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Who Will Pay For Alliance Promises?

Friday 10th Sep 1999

Media Release -- Education

"The Alliance promise to abolish interest payments on Student Loans for current and former students is yet another example of plundering some people to benefit others," said ACT Party President Sir Roger Douglas.

"There are only two ways individuals can acquire wealth - production or plunder. Producing goods or services enhances the wealth of society.

"Plunder fails to generate one dollar of extra income, the gain of one (the student) is a loss to another (the poor of Otara) but because it consumes resources, it also reduces the overall wealth of society.

"The increase in the size of the transfer sector in New Zealand over the last 6 years has retarded economic growth. In the case of government university student support what we have seen is a massive transfer of wealth occur from the relatively poor in Mangere and Otara to the relatively well off in Epsom and Remuera - Is this fair?," said Roger Douglas.


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