Fees-free education for 80,000
About 2000 extra full-time students are expected to take advantage of free tertiary study next year.
The Government has confirmed its 100-day promise to deliver the first year of fees-free post-school training and education, which includes industry training, from January 1 next year.
The short time frame officials have had had to implement this policy caused some concern for Treasury, who noted in their advice that it was ‘‘unusual’’ for Cabinet to be asked to approve a proposal with ‘‘this level of expenditure without having the final appropriations before them’’.
‘‘Cabinet should expect that when it is making policy decisions on future proposals of this magnitude, outside of these time pressures, the paper will contain the full financial implications at the time,’’ Treasury said.
Education Minister Chris Hipkins said the short timeframe for the free tertiary policy was down to the ‘‘electoral schedule’’, which Government agencies ‘‘don’t get to determine’’.
‘‘We’ve had to do it within the restraints that we’ve had following an election.’’
A total of 80,000 Kiwis will be eligible for free tertiary education for their first year, which along with the $50 increases to student loans and allowances has been costed at $380 million.
Prime Minister Jacinda Ardern, who announced the policy at Aotea College in Porirua yesterday, said those students who took up the free year study and didn’t pass their courses wouldn’t be eligible for the second year of free study due to start in 2020.
Students who have completed no more than half of a full-time year’s study would be eligible for the free fees and Ardern defended not offering the entitlement to students who had completed more than that but not been able to finish because of financial burden.
‘‘We thought through a range of options but ultimately we had to consider a cut-off and we had to consider simplicity and affordability.’’
She said over the years it had become easier to study, from the days when interest was removed from loans while studying to full interest-free loans in 2005 and ‘‘now we’re taking this next step’’.
‘‘What I’m asking of these students of the past is just to remember how hard it was and acknowledge we want it to be better for those in the future even though they may not be a beneficiary.’’
One of those future students who will benefit is Aotea College 17-year-old Denzell Christian, who is heading to Otago University next year to study commerce.
He says the free policy makes a huge difference to him as he comes from a low-income family.
But even more importantly the increase to the student allowance means he’ll have $65 a week left over after paying for his accommodation instead of the $15 he would have had under the old regime.
‘‘Coming from a lower income family any financial help I can get is weight off my shoulders and my family’s shoulders . . . this will be a huge help,’’ he said.
‘‘I can see quite easily people being deterred by that financial burden.’’
National’s tertiary spokesman Paul Goldsmith says the new policy is an ‘‘incredibly expensive and untargeted way to go about Government spending’’.
He suspects it will lead to an ‘‘enormous amount of wasteful spending in the tertiary sector’’.
‘‘Under the criteria we’ve got today you’ll be able to do diplomas in golf tournaments, skydiving and homeopathy.’’
‘‘People might decide later in life they’re going to work on the golf swing and this is something they’ll be able to do under the free fees. It takes us back to the old era of wasteful spending on hip hop, dancing and family seances that we saw in the past,’’ he said.
Not targeting those most in need has also been criticised by Goldsmith, who says the Government is instead ‘‘paying for everybody’’.