Party questions graduate tax idea

Press, 28 September 1988, Page 1

Party questions graduate tax idea

By

GLEN PERKINSON and JENNY LONG

The proposal to tax university graduates is in breach of both Labour Party policy and a United Nations agreement on education, signed' by New Zealand.

That became clear as reaction grew yesterday against the graduate tax proposal, which has been recommended by the Hawke report on post-compulsory education and training. The report, commissioned by the Government, was released this week. Students would be faced with debts of up to $40,000 at the end of their tertiary study, if the tax were introduced. Students would pay 20 per cent of their course fees, at a real interest rate of 3 per cent. The Labour Party president, Ms Ruth Dyson, said yesterday that the Government would need the party’s consent if it intended to introduce the tax. Anything that contradicted party policy or was not contained in it would have to go through the consultation process laid down at the party conference earlier this month, she said. In its manifesto, the Labour Party said it would ensure “that tertiary students are not required to pay a higher contribution to their own education than they do at present.” The United Nations convention, to which New Zealand is a signatory, contains the pledge that signatories will make higher education more accessible to all, “in particular by the introduction of free education.” , However, Professor Hawke, the convener of the report which advocates the tax proposal, said yesterday that New Zealand should withdraw from the agreement. The Human Rights Commissioner in Auckland, Mr Graeme McCormick, had earlier said that the Government was honour bound by the agreement, although it was not strictly New Zealand law. “There may be some legal opening which would let the Government introduce the tax and remain a signatory,” he said yesterday. “But that does not make it any more acceptable socially or politically.”

Professor Hawke said he believed that the section of the United Nations convention dealing with higher education did not apply to tertiary students. The working party had sought advice from “a Government department” about the implications that the proposal to charge for education would have on New Zealand’s adoption of the convention. Professor Hawke said that other signatories made charges for c tertiary education and so New Zealand should be able to do so. “We would (otherwise) have explored the situation more carefully and drawn attention to it, 'and recommended New Zealand withdraw from the convention. “My advice to the Government would be to withdraw.” The Associate Minister of Education, Mr Goff, would not comment on the convention last evening. However, the Minister of Justice, Mr Palmer, said the Government could place a reservation on the specific clause of the convention allowing it to charge tertiary students. But the Government’s social equity committee and the Cabinet would be looking closely at the convention when considering the Hawke report. No policy decisions would be made on the report until the period for public submissions expired, Mr Palmer said. When releasing the report this week Mr Goff did not publicly endorse it and it is believed his Cabinet and caucus colleagues oppose the introduction of the 20 per cent charge. A graduate tax would be open to “rip-offs,” said the Opposition spokesman on education, Dr Lockwood Smith. Students could take advantage of the Government loan, gain their degree and then leave New Zealand to work overseas. It was just' one impracticality of the Hawke report’s recommendations, he said.

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