Hughes Darren: Questions for Oral Answer — Questions to Ministers Questions to Members 
Hughes Darren: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:670;Page:16814] 
6. 
Hon DARREN HUGHES (Labour) 
 to the  
Minister for Tertiary Education 
: How will he “build better value out of the interest-free student loan system” as he stated was his Government’s intention in his statement to Parliament last week? 
Hon STEVEN JOYCE (Minister for Tertiary Education) 
: 
 Could I take the opportunity to welcome the member to his new role which I understand was an accidental appointment. The Government remains committed to interest-free student loans but also believes that such a generous loan scheme should carry strong mutual obligations on those who benefit from it. This year— 
Hon Darren Hughes 
: I’ll do you a deal: I’ll do the jokes. 
Hon STEVEN JOYCE 
: He does not want to hear Mr Speaker. 
Mr SPEAKER 
: I just cannot hear the answer. 
Hon STEVEN JOYCE 
: I do not think that member wants to hear it either because he is the accidental— 
Mr SPEAKER 
: I invite the Minister to please start his answer again without the prelude to the answer because I did not hear the detail of it. 
Hon STEVEN JOYCE 
: Mr Speaker— 
Hon Shane Jones 
: That’s what he was like when he was on talkback radio. 
Hon STEVEN JOYCE 
: I ask Shane whether he is ready. 
Mr SPEAKER 
: Order! 
Hon STEVEN JOYCE 
: The Government remains committed to interest-free student loans but it also believes that such a generous loan scheme should carry strong mutual obligations on those who benefit from it. This year the Government has introduced rules on requiring reasonable academic progress a commitment from new residents to the country before they can access the scheme a maximum number of years one can access the loans and actions to chase down debts owed by borrowers who are overseas. We will be evaluating further options along these lines as part of a value-for-money drive which has so far seen the savings contribute to an additional 8200 university places this year since 2008. 
Hon Darren Hughes 
: Was John Key right to describe interest-free student loans as “fiscal insanity” and to say that “National would oppose such a policy with every bone in our bodies”? 
Hon STEVEN JOYCE 
: It is well known that the student loan scheme is very generous and I think that was what the Prime Minister was referring to. In fact the student support scheme in this country is possibly the most generous in the world. Therefore it is appropriate that it carries reasonable obligations. Under the previous Government we were writing off something like 49c in every dollar of student loans. We have so far managed to get that under 45c in the dollar and we are working to get it down further as well. 
Hon Darren Hughes 
: What is the Government’s view of the recommendation of the Savings Working Group that the Government reintroduce interest on student loans; and can he rule out his Government introducing interest on student loans in the unfortunate event that National is given a second term? 
Hon STEVEN JOYCE 
: The member’s listening skills need improvement because in answer to the primary question I said that we remain committed to interest-free student loans. I have also said so in response to media questions and the Prime Minister has also been reported as saying that as well. Perhaps we could have a little more research from the new spokesman on tertiary education. 
Hon Darren Hughes 
: How can New Zealanders trust a promise from National not to reintroduce interest on student loans given that it is the same party that said it would not increase the rate of GST? 
Hon STEVEN JOYCE 
: I think we can see from opinion polls in this country that this Government is actually trusted by New Zealanders. They understand that we are doing a good job of managing the economy and managing areas such as tertiary education. They continue to give the Government their support and we continue to see that support.