Student fee rises other side of tax cuts: Clark

By Bernard Orsman

Labour leader Helen Clark yesterday pounced on an 11 per cent hike in Auckland University fees to accuse National of imposing "stealth" taxes on students and families.

In a new pitch for middle-class votes, Helen Clark told 300 students at the Auckland College of Education that while a National-Act government would cut taxes, it would load more tertiary costs on students.

Auckland University has followed Canterbury University's fee rises of up to 30 per cent with an average increase of 11 per cent. Victoria University is looking at increasing fees by 15 per cent.

Helen Clark told the group of largely women students that sharply rising fees were a stealth tax.

"This is the other side of the tax cuts, which in the end do not compensate for the reductions in public spending."

Reiterating a strong warning against a National-Act coalition, Helen Clark said it would preach the values of selfishness and meanness.

The Minister for Tertiary Education, Max Bradford, said rising tertiary fees were not a stealth tax. National had increased funding per student by 16 per cent between 1991 and last year, and had budgeted an extra $155 million over the next three years.

"It must also be remembered that the proposed $400 million tax cuts will be balanced by an injection of $400 million into social services ... Education will not miss out under National's tax cuts," Mr Bradford said.

Helen Clark said student fees would be the number-one headache for a new Labour administration. She promised $50 million would "come down the food chain" with the aim of stabilising and then reducing fees over time. She also outlined Labour plans to abolish interest on loans while students studied.

Helen Clark said Labour would like to give students certainty over fees for the life of a course but she was unable to make a firm commitment.