United Future
Bernie Ogilvy

Bernie Ogilvy's Budget speech

But United Future is also aware that some budgetted moves could well be counterproductive and even harmful for New Zealand as they take their course.

On the one hand, there has been some real help for students and learners to achieve at the early levels of education. Particularly, among the Maori and other poorer households. For example, when one third of Maori students who left school last year had no qualifications - there is certainly a need for extra help. This is a good step forward!

On the other hand, at the finishing levels of education for many students - ­the Tertiary sector - there lurks a receipt for trouble.

In particular, the "time bomb" of the annual FEE MAXIMA of $3,900. Both the concept and the amounts could shoot this government in the foot.

This fee maxima idea has been mooted as the best deal to satisfy the students and their families, the taxpayers and the institutions providing the tertiary learning. Well, is it, United Future asks?

This is a return to the old sad days of Muldoonism. It is United's belief that what is "good for the gander is not good for the goose" in this arena.

The students (learners), the taxpayer and the providers of tertiary learning are on a collision course.

Some facts should clarify:

Fact number one:

The NZUSA student representatives desire a long-term goal of "a well funded tertiary sector with no fees and no debt." I, and thousands of New

Zealanders, are flabbergasted over this type of economic logic being taught by our higher institutions in New Zealand! I am not convinced that a young student who has had most things free in life to date, would deny that he or she had been supported at great cost by his/her parents or self. The State it must be remembered is not Mum and Dad or family! To condone such practices is not preparing our youth to enter the real world ­where NOTHING is free! Everything costs someone!

Fact number two:

Last year each New Zealand taxpayer paid around $10,500 for every tertiary student being educated. It cost them a fortune! And that was only 70% of the direct costs for those half million or more students.

Do the ever-shrinking numbers of taxpayers want to pay more – this year - and every year hereafter?

Every family would be excited of course if their son or daughter had to pay no fees. But it is this very same family that has to pay for those non-fees through taxes. This is none other than a “smoke and mirror” job.

The taxpayer always picks up the tab! Will he want his already closed cheque book to be prised open for yet more tax?

Fact number three:

The public tertiary Providers (the Universities, Polytechnics, the Wanangas and Colleges of Education) are also beginning to cry out - HELP!

Their independence is under threat! They fear they will become new welfare beneficiaries who will be at the mercy of their new Case Manager (TEC).

The State Providers are understandably particularly nervous when the government of the day runs out of money, as they can no longer increase student fees.

As responsible citizens they know their budgets will not balance - without "bailouts" and new conditions attached!

Fact number four:

If the first three are on a collision course, let United Future add to everyone's thinking the distress when the PTEs are added next year!

They are the biggest slice of the cake ­with some 300,000 students or over 55% of the total!

All the State Institutions and the NZUSA students see these PTEs as potentially using their money.

·       If these PTEs were closed down, then tens of thousands of Maori and Pacifica students will be out on the streets unemployed.

·       The PTE staff and their families will be unemployed. So much for the "increasing jobs” slogan.

·       PTEs are businesses, which will be closed down ­ so much for increasing small businesses!

·       Investors and entrepreneurs will flee the much vaunted "knowledge wave" market of education. Burnt investors make lousy new investors!

So what is the government going to do when the heat gets white hot this year? The first shots have already been fired by the students and the Universities since the budget on Thursday.

The last fact:

Which is United Future’s PLEA.

Would the Minister and the TEC seriously consider long term implications of its fee maxima policies on the students and their families, on the cash strapped providers and on the over charged taxpayer?