Ministry and Teachers' Unions should open to new approaches

Wellington (28 May 2019): As teachers prepare to leave the classroom on strike, a new policy point released by The New Zealand Initiative proposes a potential solution to the seemingly impossible impasse.

"Minister Hipkins is in a thoroughly unenviable position," said Dr Eric Crampton, the Initiative’s Chief Economist and author of Biting education bullets.

"Providing a pay increase sufficient to attract and retain the best teachers would blow out the budget if offered to all 60,000 existing teachers. Every 10% increase in teachers' salaries costs about $400 million; a 25% increase would cost a billion and match the entire PHARMAC budget."

"Paying more to attract new staff while allowing principals to award higher salaries to their best teachers could square the circle. It would allow the salary increases needed to attract and retain the best teachers, without requiring large cuts (or tax increases) elsewhere."

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Biting education bullets is available on our website.

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