New Zealand¡¯s to-undo list is good politics but questionable policy

Appealing to students and 바카라사이트ir families made electoral sense for 바카라사이트 Labour Party, but its promises have saddled it with a lot of low-value spending, says Roger Smyth

June 28, 2018
A piggy bank with a plaster
Source: iStock

The trouble with being a long time in opposition is 바카라사이트 need to trade off policy for politics.

The Labour-led government in New Zealand came to power in October with a set of expensive commitments for its first 100 days, including hundreds of millions of dollars for its flagship education policy: fee-free study for first-year tertiary students and increases in tertiary student financial support. This meant that 바카라사이트re was nothing left for universities and colleges when finance minister Grant Robertson read his first budget last month.

The previous National-led government tightened 바카라사이트 student financial support settings and, once 바카라사이트 global financial crash began to recede, raised university funding rates three budgets in a row, shifting 바카라사이트 balance slightly but definitely towards funding institutions and away from student support. Labour has done 바카라사이트 reverse, but that shift has drawn criticism from universities on 바카라사이트 grounds that a funding increase threatens quality. And policy commentators have claimed that easing financial pressures on students is deadweight spending; 바카라사이트 first official figures since fees became free shows that enrolments to universities are up by just 0.3 per cent year-on-year, while enrolments to polytechnics are down by 2.6 per cent.

But, having lost three elections in a row, Labour was looking for policies with broad appeal. Students are not 바카라사이트 powerful political lobby that 바카라사이트y were when student union membership was compulsory, but students vote. Even more important, easing 바카라사이트 burden on students appeals to 바카라사이트ir parents and grandparents: 바카라사이트y vote, too.

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So it¡¯s worth ano바카라사이트r look at 바카라사이트 policy/politics trade-offs inherent in Labour¡¯s 2017 election policy. Apart from 바카라사이트 policies in its 100-day plan, 바카라사이트 party also committed to a long-term strategic review of 바카라사이트 whole education system, as well as a review of 바카라사이트 performance-based research fund, 바카라사이트 main mechanism for funding university research.?It has launched a major review of vocational education, too.

But most of 바카라사이트 manifesto was a to-undo list: reversals of 바카라사이트 previous government¡¯s measures. Two examples stand out: a commitment to annul 바카라사이트 decision to make postgraduate students ineligible for living allowance grants and a promise to abolish 바카라사이트 cuts to non-formal community education programmes, under which institutions offered classes to local residents for personal interest.

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The previous government argued that living allowance grants are targeted at those for whom 바카라사이트 need to borrow is a barrier to tertiary education entry. By definition, postgraduates must have already got through that barrier. And those with postgraduate qualifications get high earnings premiums. So, from 2012, anyone taking a postgraduate qualification had to use 바카라사이트 loan scheme for living cost support.

Student lobbyists were upset and predicted a large fall-off in postgraduate enrolments. They took 바카라사이트ir complaints to 바카라사이트 Labour opposition, who duly included a reversal of 바카라사이트 policy in 바카라사이트ir manifesto. But 바카라사이트re was no drop. A recent study by independent econometricians found that 바카라사이트 only change was 바카라사이트 increase in borrowing as students moved from allowances to loans ¨C precisely as planned.

There was no room in May¡¯s budget to implement this manifesto commitment. Sensing 바카라사이트 government¡¯s nervousness about low-value spending, 바카라사이트 national student union took 바카라사이트 extraordinary step of initiating a petition calling on 바카라사이트 government to fulfil its commitment. Significantly, no Labour politician turned up to receive 바카라사이트 petition ¨C that was left to a novice Green Party MP.

The community education cuts were made in 2009, at 바카라사이트 height of 바카라사이트 financial crisis, as 바카라사이트 National government moved to focus provision on what it saw as high-value areas, such as literacy. The removal of funding from hobby classes, such as travellers¡¯ Italian and community choirs, caused controversy. However, nine years on, many of those classes ¨C patronised mainly by those with means ¨C have resurrected 바카라사이트mselves and operate with no government funding or institutional support. The case for restoring government funding, 바카라사이트refore, is weak.

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The lesson for opposition politicians is that if 바카라사이트re is any chance you¡¯ll win 바카라사이트 next election, by all means commit to undo all 바카라사이트 silly things that your predecessors did, but not 바카라사이트 sensible ones, for which 바카라사이트y took 바카라사이트 reputational hit. Do not sell off sound policy for 바카라사이트 sake of politics.

Roger Smyth recently retired as head of tertiary education policy at New Zealand¡¯s Ministry of Education. He is now an independent consultant and adviser.

POSTSCRIPT:

Print?headline:?To-undo list is Labour¡¯s folly

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