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Inquiry Into Incompetence Welcomed

Prebble's Rebels has welcomed the announcement of an inquiry into the processing of student loans, saying "government incompetance coupled with political expediency has created an inefficient administration system which needs not just an overhaul but complete replacement".

Rebel President Clint Heine said that the student loan scheme was another government bureaucracy doomed to continue failing, and that the evaluation should look beyond simply tweaking the system and consider privatising the provision of loans.

"State monopolies have been shown up time and again as inefficient and unworkable. We wouldn't dream of allowing one bank a monopoly on offering mortgages or personal loans, and student loans should be no different" Mr Heine said.

"Allowing banks and other financial institutions to offer student loans would introduce competition between providers. A competitive student loans system would encourage better customer service, less bureaucracy and lower student loan interest rates - all of which must be a better outcome than the current system which offers only entrenched incompetance."

ENDS

For more information, contact:
Clint Heine (+64) (021) 122 8544
president@rebels.org.nz
http://www.rebels.org.nz

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