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The Quake and Politics

March 2nd, 2011

Just over a week on my thoughts constantly turn to the people of Christchurch. I am thinking particularly of those who have lost loved ones. For many this is a time of unbearable heartache as they wait for news, any news, of their nearest and dearest, knowing all the while their likely fate. I have been close to two of these situations in the last week and it is truly testing the friends and families to endure the hurt, frustration and uncertainty. I also think of those who are homeless, or in wrecked homes or in streets, especially those in the eastern suburbs still without power, water and sewerage.

The people of Christchurch and their well-being is the chief concern of all in politics right now, whatever party we are from. In this past week we have all tried to pull together, as communities all around New Zealand have, to do our best for them. Government Ministers are working incredibly hard, as are local MPs of all parties and I want to acknowledge them all for that.

Part of the passing days is that discussion inevitably turn to matters that are more political. We had our first taste of that with the story about Bill English refusing to rule out cuts to Working for Families and changes to the interest free student loan scheme. John Key followed up today saying there was an ‘opportunity’ to look again at these policies. Phil Goff has responded saying that cutting incomes for families and increasing costs for students and graduates like this is not the correct response, and that there are other choices the government can make.

The mere fact of this debate has caused anguish for some. I accept that this is a sensitive area. As I said there are many people still waiting to learn the fate of their family members, and thousands of people doing it really tough every day. But the discussion about the future of Christchurch and what will be done is now in the public arena as likely costs are released by the government, and questions asked by the media and others. It does not, and should not stop the focus on rescue, recovery and ensuring the immediate health and safety of residents.

In fact it is important for our democracy that the debate is held. These are important decisions about the future of our whole country, especially Christchurch, but for all of us in the end. The choices that are made, and the priorities accorded to future spending need to be the subject of debate. There is need to hold the government to account, and to oppose and propose where necessary. This is not disrespectful to the people of Christchurch, it is in fact to support them and take further steps to recovery.

We must strive to work together for the people of Christchurch. We must be sensitive to an emotionally charged situation. But there will be debate and disagreement. That is a healthy part of our democracy. That is part of politics. And politics need not be a dirty word. It should be the mechanism by which we go about about finding the best outcome for the people and the future of Christchurch and the rest of our great country.

Posted in Earthquake, Canterbury Earthquake, Tertiary Education, Student Loans and Politics. | 0 Comments

The Student Loan Scheme

November 1st, 2010

The Annual Report of the Student Loan Scheme is out, and it gives some pause for thought. Almost $14 billion has been borrowed since the scheme began in 1992, with about $6.4 billion being paid back.

I was one of those original borrowers. There were some quirks to the scheme back then that have been ironed out. You could borrow the money for your fees and choose if it went to your bank account or directly to your institution. I had two friends who developed a rapid interest and then equally rapid loss of interest in dentistry one year. That is now not possible. You were paid in large installments (quarterly?), but could call a phone number and get money earlier if you needed it. I recall a shouted conversation into the pay phone in the bottle store of the Captain Cook one night. Now the living costs are paid in fortnighly installments.

I strongly opposed the scheme on its introduction. It was symptomatic of a government pulling money out of the tertiary sector and make education less accessible. Fees were going up, allowances were disappearing. The interest, both while studying and afterwards was a horrific barrier to repayment and indeed for some to borrowing in the first place. Labour in office got rid of the interest, capped fees and widened eligibility for allowances, and the scheme became more acceptable. Yet still it shackles young graduates with a large debt as they start their working life. I can say from my electorate work, it is still having an impact on some people borrowing for first homes.

But what can we replace it with that does not create further inequities and is affordable alongside the rest of the government’s priorities? The longer the scheme goes on, the more difficult it is get rid off. Labour went into the 2008 election with a policy that would have given all students an allowance, phased in over a four year period. This would significantly reduce the debt burden on students, but it is expensive (the annual cost then was estimated at around $210 million annually) especially in tighter financial times.

Other options that are live internationally include graduate taxes that eliminates the upfront cost barriers and have a time limit on them. There are also systems with more scholarships, bonding and employer contributions. Of course the ultimate answer its to invest more into tertiary education to help create the skilled workforce and inclusive society we want and need. But it has to be balanced against, health, housing, super and all the other things governments must do.

We are working on our tertiary policy now. Labour’s policy remains to make tertiary education progressively more affordable and accessible. We also want a quality system, which means resourcing tertiary institutions well, and understanding the changing way that people are accessing education. In the fifth Labour government we put a lot of attention on student support, in the future we also need to ensure that overall quality is enhanced, and not just universities either, but vocational and industry training too.

Whatever, we do need to see tertiary education as an investment in our collective future well being, and an integral part of developing a productive economy.

Posted in Students, Tertiary Education, Student Loans and Education. | 1 Comment

Are you reading this Mr Joyce?

May 8th, 2010

I hope Steven Joyce reads the feature story in the Dom Post this morning (not on-line so far as I can see). It is a story about the emerging importance of the Pasifika population in New Zealand to our future society and economy. Its an interesting read, but I was particularly taken by the story of Tristram Lupo-Samoa, a 23 year old of Niuean descent who is studying electronic engineering and computer systems at Victoria University.

He failed many of his core subjects in the first two years of a science degree. He’s now three years into a four year degree but it will take five years to complete as he had to repeat a first year paper.

This is the reality for many people, especially those from a background where there is no family history of tertiary education. Steven Joyce’s proposal to cut access to student loans (which Tristram relies on along with part-time work) if you fail more than half your course for two years is just too blunt an instrument. I am all for a merit based system, but not everyone starts from the same place. As Tristram says

Its pretty tough to be honest. I try to get help from everyone that I can. It was an unknown subject for my family, learning a whole lot of new things. It takes a lot of my time because it takes me a lot of time to understand concepts. Its hard for me but I am willing. I would rather have it hard than easy because I know it will pay off in the end.

Tristram sounds like a really sensible young man, but he says he sometimes asks himself why he is doing his study.

Because I want to achieve something, something great in my life. Something my parents and family can be proud of.

As a country we need to support and invest in Tristram, and not try to apply a one size fits policy that will deprive him and us of a great future.

Posted in Tertiary, Pacific Islanders and Student Loans. | 0 Comments

What is National planning on student loans?

February 2nd, 2010

I have to say that when I saw that Steven Joyce had been appointed Tertiary Education Minister I thought it was probably not just about Anne Tolley struggling to handle her responsibilities. There were any number of other Ministers who could have taken the Tertiary portfolio, but it was handed to the Nats number one strategist and the PMs close confidant. This means that National want to “do” something in the tertiary portfolio.

Good. Tertiary Education is a vital area for our future, and it needs to develop and change in order to provide the graduates and the research that is so vital to our economy and society. But what is it exactly that National wants to do?

Well, a clue this morning from John Key on Sunrise. He says there are ‘economic’ issues in the portfolio including

whether the student loan policy works and whether there can be improvements made.

Now Steven Joyce is a clever political operator, and he knows how popular the interest free student loan policy is, but it is true that the Nats are worried about the liabilities that the scheme gives them. Also remember that National has never liked interest free student loans. John Key said they were “irresponsible” and he would oppose the policy “with every bone in his body”.

We can’t ask written parliamentary questions for another week. So some journalist out there might like to ask Mr Key or Mr Joyce just what changes are in store for student loans?

Posted in Tertiary Education, Stephen Joyce and Student Loans. | 0 Comments