Real Issues No. 355 - Choice in education, GST, Foreign aid event

Maxim Institute - Real Issues - No. 355 17 February 2010 www.maxim.org.nz
A watershed moment slips by for education GST unpopular among Kiwis Untangling Aid

Laws for charities Review of special education

A Watershed Moment Slips By For Education

A potential watershed moment for New Zealand education seems to have just passed by. After the reports from the Inter-Party Working Group (IPWG) on school choice were released yesterday, it seems that only a quarter of school students stand the chance of benefiting from more flexibility, more freedom, more choice in their education. The boat has sailed on the opportunity for wider systemic adjustments, which could have benefited all students in the country.

While there is much to celebrate in New Zealand schooling--high average levels of literacy compared to other OECD countries, for example--there is also a lot that should cause concern. For one, 33 percent of school leavers are not achieving NCEA Level 2 or higher. The figure jumps markedly for Maori students. As the IPWG's report 'Step Change' indicates, 'educational underachievement of the magnitude found in New Zealand carries the effect of a permanent economic recession.' Given this situation, National and ACT agreed at the last election, 'to work, over time, to increase the education choices available to parents and students so families have more freedom to select schooling options that best meet the individual needs of their children.' This was the moment students, parents and many schools across the country had been waiting for.

The hope was that the IPWG, comprising Maori Party, ACT and National MPs, would be able to advocate for more freedom, less control, less bureaucracy--for diversity and creativity to become hallmarks of education in New Zealand. Instead, the IPWG have chosen to focus on just the bottom 20 and top five percent of students. If the Government follows the IPWG's advice, one in four pupils will have more freedom in their educational choices, gaining options about where they go to school and receiving 'personal learning plans.' The other 75 percent will continue as they always have. Depending on how such an initiative was enacted, this could potentially be great for the 25 percent of students. Or, without holistic change taking place to the system more broadly, it could simply become another programme requiring more red tape, without schools having enough freedom to really respond to the needs of their students, leading to merely a splutter of change for even those 25 percent. The direction the IPWG are trying to head is generally good. More choice, more flexibility, more creativity and diversity in schooling are all great things.

Unfortunately, the changes run the risk of being undermined by the small scope of their vision. The minority report released simultaneously painted a much more far-sighted and comprehensive image of where schooling ought to head. This should have been the report the whole IWPG endorsed. It seems students in New Zealand will have to wait even longer for the sort of education system they deserve.

Read the IPWG's report 'Step Change'

http://roy.org.nz/Files/STEP_CHANGE.pdf Read the minority report from two members of the IPWG, 'Free to Learn'

http://roy.org.nz/Files/FREE_TO_LEARN.pdf Read Maxim Institute's media release on the subject

http://www.maxim.org.nz/index.cfm/Media/article?id=2020 GST UNPOPULAR AMONG KIWIS The tax system needs fixing. We've known it for a long time, but the time has now come to do something about it. According to a poll recently conducted by Maxim Institute, one of the changes being mooted--a rise in GST--is not popular among New Zealanders, even if income taxes were dropped at the same time. Moving the tax base towards GST holds a raft of benefits for New Zealand; benefits that may not be clearly understood, and that would require careful explanation from the Government. But these benefits should not be overlooked simply because they are not popular. The Government now faces the tough challenge of courageously risking some of the support they enjoy for the sake of the nation's well-being.

In early February, Maxim Institute commissioned a poll by UMR which found that 56 percent of New Zealanders oppose an increase in GST even if it were to be accompanied by a reduction in income taxes. Only 13 percent 'strongly supported' such a move. GST is an appropriate tax base for New Zealand to move towards. It treats all people fairly, it is easy and cost-effective to administer, and it is a relatively reliable source of income. In contrast, personal income taxes, which are currently the major source of government revenue (53 percent), are the most harmful taxes to economic growth.

This is why both the Tax Working Group and the 2025 Taskforce have told us we need to drop income taxes. Concerns around GST are understandable--it would change where tax is collected from and would mean goods cost more at the counter, but we also need to be realistic. The current system isn't sustainable. If a GST rise is coupled with a decrease in income tax, most people would have more money in their pockets to offset the rise in costs. And crucially, we need a tax system that rivals other country's systems, particularly Australia's, if we are going to plug the brain drain. We need a system that, as much as possible, avoids obstructing economic growth. The results of the poll indicate that it is crucial the Government does more work explaining the importance of tax changes. Charged with deciding what is in the best interests of New Zealand, the Government should not shy away from making necessary changes, but it should make those changes carefully and with due respect for concerned citizens.

Read the result of the Poll

http://www.maxim.org.nz/files/pdf/UMR%20GST%20survey.pdf

Read Maxim Institute's media release on the subject

http://www.maxim.org.nz/index.cfm/Media/article?id=2017
UNTANGLING AID It is often unclear what to do in the face of severe poverty. Questions of what will make a difference in the lives of those who suffer are not easily answered. Maxim Institute spent much of the last year researching foreign aid policy--its potential and its pitfalls. This March, at an evening lecture event titled Untangling Aid, we will share some of our findings. Our lead researcher on the project, Dr Jane Silloway Smith, will provide us with a glimpse of the history of aid, charting how it has developed. She will also identify some of foreign aid's challenges and suggest approaches that are crucial if we are to move forward in confronting the overwhelming challenge of global poverty.
Date: Tuesday 9th March, 2010 Time: 6.00pm - 7.30 pm Venue: St Cuthbert's College Auditorium 122 Market Road Epsom, Auckland Drinks and canapés will be served RSVP: Please email rsvp@maxim.org.nz or phone Summer Haycock on (09) 627 3261 by Thursday 4th March 2010 Please note, RSVP is essential

Download an invitation to the event

http://www.maxim.org.nz/files/pdf/Untangling%20Aid%20Lecture%20Invitation.pdf

IN THE NEWS LAWS FOR CHARITIES Submissions are open for the proposed Fair Trading (Soliciting on Behalf of Charities) Amendment Bill. The Bill aims to increase transparency for professional third party collectors who collect donations on behalf of charities. The hope is that the changes would encourage greater public confidence in charities and donations. Currently, there are no rules on what has to be disclosed to the public about where your donations go, except that no deceptive statements are to be made. Most major political parties are in favor of the amendment, with the exception of the Greens and the Maori Party who are proposing some tweaks and further assessment. Submissions on the new bill are due by 19 March.

Read the Fair Trading Amendment Bill

http://www.legislation.govt.nz/bill/member/2009/0102/latest/viewpdf.aspx Make a submission on the Fair Trading Amendment Bill

http://www.parliament.nz/en-NZ/PB/SC/MakeSub/b/e/3/49SCCO_SCF_00DBHOH_BILL9680_1-Fair-Trading-Soliciting-on-Behalf-of.htm

REVIEW OF SPECIAL EDUCATION The first discussion document on the Review of Special Education has been released. Published by the Ministry of Education, the document seeks feedback from educators and all members of the public about how we can best assist students with special education needs. The ultimate aim of the Review is to 'improve outcomes without spending more money,' hoping to build on what already works well. The document's principal focuses are: discussing schools that are successful in dealing with special education; 'changing the way that schools work together; improving interagency cooperation and transitions; allocating and using funding and other resources; improving the quality of services; and improving accountability.' The report calls for all those who have a view on the special education sector to read the document and offer feedback.

Read the Review of Special Education Discussion Document

http://www.minedu.govt.nz/theMinistry/Consultation/ReviewOfSpecialEducation/~/media/MinEdu/Files/TheMinistry/Consultation/ReviewSpecialEducation/ReviewOfSpecialEducationDiscussionDocument.pdf Contribute your thoughts to the Review of Special Education

http://www.surveymonkey.com/s.aspx?sm=wJQKhOnSEpwtwUjT1L1bmYKndYi%2bVpT%2fxP9gFhs7NTs%3d &

Talking Point 'For 11 years or more many of our students experience large classes, narrow corridors, white boards, set curriculum, sunless testing and, despite our best efforts, regular monotony. It is as if we cannot think of anything better for them. The stigma of failure affects nearly 20 percent...a figure that puts us near the bottom of the OECD in terms of the lowest performing quartile, and which arguably carries the effect of keeping us in permanent recession. No wonder 29,000 students each day are truant.' 'Free to Learn,' minority report from the IPWG on school choice

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