First Reading of the Draft Act Amending the Study Allowances and Study Loans Act (288 SE)
Session: 15th Riigikogu, 3rd sitting, plenary sitting.
Date: 2024-02-07 17:16
Participating Politicians:
Total Speeches: 37
Membership: 15
Agenda Duration: 51m
AI Summaries: 37/37 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu debated the first reading of Draft Act 288, which sought to amend the Student Allowances and Student Loan Act and was initiated by the faction of the Conservative People's Party of Estonia. The main objectives of the draft act were to raise the quality of higher education by allowing students to focus on studying instead of working, and to positively influence Estonia's birth rate. The bill stipulated raising the maximum student loan amount to 8,200 euros per academic year (which corresponds to 10 minimum wages) and making the loan repayment conditions more flexible.
The most significant and heavily debated amendment was the partial cancellation of the student loan upon the birth of children: 50% for each child born, 75% for twins, and 100% for triplets. Rapporteur Jaak Valge stressed that this measure was essential, as Estonia's birth rate is at a record low level, and criticized the government, which has promised a comprehensive solution for the student loan system for two years but has failed to present it. The government and the lead committee (the Culture Committee) opposed the bill, citing insufficient impact analysis, long-term additional obligations arising for the state budget, and the contradiction of the bill's provisions (e.g., limiting the circle of loan recipients) with the principle of equal treatment.
Decisions Made 1
The lead committee (the Culture Committee) proposed rejecting Bill 288 at the first reading. The Riigikogu supported this proposal with a vote of 51 in favour and 18 against, resulting in the bill being dropped from the proceedings.
Most Active Speaker
The most active participant was the bill's presenter, Jaak Valge (jR_cRc5Nq4Y), who represented the faction of the Conservative People's Party of Estonia. Valge delivered a comprehensive presentation, defending the bill's provisions—particularly the connection between student loan forgiveness and the birth rate—and answered numerous questions. His position was strongly in favor of the bill, emphasizing its strategic importance for Estonia's demographic future and the quality of education. He also provided a detailed cost analysis regarding the loan cancellations, which, in his estimation, would prove cost-effective in the long run.
Aseesimees Toomas Kivimägi
AI Summary
The Riigikogu is set to begin the first reading of Bill 288, initiated by the EKRE faction, which proposes amendments to the Study Allowances and Study Loans Act. Jaak Valge will present the report.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge greets the presiding officers and his colleagues, noting that there is a buzz in the room because the screen display has been switched off.
Aseesimees Toomas Kivimägi
AI Summary
We still have a long presentation ahead of us, but that won't stop us from listening to Jaak Valge, and if our colleagues require it, we will take that into account.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge wants all the attention for himself.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi points out that destiny had other plans; even though the screen was requested to be switched off, it was turned back on, and he encouraged Jaak Valge to carry on.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge stated that the draft legislation sets two primary objectives: first, to raise the quality of education and improve graduates' suitability for the labor market, and second, to encourage natality by simplifying the student loan application process, increasing the maximum loan amount, extending the repayment period, and providing for loan forgiveness upon the birth of a child. However, the government opposes these amendments, and he believes impact analyses are required. Although a short-term cost of about 28.3 million euros annually is foreseen, the number of taxpayers should increase and the Estonian labor market should improve in the long run.
Aseesimees Toomas Kivimägi
AI Summary
The speaker thanks the honorable presenter, notes that not all questions could be anticipated, and addresses Mart Helme.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme asks whether unfavorable loan conditions, economic difficulties, and the rising cost of student housing could be the reason why the number of male students is falling, given that men might pragmatically choose more profitable work (for example, in Finland) instead of obtaining a diploma.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge observes that student motivation and prior knowledge have declined year after year, and the number of young men enrolling in university is steadily decreasing; furthermore, he would answer in the affirmative regarding the question of the economic situation and the added value of a diploma.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invited Vadim Belobrovtsev to speak.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
He asks why the student loan cancellation rule, according to which 50% is cancelled for every child born, results in 100% cancellation in the case of two separate births, but only 75% for twins, and why the birth of twins is treated differently than the case of two separate births.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge argues that the birth of two children may lead to a greater risk of poverty and higher repayments, but the entire model relies on the law that was in force in 2009, and although one part of the draft bill has been cut, he believes it is a fair and balanced solution.
Aseesimees Toomas Kivimägi
AI Summary
He/She raises an interesting question and a nuance, and invites Aleksei Yevgrafov to speak.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Jevgrafov requests clarification in the explanatory memorandum of the draft bill regarding the specific provision which stipulates that student loans are only available to citizens of the Republic of Estonia and European Union citizens studying in Estonia. He also asks for the exact paragraph to be named and emphasizes that the focus is specifically on EU citizens.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge pointed out that the matter concerns citizens of EU member states, and that the draft bill contains minor oversights—details which are included in the explanatory note but were omitted from the draft legislation itself—and he expressed his gratitude for the diligence shown.
Aseesimees Toomas Kivimägi
AI Summary
Apparently, it’s all over, and Margit Sutrop is being asked to speak.
Margit Sutrop
Profiling Eesti Reformierakonna fraktsioonAI Summary
Margit Sutrop thanked the presiding officer and commended the work being done on student loans, noting that the proposed solution could raise the quality of higher education and increase the loan amounts so that students could focus on their studies. However, she questioned whether this should be regulated at the legislative level and whether the interest rate issue is solvable, since the draft bill does not address interest rates. She highlighted that, for example, if the repayment period were doubled, the interest cost on a 30,000 euro loan would rise by 17,000 euros—a very significant sum—and she wished to know if there were any plans to address interest rates.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge emphasizes that even though the interest rate is high, the size of the loan should be fixed, and the interest rate should remain the subject of government negotiations, because 5% is seriously too high.
Aseesimees Toomas Kivimägi
AI Summary
It's a simple request to invite Varro Vooglaid to speak.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid notes that the current student loan amount does not allow students to fully dedicate themselves to their studies, and asks whether empirical observations show that students who are fully dedicated to their studies acquire more knowledge and develop better than those who have to work alongside their schooling.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaak Valge states that students who attend lectures and seminars achieve better academic results than those who skip them. He adds that if students were able to focus solely on their studies, he would advise them to spend that time interacting with wise people and getting the most out of their university experience, but currently, students have to earn a living.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi offered his thanks and stated that there were no further questions, inviting Margit Sutrop, a member of the Culture Committee, to the Riigikogu rostrum to present the positions and decisions of the leading committee.
Margit Sutrop
Profiling Eesti Reformierakonna fraktsioonAI Summary
The report detailed the Culture Committee's 2023 discussion on student loans and grants, during which members considered whether the topics covered by the draft bill should be addressed through separate legislation, and whether promoting the birth rate and handling the issue of foreign students required a distinct solution. The government's positions and the absence of an impact analysis were debated, and ultimately, the decision was made to reject the draft bill.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi expresses his thanks, notes that there are no questions, and opens the debate, which is represented by Anti Poolamets on behalf of the EKRE faction.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
EKRE representative Anti Poolamets asserts that Estonia's primary issue is the century's lowest birth rate and the depopulation of rural areas, and that serious measures must be adopted, such as guaranteeing Estonian-language and Estonia-centric education, and reimbursing student loans upon the birth of each child. Simultaneously, he criticizes the government's focus on attaching bottle caps and emphasizes that keeping people in the countryside is the priority.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi requests three more minutes.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets emphasizes that demographic trends and fertility rates are primarily influenced by economic uncertainty and the rising cost of living, and that we must now counter-cyclically strengthen people's well-being and economic support. Otherwise, young people's desire to start a family and pursue further education will diminish.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi stated that he heard three votes for and three against rejecting the bill, but the official minutes record eight votes for and three against. If Margit Sutrop, acting as the committee's rapporteur, confirms this with a nod, that record will be the one used to proceed, followed by Vadim Belobrovtsev.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev notes that the proposed link between student loan forgiveness and childbirth would be a useful premise, but the draft bill is flawed due to inaccuracies and unequal scopes of application. He adds that equal opportunities should be guaranteed for both EU and non-EU residents.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi requested three additional minutes.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev noted that the draft bill, which links the forgiveness of student loans to the number of children (50% for the first child, 75% for twins), is incomprehensible and poorly conceived. Furthermore, he believes the section defining who is eligible to apply for the loan is also flawed, which is why the Centre Party faction cannot support this bill.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi expresses his thanks and, on behalf of the Reform Party faction, asks that the floor be given to Andres Sutt.
Andres Sutt
AI Summary
The report acknowledged that although the draft bill contains reasonable proposals, it is first necessary to clarify what problem student loans are solving. It emphasized that funding must consist of needs-based grants, performance-based scholarships based on student results, and student loans, and that loan parameters—interest rates and repayments—must be reviewed together with banks. Furthermore, consideration should be given to the possibility of employers writing off the loan as a business expense, while simultaneously stressing that childbirth and upbringing must be regulated by family policy, not by means of student loans. Therefore, the report generally supported the reform promoting the acquisition of higher education.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas requests additional time.
Andres Sutt
AI Summary
Andres Sutt stated that they would not vote in favor of the current draft legislation. Instead, they are waiting for concrete proposals from the Ministry of Education and Research, after which they will develop a good bill that addresses the problems holistically.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas declares the discussions concluded and submits the lead committee's proposal to reject Draft Bill 288 at the first reading for a vote.
Aseesimees Jüri Ratas
AI Summary
The result of the vote was 51 in favor, 18 against, with no abstentions; Draft Bill 288 has been rejected in its first reading and is hereby removed from the proceedings, and the consideration of the fourth item on the agenda is concluded.