Labour's PTE Levy Increase Anti-business

Tuesday 9 Dec 2003 Deborah Coddington Press Releases -- Education

ACT New Zealand Education Spokesman Deborah Coddington today accused the Labour Government of driving private education providers across the Tasman, following its decision to increase levies against private training establishments by a massive 55 percent.

"Education Minister Trevor Mallard last week announced a controversial plan to introduce a special export education tax on private training establishments. When a PTE fails to meet its contractual obligations to its students, the Government will refund the students affected, then - through a levy - force all other PTEs to meet this cost. This despite many students being covered by insurance," Miss Coddington said.

"Labour's levy hike is anti-business and will cost PTEs millions. It will hit the New Zealand economy hard. Some private providers will close their doors, while others have already indicated their intention to move their international business across the Tasman.

"This will severely restrict choice for students - which is exactly what Labour intends - herd everyone into state-owned institutions.

"If the Government's Education (Export Education Levy) Amendment Bill is passed into law - and private education providers move part of their operation to Australia - then New Zealanders could expect job losses and a drop in business activity.

"Not that Labour cares - if it did, it would've taken the time to consult with industry stakeholders before it announced this short-sighted and ill-considered levy hike," Miss Coddington said.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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