John Key MP
National Party Finance Spokesman
25 November 2005
Cullen misses the point - again
National Party Finance spokesman John Key says Michael Cullen is missing the point in his latest defence of the
ill-considered and poorly designed ‘no interest’ student loan policy.
“The point is that Dr Cullen has said all along that his massively expensive new policy won’t result in increased
borrowings or lead to abuse. The fact that he is being forced to close a loophole suggests he’s worried about students
doing just what he said wouldn’t happen.
“The second issue here, which Dr Cullen conveniently chooses to overlook, is that the loophole he’s moving to close will
no longer be relevant after his ‘no interest’ policy is introduced - because virtually no one will be making voluntary
repayments any more.
“Yes he’s correct that minimum compulsory payments will be made, but that is what National has argued consistently; that
this policy encourages students to borrow the maximum and repay only the minimum.
“Until today Dr Cullen has denied that - now he’s saying we’re dead right,” says Mr Key.