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

 


Dunne: $160m Govt grab is profiteering off debt


Dunne: $160m Govt grab is profiteering off student debt

The Government’s decision to hold the student loan interest rate at 7 percent is “almost criminal” when its annual interest take has quadrupled to $160.8 million in the past three years, United Future leader Peter Dunne said today.

“And it’s going to be $395 million by 2007/08 - so yes, we’re talking profiteering and the victims of it are young New Zealanders trying to build a future,” Mr Dunne said.

“The Government has a fine rort going - while young graduates can’t buy homes, delay having families and have to head overseas to get ahead.

“And those figures are after interest write-offs have been taken out - the mafia couldn’t do better,” he said.

Mr Dunne said the Government should cover its costs, and not turn the scheme into a cash cow - “particularly at such a high social cost to a whole generation of New Zealanders”.


“By topping up the ‘interest adjustment rate’ (the inflation rate) with a ‘base interest rate’ the Government sets the overall rate at 7 percent.

“But it has also admitted through parliamentary questions that if the 2005/06 interest rate was set to cover inflation and the scheme’s costs, it would only be around 3.7 percent - I think students would find that a far fairer arrangement,” he said.


United Future this week launched a comprehensive student support policy, of which a key plank was setting a fair student loan interest rate that meets the costs of running the scheme.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news