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


Government to meet cost of schools' collapse

15 April 2004 Media Statement

Government to meet cost of schools' collapse

The government will meet the costs of reimbursing international students for financial losses following the collapse in 2003 of two large private training establishments (PTEs), Education Minister Trevor Mallard announced today.

"The government has agreed to pay for the financial assistance that was given to the international students who were financially affected by the collapse of Carich and Modern Age. We are also taking steps to ensure these situations are covered in the future, so our international students are not disadvantaged if a private training establishment fails," Trevor Mallard said.

"Previously we had proposed, through a bill now before Parliament, that the costs that taxpayers incurred in reimbursing students' would be recovered through an increase in the export education levy on private training establishments from 0.45 per cent of fee income to 0.7 per cent.

"I will now ask the Education and Science Select Committee to remove Clause 5 of the Education (Export Education Levy) Amendment Bill, which specified this increased rate.

"We're taking on board the concerns of the sector, after listening carefully to feedback. Sector representatives had wanted more time to adjust to any possible increase in the levy to ensure their viability during a time of market downturn. They also expressed concern about being accountable for the business decisions of particular providers."

Trevor Mallard said all other clauses in the bill would remain unchanged pending select committee deliberations. These include the proposed clause that will enable levy funds to be used to reimburse international students who face financial losses following any future failure of a private training establishment.

" We must do this to protect what is now a $2 billion dollar industry. This means the cost of any future failures will need to be borne by the sector and not by taxpayers," Trevor Mallard said.

The export education levy supports a range of industry-wide development and risk management activities including professional development, research, quality assurance and promotional activities. The current flat fee for all providers will remain at $185 (ex GST) and the percentage component of the levy will remain at 0.45 percent of tuition fees in 2004.

More information about international education is available on the international education section of the Ministry of Education's website


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>


Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election