﻿Mr SPEAKER: Question No 2, Andrew Little.
ANDREW LITTLE (Leader of the Opposition) to the PM: Does he have confidence
in his Minister for Tertiary Education, Skills and Employment,
given the Student Loan Scheme Annual Report 2015
forecasts student loan debt will hit $15.458 billion this year?
Rt Hon JOHN KEY (PM): Yes; not only do I have confidence in Mr Joyce
but I am actually immensely proud of him because he is the Minister
under whom we have seen the student loan balance growing
at the slowest rate in more than a decade.
What a remarkable achievement that has been, under his leadership.
[MEMBERS APPLAUD]
Andrew Little: Does he even accept that forcing young people
into $15 billion worth of student debt creates a barrier to study,
and puts off other life opportunities, like owning your own home?
Rt Hon JOHN KEY: I think the term “forcing” people is incorrect.
Actually, people do take student loans and they take them
because they know that if they have an undergraduate degree
they will earn 46% more, on average, after 5 years.
That is a very sensible investment.
Andrew Little: Does he agree with the NZ Herald
and the Dominion Post that supporting the Kiwi Dream
by investing in free education
is a better use of taxpayers’ money than his plan to borrow for tax cuts?
Rt Hon JOHN KEY: Firstly, I would not jump to conclusions
on what policies National will or will not be implementing.
You have to wait for those.
But I think putting more money into student loans,
at a time when 70% to 80% is already paid for by taxpayers,
when you would be essentially asking lower-paid NZers
to cross-subsidise people who will be earning more,
does not seem to make a lot of sense to me.
Andrew Little: Will he come with me this afternoon,
hand in hand if necessary, to Massey University
and explain why he wants to give tax cuts for the wealthy,
instead of reducing the $15 billion student loan burden?
Rt Hon JOHN KEY: Well, if the member will come on TV tonight
and say that he is going to vote for the new NZ flag,
I will come hand in hand with him to Massey University, sure.
[MEMBERS INTERJECT]
Mr SPEAKER: Order! [Interruption] Order!
Hon Annette King: That was pathetic.
Mr SPEAKER: Order! When I am on my feet, the Hon Annette King
should not continue to interject. Supplementary question.
Andrew Little: Is the reality of the situation not this:
that his state of the nation reheated policy was just a reheat and a flop,
and Labour’s fees-free policy has drawn praise from across the land?
Rt Hon JOHN KEY: I think it is a dangerous precedent to get into
a “my press coverage is better than your press coverage” argument,
but I remember when we announced
that we would be joining with Auckland City to fund the City Rail Link,
when we went in there and said the East-West Link would be developed
when other important regional roads like Mt Messenger would be completed—
I remember the press coverage from that, and then I remember
the press coverage from the announcement from Labour.
Actually, that is right, there was not much coverage, and that is why
we keep getting asked these questions every day,
because they are hoping to reheat their failed policy.
The simple reason why there was not much press coverage is this:
for the policy to be implemented,
they would not only have to win one election,
Labour would have to win four—
Mr SPEAKER: Order!—[Interruption] Order! The answer is long enough.
Andrew Little: Given the public’s support
for Labour’s fees-free plan, which is presently running at 2 to 1,
will he just level with me for a moment? When can we expect him
to adopt this as National’s policy,
given his adoption of other policies he hated, like KiwiSaver,
interest-free student loans, Working for Families?
Rt Hon JOHN KEY: It is certainly true
that under a National-led Government we have continued with policies
like interest-free student loans, I accept that. But, actually,
here is the rub, is it not—
Grant Robertson: You hated it, though.
Rt Hon JOHN KEY: Well, I thought there were some real issues with it,
but, actually, here is the point: Mr Joyce has dramatically improved that,
because under Labour student debt grew at 11.6%.
Under National, it grows at 4.2% and is predicted to be at 2.8%.
We are very happy with our policies
and they are working well, thank you very much.
[MEMBERS INTERJECT]
Andrew Little: When will he just admit what everybody else knows,
that Labour’s vision for free education in the 21st century
is in every Kiwi’s best interests?
Rt Hon JOHN KEY: I do not think it is in every Kiwi’s best interests
if you are asking a lower-paid NZer to pay more of their taxes
to someone who is going to earn a lot more. I think the balance
is set about right, and I think most NZers can see that, yes,
it is worth investing in our people for tertiary education,
but when we are paying 70% to 80% of the bill, it is about right.
Mr SPEAKER: Question No 3.
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