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Reflections on conference 2010

Posted by Carol Beaumont on October 18th, 2010

Conference was buzzing from start to finish and I imagine a lot of us will be reflecting on what we saw, heard and discussed over the next few days.  

The results of the recent Local Government elections meant many of us arrived feeling positive – positive about what the results said about what New Zealanders do and do not want and positive about the platform this provides for the General Election.   The Len Brown campaign showed that people respond to messages of fairness and inclusion and most importantly to clear and bold policy platforms.

Our conference was about Labour profiling the work that has been happening since the last election – the listening, consulting, debating  and thinking about what we put before the people next year.   Conference included policy workshops, new thinking sessions that included speakers from outside of Labour and key note speeches that all were all exciting,  challenging and forward looking.    And most importantly the framework of a BOLD programme to provide real choice to New Zealanders.  

Underlying the work is putting the needs of people first – not some people but all of us.  We cannot be successful on the back of poverty, of lack of opportunity and not investing in people.    Annette’s speech the importance of placing children at the centre of our policy – we cannot be successful if children live in poverty, in fear, without adequate food and shelter and without quality health and education services and without a loving family.  Phil’s speech emphasised improving opportunities for all New Zealanders.   He emphasised the need for fundamental changes to deliver a stronger economy where all of us share in the rewards.  We need to be focused on increasing exports and employment, we need to protect our assets, invest in education and research and development, control monopolies and lift the incomes of New Zealanders.  Unfair, unequal countries cost everyone,  not just those at the bottom. 

National’s policies are making it harder for most New Zealanders, inequality is growing.  

Next year the choice for New Zealanders will be very clear.  Several hundred of us left conference today motivated about putting Labour’s vision in front of New Zelanders.

Filed under: Labour Party, conference, inequality
15 Comments

Unimaginable – removing the right to have a rest or meal break

Posted by Carol Beaumont on August 5th, 2010

At the Transport and Industrial Relations Select Committee today CTU President Helen Kelly gave a strong challenge in her oral submission.   She rightly stated that it is unimaginable that a Government would remove the right to something as fundamental as the right to have a break during the working day.  Yet this is what National is doing. 

Essentially there is a removal of rights by creating the following regime – rest and meal breaks will be taken at times agreed by employees and employers but in the absence of such agreement it must be at a reasonable time or duration as specified by the employer.  The removal in this Bill of a statutory minimum means that there is no standard below which agreement cannot fall – anything is possible as long as it is agreed.  In the absence of agreement the only protection in relation to imposition by the employer is that it should be “reasonable” however the Bill provides that employers can specify reasonable times and durations that, having regard to the operational environment or resources and the employees interests, enable the continuity of service or production.   

Helen Kelly also pointed out that the changes proposed in this Bill must be seen in the context of other changes.  For example how strong will a worker’s bargaining position be around meal and rest breaks when for the first ninety days of their employment they can be sacked without reason or redress (except in cases of discrimination).   If the employer thinks theyare not being flexible enough about having (or not having) a break watch out!  If they want advice about their rights they won’t necessarily be able to see a union representative at work given the proposed change to the access provisions.

I am not suggesting this is how most employers will behave but legal minimums are to provide protections for the most vulnerable.  Furthermore in competitive industries good employers can face pressure if bad employees employers cut costs by exploiting  workers.

Filed under: Employers, Meals and Rest Breals
24 Comments

Productive employment relations?

Posted by Carol Beaumont on July 17th, 2010

Members of the National Government say the word productivity a lot.  I certainly agree there is a need to lift our productivity as a nation.  However I get annoyed that there is little real action and no focus at all on workplace productivity.

In fact the track record of this Government, including the recent announcements on extending the 90 Day No Rights provisions and limiting union access to workplaces, has taken a cost reduction approach to employment relations.  Lifting employment standards and improving the quality of our workplaces doesn’t feature. 

In my speech on the Prime Ministers Statement to Parliament in February I made the following comments :

Where is the government investment in industry and regional economic development?  Where is the recognition that we need to lift the quality of workplaces – the wage rates, the work conditions, the quality of interaction. Productive employment relations. This Government sees workers and their rights as a cost to be reduced.

Look at the double speech in the PMs statement. Under the section on Better Regulation we have:

“Whether labour laws are imposing excessive costs on the country and holding back opportunities to create jobs”

Holidays and PGs not to mention union access to workplaces and collective bargaining. Remember what this meant last time and if we want to find reasons for the gap in income between Australia and NZ  this is a good place to start.

Attacking workers rights and reducing current standards will not encourage the motivated workforce we need. Failing to invest in improving skills in our workplace will  similarly not provide for a motivated workforce able to work smarter.  There were no new initiatives in the area of workplace learning in the Budget.  In fact under the Labour portfolio we see money moved from the Skills area to a completely different area of work.  The Skills Forum spoken about very positively by the Prime Minister at the CTU conference last year has met once under this Government (still we know how reliable undertakings made by John Key to the union movement are!)

A recent report on management practices in the manufacturing industry showed that NZ managers surveyed are “average to middling by global standards”  Furthermore people management emerges as the weakest area.  And we are going to give poor people managers the right to fire at will for 90 days (except for discrimination covered by the Human Rights Act)!

 A specific need identified in the Skills Strategy agreed by the last Government, Unions and Employers was around the need for more management training.   We need forward looking people management that recognises that paying more not less, improving conditions of employment and genuine flexibility and respecting the need for independent worker voice that is engaged in improving the workplace and the products and services created/provided  is what is required. Workplaces that are focussed on lifting productivity and where productive employment relations are seen as an integral part of this. We have some of these businesses but we need many more.

Fundamental to this approach is respect.  I know from my own experience as a union organiser that workers value and desire respect at work.   Respect for them as individuals but also respect for their unions.  They also want to work with and for employers they respect.   

I would like to see a real focus on productive employment relations but it will not happen under the approach being promoted by this National Government.

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Filed under: Employers, Manufacturing, Skills, productivity, union, workforce
7 Comments

Key shows true anti-worker/anti-union colours

Posted by Carol Beaumont on July 15th, 2010

The  announcement today of the removal of the right of  workers to have union officials on their workplace is an attack on workers and their internationally recognised rights to organise in unions, to have an independent voice and to collectively bargain.  This is back to the bad old days of the Employment Contracts Act during which many workers did not know about their legal rights, including their right to join a union and to collectively bargain to improve their wages and conditions. For those who need reminding this was a time where for many workers wages and conditions of employment were reduced, and when a significant gap in wages between Australia and New Zealand was established.  

This announcement is a clear move to keep onside with Key’s more extreme employer mates at the expense of workers.

The Minister of Labour’s comments on TV1 News tonight were telling.  She explicitly stated that employers are in charge of their workplace and that they should have the right to restrict access of union officials to enter their workplace.  She is clearly showing her attitude that the workplace is not a place where workers and employers interact to create highly productive and well rewarded outcomes or indeed where worker participation and say have value.  For her the workplace is a place for management control of resources including the human resources (workers). It is worth noting that the current right of  access to workplaces has to be used in a reasonable manner.

Furthermore the Minister of Labour is either naive or on another planet if she believes what she said that restrictions “wont happen often”.  As a union organiser during the 1990s my own experience and the experience of most union officials I know was to be repeatedly denied access to workplaces.  In non unionised workplaces or workplaces with high worker turnover the problem was particularly acute with many workers not being given a genuine opportunity to join a union and gain all of the protections and opportunities provided by union membership.

Access of union officials to workers at their workplace ensures that protections including health and safety and compliance with employment standards are more likely to be honoured.  Access of union officials enables workers to choose to be represented by a knowledgeable person in grievance situations (by the way I know many employers who acknowledge that grievances are dealt with more effectively when there is a union organiser involved).  Access of union officials provides support for workers to organise in their workplace including the training  and support of on site worker representatives.  Importantly these representatives are often able to work with employers to both identify and deal with workplace problems. They are certainly essential to facilitate a more engaged workforce where workers can contribute their ideas to improving the workplace and the products or services created/provided there.  Access of union officials provides support for workers to organise collective bargaining  for improved wages and conditions (collective bargaining provides for better and fairer outcomes for workers as well as providing certainty for employers).  The reality is that most employers do not genuinely negotiate with most workers on an individual basis.  For many workers the imbalance in bargaining power is clear which hampers genuine negotiation on an individual basis. 

This short sighted attack on workers has negative consequences not only for workers but for initiatives to change our workplace into the productive, well rewarded places they need to be for real growth in our economy.  Underlying the attack is an negative attitude to unions (so much for the rhetoric about the valued relationship the government has with the union movement) and a view that workers are a cost to be controlled (young and vulnerable workers will be most hurt).  Once again New Zealand will join the ranks of those countries that are held up as breaching international labour standards.

Filed under: Employers, business, human rights, productivity, union, workforce
55 Comments

Pansy Wong “No stone unturned”

Posted by Carol Beaumont on July 4th, 2010

On Wednesday 30 June the Pay Equity Challenge Coalition held a rally outside Parliament to mark the anniversary of the National Government’s closure of the Pay and Employment Equity Unit. The rally sought to highlight New Zealand’s gender pay gap and to analyse the actions of the Minister of Women’s Affairs  who promised last June to “leave no stone unturned in trying to close the gender pay gap”

At Question Time that day Catherine Delahunty and I asked questions of the Minister Pansy Wong to explore what she had been doing to close the gender pay gap.   Her answers show both a lack of understanding and a lack of commitment to dealing with this problem.   She was just plain wrong about the gap closing to 11% as Catherine went on to show the House the next day.  And as for her answer on flexible working – well I leave that up to you to judge.  The legislation that National voted against was the Employment Relations (Flexible Working Arrangements) Amendment Act 2007.  As the Dept of Labour outlines the flexibility envisaged is broad ranging and includes – flexi hours, flexi weeks, flexi years, flexi location, flexi worksite, flexi career.

The issues of unequal pay – whether it be unequal pay for the same work,  unequal pay for work of equal value or lack of opportunity to progress to higher paid work – have serious consequences over a lifetime.   The immediate financial consequences for families is that they have less money to try and make ends meet.   Many families are struggling at the moment with low or no pay increases and ever increasing costs; unequal pay exacerbates the problem.

There is not a single solution to the issue of pay equity but not acting  is indefensible.  Minister Pansy Wong’s commitment to “leave no stone unturned to close the pay gap” has been shown to be worthless.

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Filed under: Pay Equity, women, workforce
3 Comments

Red Cross – Helping Create Hope for 150 Years

Posted by Carol Beaumont on May 27th, 2010

I expect most of know of and have positive views about the Red Cross.   The role of the Red Cross internationally in war and disaster zones is well understood.  Just this week I read a story in the Herald about Mr Jack Kelly a NZ prisoner of war in World War 2 who had been held in atrocious conditions in a German prisoner of war camp in Greece.  He put his survival down to Red Cross parcels he received.

The mission of New Zealand Red Cross is to improve the lives of vulnerable people by mobilising the power of humanity and enhancing community resilience and their principles are Humanity-Impartiality-Neutrality-Independence-Voluntary Service-Unity-Universality.

I was lucky enough last night to attend a presentation on the work of Red Cross at Parliament and I learned about the full range of Red Cross activities internationally and within NZ.  The work within New Zealand was greater than I had understood and includes – installing first aid equipment in public places, running first aid courses, delivering meals on wheels (750,000 per year), running a drug and alcohol harm minimisation programme ‘Save a Mate’ (targeting young), providing transportation to hospitals, running Op Shops, supporting refugee resettlement and coordinating emergency response to disasters. A most impressive range of acivities delivered primarily by volunteers.

One specific and growing role that Red Cross plays within New Zealand is the provision of breakfast to hungry children through their Breakfast in Schools programme. Demand for this programme is on the rise. While it is a very positive initiative I am sure that I am not the only person who feels angry that we have such poverty in this country. For a comparatively rich country that is a major food producer it is a disgrace that such child poverty exists. Over 200,00 breakfasts were served in over 40 schools in 2009. Red Cross believes up to 20 further schools will be added during 2010. Budget 2010 by lifting GST and making cuts in areas like Early Childhood Education will increase poverty. 

Mr Jack Kelly talked about the NZ value of a fair go.  What is clear is that many NZ children do not have a fair go and this Government will make this situation worse.

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Filed under: Budget, poverty
10 Comments

Loan Sharks – time to take action

Posted by Carol Beaumont on May 19th, 2010

loan-sharks

Just over two months ago I launched my campaign to stop loan sharks. In one weeks’ time, Wednesday 26 May,  the First Reading of the Bill that is part of this campaign – The Credit Reforms (Responsible Lending) – will take place. Currently I believe I have support from five parties. Unfortunately this will not be sufficient. I need your help to urge National to vote for the Bill to go to Select Committee.

Here’s why I think you should support the Bill and work to get National to support it.

The Bill is a genuine effort to deal with aspects of a truly harmful industry, an industry that causes damage to many low income families who struggle to make ends meet. Extremely high interest rates, some in three or four figure percentages, and irresponsible lending put families at risk. At risk of a never ending cycle of high interest borrowing and much needed money going to lenders rather than on things that families actually need. The tales of human tragedy I have heard over the last two months are truly terrible. We need to do something.

I have spoken to hundreds of people including many from the agencies that deal with the people who are in terrible financial trouble because of loan sharks. Every Budgeting Service I have met with tells me the majority of people they see are hooked into high interest rate loans. One in Mangere told me that everyone they see is in this position. No-one denies the problem and everyone I have spoken to wants something done.

There is an opportunity here for Parliament to show leadership, for all parties to support this Bill to a Select Committee so it can be properly scrutinised, so that the public can make submissions and share their experiences and so that we can look at what is being done in other countries. Interest rate caps for example are widespread internationally but you would not know this if you listened to the Minister of Consumer Affairs or indeed some National MPs who assert that interest rate caps won’t work. Some are saying the Government is already working in the area of consumer credit. There is some truth in that statement as there is a Review of the Credit Contracts and Consumer Finance Act which is proceeding at a glacial pace (sadly) There were some very good suggestions made in the Discussion Paper and in the 59 responses to it. Suggestions in the area of disclosure of loan terms and security for loans are a couple of examples. I have said to the responsible Minister, Heather Roy, that the review is weakest in the area of ‘fringe lending’ and that my Bill alongside any proposals the Government may (finally) make could be considered together at a Select Committee. Many people have made specific suggestions to me that would really add to the possible range of ways we can address this problem.

And then of course there is at least one National MP who is saying my Bill doesn’t go far enough without concrete suggestions for anything else. I have been explicit that the Bill is not the whole answer. How can it be when there are a range of issues that surround the loan shark industry eg  inadequate income levels, difficulties for some in accessing credit on a fair basis, poor enforcement of current protections and of course shocking financial literacy and understanding of consumer rights. There are a range of additional things that could and should be done. I would welcome any suggestions for strengthening my Bill or dealing with related issues.

None of these excuses that I am hearing that some National MPs are trotting out are reasons to vote against my Bill. In the community people are asking me questions like –  how could National vote against sending this to a Select Committee?  Will they do so just because you are a Labour MP?  Well let’s see next week but please try to encourage National to do the right thing, I am certainly continuing to do so.

The more I have heard in the last two months the more passionately I feel that we must regulate this industry as well as continuing to seek solutions to the wider set of issues surrounding it. I committed at the launch of the campaign that irrespective of the outcome of the vote on the Credit Reforms (Responsible Lending) this campaign will continue. The support for the campaign is wide ranging from Churches,  Community Law Centres, Budgeting Services, Pacifica and Maori organisations, Unions, Citizens Advice Bureaus, student groups, Women’s organisations, Local government politicians, lawyers and decent concerned citizens including some National Party voters and people who have personally been hurt by this industry. My resolve on this matter has only strengthened over the last two months.  If you want to help you can act now and join in with the ongoing campaign.  If you want more information go to www.stoploansharks.co.nz

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Filed under: Consumer Affairs, Cost of Living, Loan Sharks, Pacific issues, politics
16 Comments

Reflecting on ANZAC Day#3

Posted by Carol Beaumont on April 24th, 2010

I confess to a very similar journey to my colleague Grant Robertson in relation to ANZAC Day. 

The increasing resonance and inclusiveness around ANZAC Day was illustrated to me yesterday when I was out in Onehunga Mall with a box of ANZAC poppies.   A range of people reflecting the diversity of our community approached me for a poppy.  On the other side of the Mall Elaine, wearing a brooch with a picture of her brother who died in World War II, was having a similar experience.  Toddlers through to very senior citizens were proudly wearing their poppies.

When I was considerably younger I spent a wonderful week in Crete and was overwhelmed with the warm reception that my friends and I received once people found out we were New Zealanders. I heard a little about the New Zealanders who fought alongside the people of Crete when it was invaded and occupied by the Germans in 1941.  Recently I found out a little more when I read a book by Patricia Grace – ‘ Ned and Katina – a true love story’.   Eruera Rewiri Nathan/Edward David Nathan ‘Ned’ a wounded Maori Battalion soldier is sheltered by the family of Katina Toraki and they fell in love and eventually married and settled in NZ after the war.  In the course of the book I got a real sense of the courage and determination of the soldiers, who were effectively stranded on Crete after the defeat of the allies, and the many Cretans who formed the local resistance.  The tales of human kindness in extreme circumstances are very moving.

But I was particularly struck by the following quote from Ned following a pilgrimage organised on behalf of ex Maori Battalion members and their families in 1977  that visited cemeteries and former battlefields in Turkey, North Africa, Italy, England, France, Greece and the Greek Islands.  On Crete there was a service of reconciliation and forgiveness which was widely reported in Greek and German newspapers.  On his return to NZ Ned received a letter from a member of the German War Graves Commission who wanted to gain an understanding of what had motivated the commemorative event in Crete.  Ned’s reply included the following statement about what occurred at the commemoration:

“I also emphasised that this 28th Maori Battalion pilgrimage to all the Mediterranean countries wherein our fallen are interred, that this was also a pilgrimage with a mission for peace.  In my address at the ceremony at Maleme I also said; that it was shame and a curse on mankind; that they, our fallen had to die together to find peace one with the other, and this surely indicated that we the survivors, and the living, should intensify our efforts to ensure lifelong peace, and prevent another holocaust.”

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Filed under: defence, peace
5 Comments

Food for Thought 2

Posted by Carol Beaumont on April 22nd, 2010

Food prices have been topical this week.

On Tuesday I raised the issue of  rising food prices during question time.  When the Minister of Consumer Affairs, Heather Roy was previously asked about how Kiwi families could combat rising food prices, her advice was to “shop around”.  The Finance Minister, Bill English confirmed her advice but failed to address the real point of my question which is that Kiwi families can’t shop around increases in GST which will further increase food prices.

The next day there was an interesting article in the Herald about the relationship between a food supplier and one of the two major supermarket chains in New Zealand.  Irrespective of the particular case covered in the article there were some interesting questions of  more general application:

  • Given the dominance of the two supermarket chains and the pressure they can exert  how can food suppliers obtain a fair return?
  • If prices paid to supplier are ’screwed down’  who benefits – are prices reduced for consumers or are the profits of the supermarket chains increased?
  • To what degree is there anti competitive behaviour in our supermarket industry?  It was interesting to see the reference to legal advice about cartel behaviour being sought by the the National Distribution Union

I will be following both Mr Rai’s complaint to the Commerce Commission and any actions by the NDU with interest.   Consumers are very reliant on supermarket companies for something that is fundamental – food.  We need to have scrutiny on whether these powerful companies and their behaviour to consumers and suppliers. 

And then there is the question of how those who work in the food industry are treated.

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Filed under: Consumer Affairs, Cost of Living, food
36 Comments

Food for Thought

Posted by Carol Beaumont on April 8th, 2010

Over Easter I had a chance to get into our vegetable garden.  Harvested the last of the tomatoes, some chillies and got things tidied up for planting more cauliflower, broccoli and broad beans.   Most of my life I have had a vegetable garden and have been able to grow some of the food I eat, an enormously satisfying experience I worry is increasingly less common.

Fruit and vegetables have come up quite often in recent conversations.  I hear about (and see) the good work happening in a number of our schools where vegetables are grown and compost bins tended.  A budget adviser told me that in England there is a requirement for schools to have fruit trees to give students access to fresh fruit.  I’m not sure how this works but it didn’t seem to be a bad idea.  Both of these approaches provide fresh healthy food to young people (for some, from families struggling to make ends meet and where food is scarce, this is a practical help)  and show young people that food is something you can grow (not just buy in the supermarket). 

In fact in a country like New Zealand with a natural advantage in producing food we should maximise opportunities to encourage people to grow food.  Even those with limited space can grow produce like tomatoes and salad greens in containers.

It is scandalous that fresh healthy food which we can grow easily is as expensive as it is.  It is not the producers who are making huge profits from fruit and vegetables but supermarkets are a different story.   I was interested in a feature in the Sunday Star Times particularly the comments about industrialised (processed) foods, the food industry, natural foods and about the importance of cooking (another skill that is not as widespread as it once was it seems).  

Food is one of our fundamental needs.  Despite this as a result of poverty too many people globally including some in New Zealand do not have  an adequate and regular supply of the food they need.   Food is something that is huge business.  If you look at the worlds largest companies food producers and retailers are right up there – huge, profitable global corporates with enormous purchasing and marketing power.

For all of these reasons (and for our health) lets ensure we hold on to the skills of growing and cooking  food.

On the local and immediate, one final request following a conversation with a local food bank – if you have surplus fruit or vegetables give it to the food bank.  They are generally unable to provide fresh food and some of the food that goes to waste (think ahead to the forthcoming feijoa season) can make a difference.

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Filed under: Household income, food, retail
27 Comments

Time to reduce the gap between rich and poor

Posted by Carol Beaumont on March 31st, 2010

Interesting article in today’s Herald (the same one referred to by Jacinda Ardern) reporting on a New Zealand Institute report which shows that New Zealand has a high disadvantage rate. Only six countries have a worse disadvantage rate (the gap between rich and poor) among the 30 developed countries that make up the OECD. It was correctly noted that our country became much less equal in the 1990s under the last National Government.

The policies of the current National Government will no doubt worsen this situation. One of the earliest acts of this Government was to give tax cuts favouring the rich (30% of the cuts went to the top 3% of salary earners).  We are likely to see further unfair tax changes in the May budget with increases to the regressive GST and further cuts in personal tax for high income earners. Access to lifelong learning opportunities which can assist people in many ways including improving their job opportunities such as Adult and Community Education and the Training Incentive Allowance have been cut.

The Government has placed scant attention on economic stimulus to create jobs or invest in skills.

A recent Salvation Army report ‘Road to Recovery’ stated that: “…there is no denying that the recession is taking a social toll. Unemployment is at a five year high, gains made over the last five years in reducing child poverty have probably been lost, and there are signs of a widening income gap between the well paid and the poorly paid”

(more…)

Filed under: inequality
78 Comments

Bouquets to the Horticulture and Viticulture Industries

Posted by Carol Beaumont on March 16th, 2010

One of the real privileges of being an MP is the many events you get to attend and hear of developments and issues. 

 Last night I attended the launch of the National Horticulture/Viticulture Labour Governance Group 2010 Strategy.  This is the second 5 year strategy produced by this group which is a partnership of industry representatives, unions through the Council of Trade Unions, and Government.   This is an industry that has had its fair share of labour problems – labour shortages, illegal labour and very poor wages and conditions.   The collaborative work alongside of other initiatives like the recognised seasonal employer (RSE) scheme have been attempts to deal with these problems.  What we heard last night that there have been many improvements since 2005.   In my opinion these collaborative and industry wide approaches are essential to lift our performance as a country.  So a bouquet to the Horticulture and Viticulture Industries.

The second bouquet goes to Geoff  Lewis and the growers of the Horowhenua.  Geoff is the Chair of the National Horticulture and Viticulture Labour Governance Group.  Last night we saw a recorded message from Geoff who was in Samoa.  He was in Samoa helping to restore a village destroyed in the tsunami.  Geoff along with other growers in Horowhenua have donated time, materials and money to do this work because they want to assist the families of the RSE workers who have been working for them.  What a great spin off from this scheme. Congratulations to all concerned.

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Filed under: workforce
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Stop Loan Sharks – the campaign commences

Posted by Carol Beaumont on March 12th, 2010

Picture 075

Yesterday at Mangere  I launched my Stop Loan Sharks campaign.  Along with Sua William Sio,   Len Brown Mayor of Manukau (and prospective Mayor of Auckland), Darryl Evans Mangere Budgeting and Family Support Services and Andrew Shann a long time campaigner against loan sharks (not pictured) I described elements of this exploitative practice and possible solutions.

I have been impressed by the level of support and interest in the lead up to the launch and in the 24 hours since.   The issue is well understood to be a significant problem within low income, Maori and Pacific communities but even so people are shocked by the details. 

One story I told yesterday was of  a Tongan family who needed $3,200.00 to repair their car. This family has 5 children under the age of 13. Husband works as a Store man at an airport based company and the wife is a stay at home mother. His total take home pay is $598.00 per week. They took out a loan with a company in Otahuhu and put up their car (valued at $4,500 as well as two cultural mats which had been in their family for over 80 years. The loan was for $3,500.00, interest charged was 55%over 24 months, which meant they had to repay $1,925.00 in interest or in total: $5,425.00. They defaulted on the payment in the 3rd month when default payments were established. Some 9 months later this family have had the car repossessed by this company and they also had to pay for the towage and storage of the vehicle. At today’s date they owe just under $9,800.00 and the case is still not resolved. The family want their mats returned but the company refuse until such time the debt is paid off in full. They have no car and still owe almost $10,000.

This is not an isolated story.  Hard economic times are good news for loan sharks.  For many New Zealanders struggling to make ends meet loan sharks end up being their only alternative.  There are a range of issues that make this the case – people struggling on completely inadequate incomes – low wages or benefits; people unable to get credit from mainstream banks; ease of credit from some providers coupled with low levels of financial literacy.    Whatever the reason people end up paying obscene interest rates and in a far worse financial position than they started. 

I want to acknowledge the work of community law centres, budgeting services and Citizens Advice Bureau who seek to help people struggling to make ends meet, unfortunately usually when they have become trapped in a spiralling cycle of debt.  Their work is extroadinary especially when the real limits of their resourcing is considered.

The Stop Loan Sharks campaign aims to shine the light on this unacceptable situation and build support for action. I will  be encouraging people to share their stories and putting the heat on the Government to do something concrete to end this exploitation.   The campaign includes building support for my members bill  the ‘Credit Reforms (Responsible Lending) Bill.  Initially submitted by Charles Chauvel , who remains along with Andrew Shann a keen advocate for legal reform in this area, the Bill will have its First Reading at the end of April.

The Bill allows for maximum interest rates to be set; a power that doesn’t currently exist in New Zealand law.  It also requires the lender to reasonably believe the borrower will be able to repay the loan and limits the ability of loan sharks to recover more than they initially lent in the event of a default. Finally, it allows registered pawnbrokers to charge administration fees, thereby removing the need for higher interest rates.  

The capping of interest rates, despite what the Minister of Consumer Affairs says, is not radical or unusual – many countries have such provisions eg Australia, Japan and Canada for example.  Barrack Obama is currently  in the process of capping interest rates in the USA. 

I believe this Bill should be supported by all parties to Select Committee to be thoroughly scrutinised and debated. It is a genuine attempt to deal with a real problem.  I will be seeking the support of politicians across the House although  Heather Roy has already rejected the Bill on ACT’s behalf. 

Whatever happens to the Bill I intend to continue campaigning on this issue.   Next week a website www.stoploansharks.co.nz  goes live.  It wll provide you with ideas and updates on how to help stop loan sharks.

Filed under: Consumer Affairs, Loan Sharks
59 Comments

ACC changes- arbitrary,unfair and discriminatory

Posted by Carol Beaumont on February 24th, 2010

For over 7 hours so far I, along with my Labour and Green colleagues, have been arguing against the ACC Bill being pushed through under urgency.

I use the word arguing because the word debating would not accurately describe the lack of engagement by the Government.  Despite the significance of this Bill currently 2 National members are sitting reading newspapers and most have said absolutely nothing.

The Minister in the Chair, Pansy Wong has said nothing,  neither did the previous Minister in the Chair Kate Wilkinson.

This is despite the complete picture of arbitrary, unfair and discriminatory changes we have outlined to the Government.   The changes in this Bill will disproportionately affect women, Maori, Pacific, low paid, young and old workers. The Human Rights Commission clearly raised a number of significant concerns in their submission. Despite repeated requests Ministers will not address the concerns we are raising about arbitrary, unfair and discriminatory changes.

Let me conclude by advising you on an unfair change that will affect most New Zealanders.  This change relates to holiday pay and the requirement being created that unused holiday pay at the end of the employee’s pre-injury employment will be offset against entitlements to earnings related compensation.  Consider the situation of two workers – one who took the holiday they accumulated prior to being injured and the other who had not yet taken the holiday they accumulated prior to being injured. One will contribute to their own earnings related compensation one will not.  Is that fair?   Well even Treasury advised  that this provision would be considered to be unfair and they suggested that the  savings of $1 million dollars a year seemed small compared to the fairness concerns.

This Bill has consequences for people, real people who will suffer as a result of changes that are arbitrary, unfair and discriminatory.   It is not just Labour and submitters identifying this but also Crown agencies such as Te Puni Kokiri and the Human Rights Commission.

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Filed under: ACC
10 Comments

Key on Supercity

Posted by Carol Beaumont on February 10th, 2010

I agree entirely with Phil Twyford’s comments about how Aucklanders feel about the shambles and outrage that constitute the Government’s Auckland Supercity proposals.   A packed public meeting in Onehunga last week identified concerns about the process – the lack of time to have real debate, the ignoring of Aucklanders’ concerns, the blatant lies i.e. don’t worry – the powers of the Local Boards will be included in the 3rd Bill; as well as concerns about the actual structure – the powers of unelected (and misnamed) Council Controlled Organisations, the boundaries and the likely very limited powers of the Local Boards, the massive increase in campaign expenditure limits …
Our meetings were to encourage people to make submissions on the 3rd Auckland Bill but given what people have seen to date it is likely that the views of Aucklanders will be ignored.  So despite the gerrymandering of the new boundaries and the new higher campaign limits, ordinary Aucklanders will have to turn out in unprecedented numbers and not allow the National Party in drag (C&R) to win the election this October.  Of course many good people who are thinking of standing for election cannot yet make their decision because the boundaries are not finalised and the role of the Local Boards is not yet known.  What a mess!

New Zealand’s largest city is getting an unworkable Local Government arrangement that aims to centralise power in the hands of few rather than provide local democracy for the many.  People are seriously worried that the structure is the precursor for privatising the assets of the people of Auckland.

And how did the Prime Minister describe this in his Statement to Parliament yesterday? 

He said  “The reforms will simplify and streamline governance structures within the Auckland region. This will result in better, more cost effective public services for Aucklanders delivered through integrated planning and service delivery across the region”   

Tell that to today’s delegation from Rodney or the thousands of Aucklanders who are angry and worried about the real threats to local democracy and ownership of their assets.

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Filed under: Auckland, Uncategorized, local government
6 Comments

Prioritising private education

Posted by Carol Beaumont on January 7th, 2010

This report today of a Government initiative to spend $2.6 million funding Aspire scholarships for children of low income families to attend private schools  typifies the priorities of this Government and clearly shows their view that the private sector is better than the public sector.  The former principal of Glendowie College, Lindsay Adams, correctly asks why the Government should pay students to leave the public education system.

This is of course the same Government who increased funding for private schools in the 2009 budget and slashed funding for Adult and Community Education provided through our secondary schools. It is all about priorities and in my mind ensuring that all New Zealanders have the opportunity to access quality education through the public education system is the priority.

Associate Minister of Education Heather Roy predictably says it is about choice and then goes on to say she doesn’t  “ … believe that necessarily the best school for a student is the one just down the road from them.”   I believe we should focus on ensuring that generally the best school is the one just down the road.   The underlying assumption of this ACT promoted Government initiative is that a private school is going to be better for students than a public school (just down the road or not).  Funding private education at the cost of public education will undermine the quality of our education system and this is not in the best interests of the 97% of New Zealanders who are educated in the public system.

As New Zealanders I believe we have long prided ourselves on the quality of our education system.  There are undoubtedly improvements we need to make to ensure all students achieve to their full potential but this sort of initiative, like the forcing through of national standards against the evidence, is not the answer.

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Filed under: education
36 Comments

Summertime 1

Posted by Carol Beaumont on January 4th, 2010

A couple of days ago I went out fishing  – something I love doing. I have fished since I was a young girl, off the wharf at Raglan and then with my Dad, Uncle and cousins in my Uncle’s boat.

As we headed out of Whangamata harbour I saw New Zealanders at play – swimming, surfing, boogie boarding, walking, fishing off rocks, water skiing and kayaking. Our love of the beach is a shared and integral part of our culture and I know I am not the only one who heads to the beach with a great sense of joy.

We are a long narrow island country and no-one is far from the coast (certainly compared to many parts of the world).   As a child I learnt to swim at a young age, a combination of my mother’s efforts and the local primary school. One of the things I have become increasingly aware of is that many New Zealanders no longer have that opportunity.  In the Maungakiekie electorate for example a number of schools struggle to maintain a pool and teach swimming.  Many new migrants come to New Zealand from countries that don’t have the same access to the beach as we do here and so don’t necessarily know how to swim or understand the need to respect the sea.  Living in Auckland City means using Council pools costs money, unlike Manukau City that provides access to swimming pools free of charge.

The combined effect of these factors means we have unacceptable levels of drownings.  After road accidents and falls, drownings are the highest accidental cause of death.  While our levels of drownings have reduced our rates are still twice those of Australia.   

Water Safety NZ General Manager Matt Claridge recently made the following comments:

“The 2008 toll supports recent analysis by WSNZ that indicates the drowning toll will rise back to the horrific levels of the 1980’s. Unless New Zealand children learn to swim whilst at school, generation after generation will continually be exposed to a higher risk of drowning. As we know, aquatic activity is diverse and evolving constantly. We also know that 25% of children are unable to get across 25m or manage to keep afloat and tread water. Not enough to suggest they have the skills to save themselves.”

Claridge concludes:

“Swim and survival skills are the first step to preventing drowning. Parents need to understand the importance of children learning to swim, but it shouldn’t be a cost based issue. All New Zealand children should learn to swim whilst at school. To achieve this, children must be able to access a pool, school teachers must be trained to teach swim and survival skills and the curriculum must recognise the ability to swim as an outcome.”

I too believe it is essential that all New Zealanders have the opportunity to learn to swim enabling them to enjoy our wonderful coastline more safely.

As I headed out of Whangamata and saw people enjoying the coast I also thought of the efforts of the Coastguard and Surf Life Savers who help us enjoy our coastline and provide amazing rescue services. And of course I would be remiss if I didn’t note the 24/7 no fault cover we all have from our world class ACC scheme  as we enjoy our beach related activities. 

Finally, who could not be moved by the tragedy and heroism of grandfather Jackie Wiki and father Felisiano Puleanga who saved the lives of their loved children at the cost of their own.

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Filed under: community, education, recreation
6 Comments

Too precious to mine

Posted by Carol Beaumont on December 28th, 2009

Last night at Smitty’s Bar and Grill in Whitianga I joined David Bennett (National) and Catherine Delahunty (Green) on the TV show Back Benches.

One of the issues we discussed is the potential mining of land protected because of its high conservation value under Schedule 4 of the Crown Minerals Act.  The Government is undertaking a stocktake of this land which includes all DOC land, coastline and most offshore islands north of the Kopu-Hikuai Rd in the Coromandel.  On November 27 Gerry Brownlee indicated his view that mining should be allowed in this currently protected land in the Coromandel.

I, like many others, believe the Coromandel is one of the most beautiful and environmentally significant parts of New Zealand.  The peninsula includes a vast array of different environments from mountains to the coast.   The natural environment is a major drawcard for tourists and a major factor in local residents’ quality of life. Mining would potentially threaten the mountains, coasts, islands, water catchments and native forests that make this area the special place that it is.  All mining- underground or opencast has negative impacts.  Gold mining which is what is of interest in the Coromandel has consequences such as hazardous waste, damage to unstable areas, water pollution, impact on the landscape (even underground mines require roads), damage to habitats of native fauna and flora not to mention the disruption of noise, vibration and heavy truck movements.

In relation to economic development in places like the Coromandel it is important to compare the value of mining to that generated by tourism.  Across New Zealand the figures are $1.6 billion versus $21 billion.   Tourism relies on the preservation of the natural environment.

At Back Benches last night there were many people wearing Tshirts with the slogan ‘The Coromandel  is too precious to mine’.  They are members of the Coromandel Peninsula Watchdog.  I want to acknowledge the determination and commitment of this group which has fought to protect the Coromandel for 25 years, as they say “to ensure the unique wilderness heritage that the Coromandel offers is not lost to the short term exploitation of minerals”.  This National government has certainly got Watchdog members understandably worried and on alert.

Of course it is not just the Coromandel threatened by this review of Schedule 4.  

As we count down to 2010 it may be worth thinking about the things that are precious to us as New Zealanders.  In my uninterrupted 30 seconds Last Word last night I spoke of the Government’s plans to destroy our world class no fault ACC scheme.  This important piece of our social infrastructure is too precious to become a privatised insurance scheme. 

What does this National Government value?

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Filed under: ACC, conservation, environment
21 Comments

Consumers matter, consumer matters

Posted by Carol Beaumont on December 23rd, 2009

Recently I challenged the Minister of Consumer Affairs about her inadequate response to rising food prices facing hard working New Zealanders who are already struggling.

In the House a couple of weeks ago I rose to speak in support in a initiative by National backbencher Amy Adams with her Fair Trading (Soliciting on Behalf of Charities) Amendment Bill.   This Bill is positive for our charitable sector and for those of us who donate to charities.  It will provide for disclosure of the proportion of the money raised by professional third party collectors is retained by those organisations.  The actions of some in retaining up to 70% of donations undermines confidence of the public in our charitable sector.

This Bill is consistent with good consumer rights principles like transparency and informed choice.  It is good seeing someone looking at improving our consumer legislation.  Sadly the Minister despite her ‘one door one law’ rhetoric doesn’t seem to be really thinking about the reality facing our consumers.

As Labour’s Consumer Affairs spokesperson I believe there are a number of areas requiring attention:

  • Improving consumer knowledge and protection, especially given the consequences of bad decisions and ‘rip offs’ are more significant in tough economic times
  • Recognising the needs of vulnerable consumers like the poor, those with low literacy, the elderly and the young; and improving services and information targeted to them including access to advocacy
  • Targeting exploitation like loan sharks and truck shops who specifically and systematically target vulnerable consumers
  • Updating consumer law to take account of changing relationships eg online selling
  • Recognising greater consumer awareness and the desire from more consumers for ethical and environmentally sustainable products; and the associated use of consumer power

I will be campaigning around a number of these areas over the next few months starting with the targeting of loan sharks as a consequence of picking up the Credit Reforms (Responsible Lending)  Bill previously in the name of Charles Chauvel.  I will also continue to push the Minister for government action on behalf of consumers.

I love Christmas and the giving of gifts but I know that many will be getting further into debt at this time of the year.   Some of that debt will be at extortionate rates. One example I have seen is an annualised rate of 416%.  The people being caught up in these rip offs are the poorest New Zealanders.  The same people being targeted  by truck shops as recently revealed by the Manukau Budgeting and Family Support Services here.

These rips offs have huge negative effects on families.   I want to acknowledge the work of our budgeting services and Citizens Advice Bureaux who with limited resources work tireless to provide information on rights and to pick up the pieces of people who are in dire circumstances.   They do a fantastic job.

A harder line must be taken to stop loan sharks and others who seek to exploit those who are poor and vulnerable. I will be challenging the Government to take action.

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Filed under: Consumer Affairs
2 Comments

Enviro-schools teach critical thinking

Posted by Carol Beaumont on December 15th, 2009

Yesterday I was completely wowed. I visited Onehunga Primary school to see presentations by students about their enviro-school projects and they were fantastic. 

Every class had material outlining what they had done and others walked around visiting each project and hearing directly from students what it was about.    The visiting groups were then able to ask questions.

 The projects were structured as follows:

  • Problem identification
  • Proposed solution determined
  • Solution put in place
  • Results evaluated

This was done collaboratively.

The projects included a worm farm, collecting rain water to water a class vegetable garden, composting, seating in a small native plant area, reducing water consumption.  Some of the projects overlapped, for example classes growing plants used the compost and worm wee.  

The level of enthusiasm and pride of both teachers and students was inspiring.  What I saw was young people learning about something very important – the environment.  What I also saw was the fostering of critical thinking and a range of very important social skills.   This is what schools should be about.  And as I walked around I found myself wondering if this type of learning was what the Minister’s focus on ‘national standards’ will encourage.  Somehow I think not!

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Filed under: education, environment
6 Comments

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