2 December 2009
Media Statement

Further proof Government has no coherent plan

Paula Bennett’s pathetic mini backtrack on the Training Incentive Allowance also highlights the stupidity of the Government decision to remove the bonding obligations on Step Up Scholarship recipients, says Labour’s Social Development spokesperson Annette King.

“Paula Bennett has today effectively conceded that the Budget decision to axe the Training Incentive Allowance (TIA) for sole parents on the DPB wanting to undertake tertiary study was a stupid idea, although her pitiful solution is no solution at all.

“But today’s announcement also highlights the foolishness of another Budget decision – axing Step Up Scholarships for low income tertiary students and removing the requirements on those who have received them to work in New Zealand for a set period of time,” Annette King says.

“Paula Bennett today announced she will now offer $500 loans for some beneficiaries to study in areas where there is a shortage of workers: nurses, doctors, midwives, vets and teachers.

“There are indeed shortages in these areas, which is why the previous Government tied the Step Up Scholarships to bonding arrangements. The aim was to support those on lower incomes into study, while at the same time ensuring they filled the skill gaps in New Zealand, rather than using the qualifications to go and work overseas.

“The Budget decision to cut the scholarships was silly enough, but the decision to lift the obligations to stay and work in New Zealand for those who had already received scholarships, or were still getting them, was just foolhardy.

“Those students received taxpayer funding on the understanding they would remain working in New Zealand, and the National Government turned around and told them ‘keep the money and feel free to take off overseas’.

“Then it decides today to invest more taxpayers’ money into encouraging people to study in these same areas,” Annette King says.

“I’m certainly not opposed to investing in beneficiaries to get them into work.
But when it is contrasted with the decision to wave goodbye to students the Government has already invested in, it becomes clear there is no logic and no coherence to the decisions being made. And that’s on top of the TIA shambles.”

ENDS

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