Hon Jim Anderton Deputy Prime Minister

23 July 2001

Media Statement

Vice Chancellors pay and lower student fees

News that some university Vice-Chancellors' are being paid over $300,000 and that their salaries are on the increase, underlines a tension between the demands for university funding, and the amount that people on high incomes pay in tax says Deputy Prime Minister Jim Anderton.

"If we are to fully fund health, education and other services in this country then the Government needs more income. This will have to come from improved economic performance and redistribution of wealth through a progressive tax system.

"Slightly higher taxes for those who earn over say $100,000 would allow us to reduce student fees and increase the numbers of New Zealanders who receive free health care.

"University Vice-Chancellors' claims that they need more funding for universities are understood, but it is people who are on very high salaries who are best able to provide the increased funding that will solve the problem," said Jim Anderton.

ENDS

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