REVEALED: Compulsory student fees used to fund Labour Party branch

“Victoria University has been caught taking compulsory fees from students and handing $1,700 to the university branch of the Labour Party. This is exactly why ACT will make Student Services Fees voluntary,” says ACT Tertiary Education spokesperson Dr Parmjeet Parmar.

The funding was uncovered by student campaign group Save Our Clubs through Official Information Act requests.

University records show Labour at Vic received a $1,700 club grant in March this year, funded through the compulsory Student Services Levy.

In its application, Labour at Vic described itself as the local youth branch of the New Zealand Labour Party and said 2026 would be an especially important year for its activities because of the General Election. Its material referred to campaigning, events at Parliament and attendance at Labour Party Congress, while its proposed budget included merchandise, travel and “Labour Party Events”.

“This is an extraordinary use of compulsory student money,” says Dr Parmar.

“The people responsible for approving this at Victoria University need to explain how they thought it was acceptable to take money from every student – regardless of their political beliefs – and make it available to a branch of the Labour Party.

“TEC’s response makes matters worse. Save Our Clubs took the issue to the regulator, and TEC concluded the funding did not breach the existing Student Services Fee requirements.

“If TEC is right, then the rules are even more indefensible than this decision. Apparently a university can compel students to hand over money and then use part of that compulsory levy to fund a parliamentary political party’s campus branch.

“This story also reflects badly on Labour. The entitlement of their youth wing, to even ask for this money, is incredible. Chris Hipkins should do the right thing, step in, and instruct his youth wing to return the money.”

Young ACT President Quill Thomas says students should not be forced to subsidise political organisations they may strongly disagree with.

“As students, we already have to find the money for fees, rent, food and everything else that comes with studying. The idea that some of our compulsory fees can then be handed to the campus branch of a political party is outrageous,” says Mr Thomas.

“Young ACT has never asked Victoria University for direct funding, and we never would. If we want to run an event, print material or promote our ideas, it is our responsibility to find willing supporters to fund it.

“A student who votes ACT, National, Green – or wants nothing to do with politics at all – should not be compelled to fund Labour’s campus branch. It is undemocratic and wrong.”

ACT's position:

“ACT announced last month that we will make Student Services Fees voluntary. Universities would be required to offer student services as a menu, allowing students to choose which services they want and pay only for those,” says Dr Parmar.

“This episode shows exactly why that reform is needed.

“Students should be free to support political organisations, unions, advocacy groups or student media if they want to. They should be equally free to say no.

“ACT ended compulsory student union membership in 2011. Universities then shifted substantial costs into compulsory Student Services Fees, meaning genuine freedom of association remains unfinished business.

“ACT will make these fees voluntary, give students control over their own money, and ensure organisations have to persuade people to support them instead of relying on compulsory levies.

“Every domestic university student currently pays a compulsory Student Services Fee of up to $1,253 a year. ACT’s policy could keep up to around $4,000 off a student’s loan over the course of a degree.

“Political organisations are entitled to organise on campus. They are not entitled to expect unwilling students to subsidise them.”

Editor's note: The details of the grant, uncovered by Save Our Clubs, can be found here: https://saveourclubs.nz/labour-party-at-vuw-viclabour-2026-club-funding-application-and-1700-student-services-levy-grant/