10. Hon MARYAN STREET (Labour) Link to this
to the Minister for Tertiary Education
What advice has he received on those who are likely to be disadvantaged by recently announced policies regarding tertiary education with respect to student loans, allowances, and course fees?
Hon STEVEN JOYCE (Minister for Tertiary Education) Link to this
I have received a range of advice on a number of possible changes we are looking at making to tertiary policy. For example, the idea of introducing a stand-down period for new permanent residents and Australians before they can access a student loan has been the subject of advice. It would, obviously, have an impact on a number of Australians and new permanent residents who access student loans. It would also bring student loans into line with other Government support packages, and more into line with what New Zealanders experience in Australia.
Hon Maryan Street Link to this
What effect will an increase of 2.5 percent in GST and an increase in fees have on the Government’s student loan liability, and does he think these increases will make it easier or harder for people to access tertiary education?
The proposed increase in GST, should it occur, would be accompanied by a compensatory increase in student allowances. Of course, fees increase every year. The previous Government had a maximum fee increase of 5 percent for most tertiary education courses, and many fees have increased on that basis for many years.
Hon Maryan Street Link to this
How does he think part-time students will be affected by the proposed time limit on access to student loans, and how does it fit with the Government’s agenda for growth in the New Zealand economy?
I can inform the member that the effect on part-time students will be proportionate to the impact on full-time students. In other words, we would not be expecting part-time students to progress through their academic education to the same extent that we would expect full-time students to do so.
Hon Maryan Street Link to this
How will increased fees for the more expensive tertiary courses, such as medicine, encourage students to choose those programmes, and what effect will the increased fees have on the diversity and supply of highly qualified New Zealanders, such as doctors, in the future?
I think that question assumes there would be a sizable increase in fees, and I think that is very premature. I point out that the effect of stopping increases in fees for courses that are expensive to provide, and allowing increases to occur for courses that are less expensive, has the impact of making the courses that are less expensive to provide subsidise the more expensive courses, which is hardly fair to those who are taking those courses. I also point out that the average time taken by a doctor in this country to pay off a student loan is 4 years, which is considerably less than the time taken by people in many other occupations, once they are qualified.