New Zealand Employers and Unions Split Over Plan to Scrap Third-Year Fees-Free Tuition
The New Zealand government's plan to scrap the third-year fees-free tuition policy for university students has divided employers and unions. Employers back the change while unions express concern.
The New Zealand government has announced a plan to end the 'fees-free' tuition policy that applies in the third year of university study. According to RNZ, scrapping the programme is expected to save the Treasury about NZ$130 million a year.
Employer groups said the programme's effectiveness has been limited and has not significantly shifted graduate workforce participation rates. Unions and student associations warned the change will reduce access to higher education for students from lower-income families. Data show Māori and Pasifika students benefited disproportionately from the programme.
The finance ministry said internships and reduced interest rates on student loans will be considered as replacement measures. The opposition Labour Party said it would seek to block the move in parliament through the 2027 election cycle. Education-technology shares on the Auckland exchange opened slightly higher.
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