TWO YEAR PERMANENT RESIDENCY REQUIRED FOR STUDENT ALLOWANCE

The Government has confirmed that from 1 January 1999, students will be eligible for student allowances only if they are New Zealand citizens or have held permanent resident status under the Immigration Act 1987 for at least two years. In July 1998, Cabinet agreed that the criteria for permanent residents to gain student allowances should be adjusted.

Education Minister Wyatt Creech today outlined the rationale behind the policy changes. He acknowledged submissions made to him by MP Pansy Wong which reflected concerns within New Zealand's Asian community on this new policy direction.

"I very much respect Pansy's position. However, in order to address the impacts on New Zealand of the international economic downturn, the Government has found it necessary to curtail expenditure in several areas. In making the necessary savings, the Government is aligning its educational assistance with its welfare assistance and also aligning itself with overseas practice," Mr Creech said.

The policy changes bring in general policy consistency to this area by bringing the qualifying period into line with the criteria for Social Welfare benefits. There is currently a similar two-year stand down period before residents may obtain a benefit (this has recently changed from one to two years). The change also brings New Zealand into line with Australia which also has a two-year stand down period.

"There is nothing preventing students from undertaking study as the Government will still provide support through loans and tuition subsidies," Mr Creech said.

Permanent residents are eligible immediately for the tuition fees subsidy - unlike overseas students who must pay tuition fees to attend New Zealand Universities and other tertiary institutions - and may access the student loans scheme. Those people with refugee status would be exempt from meeting the two year residency requirement, Mr Creech said.