Choudhary Ashraf: Student Loan Scheme Amendment Bill (No 2) — Third Reading 
Choudhary Ashraf: Student Loan Scheme Amendment Bill (No 2) — Third Reading 
[Volume:638;Page:8288] 
Dr ASHRAF CHOUDHARY (Labour) 
: 
Alaikum salaam. What brought me to politics was the excesses of the National Party in the 1990s. What hit me was the class system that was brought to New Zealand politics particularly in the area of education. Some people could afford to go to the universities but those who could not afford to had to get loans and they had to pay interest on that while they were studying or after their graduation. 
So I am delighted that Labour has since 1999 started to reverse some of those policies particularly in this area of education where we pretty much started a campaign to rectify the excesses that were brought to us in the 1990s. First of course we got interest-free loans while students were studying. This is the second stage of that campaign to have interest taken off altogether when students have graduated and while they are working in New Zealand. I am delighted to rise and support this bill because it is designed to bring a fair and just society particularly in the area of education so that our young people can afford to go to universities polytechnics and other tertiary education institutions. 
I would like to make some comments on the speech made by my colleague over there Hone Harawira about Maori education and how students of Maori extraction are having difficulty in studying. Unfortunately I have to say that I think that speech was very cynical. I know the Maori Party supports this bill but that speech was very cynical in a way. I will tell the member why I say that. It is because education is fundamental to human development. Education is what makes us understand what is around us. It makes us understand the nature of things and makes us better at decision making. I will tell members about education and Asian people. Why do so many Asian people come to New Zealand? One of the major attractions is to get their children educated in New Zealand because we have one of the world’s best education systems here. They come here to get their children educated so that they can do well in life. 
I am surprised that the member of the Maori Party Hone Harawira has been very cynical about the loan scheme. Today of those students graduating from our high schools 50 percent more Asian students than Pakeha students obtain university entrance. That is because Asian students and their parents value education. I think the message there is that the parents have to make sure their children go to high school and to universities or other tertiary education. It is important for the State to make sure that these students have the opportunity to go to higher education. It is important that every family has the opportunity to send their sons and daughters to tertiary education. Among the ethnic communities nowadays we see a whole lot of young people who have more opportunity to go to university now with this scheme where students can have access to loans and do not have to pay interest. The ethnic community including the Asian community and particularly the new arrivals is usually at the bottom of the heap in economic terms. So this scheme allows them to make sure their children go to universities and get higher education. 
 Now with the interest-free student loan scheme we have more students in tertiary education than ever before. That allows for these students not only to study here but also to go overseas. Previously postgraduate students alone were registered but under this bill undergraduate students are also able to go overseas and enhance their study. I think of some areas in this country like science technology and engineering—and sometimes other areas like health for example which was highlighted earlier in terms of eye surgeons and other surgeons—where some of our universities do not have all the facilities available. I am delighted that this scheme allows students to go overseas for up to 3 years and enhance their education particularly in the postgraduate area and in the areas of technology engineering and medicine. For example my own young son is becoming a vascular surgeon and he is planning to go overseas because some of his education is probably not fully available here. I am sure he will be coming back to help us here in this country. 
Labour’s policy is to make sure that we have quality and relevance in our education because previously in the 1990s it was all about “bums on seats”. Now we are working towards improving our tertiary education so we can have a funding allocation for our institutions that allows better quality and relevance for students in education. 
This bill I must say is very important particularly in relation to the amnesty of 1 year on student loans. This will also allow non-resident borrowers in arrears the chance of a fresh start. That is very important because some of the students who have gone overseas cannot afford to repay their loans while they are working. As has already been highlighted some graduates go overseas to do not only postgraduate work but also some kind of community work—for example in the United Nations—or in similar organisations or non-profit institutions in developing countries. 
It is important to realise that this bill allows for data to be matched between the Inland Revenue Department and the Customs Service so they can make sure they have information available about the graduates who go overseas so that on their return they can be assessed for repaying their loan. It is very important that these steps carry on for our young students so that we can give opportunity to our future generations to get educated. 
I particularly come back to the point I raised earlier in relation to Maori education. In the Education and Science Committee right now we are doing an inquiry into making every child successful. I know that the member from the Maori Party is making a very good contribution in terms of understanding why some children are failing. We all know that at the moment at the bottom of the heap a quarter of the students who are failing are more likely to be either Maori or Pacific Island students and it is important for the parents to make sure our children are getting education. Schemes like the interest-free student loan scheme are enhancing the opportunities for study. 
Finally I say the select committee has done a marvellous job under the chairmanship of Brian Donnelly who is a very good chairman. The Opposition members in the committee have been working very well and have been contributing hugely. I am delighted that we are working very cooperatively and well. Thank you very much.