Paula Bennett questions if $236 million for fees free education is a good use of taxpayer money

November 27, 2018

Paula Bennett today questioned the Education Minister on whether the $236 million spent so far on the Government's fees free tertiary education policy "would have been better spent on teachers in the education system?" 

In Question Time, the National Party deputy leader asked if student and industry training numbers had dropped, with Education Minister Chris Hipkins defending the decrease of 2,402, saying that figure did not "reflect the shifting nature of participation".

Ms Bennett asked, "Does he believe that that $236 million would have been better spent on teachers in the education system instead of on fees-free for students that would have gone and studied anyway?"

"If we did away with fees-free, the students would borrow the money and the Government would have to lay it out anyway," Mr Hipkins replied. 

He said the students able to access fees free and their families "will be grateful for the fact that their student loan debts are significantly lower than they otherwise would have been, bearing in mind that the Government would have largely covered that cost anyway".

"We would've had to outlay the money through the student loan scheme, where we only recoup 55c in the dollar anyway.

"So, yes, I do think it was a good investment."

Ms Bennett asked if he was still planning to expand the fees free policy to second and third years. 

"That's a matter for future Budgets and for future Cabinet decisions," Mr Hipkins said. 

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