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

 


Tertiary savings fund new investment

Hon Steven Joyce

Minister for Tertiary Education, Skills and Employment

24 May 2012

Tertiary savings fund new investment

Budget 2012 rebalances the Government’s $4.3 billion investment in tertiary education between expenditure on student support and investment in tuition and research, says Tertiary Education, Skills and Employment Minister Steven Joyce.
“We have one of the most generous student support systems in the world. Rebalancing it allows us to free up money we can reinvest in improving the quality of tertiary education we provide, and help our overall fiscal position,” Mr Joyce says.

Key changes include:

• Increasing the student loan repayment rate for all New Zealand-based borrowers over the repayment threshold from 10 cents to 12 cents in the dollar, saving $184.2 million operating over four years.
• Broadening the definition of ‘income’ for student loan repayment purposes, saving $3.1 million operating over four years.
• Removing the voluntary repayment bonus, saving $43.5 million operating over four years.
• Implementing information-matching between Inland Revenue and the New Zealand Customs Service to identify borrowers in serious default.
• Limiting the number of courses students can borrow for in one year to two effective fulltime equivalents (EFTS).
• Keeping the parental income threshold at current rates until 31 March 2016, saving $12.7 million operating over four years.
• Removing eligibility for student allowances for postgraduate study, saving $33 million operating over four years.

The student support changes in Budget 2012 will provide operating savings of $240.3 million in 2011/12. A further $65 to $74 million a year of operating savings over the next four years will be largely re-invested across the wider tertiary system.

“The Government is committed to interest-free student loans, but we are determined to reduce the write-off on taxpayers’ investment.
“Since coming into government, we’ve reduced the write-off from 47 cents in each dollar of student loans down to 45 cents. Changes we are announcing today will reduce it further to 41 cents – close to our target of 40 cents,” Mr Joyce says.

“From 1 April 2013, graduates and ex-students will have to pay off their student loans faster so the Government can invest more in the next generation of students. This involves increasing the repayment rate from 10 cents to 12 cents for each dollar of income above $19,084 a year.

“We will cancel the voluntary repayment bonus, because it is not creating the increase in repayments we were hoping for, and we now have other priorities for expenditure. That will save around $43.5 million over the next four years.

“We will introduce measures to start tackling the blow-out in the cost of student allowances. Costs have increased from $385 million in 2007/08 to $624 million in 2010/11, due in part to policy settings of the previous government.

“We are going to focus student allowances on the initial years of study – and to assist low-income families who need it most.

“We will freeze the parental income threshold at its current rate until 31 March 2016, and ensure the limit of 200 weeks’ access to student allowances is consistently applied.

“Postgraduate students will no longer be eligible for student allowances. This refocuses allowances on students working towards a first qualification, and acknowledges that students studying at postgraduate level gain a higher private return from their study. Those students will continue to have access to interest-free loans.

“Alongside these changes, we have recently consulted on our commitment to limit the annual amount a student can borrow on their loan to that equivalent to the workload of two fulltime students, stopping people over-using government support.”

Other key Budget savings over the next four years (unless stated otherwise) include:

• Removing short-term funding to support the embedding of literacy and numeracy into level 1 to 3 programmes, which is now largely completed. This will mean a saving of $22.4 million.
• $5.4 million from the Government ceasing funding for Adult and Community Education in universities. The Government will instead fund some of these programmes directly through community providers.
• $8.9 million over one year due to reduced demand in industry training courses following the operational policy changes This will be reinvested in the university sector.

“Changes in Budget 2012 release $240.3 million in 2011/12 and $276.3 million over the next four years in student support funding for the Government to reprioritise, while reinvesting in strengthening overall tertiary education provision for students in priority areas like engineering, science, and research.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Parliament Today: State Opening Of Parliament

The House sits at 10.30am today before MPs are summoned to hear the Speech from the Throne in the Legislative Council Chamber.

The speech delivered by the Governor-General on the Government’s behalf outlines its priorities for this Parliament.

After this MPs will return to the House for the presentation of petitions and papers and the introduction of any bills.

The Government has five notices of motion on the Order Paper which can be debated. These relate to relating to the appointment of the Deputy Speaker, Assistant Speakers, the reinstatement of business in a carryover motion and one on “Entities to be deemed public organisations”. More>>

 

Tertiary Education: Students Doing It Tough As Fees Rise Again

The Government is making it increasingly difficult for Kiwis to gain tertiary education as fees continue to rise and access to student support becomes even more restricted, Labour’s Tertiary Education spokesperson Chris Hipkins says. More>>

ALSO:

Housing, Iraq: PM Press Conference – 20 October 2014

Prime Minister John Key met with press today to discuss:
• Housing prices and redevelopment in Auckland
• Discussions with Tony Abbott on the governmental response to ISIS, and New Zealand’s election to the UN Security Council More>>

ALSO:

Labour: Review Team Named, Leadership Campaign Starts

Labour’s New Zealand Council has appointed Bryan Gould as Convenor of its post-General Election Review. He will be joined on the Review Team by Hon Margaret Wilson, Stacey Morrison and Brian Corban.

ALSO:


Roy Morgan Poll: National Slips, Labour Hits Lows

The first New Zealand Roy Morgan Poll since the NZ Election shows National 43.5% (down 3.54% since the September 20 Election). This isn’t unusual, National support has dropped after each of John Key’s Election victories... However, support for the main opposition Labour Party has crashed to 22.5% (down 2.63% and the lowest support for Labour since the 1914 NZ Election as United Labour). More>>

ALSO:

In On First Round: New Zealand Wins Security Council Seat

Prime Minister John Key has welcomed New Zealand securing a place on the United Nations Security Council for the 2015-16 term. More>>

ALSO:

TPP Leak: Intellectual Property Text Confirms Risk - Jane Kelsey

The US is continuing its assault on generic medicines through numerous proposed changes to patent laws. ‘These are bound to impact on Pharmac if they are accepted’, according to Professor Kelsey... Copyright is another area of ongoing sensitivity... More>>

ALSO:

RMA: Smith Plans Reform To Ease Urban Development

Newly appointed Environment Minister Nick Smith has announced Resource Management Act reform to foster urban development, where high land prices and expensive resource consents are blocking efforts to provide affordable housing. More>>>

ALSO:

Gordon Campbell: On New Zealand getting involved (again) in other people's wars

Apparently, the Key government is still pondering how New Zealand will contribute to the fight against Islamic State. Long may it ponder, given the lack of consensus among our allies as to how to fight IS, where to fight it (Syria, Iraq, or both?) and with whose ground troops, pray tell? More>>

ALSO:

Gordon Campbell: On child poverty, and David Shearer’s latest outburst

The politicisation of (a) the public service and (b) the operations of the Official Information Act have been highlighted by the policy advice package on child poverty that RNZ’s resolute political editor Brent Edwards has finally prised out of the Ministry of Social Development. More>>

ALSO:

Gordon Campbell: On the government’s review of security laws

So the Key government is about to launch a four week review of the ability of our existing legislation to deal with “suspected and returning foreign terrorist fighters, and other violent extremists.”

According to its terms of reference, the review will consider whether the SIS, GCSB and Police are sufficiently able right now to (a) investigate and monitor suspected and returning foreign terrorist fighters… More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news