Woodhouse Michael: Student Loan Scheme (Repayment Bonus) Amendment Bill — First ReadingText is incorporated into the Bound VolumeWoodhouse Michael: Student Loan Scheme (Repayment Bonus) Amendment Bill — First Reading[Sitting date: 05 May 2009. Volume:654;Page:2839. Text is incorporated into the Bound Volume.]MICHAEL WOODHOUSE (National):I am delighted to rise in support of the Student Loan Scheme (Repayment Bonus) Amendment Bill. This is the last call in a debate that has been quite robust but frankly in the case of the Labour Opposition somewhat nonsensical. It really beggars belief does it not that Labour members can stand up and claim with straight faces that this bill is not good for students who are saddled with debt. We have just heard from the member for Rimutaka Chris Hipkins. He is so keen that he will take a call on just about anything and argue against it. He argued that in effect this bill is so good that there must be a hidden agenda. He has seen through it; there is a hidden agenda. This Government actually wants to encourage students to get out of debt sooner so that they can get on with their lives under less of a burden. That is it; that is all.But the most extraordinary call came from Labour’s tertiary education spokesperson herself Maryan Street. In her best Sylvester the Cat elocution she accused the Government of being duplicitous. How on earth the Government sticking to its campaign promises and delivering its policy agenda in a timely manner is duplicitous only she could explain. I will tell members what is duplicitous. It is duplicitous when a Government spends 8 years barely mentioning a policy then rolls it out 4 weeks before an election as the previous Labour Government did with its cynical universal student allowance policy—8 years. I searched the Labour Party’s website for any reference to a universal student allowance and I found none.As recently as August last year the then tertiary education spokesperson Pete Hodgson incurred the wrath of the New Zealand University Students Association at a conference in Dunedin by saying that the policy was not on Labour’s agenda. Even in this Chamber a couple of months previous to that in a debate about the concerning levels of student debt when asked by a New Zealand First member whether Labour would introduce a universal student allowance Mr Hodgson said “… I have other priorities. I need to pay attention to the quality of tertiary education. I need to ensure that the completion rates continue to rise.”—and here is the real kicker—“I need to ensure that access—especially for Māori and Pacific Island students which is well below par—must be increased. These things all cost money and I happen to place them above the move to a universal student allowance.”Well that must have really warmed the hearts of Te Ururoa Flavell who spoke in this first reading debate and his Māori Party colleagues. He must have been encouraged by such commitment but then destroyed by the announcement on 14 October last year at a rally in Dunedin that this not only was part of Labour’s agenda but also was a long-held vision of the then Prime Minister. That is duplicitous.Ms Street also claimed in her speech that “it makes no financial sense to pay off more than is required of a loan that is generating no interest.” Hang on is she not a member of the same Labour Party whose former member Mark Gosche said in response to accusations that an interest-free scheme would be abused: “It is like saying that all the students will go and borrow this money because it is free.” I am glad to say that very few people think like that. We now have Labour members saying “It’s free! Don’t worry about paying it back.” That is duplicitous.Is this the Labour Opposition’s new approach to debt reduction? We know that New Zealand household debt is high in comparison with other OECD countries. It increased fivefold in the last generation and more than doubled as a percentage of disposable income. But 24 hours after the previous Minister of Finance made his valedictory speech expressing concern that the Government “still has not grasped the significance of the profound contribution that the growing gap between saving and borrowing economies has made to the present economic crisis” Ms Street is telling people not to bother getting out of debt even when they are incentivised to do so—24 hours after the second parent departs the Labour children are acting like the Lost Boys.The member for Hutt South is a very clever and experienced politician and I take the opportunity to congratulate him on his return to the front bench—out of the cold of Coventry and back into the sunlight of the front. He probably could not resist the opportunity to take a call to say that black is white that night is day and that this opportunity would not be picked up by students because they pay no interest on their debts. He said that smart students will take the money they would otherwise earn in interest put it in the bank and not pay down the interest-free debt. He challenged the accountants amongst the National caucus to say that this would not happen.I am a chartered accountant so I will give my professional opinion. This is an outstanding opportunity for students and here is why. Let us say that the member for Hutt South has a mortgage—he is clearly far too old to have a student loan.By some serendipity the bank offered him a zero interest rate that required him to repay the principal by regular instalments. Any extra payments would be supplemented by a kindly benefactor thus reducing the number of regular payments he has to make and getting him out of debt sooner.Trevor Mallard would have us believe that he had turned down the supplementary principal payments because the interest is free. It does not make sense. Even he who was giving a quite convincing performance does not believe his own speech. He got a good way through the speech and then let the cat out of the bag by saying that graduates could save the money earn the interest off it and then pay their loan. I think he said that they could do it in the last 18 months or so. What he did not say was that the only way a graduate could take advantage of this would be if the bill was passed into law. I accept that he supports it; he just does not want to say it. All power to any graduate who is disciplined enough to do the savings thing and then repay it at the end but I expect most will be happy enough to take advantage of the Government’s incentive to reduce debt quicker. Mr Mallard is really telling the House that he thinks this is a good bill; he just has to shout it down like a good Opposition member.It is also interesting to note which Labour members were not there. Where was Iain Lees-Galloway whose electorate is very much dependent on students? Where was Pete Hodgson the Dunedin North MP? Where was the Labour member for the electorate that has the largest university in the country? Oh hang on—she lost her seat so she is next on the list. Well that is rejuvenation for you! I think those people are not taking part in this debate because they know that they will have to front up to their student electorate and explain why they oppose this very sensible legislation. Instead we have people like Mr Hipkins and Mr Nash a fellow who became a bit confused about following like sheep and tried to put us all to sleep like we were counting them. If his name was a bit different he would in all likelihood be on this side of the House because his lack of enthusiasm certainly suggests he does not support this bill.Although this bill is being introduced in the name of the Hon Peter Dunne—and I acknowledge the excellent work he has done in bringing the bill before this House—I also pay tribute to the hard-working Minister of Education the Hon Anne Tolley for her sterling work not only in bringing this very important National policy to this point but also for the timely manner in which she is delivering on the promises that National made prior to the election around the education portfolio. I strongly support this bill. It will be good for students. It will arrest a mildly concerning rise in student levels of debt. I look forward to its passage through the House for the benefit of our students and all of our graduates. Thank you Mr Assistant Speaker.