Chance for Minister to Back Students as He Backs Corporates

Chance for Minister to Back Students like He Backs Corporates

24 MAY 2017
FOR IMMEDIATE RELEASE

A policy change sought by students would only cost the Government a fraction of what it dishes out each year to its favourite businesses, according to the Aotearoa Students’ Alliance.

“If living costs, a weekly loan to cover day-to-day expenses for students, were increased from $178.81 to $210.13, and each of the 100,652 students currently using it withdrew the full amount, it would only cost an additional $164 million”, says Jack Close, spokesperson for the Aotearoa Students’ Alliance.

“This is a minuscule 0.2 percent of the $76.1 billion crown revenue, and only a twinkle in the eye of the corporate welfare doled out to New Zealand corporates year after year.”

“According to a report by the Taxpayers’ Union, the Government handed out $1.36 billion in subsidies, grants, and funding to the private sector in 2016. Just two weeks ago, Science and Innovation Minister Paul Goldsmith announced $74.6 million in research and development grants for private businesses.”

“Meanwhile, in his capacity as the Tertiary Education, Skills and Employment Minister, Mr Goldsmith refuses to take action on students’ welfare, where his current loan living costs policy barely covers rent for most students, let alone food.”

“A policy that allows students to put a roof over their head and a meal on their plates would only cost around a tenth of the Government’s annual corporate welfare spend."

“Reports from the New Zealand Union of Student Associations show students cutting back on food just to cover their rent. For cities with the most students like Wellington and Auckland, rent prices far exceed the current $178.81 maximum payment. It’s no surprise students can’t afford food.”

“It is a twisted irony that this Government readily picks corporate winners, but at the same time makes no attempt to back its own students to succeed.”

The Aotearoa Students’ Alliance urges the Government to include a financial commitment to students’ welfare in its 2017 budget.

NOTE:
• $210.13 is the level recommended by a Ministry of Education report in 2007, but declined in favour of the current system, despite the current policy having “no clear rationale”, according to the Ministry. The recommendation tied loan living costs to the student allowance rate for over-24-year-olds away from home.

• If each living costs borrower took out the current maximum level of $178.81, it would cost the Government $935,874,368 each year.

• If each living costs borrower took out an increased $210.13, it would cost the Government $1,099,800,208, an increase of $163,925,840.
ENDS

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