Interest-free student loans are safe but changes may be made to working for families as the Government looks for money after the Christchurch quake, Prime Minister John Key said this morning.
Finance Minister Bill English yesterday said the Government was looking at what big-spending projects can wait as it faced high costs from the Christchurch earthquake and a slow economy, but he said it would not "slash and burn"
Questions have been raised about the future of road and rail projects as well as entitlements.
Asked on NewstalkZB about working for families and interest-free student loans, Mr Key said changing the loans was unlikely but suggested changes to working for families were possible.
"There are areas where the eligibility of them is too generous and I think there are savings we can make and we will work on those ... I don't anticipate interest going back on student loans, for instance."
Mr Key said a cautious approach was needed.
"If you suck a lot of money out of the economy you ultimately slow the economy down. That is the advice from Treasury and that will be right."
Suggestions have been made that a levy be imposed to cover costs but so far the Government is looking at cuts and borrowing.
Changes would be reflected in the May budget.
Labour leader Phil Goff yesterday said there was no need for the Government to panic, because Canterbury's recovery would take years and costs could be spread out over time.
"It would be wrong to cut financial assistance to families and students who rely on that support, especially when the cost of living is sky high," Mr Goff said.
"That would simply slow the economy down - we must keep money in the pockets of people who will spend it."
