The fees-free tertiary policy has been dubbed 'Rorts R Us' by the ACT Party, after the penalty for false claims was significantly scaled back.
University students Photo: RNZ
Originally the penalty was up to three years in prison, but that's now [http://www.radionz.co.nz/news/political/350446/govt-lowers-penalty-for-fees-free-fraudsters
been reduced to a fine of up to $5000.]
Labour's flagship policy offers a free year of education or training - up to the value of $12,000 - to first-time tertiary students, regardless of age.
Officials previously warned the scheme could be open to abuse, pointing out the government holds no records of prior study from before 2003 or from overseas.
A Cabinet paper shows the government will now change the law to allow students in the future to simply sign an "ordinary declaration" which does not require a witness, with the much lower penalty for the breach.
That also means education authorities can penalise students who falsely claim the free fees without having to rely on a police investigation.
The original plan was too costly and complex, said Education Minister Chris Hipkins.
"The change ... is bringing this into line with comparable offences and also making it easier to administer."
New Zealand Union of Students Association president Jonathan Gee said not having to take a declaration to a Justice of the Peace would make tertiary education more accessible - the whole point of the policy.
And while nobody should rort the system, he said, a three-year prison sentence might have been a bit harsh.
"I wonder actually if that went through the courts how many would actually go to jail as a result of rorting the system ... [and] what sort of penalty they [judges] would have applied."
The $5000 fine was a sufficient deterrent, Mr Gee said.
National's tertiary spokesperson Paul Goldsmith said problems had arisen because the policy had been so rushed and ill-considered.
Mr Hipkins had repeatedly assured the public students could face serious ramifications if they lied on a statutory declaration, but now it was basically an "honesty-box system", Mr Goldsmith said.
"Anyone who lives in Auckland knows there are many, many people who have come from overseas, may have studies overseas; there's no way of knowing whether they have studied or not.
"There hasn't been any indication that the government has given serious thought to how to maintain the integrity of the system", he said.
ACT leader David Seymour said the fact the government had made those changes was recognition the scheme was vulnerable to fraud.
"Giving such a meagre penalty ... they're just reinforcing the point we're open for business - this is Jacinda Ardern's 'Rorts R Us' policy."
Legislation containing the change and stopping the creation of new charter schools has its first reading in Parliament today.