Macindoe Tim: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeMacindoe Tim: Questions for Oral Answer — Questions to Ministers[Sitting date: 16 April 2014. Volume:698;Page:17319. Text is incorporated into the Bound Volume.]8.TIM MACINDOE (National—Hamilton West) to theMinister for Tertiary Education Skills and Employment: What progress has the Government made in ensuring overseas-based student loan borrowers meet their obligations to New Zealand taxpayers?Hon STEVEN JOYCE (Minister for Tertiary Education Skills and Employment): We are making very good progress in what is a big project. There are around 110000 student loan borrowers overseas and repayment of their loans by them has historically been very low. The previous Government put it in the too-hard basket. In 2010 we launched a comprehensive programme of work to improve repayment rates and borrowers do need to know that when they go overseas their loan does not disappear; their obligation to repay it continues. Today I was able to announce with the Minister of Revenue that the Inland Revenue Department has now received over $100 million extra from overseas borrowers as a result of this initiative. As I say it is a good start on tackling a large problem. For every dollar the Government has invested in this initiative taxpayers have received about $11 in additional repayments so it has been a very worthwhile investment.Tim Macindoe: What tools has the Inland Revenue Department been using to increase repayments from borrowers who are based overseas?Hon STEVEN JOYCE: Well it is a multi-agency initiative and the first thing we did was make it easier for overseas borrowers to actually repay their loans. The Inland Revenue Department set up toll-free phone numbers for borrowers in Australia and the UK and they can choose from four online money transfer companies offering fee-free services and they waive the convenience fee for credit or debit cards as well. The Inland Revenue Department has also been advertising on social media directly contacting borrowers working with private debt collection companies to assist in tracking and collecting from borrowers in default and taking legal action against those who continue to ignore their obligations. It is important that they do meet their obligations to the people who have supported their tertiary study wherever they are in the world.Tim Macindoe: How has the Inland Revenue Department been working with other Government agencies to increase repayment rates?Hon STEVEN JOYCE: Well recently we had an information-sharing agreement signed between the Inland Revenue Department and the Department of Internal Affairs so that passport applications to the Department of Internal Affairs are matched with the Inland Revenue Department’s database of overseas-based loan defaulters. Since October last year as at earlier this year over 500 contacts have been made and repayment arrangements totalling $1.2 million have been set up from that initiative alone. Thirteen borrowers actually immediately paid their loans in full. The Inland Revenue Department is also notified by the Customs Service now when overseas-based borrowers in serious default return to the country. Over $2 million has been received as a result of contacts through that approach. Finally the Inland Revenue Department now has the ability to seek an arrest warrant to deal with the most serious cases when all other efforts to persuade the borrower to make repayments have failed. It has received over 3000 calls from overseas borrowers since this power was introduced through the Student Loan Scheme Amendment Act 2014.