The Government’s fees-free policy reset is at risk of following its predecessor in failing to incentivise tertiary study and only benefiting the more advantaged.
The warning is included in a Ministry of Education-led analysis, which found the “deadweight” policy to be so poor that it recommended axing it and spending the money elsewhere.
But keeping it in amended form – for the final year of study instead of the first year – was part of both the National-Act and National-NZ First coalition agreements.
Having the final year fees-free rather than the first year, is a better policy. But both versions of the policy basically transfer money from all taxpayers to students who will over time earn $1.5 million more on average than non-students.
National next election should campaign on abolishing fees-free altogether. We have a very generous student loan scheme, and the fees-free policies do not help poorer families go to university – it just transfers money to more well off families.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders
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