King Colin: Student Loan Scheme (Repayment Bonus) Amendment Bill — Second Reading In Committee Third Reading 
King Colin: Student Loan Scheme (Repayment Bonus) Amendment Bill — Second Reading In Committee Third Reading 
[Volume:657;Page:6606] 
COLIN KING (National—Kaikoura) 
: 
 It is indeed a pleasure to speak to the Student Loan Scheme (Repayment Bonus) Amendment Bill during its second reading. I would like briefly to cover off the intention of the bill the reasons why someone would take advantage of its provisions and some of the work that was given significant consideration by the Education and Science Committee. 
I will start off by saying that this bill is consistent with the National Party’s goals of creating incentives for people to get ahead. It is consistent with the National Party’s vision of aspiration and making the most of one’s opportunity. It is a worthy bill. It is designed to do two things: first to encourage students to pay back their student loans quicker; and second to reduce the cost of or add value to the student loan scheme. From that point of view I would like to go through some of the points that I think are good reasons why people will take up the opportunity. 
The select committee learnt that there are a significant number of people who are risk-averse or debt-averse and that these are the people who will take up the opportunity. We learnt that some 40000 people have paid off in effect more than the compulsory part of their payments. The projections from the officials are that this bill would increase that number by another 14000-odd to a level of 54800 people. 
Student borrowers who have completed their degree and are thinking of going overseas would be very wise to take up this opportunity while they still have that interest-free component. The facts and the figures also show that this bill is designed so that borrowers who are overseas can take advantage of the bill’s provisions. Fifteen percent of all borrowers in the student loan scheme are overseas and that is 77000 people. Of that number a significant proportion have overdue payments and they are a group that the Inland Revenue Department has great difficulty managing. It is expected that 4800 borrowers overseas will take advantage of this opportunity. There are also carers or parents who would like to give their children a first-class education with a debt-free start; those people will certainly take up the opportunity. A basic analysis of the figures shows that borrowers in the last 3 years of their student loan repayment schedule will be advantaged by doing that. 
I would like to take up the point mentioned by Mr Hipkins at the conclusion of his speech that there needs to be a safety or health warning for borrowers who enter into this situation. I suggest from my experience that the advice should be given long before students takes on a student loan to ensure they are undertaking education that they will see value in. There certainly is value in education but if in effect students do not take up those opportunities I say that it would be far better for them long before they start their studies to give consideration to taking on that debt or repaying it. 
In the debate on this bill Opposition members are effectively backing those who are privileged against the hard-working Kiwis. Members on the other side of the House want to take a serious look at themselves. They no longer represent the working class of New Zealand; they are a combination of university lecturers unionists and other people. 
This bill has a lot to recommend it. I am very confident that it will add value to a lot of people’s decision making and on that basis I take great pleasure in supporting it.