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Variable subsidies must be ruled out


11 May 2017

FOR IMMEDIATE RELEASE

Students urge Government to rule out limiting the number of students who get tertiary courses subsidised

The New Zealand Union of Students’ Associations (NZUSA) is urging the Government to rule out a ‘variable subsidies’ model for tertiary education, in response to comments made by outgoing MP Maurice Williamson and the Productivity Commission.

The recent Productivity Commission Report into new models of tertiary education recommends reducing subsidies (or pay no subsidies) to study with high private returns. ‘High private returns’ would be based on factors such as the need for jobs in that discipline.

NZUSA National President Jonathan Gee argues, ‘applying reduced subsidies on tuition fees for courses with ‘high private returns’ would be extremely difficult to quantify. It’s based on a traditional view of tertiary education where law students become lawyers and commerce students become accountants. In reality, it’s not so cut and dry.’

‘Students are often told that the future of work is increasingly uncertain, and that the jobs we get in ten years’ time might not even exist today. We agree with Tertiary Education Minister Paul Goldsmith that it’s very difficult for Government to be able to predict accurate numbers of people needed for particular industries.’

Gee has instead has suggested better information and career education for school students, to empower students to make well-informed and supported decisions regarding their future tertiary-study.

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‘Providing school students with high quality, professional and consistent career education will help refine student demand on tertiary courses.’

Gee also urged that the question of access to tertiary should not be forgotten in discussions around tuition fees.

‘We can’t forget those who aren’t even in tertiary education to begin with. Tertiary education is a public good and is often seen as a way out of poverty for some of our poorest families. Any debate about lowering tuition subsidies needs to consider how this will impact access to tertiary education.’

ENDS

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