Rich Katherine: Questions for Oral Answer — Questions to Ministers 
Rich Katherine: Questions for Oral Answer — Questions to Ministers 
[Volume:639;Page:9037] 
5.  
KATHERINE RICH (National) 
 to the  
Minister of Education 
: Does he stand by his reported statement that his officials told ABC Learning Centres and Kidicorp that if the Government saw a line in their annual reports showing a return to shareholders that would make the Government question whether it was paying those chains too much in subsidies; if not why not? 
Hon STEVE MAHAREY (Minister of Education) 
: 
 I note that the member is not quoting directly from me but yes I agree with the sentiments expressed in the question. 
Katherine Rich 
: Does the Minister accept any responsibility for causing a near 17 percent drop in Kidicorp shares the day after his ill-judged comments and can he explain the process that followed in which he was forced to approve an embarrassing back-down in a formal statement before the NZX? 
Hon STEVE MAHAREY 
: I do not agree with the member that these comments were anything other than the policy of the Government—that is what I was expressing. I note that Kidicorp’s share price is as it should be. 
Dianne Yates 
: In what way does the Minister see 20 hours’ free early childhood education as being closely associated with the policy of no interest on student loans? 
Hon STEVE MAHAREY 
: I would observe that both policies benefit ordinary New Zealand families by reducing the costs of education. Also I would note that both policies have been attacked rather hysterically by the National Party but given its U-turn on student loans which was announced recently I am now looking forward to its concession that free early childhood education is also on the National agenda. 
Katherine Rich 
: Does the Minister know that according to official reports the New Zealand Superannuation Fund has a major shareholding in Kidicorp and also an interest in ABC Learning Centres and so his ideological opposition to making a return from education provision seems to be directly at odds with his own Government’s superannuation strategy? 
Hon STEVE MAHAREY 
: I am comfortable with the rules that surround the Superannuation Fund and its investments. 
Katherine Rich 
: Has the Minister discussed his comments about Kidicorp the reaction of the markets and his panicked back-down with the Minister of Finance Michael Cullen? 
Hon STEVE MAHAREY 
: The member whom the member is referring to was in the House yesterday; that is the discussion we would have had. 
Paula Bennett 
: Does the Minister think his statements threatening the profits of Kidicorp show a level of commercial naivety on a par with the Prime Minister’s comments about Air New Zealand in 2001 and does he accept some responsibility for the subsequent drop in share value that resulted from his comments? 
Hon STEVE MAHAREY 
: The member seems to be getting a little mixed up. I have no problem with services running a surplus that they reinvest in the quality provision of early childhood education but I am concerned when taxpayers get into a position where they are funding a service in the education sector—or indeed any other social service area—that is making high returns to shareholders. If the member’s policy is for New Zealanders to make high-dividend returns to shareholders she should go right ahead and campaign on it. 
Paula Bennett 
: Does the Minister intend to meet with Kidicorp explain his comments and apologise? 
Hon STEVE MAHAREY 
: Coincidentally Kidicorp is coming to see me today; there will be no apology. 
Madam SPEAKER 
: It is very difficulty to hear with all the private conversations going on. 
Katherine Rich 
: I seek leave to table the Minister’s comments which unfortunately had to be included in a formal statement before the NZX— 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? There is objection. 
Paula Bennett 
: I seek leave to table the  
Sunday Star-Times 
 article in which the Minister of Education issued a blunt warning to the country to— 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? There is objection.