Rt Hon John Key
Prime Minister &
Leader of the National Party

30 October 2011 Media Statement

Mixed ownership funds for modern schools

The National Party will spend $1 billion of mixed ownership model proceeds on modernising and transforming New Zealand schools without having to borrow more, National leader John Key says.

"National stands for a prosperous, safe and ambitious New Zealand where all Kiwis have the opportunities to get ahead under their own steam, no matter where they are born or what their parents do," Mr Key says.

"National is committed to investing more in our kids to build that brighter future.

"A National-led Government will use the $5-$7 billion proceeds of the mixed-ownership model to set up a Future Investment Fund to buy new productive infrastructure for New Zealanders.

"The first priority will be putting $1 billion into modernising and transforming New Zealand schools over the next five years.

"The environment in which teachers teach, and kids learn, is hugely important to their future. We want New Zealand children studying in modern classrooms that meet their learning needs and let them use the most up-to-date technology.

"That's a crucial component in lifting achievement, which in turn is vital to building a faster growing economy with more exports and more real jobs.

"As things stand now, the existing money for school building projects will be needed simply to maintain the existing school network and to help address health and safety issues like earthquake proofing and leaky buildings.

"The mixed ownership model will allow us to increase the total amount spent on school building projects each year by more than 50 per cent, without extra borrowing.

"As well as schools, the Fund will be used to pay for high quality projects like major hospital redevelopments and transport projects. More projects will be confirmed as decisions are made.

"We will be very transparent about the proceeds that go into the Future Investment Fund and very transparent about what assets it is used for.

"In this way the public can be assured that the proceeds of mixed ownership are not being lost. Far from it – the money we raise from mixed ownership is being used, in its entirety, to pay for valuable new New Zealanders.

"And because we will have the money already there in a Fund, we don’t need to go out and borrow that money from overseas lenders, increase our debt, and pay higher interest payments offshore.

"That's a win-win for New Zealanders," Mr Key says.

Visit the policies at:

http://national.org.nz/PDF_General/Future_Investment_Fund_policy.pdf

http://national.org.nz/PDF_General/21st_Century_Schools_policy.pdf

http://national.org.nz/PDF_General/21st_Century_Schools_Q_and_A.pdf

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