I think Dr Cullen and Miss Clark owe the Westpac Chief Economist a big apology, because their official advice from Treasury is a lot closer to his ballpark estimate, than their figures. Let’s all remember how they demonised him and accused him of impure motives. Well we know what motives Labour had – they tried to supress this advice.
Anyway to the figures, which Treasury say “may be understating the true total cost”:
* Annual cost rises to $390m by third year, and to $500m after six years, and by 2019 will be $924m.
* Impact on gross debt is a rise of $2.4 billion by third year, rising to $5.1 billion after six years, and rising to over $10 billion after only 11 years.
* Overall student debt increases under Labour’s policy. So much for Helen Clark kicking the ‘debt monster’ to death. Student debt blows out to $19.8 billion by 2020 verses $14.2 billion under the current student loan scheme.
Funnily enough I think my ballpark estimate was around $10 billion over a decade. Hey Treasury you should hire me 🙂
So boys and girls, next time you see a Labour attack ad saying it is madness to borrow an extra $3.5 billion, just smile and think own goal.
This is almost a rpeat of what Labour did when being kicked out in 1990. They tried to hide the figures until after the election. But this time it is $10 billion worth of hiding.
God bless the Ombudsmen!!