Nash Stuart: Student Loan Scheme Amendment Bill — First Reading 
Nash Stuart: Student Loan Scheme Amendment Bill — First Reading 
[Volume:675;Page:21376] 
STUART NASH (Labour) 
: 
 I will support the Student Loan Scheme Amendment Bill through to select committee consideration only because I have some major concerns about a couple of the provisions within the bill. 
However before I start I will say that this bill amends legislation that passed through this House about a month ago. I wonder why the provisions of this bill were not included in the original legislation because surely that would have saved Parliament a little bit of time and given certainty to a group in our society—that is students. I hope that perhaps the next time a student loan bill comes through the Minister of Revenue is a little bit more organised and we can get all these provisions into a single bill. 
Let me make it clear first and foremost that Labour supports any attempt by the Inland Revenue Department to ensure that students take responsibility for their loans. That is why we will support this bill going through to the Finance and Expenditure Committee. As Mr Woodhouse knows as a member of that select committee we have always supported Government bills that ensure that students take responsibility for their student loan repayments. However there are provisions in this bill that do concern me and I would like to run through them very quickly. 
For example excluding losses from investments in business from the calculation of net income for the student loan repayment concerns me as it may inhibit entrepreneurial activity at a time in a person’s life—that is straight out of university—when they may be in a position to undertake what may be termed riskier business behaviour. That is they have no children perhaps they have no mortgage and they are at a time in their lives when if it turns to custard there is still plenty of time to get back on their feet; if it is successful then that is fantastic. I will be interested to actually read the advice and thoughts of submitters officials and our expert advisers on this matter. 
I also have concerns about the legislative necessity for a borrower to provide a person’s contact name address and details. I understand what the Minister and the Inland Revenue Department are trying to achieve in principle. However I have concerns about the practicability of this step. We can work through this at the select committee but I ask what the liability or responsibility of these contact people will be in response to the Inland Revenue Department’s request for information on a student’s details. Like I say I have only concerns and questions; I have no doubt these will be drawn out and answered in the select committee process. I am just laying them on the table at the moment. 
A third concern I have is the shortening of the repayment holiday from 3 years to 1 year. Again I understand the thinking behind this change but my gut feeling is that it misses the mark. Young New Zealanders have headed overseas on their OE since ships sailed from these fine shores. By shortening that holiday period the Minister runs the risk of perhaps forcing young New Zealanders to stay offshore permanently as interest costs on their loan balance blow out. Leaving it at 3 years gives young New Zealanders the time to live a little—or a lot—to find a job that pays a little more than pulling pints or to return home and set themselves up to the point where they are ready to start paying off their student loan. I understand that the Inland Revenue Department has advised against this part of the bill so yet again I will be interested in hearing the advice from the department as well as from our expert advisers and submissions from interested New Zealanders. 
As mentioned Labour will support this bill to go through to select committee but many questions need answering before it gets Labour’s support beyond this stage even though we understand what the bill is trying to do in principle. I reiterate once again that we absolutely understand that every New Zealander who has taken out a student loan must accept responsibility for repayment of that loan. Thank you very much.