The Basic Level

The basic level of the new Tertiary Study Grant is $23, not $40 as implied by the Prime Minister in the budget. This represents a significant change from the STB. Instead of four different levels there is now only one.

Obviously the group of students that suffer the most are those on the unabated rate. They represented, in 1978. about 57% of all STB holders and will suffer weekly reductions of either $7 or $10.50.

The following figures show the distribution of students on the abated and unabated rates throughout the seven universities.

Returns for Numbers of Students Receiving Standard Tertiary Bursaries in New Zealand Universities in 1978

Auckland University	3704(62.4%)	2230(37.6%)
Waikato University	426(33.2%)	859(66.8%)
Massey University	363(13.1%)	2401(86.9%)
Victoria University	2143(65.1%)	1150(34.9%)
University of Canterbury	1904(49.3%)	1964(50.7%)
Lincoln College	142(13.8%)	888(86.2%)
Otago University	994(22.2%)	3492(77.8%)

At a minimum at least one-third of STB holders will suffer a direct cut at each campus. The effects are most severe at Massey, Lincoln, Otago and Waikato.

The position of unabated students shows how farcical the Minister's claim that the controversial abatement has been ceased is. Rather than abolish the abatement (which has been a demand of students since its implementation in 1976) Mr Wellington has abated all bursary holders.

Superficially one would expect that the abated students would have reason to be content. There is little effective change for those on $22.50, but on the surface that one $19 get a $4 increase.

But this $4 deserves a closer look. Three other factors need to be considered. The fees increase will mean at least an extra $1 a week. The tax changes announced in late 1978 will take full effect next year and according to the Department of Education this will mean an extra $1.50. Finally if a conservative estimate of a 10% annual inflation rate is assumed, then another $2 needs to be added. Thus in order to retain its 1979 value the abated rate should be increased to $23.50. Where is the real increase for this group of students?

The above formulation is a very conservative one and actually misleadingly portrays the real losses of all students. In February a Department of Education confidential document was leaked to Wellington's Evening Post. That document revealed that in order to restore the STB to its real value in 1976 for 1980 it would have to be increased by $9 per week. This $9 was made up of $7.50 for erosion by inflation and $1.50 for tax changes.

Thus the following table illustrates the loss in real terms for STB holders through the Tertiary Study Grant.

Year	Abated
	Required Level	Actual Loss
1 — 3	$28.00	$5.00
4+	$31.50	$8.50
	Unabated
	Required Level	Actual Loss
	$39.00	$16.00
	$42.50	$19.50

Returning to the new single level, it is also misleading to state that $23 is the basic level. In fact there is an income restriction on this. Students are not eligible for the $23 if they are in receipt of a personal income of over $3,000 per annum. The amount of the grant will be reduced by $2 weekly for every $100 or part thereof over $2,000. For full-time students, holiday earnings may be disregarded.