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Monday, April 04, 2011

Generation X student loan focus ludicrous and offensive

Student loan rebuild plan 'offensive'
Two Hong Kong-based New Zealand graduates have slammed the suggestion overseas graduates should pay back outstanding student loans to help finance the Christchurch rebuild. In an open letter to the 85,000 graduates with outstanding student loans living abroad, New Zealander of the Year Sir Paul Callaghan yesterday urged students to repay their loans, in particular the 35,000 Kiwis abroad who are behind in their repayments. With an average debt of $17,900 overseas graduates owe $2 billion - "30 per cent of the $7 billion that New Zealand taxpayers will have to contribute through the Government's contribution to the rebuilding. Sir Paul said those who repay their loans will be "acting heroically".

How offensive is this to Generation Xers? 'Oh hey, you clever buggers who managed to escape the gravity of home all have to pay your outrageously high student debt back to help rebuild Christchurch, but those who have done best from the tax cuts don't have to put their hand in their pocket'.

This would be the student debt which was made worse by a total lack of living allowance, that student debt Lockwood Smith lied on television to Lindsey Perigo over, that student debt that incentivize our best and brightest to flee the country to earn over seas cash that could pay that student debt off faster. You want those people to pay?

Don't get me wrong. I'm all for rebuilding our beloved Christchurch, and the people of Christchurch deserve no less, asking the Generation who were sold into debt slavery for an education that enriches the totality of society to pay when the 600 millionaires who have earned $1000 per week since the tax cuts aren't asked for a levy first.

The salt in this wound is that National will announce a cutting of interest free student loans. Think about that, the only broad policy we have to keep educated NZers in NZ, interest free loans, is about to be dismantled. The National Party were screaming about the brain drain before the election, but are now throwing out the only incentive to keep our educated in the country.

Found $1.7billion for Mr Magoo at South Canterbury Finance though.

PM called a liar over Hubbard affair
Prime Minister John Key was called a liar when he fronted a meeting in Timaru last night packed with vocal Allan Hubbard supporters. The Government placed Mr Hubbard, his wife, Jean, and related companies into statutory management last year. Hubbard headed the Timaru-based South Canterbury Finance which collapsed on August 31 last year after it failed to get a recapitalisation together. The Government paid out $1.7 billion to cover investor losses, and loaned a further $175 million to the receivers to repay other investors.

John Key said, "I like Allan Hubbard. I do not get up in the morning trying to find people to go after," and John's right. That's Murray McCully's job

The interesting bit is Key's admission that he was warned well in advance that it would collapse...

"The entire time I've been Prime Minister I've had Treasury in my office week after week, month after month telling me South Canterbury Finance was going bankrupt."

...which begs the question, 'why did you include SCF under the guarantee then and isn't the bail out more to do with the well connected National Party supporters who would have had their fingers burnt otherwise?'



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