Salient. Newspaper of the Victoria University Students' Association. Vol 42 No. 13. June 11 1979

Actual cuts to the STB

Actual cuts to the STB

Although the '$9 deal' paper of the Department of Education proved that NZUSA's long-standing criticisms of the inadequacy of the STB were valid, particularly with regard to the level, there is a very strong move by the Government to actually cut, in real terms, the value of the STB. Since 1976 it has been content to allow the indirect eroding effects of inflation to do this. But now it is considering more direct methods.

In its 1975 election manifesto the National Party said it was going to introduce a 'new reformed bursary.' This was designed to undermine a certain degree of popularity that the then Labour Government had with students following the announcement by Finance Minister Tizard in the 1975 Budget of its intention to introduce the STB in 1976. The very clear impression given by National through its Education Spokesman Les Gandar was that this 'new reformed bursary' would be brighter and better than the STB.

Three and a half years, two conferences and one Review of Financial Assistance for Post-Compulsory Study with its Steering Committee and three working parties later students are still waiting for this new reformed bursary.

It now appears that we are on the verge of being told what this 'new reformed bursary' will be and Damocles' Sword will be lifted on 21 June. But rather than an improvement on the STB it is expected to be a considerable dismantlement of it by a twofold process of cuts - loans and means - testing.

At the moment the STB is based on a grant system at two rates - the abated rate and the unabated rate. There is a slightly higher level on both rates for students in their fourth year or more.

The following changes are expected to the current system. - There will be one basic grant which will be at the abated rate. It is possible that this rate may be increased slightly ($19 and $22.50). This grant will be supplemented to the equivalent unabated rate by a student loan which will be made available on hardship grounds. The criteria for eligibility for this loan will be determined by means-testing. However this means-testing is likely to go by another name. This will be budget testing - a system which is supposedly based on patterns of student income and expenditure. However, it is hard to conceive of such a system not involving parental means-testing.

There are three reasons for expecting such a 'new reformed bursary'. These are:-
1. Usually reliable sources.
2. The drift of comments made by Treasury and the Department of Education at the last meeting of the Steering Committee of the Government Review of Financial Assistance for Post Compulsory Study.
3. Such a system would be a very effective method of cutting bursary expenditure. Loans are more of a long-term cut but also in a period of uncertain employment prospects guaranteed indebtness is no incentive to take out a loan. Means-testing meanwhile is a very effective way of immediate cost gutting.