INDEPENDENT NEWS

National's debt chickens continue coming home

Published: Tue 27 Jun 2000 11:46 AM
National's debt chickens continue coming home to roost
The Government is welcoming a new report from the Controller and Auditor-General which is heavily critical of the previous Government's failure to investigate the economic and social impact of the student loan scheme, Associate Education (Tertiary Education) Minister Steve Maharey said today.
The Controller and Auditor-General this morning released his report into the availabiity and adequacy of information surrounding the student loan scheme. It finds that there is a lack of information on the long term impact of the student loan scheme, despite studies conducted by outside organisations pointing to the serious consequences of indebtedness on the lives of borrowers.
Mr Maharey said that the report backed up his calls in Opposition for National to conduct proper research on how its loans scheme was affecting the future of borrowers, along with the potential flow-on effects across the economy.
"The Auditor-General has conducted an independent and authoritative study and has come to the same conclusions that many New Zealanders have long held. National's student debt mountain is having serious affects on the lives of borrowers, with an unknown impact on New Zealand's future economic and social circumstances.
"What little evidence the Office of the Auditor-General was able to assemble suggested that borrowers are delaying starting families and entering relationships, taking on mortgages and saving for their retirement, and increasing their fees for the professional services they now provide.
"Labour and the Alliance voiced similar concerns in Opposition and we are acting in Government. The Education and Science Select Committee has accepted our invitation to run an inquiry this year into the effects of the loan scheme and we have invested significant additional resources into addressing its worst aspects.
"I welcome the Auditor-General's report and I intend to take the time to carefully consider the full range of recommendations it makes, in consultation with Cabinet colleagues," Steve Maharey said.

Next in New Zealand politics

Tax Working Group Terms of Reference announced
By: New Zealand Government
Minister announces new plan for Metro Sports Facility
By: New Zealand Government
Government delivers big boost for students
By: New Zealand Government
The Nation: Patrick Gower interviews Jacinda Ardern
By: The Nation
Working people welcome a conversation on sharing wealth
By: Council of Trade Unions
PSA Disappointed at Tax Working Group Terms of Reference
By: Public Service Association
PM's Press Conference 20/11/17: Pike Re-Entry Agency
By: Lyndon Hood
Pike River Recovery Agency established
By: New Zealand Government
Pike agency a huge step forward
By: Stand With Pike
Solid Energy creditors to get at least 60c in $1
By: BusinessDesk
Govt takes action on $75M cost Chch sports facility blow-out
By: BusinessDesk
Minister misrepresenting official information
By: New Zealand National Party
Mayor welcomes new plan for Metro Sports Facility
By: Christchurch City Council
Metro Sports Centre, Christchurch
By: ChristchurchNZ
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media