Speech to New Zealand Union of Students' Associations
Thank you to NZUSA for inviting me to speak on behalf of the ACT Party here today. It's great to be standing in front of one of the few voluntary student-based associations in New Zealand. I am pleased to be a member of the Party which has ensured that all students have the freedom to associate with whichever groups they please.
Freedom For Students At Last
Students will finally be given the same rights as every other member of society with the passing of the Education (Freedom of Association) Amendment Bill making membership of Students’ Associations voluntary for all students, ACT New Zealand Tertiary Education Spokesman Hon Heather Roy said today.
“I am absolutely delighted that tonight Parliament has voted to give students freedom of association, it has been a long time coming. The debate over compulsory student membership has been raging for almost two decades and ACT’s Bill has been in the House for over two years,” Mrs Roy said.
“Students are the only people who can be forced to join an organisation against their will. Well no more. My Bill, which passed its third reading tonight, will ensure that from 1 January 2012 all students are free to choose whether or not they join a Students’ Association.
“Compulsory student membership has been a disaster. Many Students’ Associations have a track record of fraud, financial mismanagement and of student politicians misrepresenting students to push their own political barrow. Sadly this comes as no surprise; students who don’t like what their association is doing have had no choice but to remain a member and continue paying their levy.
“However, I purposely devoted part of my speech in the House this afternoon to focussing on the future and suggesting how Students’ Associations can thrive under voluntary membership. I am confident that the Students’ Associations that provide good quality services and actually listen to their members will enjoy every success over the coming years,” Mrs Roy said.
Free At Last
Hon Heather Roy Third Reading Speech; Education (Freedom of Association) Amendment Bill; Parliament; Wednesday, September 28 2011.
Mr Speaker,
It gives me great pleasure to lead the debate on this third reading of the Education (Freedom of Association) Amendment Bill. Voluntary Student Membership has been a test of patience and many thought this day might not come at all in this Parliamentary term.
Others hoped it would not and around 0.1 percent of New Zealand's 400,000 or so tertiary students protested against the bill earlier this week, along with a handful today on Parliament’s lawn. I encourage Kiwis to be actively involved in their democracy because freedom of speech and freedom of action are important rights that should not be denied. There is a certain irony that these rights have been used to oppose another fundamental civil right - freedom of association for students but none-the-less I staunchly defend these students’ right to do so.
Opposition to issues is frequently noisy, while support is often silent. This post of support from a Canterbury University student appeared on my Facebook page yesterday: "I feel strongly about the freedom to choose and I know many others that feel the same. Please also remember to hear the silent voices of those of us who do support you. We don't need to make a huge ruckus out of it because we're sensible people supporting a sensible bill".
Voluntary Student Membership means students, from 1 January 2012, will no longer be compelled to join a Student Union before they are allowed to study at a tertiary education institution. They will instead be free to choose whether or not they join an organization that as an Incorporated Society has the same legal status as the Automobile Association or the SPCA. We don't force motorists to join the AA before they can own a car or force pet owners to join the SPCA.
Student Unions were originally voluntary organisations and this bill returns student unionism to its roots. Over recent decades they have become increasingly politicised when their core functions are meant to be representation of their student body - not just a select few, advocacy and the provision of some services. The University and Polytechnic councils provide other services such as health and welfare services.
There has been much talk during the course of debate surrounding VSM about huge opposition from students with the figure of 98 percent frequently quoted by the Bill’s opponents. Let's be very clear about this figure. It refers to submissions opposing the Bill at Select Committee. This was essentially a copy and paste campaign, like a petition, conducted by student politicians en masse. By comparison a Stuff poll last October had almost 5,000 votes and showed 72 percent were in favour of voluntary membership.
Misappropriation of Students’ Association funds has become a significant problem in the past few decades. The fraud has ranged from the farcical $6,000 spent by a VUWSA executive member phoning a psychic hotline through to the large scale embezzlement on several occasions at Whitireia Polytechnic totalling around $750,000. These all too regular examples of fraud proved the need for action. Compulsory membership has created an environment conducive to financial mismanagement. Student Unions are governed and managed by young people who often lack the necessary management skills and experience to run a multi-million dollar business and a captive market of students who cannot vote with their feet if their funds are mismanaged.
Voluntary membership means associations will have to attract membership to gain funds then provide the representation and services students want in order to keep them.
There has been much talk in this debate about Australia’s experience of voluntary membership, or VSU as it’s known across the Tasman. Those opposing the Bill have conveniently ignored the Student Unions that have not only survived but thrived under Voluntary membership. The University of West Australia stands out as an example for the rest. Amid the doomsday predictions promulgated by the left, they retained 60 percent of their members under VSU and have continued to provide valued services to their members.
Looking to the future in New Zealand my intention was never to destroy Students’ Associations, but to give students free choice of belonging or not. I hope that associations will put as much effort into planning for the future as they have put into planning their protests. I hope to see Students’ Associations actively promote the benefits of membership by:
• Using quality communication with students to find out what they want, preferably using 21st century communications, as students do;
• Conducting quality market research on what services students actually value and are prepared to join to access;
• Affordable membership fees;
• Innovative incentives to join, such as discounts for members at student association bookshops and cafes and negotiated discounts with local retailers;
• Focussing advocacy on those issues which almost all students agree on such as increasing the quality of education and increasing accountability of tertiary institutions to students.
When students see an organisation providing representation and services they value they are much more likely to join.
There are many people to thank and acknowledge in this journey which spans at least 20 years. The battle started with the Freedom on Campus Network and has progressively been carried forward by Prebble's Rebels, ACT on Campus, the Young Nats, Student Choice and my ACT Party colleagues present and past. I would like to also thank the Select Committee members so ably chaired by Allan Peachy and the Select Committee staff who dealt with the large number of submissions and submitters. Thanks also to all submitters - both those supporting and those opposed to the bill. As a result of your contributions several changes were made to the Bill that have made it much better. To the officials from the Ministry of Education and PCO, my grateful thanks for your expertise, sage advice and most notably your cheerful patience to a process that ended up being much longer than was intended.
To Sir Roger Douglas, thanks for your Midas touch - I don't know anyone luckier at having bills drawn from the ballot and for shepherding VSM through the Select Committee process. And my grateful and sincere thanks to the staff in my office who have researched, advised, written, agonised and become very good at understanding parliamentary process because of their absolute belief in and commitment to freedom.
It is harder to say it any better than Andrew Little in his final address as President to the EPMU:
“I believe voluntary unionism - true freedom of association - gives the union movement much greater strength and a much greater moral authority.”
My final thanks to the National Party Caucus and United Future for their support of Voluntary Student Membership. Freedoms are hard won and so easily eroded. Parliament’s gift to students tonight is freedom of association. Please be sure to use it wisely.
Time To Free Students From Cage Of Compulsion
ACT New Zealand Tertiary Education Spokesman Hon Heather Roy today dismissed Otago University Students’ Association President Logan Edgar’s plan to lock himself in a cage to protest Voluntary Student Membership as a cheap and misguided stunt.
“Perhaps Logan is bored. His planned protest makes the opposite point to what he presumably intends. Voluntary Student Membership will free students from the cage of student associations, it won’t lock anyone in or out - as Mr Edgar is claiming,” Mrs Roy said.
“Ironically even by locking himself in a cage he is giving himself more choice than he gives the students he claims to represent. He can unlock himself from his cage at any time – students are forced to remain members of a student association whether they want to be or not.
“Students are the only group in society who can be forced to join an organisation against their will. My Bill will give students the same right to freedom of association that all other New Zealanders enjoy as of right.
“The Chief Executive of the Automobile Association doesn’t lock himself in his car every year to protest voluntary membership of the AA, nor does the SPCA Chairman lock himself in a cat cage to try and force pet owners to join his association.
“Instead these people spend their time and energy improving their organisations – which, as incorporated societies have the same legal status as student associations – so that people will choose to join voluntarily. I would have a lot more respect for Mr Edgar if he did the same,” Mrs Roy said.
ENDS
Heather Roy's Diary
Theatre Of The Mind
The Boat that Rocked is a great film about taking the authorities on, breaking a government monopoly and introducing the population to rock music. It is inspirational and the radio rockers didn’t take themselves too seriously. It is the story of Radio Caroline, a UK radio station set up in 1964 who had to transmit from a former Danish ferry that was renamed MV Caroline in order escape the land based authorities.
New Zealand has its own Boat that Rocked story – that of Radio Hauraki. Like Radio Caroline that battle was with the government monopoly and the stories have become legendary. Radio Hauraki broadcast illegally from 1966 – 1970 and had to do so outside NZ waters from the Tiri.
The story that best describes the lengths those involved in setting up Radio Hauraki went to is this:
“On 28 January 1968 disaster struck as the Tiri attempted to negotiate its way into Whangaparapara Harbour on Great Barrier Island in foul weather. The ship ran aground on rocks, with Radio Hauraki disc jockey Derek King keeping listeners up-to-date with running commentary. The final broadcast from the Tiri was "Hauraki News: Hauraki crew is abandoning ship. This is Paul Lineham aboard the 'Tiri'. Good Night." followed by a station jingle, and then the sound of the ship's hull striking the rocks.”
In 1970 the government monopoly of broadcast frequencies was finally broken when the New Zealand Broadcast Authority allowed Radio Hauraki a broadcast license, after 1,111 days at sea. The Tiri II, the original Tiri being unrepairable after running aground at Great Barrier Island, then sailed back to Auckland broadcasting Born Free.
The pioneering attitude of Hauraki’s Pirate Radio contrasts markedly with the tantrum throwing we have seen from the Otago University Students’ Association’s Radio One over the past week. In April OUSA contracted Deloitte to provide financial advice. This advice was sought because OUSA was, laudably, interested in ‘getting the transition to a voluntary association right’.
I have often said that this sort of responsible management is exactly the type of change that Voluntary Student Membership (VSM) should bring about. When student politicians realise that they cannot indefinitely rely on a stream on non-contestable funding they will reassess which of their services they need to provide and how to provide them.
Not all of the recipients of funding have responded to these home truths so charitably. As part of their advice Deloitte told OUSA that Radio One was of ‘little commercial value’ to the students’ association. OUSA has admitted that Radio One is among the least valued of its assets and has since stated that disestablishing Radio One is on the cards. Radio One manager Sean Norling has, rather than assessing how to make his station more viable, decided to commence a ‘week of silence’. Radio One has been purposely taken off the air to protest its potential closure.
Labour has attempted to wade, or stumble, into the issue by claiming that they could save Radio One by watering down the VSM Bill. In fact, what student services really need is certainty. Labour’s practice of filibustering an unrelated Bill that has bi-partisan support in order to delay the VSM Bill gives student associations no certainty whatsoever and makes it difficult to plan for the future.
Of course, students don’t have to be forced to own a radio station for student radio to exist. Radio Active used to be owned by the Victoria University of Wellington Students’ Association but had to be sold as, like many groups receiving free money, it became inefficient. Over 20 years later Radio Active has not disappeared off the airwaves, it has thrived with volunteer and non-commercial support. Similarly students are not forced to join the Auckland University Students’ Association, yet the Association manages to fund bFM quite successfully.
Whereas the Hauraki pioneers risked all to fight against the government’s stranglehold on broadcasting, Radio One’s management is throwing a tantrum because their government mandated stranglehold on student funds is being threatened. The broadcasters on the Tiri, like their counterparts on the MV Caroline fought for the right to compete freely and openly with other broadcasters. Radio One is fighting not to have to. Their conduct during the past week is an embarrassment to New Zealand’s broadcasting legacy. However, they still have time to redeem themselves. Just as Radio Active has functioned for two decades since having their student association apron strings cut, and just as bFM in Auckland has managed to survive without compulsory student funding, Radio One now has an opportunity to make themselves relevant to their target audience – students.
Lest We Forget – Homosexual Law Reform Act – 9 July 1986
Perhaps the most controversial law ever to be debated in the New Zealand parliament, the Homosexual Law Reform Bill which decriminalized male homosexuality, was passed on 9 July 1986. The bill was a members bill introduced by Labour MP Fran Wilde in 1985 and after substantial debate and fierce opposition from some quarters passed narrowly (49 ayes to 44 noes).
An initial vote originally set down for 2 July was delayed by George Gair who was concerned it may have failed as several supporters were unable to be in Wellington due to bad weather. A second part to the bill – to provide anti-discrimination law protections for lesbians and gay men - was defeated but later incorporated in to the New Zealand Human Rights Act 1993.
ENDS
Little Proof? Just Semantics.
Since Andrew Little was caught out advocating voluntary unionism in his final speech to the EPMU, he has tried to back pedal and claim that he doesn’t support voluntary student unions as they are ‘very different’ from trade unions. In the speech he said - “I believe voluntary unionism - true freedom of association - gives the union movement much greater strength and a much greater moral authority.”
As is typical of the Labour Party he provided no analysis for his distinction, he just stuck with simple assertions.
So let’s do Little’s analysis for him and see if there is any real difference between the two.
Political lobbying
The Labour Party itself is the political wing of the trade union movement so there is no doubt trade unions are political entities. Council of Trade Unions President Helen Kelly regularly speaks out against the ninety day probation period and more recently state asset sales. Isn’t it great that her members can leave if they disagree with her stance? Similarly student associations make political statements all the time, they have led the charge against VSM and often call for freezes on student fees. Isn’t it a pity that pro- VSM students aren’t allowed to leave an organisation totally goes against all their political beliefs? Both organisations make political statements and support or oppose certain laws on behalf of their members. In fact they are so similar they both act as a launching pad for the political careers of Labour politicians!
Service provision
Trade Unions and students unions both provide services their members, but there is a huge difference in quality. The EPMU website says its members get lots of great deals at KiwiBank, Resene, Vero, 2degress and ITM. Sounds like some pretty awesome stuff. Student unions also provide so-called services, but there is no real way to tell if people actually want them. The Otago University Students’ Association spends it compulsorily acquired money on an art day where students can ‘work on their own mural on campus’. Oh and students get 10 percent off at Trade Aid. I know which services I’d rather get for my money.
Advocacy
Both trade unions and student unions advocate for the rights of their members. Trade unions negotiate health and safety standards, employment contracts and represent workers when it comes to any grievance they may have with their employer. Student unions claim to provide exactly the same service, but whether students actually need or want it is impossible to tell.
Trade unions and student unions both claim to provide the same things to their members – the only difference is workers are free to leave a trade union, so they provide better services in order to attract members. Students deserve that too.
Andrew Little’s only attempt to draw any distinction between the two, other than simply asserting that they’re different, was to use the word ‘association’ in reference to student organisations instead of ‘union’. Not only will people see through his childish attempt at word play – but I’m sure the Public Service Association would be shocked to find out it isn’t a union either.
Little Endorses Voluntary Membership
ACT New Zealand Tertiary Education Spokesman Hon Heather Roy today welcomed the comments made by Andrew Little, in his final speech as National Secretary to the Engineering Printing and Manufacturing Union, that voluntary unionism strengthened the union movement.
These comments come as the Labour Party are planning to tonight further delay the passage of Mrs Roy’s Education (Freedom of Association) Amendment Bill that will make membership of student associations voluntary.
“There was absolutely no equivocation in Andrew Little’s remarks; he said ‘I believe voluntary unionism - true freedom of association - gives the union movement much greater strength and a much greater moral authority.’ This is completely at odds with actions of the Labour Party who are tripping over themselves trying to keep membership of student associations compulsory,” Mrs Roy said.
“No wonder Andrew Little is touted as a future Labour leader; unlike Phil Goff he has woken up to the reality that freedom of association is not only desirable but actually gives legitimacy to organisations that voluntarily attract members.
“Membership of trade unions has been voluntary since 1991 and New Zealand has not looked back since. It is an embarrassment that students still do not have the same rights as other members of society.
“ACT has long believed that when students enrol at University they should be given the choice as to whether or not they join a student association, which is why we submitted our Bill to give students that choice. Sadly Labour has been desperate to protect the student politicians who often push their political barrow and has been delaying the Bill for two years.
“If Labour wants to remain at all relevant to the constituents it claims to represent it should immediately stop filibustering my voluntary membership Bill and agree to give students the very same freedom of association that their future leader today endorsed for workers,” Mrs Roy said.
ENDS
Labour Kills Its Own ‘Clayton’s’ Bill
Labour has torpedoed any chance of passing its own State-Owned Enterprises Private Member’s Bill before even submitting it in the ballot by continuing to filibuster the Education (Freedom of Association) Amendment Bill says ACT New Zealand Tertiary Education Spokesman Hon Heather Roy.
“Labour has shot itself in the foot,” Mrs Roy said. “Labour MPs have been wasting over $450,000 of taxpayers’ money every hour by delaying non-controversial Bills ahead of the VSM Bill and in doing so have barred all MPs across the House the right to have their Bills debated.
“Now, ironically, Clayton Cosgrove’s State-Owned Enterprises and Crown Entities (Protecting New Zealand's Strategic Assets) Amendment Bill – another election year gimmick from Labour – has no chance of reaching the House unless Labour stops their petty delaying tactics.
“This is a big test of what is more important for Labour – guaranteed income for student associations to push their political barrow or saving SOEs from the ‘big, bad private sector’ bogeyman. Either way it is hardly an inspiring set of priorities for a Party trying to convince the electorate it is ready to govern,” Mrs Roy said.
ENDS
Labour’s Delaying Costs: A By-Election Every Hour
ACT New Zealand Tertiary Education Spokesman Hon Heather Roy today condemned the Labour Party's filibustering of her Education (Freedom Of Association) Amendment Bill, saying it denies backbench MPs the right to have their issues debated and is costing taxpayers over $453,000 – the same cost as a Hone Harawira Te Tai Tokerau by-election – every hour that Parliament sits.
“My Bill, known by most as the VSM Bill, reached the Committee stage of the whole House on 8 December last year. Since that time Labour MPs have wasted Parliament’s time, and taxpayers’ money, by engaging delaying tactics such as proposing spurious amendments to non-controversial Bills,” Mrs Roy said.
“Hone Harawira has been rightly condemned for costing the taxpayer half a million dollars by forcing the Te Tai Tokerau by-election, yet Labour’s filibustering is costing taxpayers the equivalent of one such by-election every hour.
“Delaying my Private Member’s Bill also denies backbench MPs on both sides of the House the chance to have their Bills debated. Member’s Bills are the only mechanism backbench MPs have to raise issues they feel strongly about.
“I'm not opposed to any party delaying a Bill they strongly disagree with but Labour MPs are delaying Bills they already support. If Labour continue to debate each of the Royal Society Bill’s 23 clauses – which they openly support – in their entirety this could take 23 hours of the House’s time and cost taxpayers over $10 million. It is this sort of churlish behaviour that demeans our nation’s Parliament.
“Labour should realise that the writing is on the wall, the VSM Bill has the numbers to pass, it has been debated at length for over 18 months and by delaying it they only make themselves more irrelevant to the voters they claim to represent,” Mrs Roy said.
ENDS
Pre-paid student loans the answer
As election year enters its second quarter there is a growing chorus in political discussion that can be boiled down to debts, deficits, and diaspora. Those can be boiled down further to New Zealand's low productivity in comparison with other countries, especially Australia, where most of the diaspora resides.
It's a situation which appears to present impossible choices.
Higher productivity requires better educated workers working with more capital, but with the Government budget already stretched there is little room for either more spending or the stimulus of tax cuts.
Lateral thinking is required to get more out of less across the entire economy, and here is one suggestion for the tertiary education sector based on a review of how students have been funded for the past two generations.
The ideal tertiary funding system would put the right people in the right courses at the right time, maintain equality of opportunity, and ensure that students take their education seriously. Courses would select entrants based on the personal attributes of the would-be student, and their economic prospects in the New Zealand economy as graduates.
A generation ago, the relatively few students who passed rigorous high school examinations were virtually paid to study. This system of academic rationing was unresponsive to market demand, favoured students from well-to-do schools, and provided an incentive not to graduate but extend the good life on campus as long as possible on the taxpayers' dollar.
Then, in the 1980s, market-based principles that emphasise the individual as the best decision maker came into vogue. Today, academic entry standards are considerably lower and are no longer the only rationing device. Instead, students are required to co-pay a portion (usually just under a third) of their course costs by cash or student loan with the taxpayer subsidising the remaining two-thirds. In theory this gives them a financial incentive to use their unique personal knowledge to select a course and then work harder once they're admitted.
This approach of economic rationing relies crucially on the decision making skills of 17 and 18-year-olds. They are asked to make a decision that will set the initial course of their career, put them tens of thousands of dollars into debt, and cost the taxpayer twice as much again.
All this despite having had little life experience outside the artificial world of high school, and probably little concept of what it really means to borrow, say, $20,000.
Who is surprised that the past two decades have produced so many low-quality outcomes and outright scandalous misuses of taxpayer money?
If a problem defined is a problem half-solved, then the most urgent need is that entrants to tertiary education become better decision makers.
Specifically, they would benefit from more experience in the labour market and a better grasp of the monies involved (both their own and the taxpayers') before choosing a course. Making government subsidies for course costs conditional on pre-paying a nominal portion of their student loan would help both causes. The pre-payment needn't be much, perhaps $1000.
But it would have to be paid out of taxable income earned by the prospective student (not transferred from their parents).
The current loan repayment formula takes 10% of income over $19,084, plus voluntary repayments. Applying the repayment formula to prepayments would simulate actually having a student loan before getting one. In practical terms, it would mean a normal tertiary entrant would have worked for about a year full-time at the minimum wage.
Such students would approach educational choices with a much better grasp of themselves, the wider economy, and the loan they are taking on.
The intensity of study would likely increase also. Breezing into lectures hung over would be a lot less popular when your first semester's course costs just wiped out a year of loan prepayments. The Singaporeans and Israelis achieve similar results through their military service programmes for high school leavers, but New Zealand is not a militaristic country.
Instead, some more commercial experience would better suit New Zealanders.
Predictably, some will object that we need lower barriers to tertiary education, not higher.
But participation is at an all time high. What we actually need is more productive tertiary education, and this suggestion is designed to help deliver it.
Others will complain that some Remuera brats will have their parents' accountant filter money into their loan accounts via pseudo jobs. No doubt some would have the means and the desire to thrust their children into classes filled with older and worldlier classmates, but governments cannot solve all problems.
One thing is certain. If we are going to reverse our declining economic fortunes, New Zealand needs policy innovation. Please accept this one for your consideration.


