Ogilvy Bernie: Questions for Oral Answer — Questions to Ministers 
Ogilvy Bernie: Questions for Oral Answer — Questions to Ministers 
[Volume:625;Page:20448] 
8.  
BERNIE OGILVY (United Future) 
 to the  
Minister of Education 
: What was the single most popular suggestion amongst submissions made in response to the Government’s 2003 discussion document  
Student Support in New Zealand 
? 
Hon TREVOR MALLARD 
: I am advised that the most popular suggestion was a tertiary education pre-savings scheme although I am sure that United Future’s support for the scheme is based on principle rather than on the mass support and popularity that is evident for that scheme. 
Bernie Ogilvy 
: Can the Minister also confirm that those submitters stated they were in favour of a tertiary education savings scheme because it would develop an expectation that children would work towards participation in tertiary education and because the scheme would foster a savings culture and counteract the burden caused by student loan debt? 
Hon TREVOR MALLARD 
: I am going to plead guilty to not reading all the submissions but if the member gives me that assurance I will certainly support him and we will work together on having this very good savings scheme—as he has been pushing me to ever since I took over responsibilities in the tertiary area. I want to thank him for that. 
Lynne Pillay 
: What other steps has the Government taken to improve student support? 
Hon TREVOR MALLARD 
: Of course we do not have time to give the full list but a short list would have it that every year since the Government took office there have been initiatives—[ 
Interruption 
] Is someone causing that member some pain? She seems to be squealing. 
Madam SPEAKER 
: Would the House please settle. I think these questions and answers are worth listening to so would members please have silence while the Minister addresses the question. 
Hon TREVOR MALLARD 
: Every year since Labour took office there have been initiatives to make life a bit easier for students. We have frozen interest on loans while students are studying changed student loan repayment policy to make loan repayments easier and faster put an end— 
Judith Collins 
: I raise a point of order Madam Speaker. Did I understand you correctly? Are you saying now that we have to listen in silence to this drivel from the Minister? 
Madam SPEAKER 
: No. Other members in the House would like to hear the answer even if that member does not. So I have been asking for members please to keep the noise down and to note that some members have stronger voices than others. Would the Minister please address the question. 
Hon TREVOR MALLARD 
: Do you want me to start again? 
Madam SPEAKER 
: No I do not want you to start again; I want you to continue. 
Hon TREVOR MALLARD 
: We have put an end to spiralling fee increases. Under our Government estimated loan repayment times have decreased from 14.8 years in 1999 to 9.3 currently. That is why even Lockwood Smith described our loan scheme last week as “one of the best”. 
Keith Locke 
: How does the Government expect low and middle income parents to pay for their children’s tertiary education alongside their having to buy a house pay off their old student loan debts and save for their own retirement when this year’s March newsletter of the Ministry of Consumer Affairs and the energy safety service said that over the past 12 months 28 percent of families have had to borrow to pay for such essential things as food and power? 
Hon TREVOR MALLARD 
: Under the policies introduced as part of the last Budget there are families earning up to $62000 in which students—people under 25—are getting allowances. That is quite a high level of income and I would have thought that for a low-income family to put $250 $500 or $1000 into an account is relatively much more valuable than it is for a high-income family. 
Bernie Ogilvy 
: Is the Minister concerned that if a child does not undertake tertiary study the diversion of savings into superannuation may act to discourage parents from opting into that scheme when they are more concerned about giving their kids a kick-start in their adult life than providing a nest-egg for the end of their adult life and will he consider allowing them to use some or all of the money to buy a house or start a business instead as the Child Trust Funds set up by the Labour Government in the UK do; if not why not? 
Hon TREVOR MALLARD 
: I think the Government is still at the design stages of this and is certainly willing to have further discussions with the member around that. But I would say to the member that we do not want to take the approach that National took under student loans where the Government provided student loans for people to go to Bali and that sort of thing. We want this money if it is taxpayers’ contributions to be used for a worthwhile purpose. 
Bernie Ogilvy 
: Has the Minister considered alternatives for the way in which the funds may be directed into the savings scheme such as allowing extended family members to contribute allowing parents to divert a portion of their family assistance payments into the fund or encouraging the private sector to contribute through say loyalty reward schemes? 
Hon TREVOR MALLARD 
: I think the answer is yes to all of the above suggestions and almost certainly all of them will be included.