Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Cullen in denial over loans cost

Hon Bill English MP National Party Associate Finance Spokesman

19 December 2005

Cullen in denial over loans cost

"Michael Cullen's own papers support National's view that the 'no interest' student loan policy will cost $1 billion next year and more than $400 million each year after that," says National Party Associate Finance spokesman Bill English.

"National has compared the costings produced by Treasury on the only basis that matters - the impact on the Government's surplus, or operating balance. Each time the Treasury estimate the effect of this policy on the government books, the cost rises.

"Some of the increase is due to accounting changes, but most of the increase is because Treasury believes students will borrow more and repay less.

"Dr Cullen's costings leave out the more than $1 billion loss to taxpayers which will appear on the Government's books next year.

"National has used conservative numbers from Treasury papers. Other Treasury estimates show an even higher cost.

"Labour has no credibility left on this issue. It initially denied Treasury had done any costings and then tried to hide them until after the election. Labour simply doesn't want people to know how expensive this policy is.

"So, Dr Cullen is clearly choosing to use costings which paint this policy in the best possible light.

"The papers released today do confirm a massive up-front cost of more than a $1 billion. They are at least the fourth set of costings we have had for this policy.

"The simple fact is that Dr Cullen has an agenda to talk down the impact of this policy. It is in his and Labour's interests.

"What he cannot argue with are the unanimous forecasts which show borrowing will increase, the number of borrowers will rise, and the level of voluntary repayments will virtually evaporate.

"The Finance Minister is dancing on the head of a pin and he knows it," says Mr English.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On What We Could Do For Hong Kong, If Only We Dared

There has been something repulsive about PM Jacinda Ardern’s assurances that our joint 5 Eyes criticism of China’s actions over Hong Kong – and China’s harsh reaction – are all well understood on both sides. According to Ardern, it has been a case of us saying the sort of things we’ve said before, them acknowledging our need to do so, and then them responding much as we would expect them to do. All neat and tidy. Frankly, if all of this is merely virtue signalling on our part, and huffy declarations of independence on their part, then what’s the point of this diplomatic dance..? More>>

 

Grant Robertson: Government To Review Housing Settings

New Zealand’s stronger-than-expected economic performance has flowed through to housing demand, so the Government will review housing settings to improve access to the market, the Finance Minister Grant Robertson announced today. “Our focus More>>

ALSO:

Law Commission: Recommends New DNA Laws For Criminal Investigations

Te Aka Matua o te Ture | Law Commission today released a report that recommends a new, comprehensive regime to control how DNA is obtained, used and retained for criminal investigations. The report has revealed significant gaps in the operation ... More>>

ALSO:

National: Leader’s Speech At Annual General Meeting

Good morning delegates. It’s an absolute privilege to be speaking as your leader. I’d like to acknowledge the party president, regional chairs, board members, National Party staff, our MPs, our candidates, and most importantly, you – the delegates, ... More>>

ALSO:


Economy: Crown Accounts Reflect Govt’s Careful Economic Management

The better-than-expected Crown accounts released today show the Government’s careful management of the COVID-19 health crisis was the right approach to support the economy. As expected, the Crown accounts for the year to June 2020 show the operating balance ... More>>

ALSO:

Green Party: Announce Portfolio Reshuffle With Talented And Energised Caucus Team

“The Green Party caucus offers a breadth of talent and energy to the Parliament this term. In ten MPs you have a small business owner, a human rights lawyer, an academic, a climate negotiator, a transport planner, and so much more”, Green Party ... More>>

ALSO:

APEC: New Zealand Ready To Host Virtually

Prime Minister Jacinda Ardern took over the leadership of APEC earlier today, when she joined leaders from the 21 APEC economies virtually for the forum’s final 2020 meeting. “We look forward to hosting a fully virtual APEC 2021 next year. While ... More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels