Dashed Hopes For Students Coming In The Budget

Students can expect increased fees and no compensation for the increase in GST says Labour's Tertiary Education Spokesperson, Maryan Street.

"Tertiary Education Minister, Steven Joyce, said today in TVNZ's Q+A programme, that there will be the potential for universities to increase the fees for more expensive courses in the near future. That means that medicine, dentistry and other high-cost courses will be harder choices for students to make, which does not bode well for New Zealand's future health and science needs," she said.

"But as well as that, Steven Joyce said that he has no changes planned for student allowances in the forthcoming budget. That means that, as we feared, there will be no compensation for students for the proposed 2.5% increase in GST. So their fees are likely to go up, and their cost of living will increase by at least 2.5% with the GST increase, but their student allowances will remain the same. This makes it harder for young people to choose the higher education, high-skills courses which are so much in need if New Zealand is going to grow in the future.

"In looking to save $10-20million a year across all the tertiary education policies as he says is his aim, Mr Joyce is overlooking the need to invest in higher education for the long term good of New Zealand. The decisions he is making now will make it so much harder for New Zealand to develop the skills base it needs for the future. Students will suffer and so will the country," said Maryan Street.

ENDS

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