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Salient. Victoria University Student Newspaper. Volume 38, Number 11. May 29, 1975

Summary Cost of the Stand Ertiary Bursary

[unclear: Summary] Cost of the [unclear: Stand Ertiary] Bursary.

1. [unclear: University Students.]

The [unclear: l ial] Yearbook(p222)gives a break-down [unclear: of ceiving] bursaries in 1971. As the total [unclear: num ll]-time students now is probably little different from what it was then, these provide some basis for analysis. The figures are shown in Table III.

Table III: Students Receiving Higher School Cert. Bursaries 1971
1st yr 2nd yr 3rd yr 4th yr Total
F&A 3.0 2.5 2.1 0.8 8.4
F&A+ Bursary 4.2 3.1 2.8 1.5 11.6

Fees & Allowance, with & without the supplementary Boarding Allowance. Figure, in thousands.

By multiplying each entry in this table by the relevant bursary from Table I we get:

Under the old scheme, $1,922,000 would have been paid out to those under at "at home" category, and $6,742,000 to those getting the boarding allowance as well. The new rates are costing $4,018,000 and $10,184,000 respectively, giving a total of $14,202,000 as against the previous $8,664,000, an increase of $5,538,000.

2. Technical Institute Students.

Despite there being some 100,000 students enrolled at the techs, only about 3200 of these in 1971 were full-time (part-timers do not qualify for the STB). Giving the 3182 students $180 each (the present rate, without the small boarding allowance) costs $573,000. Assuming the average yearly rate for tech students is $750 (ie making an allowance for the longer year), the new sum is $2,387,000, an increase of $1,814,000.

3. Teachers College Students.

Problems aplenty arise with the figures here, but to keep it simple I have used only the Division A & B figures, comprising the massive bulk of the primary student teachers. Boarding allowances complicate matters again here, so I have assumed no-one getting a boarding allowance under the old system, and the same percentage as University students (i.e. roughly roughly 60%) getting it under the new system. As with all the other assumptions (except the use of 1971 enrolment stats, but later ones do not show significant changes) this assumption biases the result favourably to the STB (ie the STB position appears better off versus the prior situation than it really is).

Divisions A & B Student Teachers
enrolled Av salary Total
Under 20, 1st & 2nd yr 3630 2000 7,260,000
3rd year 768 2700 2,074,000
20&over, 1st & 2nd yr 936 3300 3,089,000
3rd year 1356 3500 4,746,000
Totals 6690 17,399,000

On the STB, 60% of 6690 (=4014), getting $24 per week for 44 weeks equals $4,238,000 40% (2676) getting $ 13 for 44 weeks equals $1,530,000.

Student Teachers' Total Payments:
under 1975 system: $17,399,000
under STB: $5,770,000
Net loss: $11,629,000

It should be remembered that not all students are covered by these estimates, but insofar as none are going to increase their payments from the Department of Education, this figure is a minimum loss figure.

Summing All Students:
University Students, net gain +$ 5,538,000
Technical Students, net gain +$ 1,814,000
Student Teachers, net loss —$11,629,000
Overall net loss to Students —$ 4,277,000

It must be realised that this is a minimum loss figure various assumptions were made above favouring the STB and hence diminshing the loss. Also, while there has not been much movement in student numbers since 1971, there has been a trend at Teachers Colleges towards older people training to be teachers. For instance, we assumed above that the ratio of under 20s to over 20s was 2:1 -it seems from recent figures that at Wellington Teachers College at least the ratio is now closer to 1:1. This would of course increase the payments under the present system, and hence increase the loss to students by introducing the STB. One can therefore predict that the total saving to the Government is higher than $4.3 million - possibly even as high as $5 million. In the absence of further calculations, $4.5 million is probably the best figure to work from.

Given Mr Tizard's opening statement on sacrifices coming in areas of low priority, it would seem that the Government thinks very little of students in general, and student teachers in particular. If the Government is not compromising its social objectives by this, could someone please tell me what is going on?