Parliament

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

 

Another 'unquantified risk' with loans policy

Hon. Bill English MP
National Party Associate Finance Spokesman

20 December 2005

Another 'unquantified risk' with loans policy

National Party Associate Finance spokesman Bill English says Labour's 'no interest' student loan policy has another fishhook that the Government has conveniently forgotten to mention.

"According to yesterday's Half Year Economic And Fiscal Update (Specific Fiscal Risks - Page 84), the student loans computer system may need a rebuild to handle the switch to the 'no interest' policy. It's described as an 'unquantified risk'.

"The costs of this are still being assessed, but you can bet this is not going to be cheap.

"Here's another example to illustrate National's point that the real cost of this irresponsible and rushed policy will be much higher than Labour is letting on," says Mr English.

"Yesterday, new costings revealed the taxpayer will face a massive up-front cost of more than $1 billion, the equivalent of giving away a significant state-owned enterprise for zero return.

"The Treasury papers also show the number of borrowers will increase, the size of student debt will rise and voluntary repayments will almost dry up.

"This is a policy that will provide most benefit to those with big loans.

"So while Labour's enticing more students into debt and committing the taxpayer to rising future costs, it is trying to tell home-owners to tighten their belts because of the spending it is helping to push along.

"For an increasingly arrogant Labour Government this is a classic case of do as I say, not as I do," says Mr English.

ENDS

© 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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

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>>

ALSO:

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>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election