Tanczos Nandor: Questions for Oral Answer — Questions to Ministers 
Tanczos Nandor: Questions for Oral Answer — Questions to Ministers 
[Volume:609;Page:6331] 
2.  
NANDOR TANCZOS (Green) 
 to the  
Associate Minister of Education (Tertiary Education) 
: By what percentage has the number of nurses graduating from tertiary institutions fallen since 1996 and has the average student loan debt of nursing graduates increased by a similar figure since that time? 
Hon STEVE MAHAREY (Associate Minister of Education (Tertiary Education)) 
: 
 Between 1996 and 2001 the number of people graduating from tertiary providers with a bachelor’s degree in nursing increased by 15.5 percent. Analysing student loan debt by qualification has been possible only since the student loan data integration project was implemented at the end of last year. It was not possible to obtain information on changes in average student debt of nursing graduates in the time available but I am willing to give that information to the member if he sends me a note. 
Nandor Tanczos 
: Even given the expected increase in the number of nurses graduating this year is he concerned that participation in nursing studies is significantly less than other areas such as law and commerce which have grown significantly over the past decade and is he concerned that 60 percent of nurses are considering going overseas because of student loan debt and what concrete and specific steps is he taking to address their student debt problem? 
Mr SPEAKER 
: That was three questions. The Minister may answer two. 
Hon STEVE MAHAREY 
: On the first question no. On the second question the Ministry of Education estimates that 7 percent of Bachelor of Nursing graduates were overseas in the year 2000. That compares with 8 percent amongst holders of bachelor’s degrees in general. The corresponding figure for doctors however was 17.5 percent. In other words nurses have a slightly lower propensity to leave New Zealand following graduation than holders of other first degrees. 
Mark Gosche 
: Have recent education initiatives addressed health workforce issues? 
Hon STEVE MAHAREY 
: Noting that the Minister of Health has a health workforce planning process under way there are two other initiatives in this Budget that are worth mentioning. First the cap on funded medical students will increase from 285 full-time students to 325 per year coming into effect next year. Secondly bonded scholarships will attract students into areas to meet pressing workforce needs. The Ministry of Health advises that its top priority is doctors and further announcements will be made about that in the near future. 
Barbara Stewart 
: Is the Minister concerned about the implications for the future of New Zealand when it has been reported that student loan debt has been cited as having influence over graduates’ decisions to have children—if they decide to stay in the country at all; and is the impact on community welfare given any weight in policy decisions in respect of the student loan scheme? 
Hon STEVE MAHAREY 
: The answer is yes it does concern the Government that there may be an impact on student choices around things like buying a business or having a family and so on. That is why we have moved so swiftly on the issue of student debt in the last 3 years. 
Paul Adams 
: In the light of the critical shortage of nurses in New Zealand and worldwide would the Minister consider measures to mitigate the financial impediments to studying as a nurse such as extending the interest-free period on student loans when a nurse agrees to a fixed-term position in New Zealand? 
Hon STEVE MAHAREY 
: Issues like that will probably be considered within the context of the work being undertaken by the Minister of Health. Of course we want to retain the nursing workforce but I point out the figures I have mentioned today in answer to other questions—that is in respect of the tertiary education system we do not have a problem in relation to nurses that is any different from a general degree. 
Sue Kedgley 
: Is nursing one of the professions the Government considers critical to the future success of New Zealand; if so why will nurses not be included in the recently announced $23 million package of bonded scholarships and research fellowships that has been developed to attract students into study and professions that are considered critical to the future success of New Zealand? 
Hon STEVE MAHAREY 
: Yes nurses are regarded of course as critical to the future of the country. But in the discussion around what is a relatively small amount of money for scholarships and bonding as we work out how that policy will work the top priority identified by health was doctors and that is where the money will most likely go. 
Sue Kedgley 
: Is the gender pay gap and gender loan gap that result in nurses struggling to repay average student debt of $20000 on a medium wage of $32000 being considered as part of the student support review and when can we expect to see this review which was due in May? 
Hon STEVE MAHAREY 
: I should point out that the time taken for nurses to pay back the loan as suggested by what is called the Iverson model—the one that was used for the nurses information released yesterday—differs greatly from the one that the Government uses which is the Tesler model. We would regard the Tesler model as much more accurate and it shows a much faster payback time for nurses. However those issues do concern the Government in terms of how long it takes to pay back debt and that is why we will continue to look at issues of allowances and the issues that the member has just raised around a student loan. 
Nandor Tanczos 
: In reviewing the student allowances as the Minister just referred to has he considered the particular issues faced by nursing students such as work placements and the hours and nature of study that make it difficult to maintain part-time or holiday work for these students and will he reconsider the Green proposal from way back in 1999 of introducing a universal student allowance? 
Hon STEVE MAHAREY 
: The Government is committed in its policy to extending access to allowances so that more students get a full allowance. The abatement period for that money allows more students to get more money before the abatement fully takes place and nurses will of course benefit from that.