WHERE WILL LABOUR GET THE MONEY FROM?

Education Minister Wyatt Creech today released background information highlighting the flimsiness of Labour's Tertiary Education Campaign.

"Labour should put detail and costings into their programme so as to have a proper debate on the issues. If Labour's implicit suggestions are taken as policy proposals clearly the price tag for the package is very large.

"The three suggestions from Labour (provided the assumptions are right) if adopted would require another $2.3* billion in the Budget, for not one extra student."

A dollar for dollar repayment subsidy on the student loan scheme would cost about $800 million* over the next three years based on forecasts of loan repayments.

Lower student fees - if fees were cut to $1,000 that would cost another $780 million* over three years.

Higher students allowances (assuming the abolishing of targeting from the existing allowances) would have a three year cost of $700 million*.

"Were these changes made, not only would there be no extra students, but the total tertiary education spending in one year would be about the same spent on primary and secondary schools in one year.

"The extra spending proposed by Labour in a year is more than currently spent on the police in one year. Looking at it another way the extra spending would also pay to run Auckland Hospital, West Coast hospitals, Bay of Plenty hospitals, Gisborne/East Coast hospitals, plus Invercargill/Southland hospitals, plus Wairarapa hospitals plus those in Rotorua," Mr Creech said.

* indicative/estimate

"Labour's claims about dropping participation are incorrect. The number of tertiary students in New Zealand has increased since 1990. I attach figures showing the growth.

"New Zealand tertiary fees are low compared with similar countries. I have released a report prepared by the Ministry of Education that compares fees with Australian and American tertiary fees.

"Labour also asserts that this country has a significant skills shortage and that this requires priority attention. I have checked with the Employers Federation and the Manufacturers Federation, and neither report general mass skills shortages problems. Yet Labour’s claims there is a massive problem," Mr Creech concluded.