Interest write off unfair to vocational, trades

Interest write off unfair to vocational, trades skills

Tax cuts across the board would be fairer to everyone compared to rewarding the educated elite with interest write offs, the Employers & Manufacturers Association (Northern) says.

“Writing off interest on student loans would represent good public policy if it worked by keeping graduates in New Zealand,” said EMA’s chief executive Alasdair Thompson.

“But if students found they could earn more by going offshore to pay off their loans, including paying off the interest, the policy would not work.

“Those staying and taking advantage of the interest write off bribe would get a large reward at the expense of other hard working Kiwis.

“Tax cuts would be a better for everyone, including as an incentive for students to stay in New Zealand in the long run.

“Tertiary educated people are privileged, and bribing them sends the wrong signal to our vocational and trades oriented people who either don’t qualify for loans, or don’t rely on them.

“Their skills are every bit as important as those with university degrees.

“Another downside is it could backfire by encouraging students to rack up more debt.”

ENDS

© Scoop Media