KEY POINTS:
Labour's universal student allowance policy would do nothing to improve the quality of New Zealand's universities, Victoria University vice-chancellor Pat Walsh says.
Labour leader Helen Clark was given an ecstatic reception at a student rally when she announced a Labour-led government would introduce a universal student allowance, but not everyone agrees.
Helen Clark yesterday chose Otago University to reveal the policy, pitching for the student vote the same way she did in 2005 by scrapping interest on student loans.
It will be phased in by 2012, when the means test for parents' income will be abolished.
The policy, which will cost $210 million by 2012, has met a mixed reaction from student groups, with some describing it as brilliant, while others said it should be implemented immediately and Labour could not be trusted to follow through.
Professor Walsh also criticised the policy today, saying the money would be better spent on improving the funding and quality of universities themselves.
He said universities were underfunded by about $230 million a year and squeezed by the cap on fees.
University bosses supported a fair and affordable education system, but not at the expense of quality.
"But we also support a high quality university system. It's all very well supporting a system that's affordable, but we want it to be of high quality and the underfunding of New Zealand universities is going to lead to a compromise of quality over time."
He said part of the reason for the imbalance was that university bosses and staff had fewer votes than students, meaning their support was seldom courted.
The Union of Students' Association yesterday said it was "brilliant news" and recognised the unfairness of expecting students to be dependent on their parents until they were 25.
"The announcement finally signals an end to a significant amount of the $10 billion of debilitating debt held by the community," said the union.
But the Otago Polytechnic Students' Association said many would finish their education before they benefited from it.
"It is fantastic Labour has returned to a commitment of universal allowances and we welcome that greatly, but obviously most students would like to see it a lot sooner - like while they're still students," said the association's co-president Ryan Ward.
And the Green Party, Labour's likely partner post-election, said it was a shame it had taken the Government nine years to make the move.
"Labour has had three terms to deliver a package for universal students allowances," said the party's education spokeswoman Metiria Turei.
"Instead, under Clark's leadership, we have seen nearly a decade of students become indebted by an average $30,000 - for basic costs like rent and food."
Ms Turei said the Greens would make sure Labour delivered on its promise, and would also push for a debt write-off scheme.
The National Party's muted reaction came from leader John Key, who described it as "an interesting idea".
His deputy, Bill English, said Miss Clark should explain how the $210 million a year policy would be paid for.
"Labour is writing cheques it can't cash," he said.
However, Mr English said a universal allowance was "an admirable goal" and National would announce some changes when it released its own tertiary education policy.
"It will be more generous than the current scheme, but won't be universal," he said.
- NZPA
