Zero-fees policy ‘helps more people, improves education quality’ | United Future

Zero-fees policy ‘helps more people, improves education quality’ United Future

Innovative approach to tertiary education from United Future.

UnitedFuture’s ‘zero-fees’ policy is a fairer, more effective solution to the student debt problem than Labour's universal student allowance as it also addresses the quality of education, according to leader Peter Dunne who spoke to students at Auckland University today.


“International university rankings released today show that our top universities are slipping down the list. They need a funding commitment from Government to reverse this trend ,” says Mr Dunne.

“Australia has 6 universities ranked in the top 50 in the world. We don’t have any. We have only one in the top 100 and two others in the top 200 – we can and need to do better,” says Mr Dunne.

“UnitedFuture would abolish all tertiary education fees, as well as commit to properly funding our institutions themselves. This will increase access to education and deal with student debt, as well as improving the value of New Zealand degrees.

Peter Dunne at the new building opening at Johnsonville School in July 2010.

“A limitation with universal student allowances is that they only help full-time students, part-time students are no better off, while allowances also do nothing to address the quality of education.”

Mr Dunne points out that in the long term, tuition fees are increasing at a rate faster than the cost of living.

“The funding is already there for zero-fees tuition – the cost falls within that for Labour’s Universal Allowance pledge, but it benefits more people and achieves better education,” he said.

Income Sharing Bill gaining support

Peter Dunne, United Future leader, is on the campaign trail promoting his income sharing bill.  He seems to be gaining public support.  A radio interview today sets out his view.  Seems to us to be a sensible option that provides real choice for parents all over New Zealand. For more details see the United website.  Those voters who are tired of the social engineering that tilts the playing field in the direction of both parents working will welcome this initiative.  It's disappointing to see the Labour Party rejecting this idea out of hand. John Key has indicated he has an open mind on the matter.  People who support this policy proposal need to show their support and write to their MP about it.

Chauvel opposes Income Splitting

Labour list MP, Charles Chauvel, has released a media statement apparently aimed at undermining United Future's income splitting policy. Income splitting is designed to enable parents to make their own choices about how they raise their children.

If one parent opts to stay at home to care for their own children then income splitting allows parents to be taxed as a couple instead of two individuals. In his media statement today Mr Chauvel says that in proposing this family-friendly policy Mr Dunne is out of touch with New Zealanders. 

Given that half the households in Ohariu are two parent families some observers might say it is not Mr Dunne who is out of tune with the electorate.

Time To Change Failed Recipe

Peter's Position blog sees the United Future leader advocating greater use of voluntary and not for profit organisations to help grapple with the thorny social and family issues that have been languishing in the "too hard" basket for decades now.

While there is always the risk that under-resourcing could compound existing social inequalities surely the time has come to try a new approach from the tried and failed framework of centralised government agencies attempting and failing to deal with entrenched failure in education, health, welfare and skills training?

If the challenges of appropriate accountability for public funding and necessary audits can be maintained or made simpler and more effective then perhaps the time has come for a decentralised approach to social service delivery.  Such an approach could work well with the desire by many iwi organisations to take greater autonomy for delivery of services to their own people.

Income splitting for tax purposes back in the spotlight

New Zealand families may yet get a choice on how they choose to work and pay tax. United Future leader, Hon Peter Dunne MP has announced the release of an issues paper looking at how income splitting might operate through an annual tax credit.

“Under income splitting, each partner in a relationship with children would be taxed on an equal share of their combined income, Revenue Minister and UnitedFuture leader Peter Dunne said today in releasing the issues paper.

The first round of consultation last year sought feedback on what people thought of income splitting, and attracted more than 200 responses, most of them favourable.

“Because income taxes are progressive, with high incomes attracting a higher rate of tax than low incomes, many families might pay less tax, providing some financial assistance when one parent works full-time and the other chooses to stay at home to care for the children,” Mr Dunne said.

“The issues paper proposes having income splitting operate through an annual tax credit, and seeks people’s feedback on how well such a system would work for them,” Mr Dunne said.

“Inland Revenue would calculate the end-of-year tax credit, which would be based on any difference between the tax the couple would pay on an individual basis and the tax they would pay by splitting their income for tax purposes.

“To be eligible for the tax credit, couples would have to be married, civil union partners or de facto partners, be New Zealand residents, and be primarily responsible for the day-to-day care of a dependent child under 18.

“Financial considerations often play a large role in parents deciding whether both should continue to work full-time or one stays home to care for the children,” he said.

“Income splitting is one way of enabling parents to have greater choice in their work and caring roles, and also recognises the valuable role played by parents who choose to opt out of the workforce to raise their children.

“I urge all interested parties to have their say on the workability of the tax credit that is set out in the paper.

“Once we have received the public’s feedback on the details of the proposed mechanism for making income splitting a reality, the next step will be to introduce enabling legislation next year, a move that is provided for in the confidence and supply agreement between UnitedFuture and National,” Mr Dunne said.

The issues paper, “An income splitting tax credit for families with children” is available at www.taxpolicy.ird.govt.nz.

Submissions close on 5 February 2010.

http://www.unitedfuture.org.nz/default,1291,dunne_unitedfutures_income_splitting_plans_take_shape.sm

Being Different Is The Name of the Game in MMP

The news this week featured United Future's decision to go with National. This alignment with one major party pre-election is risky but it helps clarify the position for voters.

During the six years it has worked with Labour United Future can chalk up at least six key policy gains:

a government Discussion Paper on Income Splitting;

central government funding for Transmission Gully;

an extension of daylight saving;

tax cuts for companies;

removing the cap on tax rebates for donations to charities; and

ensuring that people in Kiwisaver can divert 50% of their contributions to their mortgage.

These are significant policy wins for a small centre party which won only 3 seats in Parliament at the 2005 election. In 2008 United Future could be expected to highlight those aspects of its policy programme which distinguish it from the other parties. Otherwise liberal/centrist National-leaning voters will have no reason to vote United when they could vote directly for National (or Labour).

Policies such as support for parents of children with disabilities, extending ECE funding to Playcentres, Income Splitting, respect for the Treaty of Waitangi partnership, ensuring that National sticks to its policies on issues such as a nuclear-free NZ and blocking any backtracks on asset sales, in the first term of any new centre-right government, could all form part of a core policy offering that demonstrates extra value not available from other parties.

In 2008, at a time when small parties have a declining share of the political market, voters are unlikely to vote for a minor party unless they think it adds value to what their preferred major party would otherwise do. In opting to align with National United Future must figure out what distinct policy positions it will highlight to draw centrist voters that might otherwise sit on the Right of Labour or on the Left of National. It's called differentiation and in MMP it's the name of the game.


Disclaimer: In a personal capacity the writer was a former Board member of United Future from late 2003 until early 2006.

Income Splitting Long Overdue!

The long overdue recognition of at home parents came another step closer this week with the launch of a Discussion Paper by Revenue Minister and United Future Leader - Peter Dunne.

Income Splitting allows parents to split their combined income so that each partner pays less tax. This is a simple way of recognising the valuable role played by parents who choose to work at home raising their own children. The times are changing and there is a groundswell of support for this tax reform. In addition to our own supporters in Parents' Choice 08 - other groups such as various Playcentre groups and Parents As Partners are also rallying support for this change. United Future has led the way in terms of including Income Splitting in its policy programme. Other parties have been asked to consider Income Splitting.