News

Support for tertiary education savings scheme

18 May 2005

Source:	NZVCC Electronic News Bulletin Vol. 5 No. 8 17 May 2005

Despite strong criticism from both university student and staff groups, the NZVCC has come out in support of the proposed tertiary education savings scheme.

The Committee has monitored progress on the scheme's development and has been briefed by its major proponent, Retirement Commissioner Diana Crossan. When the Government issued a media statement last week, calling for expressions of interest from groups seeking to run the scheme, the NZUSA described it as the "worst education policy move in a decade". However, none of the scheme's critics were able to say why families who wished to save for tertiary education – aided by a government contribution - should be denied the opportunity to do so.

Responding to the Government media statement, the NZVCC said it supported the scheme on the basis that it would encourage saving to meet the costs of tertiary education. Committee chair Professor Stuart McCutcheon pointed out that the reality was that students and their families would have to continue to share some of the tuition costs involved in tertiary education. That was not only the situation in New Zealand but also in many other countries which sought to increase tertiary education participation. 'Universities do acknowledge that for some students it will not be possible to save up for future study. People in this situation will continue to be supported through scholarships and the student allowance system. However, given the low participation rates of students who are disadvantaged by socio-economic status, more needs to be done in this area.' Earlier this year the Committee said the savings scheme was essential to break the impasse over the continuing controversy around student loans. Public concern over loan scheme debt obscured major issues facing tertiary education, including appropriate recognition of universities' key role in economic development.