Woods Megan: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeWoods Megan: Questions for Oral Answer — Questions to Ministers[Sitting date: 11 April 2013. Volume:689;Page:9294. Text is incorporated into the Bound Volume.]8.Dr MEGAN WOODS (Labour—Wigram) to theMinister for Tertiary Education Skills and Employment: Is he still confident that post-graduate students will simply convert to borrowing for their living costs following his abolition of student allowances for post-graduate study that became effective on 1 January 2013?Hon BILL ENGLISH (Deputy Prime Minister)on behalf of theMinister for Tertiary Education Skills and Employment: The Minister would expect a large number of postgraduate students will borrow for living costs. A number will also choose to undertake paid part-time work and a number may leave study to enter the full-time workforce. That choice will be up to individual students and their own circumstances. I point out to the member that an increasing number of students entering the workforce is what happens in an improving economy.Dr Megan Woods: Does he then consider that his abolition of postgraduate allowances contributed to the fall in postgraduate numbers at the University of Otago for the 2013 academic year?Hon BILL ENGLISH: It is possible that it may have contributed. But you have to remember that this is in the context of the sustainability of student allowances for all tertiary students. Student allowances in 2007-08 cost $385 million. By 2010-11 they had gone up to $620 million. So student allowances continued to rise just when the Government was running large deficits and in order to make student allowances sustainable we have trimmed the scheme.Dr Megan Woods: Is he then agreeing with the vice-chancellor of the University of Otago Professor Harlene Hayne that the drop in postgraduate student numbers was almost certainly the result of students deferring postgraduate study because of financial considerations brought about by his Government’s decision to abolish postgraduate student allowances?Hon BILL ENGLISH: No I do not agree with the vice-chancellor that that is almost certainly the case. Students make a range of choices in response to both this policy change and more important for postgraduate students in response to job opportunities in the economy. It is quite likely that as the economy continues to recover more students having already achieved a tertiary qualification will opt for work rather than further postgraduate study.Dr Megan Woods: Given that of the 1000 fewer than expected students at the University of Canterbury in 2013 around 100 are postgraduate students—that is a 12 percent decline in postgraduate students versus a 7.5 percent decline in undergraduate students—does he consider that his abolition of postgraduate allowances hascontributed to the fall of enrolments and has put further pressures on an already financially strained university?Hon BILL ENGLISH: Well the leadership of Canterbury University has speculated publicly about a range of reasons for the drop in enrolments—and the member is right it does put some more stress on that university—but you would have to say in that case that a combination of job opportunities in Christchurch particularly but also across the rest of New Zealand and the ongoing difficulties it has grappling with the effects of the earthquake it is not surprising that there is some change in student behaviour in respect of Canterbury University.Dr Megan Woods: Given that he has just outlined a range of factors contributing to the financial pressures at the University of Canterbury and that the university has committed to submitting its business case on time will he commit to an October deadline for deciding the full extent and timing of Government support that ensures the continuation of a broad-based and research-intensive University of Canterbury?Hon BILL ENGLISH: The Government of course would want to make a decision as quickly as it could but that will depend to a significant extent on the quality of the business case. But the member needs to remember that she cannot have it both ways. Her party portrays itself as a party of fiscal responsibility. It cannot then go opposing every single measure that leads to keeping the books in better shape.Tracey Martin: Has he seen any reports of any other group of New Zealand citizens being required by their Government to borrow to live; if not does he believe that this is discrimination?Hon BILL ENGLISH: It is quite common for New Zealanders other than students to have to borrow to live. It is called an overdraft. A lot of small businesses actually get from one end of the year to the other on the overdraft and they are pleased if it is cleared. Those overdrafts are paying wages and drawings for the people who run those businesses. It is the same for individuals who run overdrafts so I do not think it is at all uncommon. Students have the privilege granted to them by the public of New Zealand of having interest-free student loans and I think most students appreciate that.