne.

The National Opposition are claiming that Labour's election policy of not charging interest on student loans will encourage students to borrow more, while the Labour Government welcomes the increase in loans being taken up as a sign of increased participation in tertiary education.

Mr Dunne says both National and Labour are making worthwhile claims. "While more students may go into debt their cost of servicing that debt will be much lower.

"More importantly interest free loans while studying should encourage more students to take up the option of tertiary study and perhaps encourage them to stay in New Zealand after their studies, because of lower repayment levels. This is surely a desirable outcome for the students and the country in trying to build our knowledge economy," says Mr Dunne

He says what is actually needed is adoption of United New Zealand's three point funding approach to tertiary education. Both National and Labour while making some important debating points, miss the essential issue which is the need for an integrated approach to tertary funding.

The policy calls for:

limiting student interest on loan repayments to movements in the CPI (Consumers Price Index)
increasing core funding for tertiary institutions to 80 per cent of course costs
abolishing parental income testing of student allowances for students over 20 years.

"By implementing United's integrated approach course costs will be lower and student allowances will be more freely available, thereby reducing the demand for student loans and student debt levels. Furthermore if student loans are made available for legitimate costs with low interest repayments then individual students will have less debt and more people will be encouraged to embark upon and extend their tertiary study.

"The Government's move in reducing fees for dentistry students deserves to be welcomed. Their planned review of tertiary funding needs to implement a formula to reduce course costs so institutions can set lower fees and thereby reduce the need for high levels of student debt.

"United's three pronged plan aims to achieve this," concludes Mr Dunne.


New Zealand's Liberal Party

Parliament Buildings, Wellington 6001.
(04)471 9410 or (025) 469 808. Fax (04)499 7266.
e-mail: peter.dunne@parliament.govt.nz. Internet Address: http://www.united.org.nz

New Zealand's Liberal Party

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>


Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>


Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news