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


Another 'unquantified risk' with loans policy

Hon. Bill English MP
National Party Associate Finance Spokesman

20 December 2005

Another 'unquantified risk' with loans policy

National Party Associate Finance spokesman Bill English says Labour's 'no interest' student loan policy has another fishhook that the Government has conveniently forgotten to mention.

"According to yesterday's Half Year Economic And Fiscal Update (Specific Fiscal Risks - Page 84), the student loans computer system may need a rebuild to handle the switch to the 'no interest' policy. It's described as an 'unquantified risk'.

"The costs of this are still being assessed, but you can bet this is not going to be cheap.

"Here's another example to illustrate National's point that the real cost of this irresponsible and rushed policy will be much higher than Labour is letting on," says Mr English.

"Yesterday, new costings revealed the taxpayer will face a massive up-front cost of more than $1 billion, the equivalent of giving away a significant state-owned enterprise for zero return.

"The Treasury papers also show the number of borrowers will increase, the size of student debt will rise and voluntary repayments will almost dry up.

"This is a policy that will provide most benefit to those with big loans.

"So while Labour's enticing more students into debt and committing the taxpayer to rising future costs, it is trying to tell home-owners to tighten their belts because of the spending it is helping to push along.

"For an increasingly arrogant Labour Government this is a classic case of do as I say, not as I do," says Mr English.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Whether We Should Be Betting Quite So Heavily On Astra Zeneca’s Covid Vaccine

According to this week’s Speech from the Throne, maintaining public safety during the pandemic will remain the government’s top priority. Next year will (hopefully) bring the rolling out of a free vaccination against Covid-19 to New Zealander. Currently, there are three possible vaccine contenders but the effectiveness of the vaccine will be only one of the factors determining which vaccine will pre-dominate. On the basis of the cost per dose, and the ease of manufacture, storage and distribution, the Astra Zeneca/Oxford University vaccine will almost certainly be the prime choice for New Zealand, at least initially... More>>


New Zealand Government: Speech From The Throne

It is my privilege to exercise the prerogative of Her Majesty the Queen and open the 53rd Parliament.
In the October election, New Zealanders elected a majority Government for the first time under our Mixed Member Proportional electoral system... 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>>


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>>


New Zealand Government: To Declare A Climate Emergency

The Government will declare a climate emergency next week, Climate Change Minister James Shaw said today. “We are in the midst of a climate crisis that will impact on nearly every aspect of our lives and the type of planet our children will inherit ... More>>


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>>


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>>





InfoPages News Channels