Little Andrew: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeLittle Andrew: Oral Questions — Questions to Ministers[Sitting date: 02 March 2016. Volume:711;Page:9285. Text is incorporated into the Bound Volume.]2.ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Does he have confidence in his Minister for Tertiary Education Skills and Employment given the Student Loan Scheme Annual Report 2015 forecasts student loan debt will hit $15.458 billion this year?Rt Hon JOHN KEY (Prime Minister): Yes; not only do I have confidence in Mr Joyce but I am actually immensely proud of him because he is the Minister under whom we have seen the student loan balance growing at the slowest rate in more than a decade. What a remarkable achievement that has been under his leadership.Andrew Little: Does he even accept that forcing young people into $15 billion worth of student debt creates a barrier to study and puts off other life opportunities like owning your own home?Rt Hon JOHN KEY: I think the term “forcing” people is incorrect. Actually people do take student loans and they take them because they know that if they have an undergraduate degree they will earn 46 percent more on average after 5 years. That is a very sensible investment.Andrew Little: Does he agree with the New Zealand Herald and the Dominion Post that supporting the Kiwi Dream by investing in free education is a better use of taxpayers’ money than his plan to borrow for tax cuts?Rt Hon JOHN KEY: Firstly I would not jump to conclusions on what policies National will or will not be implementing. You have to wait for those. But I think putting more money into student loans at a time when 70 to 80 percent is already paid for by taxpayers when you would be essentially asking lower-paid New Zealanders to cross-subsidise people who will be earning more does not seem to make a lot of sense to me.Andrew Little: Will he come with me this afternoon hand in hand if necessary to Massey University and explain why he wants to give tax cuts for the wealthy instead of reducing the $15 billion student loan burden?Rt Hon JOHN KEY: Well if the member will come on TV tonight and say that he is going to vote for the new New Zealand flag I will come hand in hand with him to Massey University sure. [Interruption]Mr SPEAKER: Order! Order!Hon Annette King: That was pathetic.Mr SPEAKER: Order! When I am on my feet the Hon Annette King should not continue to interject.Andrew Little: Is not the reality of the situation this: that his state of the nation reheated policy was just a reheat and a flop and Labour’s fees-free policy has drawn praise from across the land?Rt Hon JOHN KEY: I think it is a dangerous precedent to get into a “my press coverage is better than your press coverage” argument but I remember when we announced that we would be joining with Auckland City to fund the City Rail Link when we went in there and said the East-West Link would be developed when other important regional roads like Mt Messenger would be completed—I remember the press coverage from that and then I remember the press coverage from the announcement from Labour. Actually that is right there was not much coverage and that is why we keep getting asked these questions every day because they are hoping to reheat their failed policy. The simple reason why there was not much press coverage is this: for the policy to be implemented they would not only have to win one election Labour would have to win four—Mr SPEAKER: Order! [Interruption] Order! The answer is quite long enough.Andrew Little: Given the public’s support for Labour’s fees-free plan which is presently running at 2 to 1 will he just level with me for a moment? When can we expect him to adopt this as National’s policy given his adoption of other policies he hated like KiwiSaver interest-free student loans Working for Families?Rt Hon JOHN KEY: It is certainly true that under a National-led Government we have continued with policies like interest-free student loans. I accept that. But actually here is the rub is it not—Grant Robertson: You hated it though.Rt Hon JOHN KEY: Well I thought there were some real issues with it but actually here is the point: Mr Joyce has dramatically improved that because under Labour student debt grew at 11.6 percent. Under National it grows at 4.2 percent and is predicted to be at 2.8 percent. We are very happy with our policies and they are working well thank you very much.Andrew Little: When will he just admit what everybody else knows that Labour’s vision for free education in the 21st century is in every Kiwi’s best interests?Rt Hon JOHN KEY: I do not think it is in every Kiwi’s best interests if you are asking a lower-paid New Zealander to pay more of their taxes to someone who is going to earn a lot more. I think the balance is set about right and I think most New Zealanders can see that yes it is worth investing in our people for tertiary education but when we are paying 70 to 80 percent of the bill it is about right.