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Salient. Newspaper of the Victoria University Students' Association. Vol 42 No. 5. March 26 1979

The $9 Deal

page 4

The $9 Deal

Several weeks ago a report was printed [unclear: n] the Evening Post claiming that the [unclear: Education] Department had recommended a $9 [unclear: per] week increase in the level of the [unclear: Standard] Tertiary Bursary, Shortly after the leak [unclear: he] Department began furiously denying it had made any such recommendation. At the same time a memo was sent to Departmental staff forbidding them from making any comment on the truth or falsity of the claim.

However the Department's attempts to discredit their own proposal have failed. It has been unofficially confirmed, by a very senior spokesperson, that a $9 increase was indeed recommended. Below we reproduce a precis of the recommendation which has recently come to hand.

Objective: to Increase the Level of the Standard Tertiary Bursary and the Special Marriage Allowance

Following are the essential points of the document which outlines New Policy [unclear: Proposal]1979/80: an increase in the level of the standard tertiary bursary and the special marriage allowance.

This proposal originated in the Department of Education and was drafted by PJ Cottier, Senior Executive Officer (Exams, Transport and Bursaries). It received endorsment from D Garrett, then Director of Continuing Education and now Assistant Secretary (Tertiary).

The Cottier paper explains that Governments policy is to keep under review bursary levels for tertiary students and outlines the increases in those levels since the STB was introduced in 1976.

The new (1980) bursary levels proposed by the paper are:
1979 (per week)1980 (per week)
First three years$30.00$39.00
Fourth year and after$33.50$42.50
Marriage allowance$60.00$78.00

In other words, the proposal is for a $9 p.w. increase for the first two rates and an $18 p.w. increase for the marriage allowance.

Why was $9 p.w. Chosen?

Cottier argues that the STB should be increased by $7.50 p.w. to restore the relativity which existed in 1976 between the level of the bursary and students' living costs, using average university hostel fees as the basis for measuring such costs.

RESERVE BANK OF NEW ZEALAND

The extra $1.50 p.w. is claimed as additional necessary compensation for the tax changes announced in the 1978 budget. The reason for this is that the full impact of the 1978 budget changes will not be felt until the end of the 1979/80 financial year. This is in addition to the mid-1978 increase of $1.50 p.w. which compensated for the phrase in of the new taxation scales and the wiping of the personal rebate.

What will it Cost?

In a full year the Cottier proposal will cost $9,755,000. This is costed on the basis of 1978 statistics. $7,631,694 of this cost will be for university students. $2,123, 306 will go to technical institute students. No estimate is made of the cost for teachers college students; a minimal number receive the STB.

There will be no extra cost for staff to ad minster the new policy.

Cottier is silent about the way the new policy will be paid for. There is nothing confirming or denying rumours that the new $39 bursary will be paid to all tertiary students, (i.e. that Student Teachers will receive the STB rather than their present bonded allowances - Ed)