Red Alert

Archive for the ‘poverty’ Category

Don’t dump on the do-gooders

Posted by Darien Fenton on January 9th, 2011

Paul Thomas had a good article in the NZ Herald yesterday, where he describes the work Jimmy Carter has been doing since he lost the US Presidency in 1980.

Apparently, he’s on the verge of eradicating the guinea worm – a parasite that is ingested from drinking water and grows to around a metre in length, then erupts from blisters (eewww I know!)

The Carter Foundation’s campaign of education and distribution of water purification strainers has reduced the number of cases from three million reported cases in 1980 to 1700 last year, mostly in Sudan.

Yet, as Paul Thomas says :

(Jimmy Carter)… remains the benchmark of liberal ineffectuality and a prime target of that curious pejorative, habitually delivered with a curl of the lip, do-gooder.Carter is routinely described as a peanut farmer, which is true as far as it goes. He was also a naval officer involved in America’s nuclear submarine programme and a modernising governor of Georgia, but those parts of his CV don’t conform to the narrative.

Sarah Palin, who during the 2008 presidential campaign sneered at Barack Obama’s background as a community organiser, recently joined the dots. Asked to summarise Obama’s presidency, she offered, “Two words: Jimmy Carter.”

This is the same Sarah Palin who, since she resigned her Alaska governship, has made $16 million through books, speaking engagements and appearances on Fox News.

It says something about today’s society that we (some) hang on Palin’s every tweet and treat her as a serious political figure when all she seems to be good at, or interested in, is self-promotion, while continuing to deprecate Carter despite his measurable contribution to mankind.

I agree. And don’t we see it here? The denigration of those whose work involves helping others, rather than themselves and whose causes are about more than building personal wealth.

We need to value and respect those who are dedicated through their work or community involvement or activism, to doing good and to fighting for important causes.

Because if they don’t, who will?

Filed under: Foreign Affairs, community, health, human rights, inequality, poverty

42 Comments

Getting our kids out of poverty: hypocrisy from the Maori Party

Posted by Clare Curran on December 14th, 2010

One in five NZ children live in a beneficiary household. They experience poorer health outcomes and are more likely to be admitted to hospital.

Our current social safety nets are inadequate to protect these children from significant hardship. There were gains made during the mid 2000s, but those gains have been reversed.

These are the guts of the findings from the Children’s Social Health Monitor 2010 Update, which was compiled by experts from many of New Zealand’s pre-eminent children’s health and welfare organisations. It shows that admissions to hospital of children with diseases associated with poverty increased by about 2000 per year during 2008 and 2009.

The report shows that poverty is once again on the rise in New Zealand after dropping midway through this decade when Labour made its alleviation a priority. The NZ Herald wrote about it today.

Labour’s Deputy Leader Annette King has signalled that Labour will next year release policies that put children centre stage. She said yesterday:

“These polices will reflect a growing body of research that says tilting public expenditure towards the early years of life will pay off for children, their families, as well as communities and our country as a whole.

“Labour is making children’s wellbeing a top priority by working with experts in the community to put together a six-year agenda for change.

I spoke yesterday at the launch of the report in Dunedin. Alongside National’s Michael Woodhouse, the Maori Party’s Rahui Katene and Greens co-leader Metiria Turei.

Woodhouse disputed the stats. Well he would wouldn’t he.

But it was incredibly ironic to hear Rahui Katene talk about the importance of discussing the philosophy behind social policies and her distaste for policies that favour the more wealthy and are expected to trickle down to the poor.

I don’t have the figures at hand for how many times the Maori Party has voted with National to pass its tax laws, its laws that reduce hard fought-for conditions for wage and salary earners. Laws that force solo mums to get jobs (mostly low paid) when their children turn six and laws which have taken away the supports for solo mums to get tertiary training as a pathway out of poverty. As far as I can remember the Maori Party voted for all of those laws. That’s just to name a few.

I fought for a year to get the funding retained for Dunedin’s only teen parenting course. It focussed on teaching young mums literacy and numeracy and gave them the confidence and self esteem to know they could do further training. Maori Party co-Leader Tariana Turia washed her hands of this as one of the relevant Ministers.

Hypocrisy. If the Maori Party wants credibility then stand up to National and say No we don’t like your trickle down policies. Don’t mouth platitudes.

Tags: hypocrisy, Maori Party, social policy
Filed under: children, health, poverty

40 Comments

Tony Judt is dead; his ideas arn’t.

Posted by David Cunliffe on August 12th, 2010

Few writers have impacted me as much as Tony Judt in his recent book “Ill Fares the Land“. He died last Friday, and I mourn his loss.

Ill Fares The Land picks up where The Spirit Level leaves off: asking why equality and social democracy have declined as drivers of political change.

Judt suffered from the rare Lou Gehrig’s disease, and Ill Fares the Land was dictated literally from his sick bed. It is not a robust peer reviewed academic treatise, but in places it is pure inspiration. Read it. Buy it.

He traces the crises of the early 20th century – two world wars and Great Depression. he charts the rise of post-war Keynesian economics and the politics of social democracy that were determined famine and war should not again stalk the earth.

He notes the rise of Hayek’s Austrian economics – and its Western political manifestations in Reagan and Thatcher’s administrations.

He notes the rise of the Third Way under Blair (and by another name under Clinton, and could we add locally Clark/Cullen?) as a triangulated response against the rise of right wing political hegemony.

He argues that with the end of those administrations the ideas of the Right once again hold sway. He asks what is worth saving of the social democratic project, and what is now to be done.

He concludes that nothing short of a strong and clear reclaiming of the values of equality, community and social democracy will equip the Left for the fight it must now win.

He notes that genuine politics must take place alongside those it seeks to serve, and I am sure that he is right about that.

Ill Fares the Land is far from a perfect work. (And for the trolls out there, I did not agree with every word). But it is a poignant lament for the decline of values most Kiwis treasure, and a challenge to us all to fight for a better future.

RIP Tony Judt.

Tags: economy, Judt, politics, social democracy
Filed under: democracy, economy, history, inequality, policy, politics, poverty

58 Comments

BUDGET 2010: Jigsaw Pieces Click

Posted by David Cunliffe on June 1st, 2010

The jigsaw pireces of the Budget are starting to click in the public mind if recent polls are any indication. In the last week :

The IMF described NZ’s savings gap and net international indebtedness as “among the largest of any advanced nation”
Analysis shows a $9.2bn additional fiscal hole in the Budget by 2023 arising from the tax changes
Budget documents show expenditure as a % of GDP falling from 33% to 28%
Bill English floats Kiwibank sale as one example of a number of SOEs ripe for partial privatisation.

In other words: give away taxes up front (very largely to their mates); run an out year deficit (deliberately); compress spending (as ‘prudence ” then demands); and flog off what is left of the family silver to fill the remaining gap (dressed up as mum and dad savings products, of course).

What does all this mean for the average Kiwi?

despite the govt spin, they are worse off for the next four years at least due to the toxic cocktail of GST, inflation, other govt charges and taxes, and slow wage growth;
public services like Heatlh and Early Childhood Education will be slashed as new spending lags inflation ($300m short in Health) or deliberate policy changes bite;
the outlook for public services gets dramatically worse as the National Party tries to resize the state to 28% of GDP – although they won’t want to talk much about that before the election;
the underlying economic problems reamin unresolved and get more intractable over time. There is no credible plan for growth and jobs.

Moral of story: do NOT let National get a second term Stop the malign juggernaut before it does irrepairable damage.

Tags: Bill English, Budget, economy, GST, jobs, KiwiBank, privatisation, tax cuts
Filed under: Budget, GST, Household income, Tax, business, economic, economy, education, finance, poverty, privatisation, productivity, public services

52 Comments

Key happy with 10k of cycleway from $50m budget – aimed at one job – his

Posted by Trevor Mallard on May 31st, 2010

I suppose the cycleway has had $50m worth of photo-ops for John Key.

And he has smiled and waved as our cash goes on administering not very much.

I’m the biggest fan of cycling in the Parliament. But this idea of a trail from North Cape to the Bluff was never going to work. According to Key via the Herald we’ve had 10k of new trail and a bit of tidying of existing trails.

And this is high quality expenditure while night classes are cut for the second year in a row?

Remember this was to be the unemployment breaking big idea from his (photo op full) job summit.

Tags: cycleway, John Key, tourism
Filed under: Budget, economy, environment, inequality, politics, poverty, sport

52 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.

Tags: Red Cross
Filed under: Budget, poverty

10 Comments

BUDGET 2010: Strategic Deficits and Fiscal Risks

Posted by David Cunliffe on May 27th, 2010

Budget 2010 was not fiscally neutral. To fund its large tax cuts package of $14.5 billion the government has borrowed an extra $1.1 billion over four years.

The Crown borrowing requirement rises and interest costs roughly double before declining around 2021.

The current account widens from 3% to 7% over the forecast period. The trend in net internation investment remains negative.

Longer term the fiscal aggregates look even worse. We will have more to say about this in due course.

Meantime the world around us is poised on the cusp of a potential double-dip recession. Germany’s voters are tiring of socialising the Eurozone’s mounting deficits. The US and UK are already running huge deficits and accumulating debt due in part to the last round of fiscal stimulus.

World markets are highly fragile. Korea and the Gulf of Mexico mean we don’t need too much else to go wrong.

Why has National strained the fiscal envelope so far while achieving so little economic return?

Treasury forecasts less than 1% additional GDP growth from Budget 2010 measures accumulatng over 7 years.

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Tags: Bill English, Budget, economy, jobs, tax cuts
Filed under: Tax, economic, economy, finance, inequality, poverty, superannuation

47 Comments

BUDGET 2010: Pass the Berocca

Posted by David Cunliffe on May 21st, 2010

After the beehive-spin induced euphoia wears off and the hangover sets in, middle New Zealand will reach for the Berocca and try to work out what the Budget really means for them.

Not to add to the inevitable headache, but here are a few of the facts of life for the morning after.

For at least 3/4, and maybe 90% of the country, by the time they eat a whopping 5.9% inflation next year (Treasury Budget forecasts, not NZLP numbers!) they will be worse off until at lesst 2012/13. For a family with 2 kids on $72k for example, $55 a week worse off.
That inflation will feed into mortgage costs and rent rises. It will result, quite rightly, in pent up wage demands from workers who have gone without wage rises for the last two years.
While its ok that the middle income brackets got some income tax relief, and would have likely got more relief from us, the tax cuts are way too skewed to the top. You just can’t get around the fact that someone earning a $million a year gets $1000 a week back. That is going to make the haves/have nots gap wider. And that gap will inevitably worsen over time, undermining the Kiwi dream and taking us further from the “fair go for all” kind of place we want to be.
That is made worse by the underlying agenda of shrinking the state and the services it can provide. We have already seen home help for the elderly branded “low quality” spend and cut. Health’s new money in the Budget is, we reckon, about $270 m short of standing still given next year’s inflation forecast. That means more cuts to the services and more pain for the vulnerable.
My personal gripe is early childhood education. What has the Govt got against quality preschool education? Why is it swiping $100m pa from that? Labour will lead in this area and every family with young kids will hear us.
Rebalancing the econmy is way undercooked. Take away the smoke and mirrors of the tax switch, and we are still left with residual taxt incentives for property and LAQC avoidance mechanisms. Proof: LAQCs sheltered $2.3 billion of taxes in 2008. The tinkering in the Budget trimmed only $70m p.a. of that.
There is STILL no credible plan for growth in this Budget. The National Govt seems intent in relying on “passive” instruments. I have no problem with dropping the company rate – provided the fiscal balance can support decent public services (personal view – see “About” on the blog site) – but that cannot be enough to get the export sector going on its own. What about the R and D tax credits?

The strucutral problem remains: we don’t export enough, we don’t save enough, and we don’t innovate enough. As an economy we are short on capital, technology, skills and IP. Budget 2010 does not fix that. Time is short and the job is urgent. When NZ wants positive action, Labour will be ready to lead.

As the bubbly wears off in the Beehive and the Berocca gets passed around the country; the poor, the forgotten middle class and the structural problems of the economy have not been moved forward by this Budget.

It remains a suger-coated tax swindle.

It remains a step back, not a step up, and certainly not a step change.

Tags: Bill English, Budget, economy, education, jobs, Kiwisaver, Maori Party, Tax, tax cuts
Filed under: Budget, GST, Household income, Labour Party, Tax, Uncategorized, business, community, economic, finance, health, inequality, poverty, productivity

88 Comments

$985/week tax cut

Posted by Trevor Mallard on May 20th, 2010

If you have earnings of $1m / annum you get – according to the government – a tax cut of $985 per week.

How can that be fair.

Tags: global corporates, John Key, perks
Filed under: Pay Equity, Tax, minimum wage, national, perks, poverty

66 Comments

Technology and the emancipation of women

Posted by Clare Curran on May 13th, 2010

Interesting piece on how access to technology is building more emancipation for women in developing countries.And happiness! A bit lightweight but interesting nevertheless.

Not rocket science, but in the vein of how electricity transformed my grandmother’s (and mother’s) generation with access to refrigerators and washing machines, so is broadband transformational, this time for the poor and the oppressed.

The relevance for NZ is that we need to know more about how technology can and should be enabling poorer communities to be connected and to build skills and innovation. Trouble is there’s very little data on this and I doubt very much it’s a govt priority.

I think we need research in this area. Who’s using technology, how are they using it especially in our lower socio economic areas. And given more access to technology what changes can occur.

Filed under: broadband, comms & IT, digital, inequality, internet, poverty, technology, women

3 Comments

Is Equality Dead?

Posted by David Cunliffe on April 27th, 2010

Congratulations to the Listener for its extremely thought-provoking cover story this week.

The central idea is that the attitudes of NZers have changed – apparently caring less about a fair go for all, despite the fact that we have become a much more unequal society, particulary since the 1991 Mother of All Budgets.

This attitude shift flies in the face of our history and egalitarian tradition. Our ancestors, brown and white, came to this place for a better life; one relatively free of the suffocating class structure of the isles (British or Polynesian) that they had left.

The riddle is made stranger by recent evidence that fairer societies are not only nicer places to live – but they do better on a wide range of economic and social indicators. See Wilkinson and Pickett.

I’d like to venture a couple of clues to the riddle and ask you guys to give it your best shot:

First, inequality doesn’t feel quite so terrible if those at the bottom are still going forwards, even if others are zooming up the scale past them, so long as they can satisfy the basics. Until the Global Financial Crisis that was generally true. Was social democracy its own worst enemy in that respect? (Marx thought so). But as governments around the world “back off the fiscal stimulus” and – as in New Zealand – cut deep into social programmes, my guess is that the mood on the streets will get a lot tougher.

Second, the Right has done a massive con job on “Freedom” , which has arguably become the dominant political value of our age. But is is a bastardised version of freedom that has been sold on the streets – like some kind of philosophical crack cocaine. It is NEGATIVE freedom – freedom from constraint or regulation – that has been trumpeted as the solution to our ills. Problem is, this is at best half the story.

Am I free to dine at the Ritz? In negative liberty terms yes – there is no law against it. But in real (positive liberty) terms it all depends on whether I can afford to pay the bill. For the full story see Dworkin on Liberty: http://en.wikipedia.org/wiki/Ronald_Dworkin

So the challenge for progressive politics is to reframe this debate in terms that ordinary kiwis get with their heads and feel in their guts. Real freedom is having a good school in every suburb through which every kid can make the best of their lives. Real freedom is having high paying jobs to choose right here in Godzone so kids aren’t forced to leave. Real freedom is being able to live in a caring and inclusive society where you are safe on the streets and don’t need razor wire around your garden fence.

I am prepared to fight for that kind of freedom. What about you? Have you still got hope? Passion? Courage?

Or did you buy the fast food version of “freedom” they wanted you to suck up and be happy with, while they amass their millions and move to Sydney or Europe to enjoy them - leaving you and your mortgage to be farmed by the banking system and the multinationals, like a good serf?

Tags: Dworkin, equality, freedom, Listener, Negative Liberty, Spirit level, Wilkinson and Pickett
Filed under: economy, finance, inequality, justice, politics, poverty, regulation, social democracy

82 Comments

Summer School V – our international links

Posted by Clare Curran on January 10th, 2010

Worrying that the National Government’s foreign policy is moving NZ away from a multilateral approach based on the values of human rights and social justice to one based on traditional bilateral relationships and economic issues.

This could impact on New Zealand’s long and proud history of independent foreign policy and internationalism, which has been driven by successive Labour governments for almost a century.

Good session at Summer School on the history of our foreign policy and where it sits now.

Phil Twyford kicked off with a run through of that history starting with the wobblies and red feds of the early 20th century who went on to form the first Labour govt. He emphasised the social justice values and progressive internationalism that underpinned our foreign policy under all five Labour governments.

Too much to recount here, but he did say we should be concerned about West Papua as it’s the East Timor of the 2000s with immense human rights issues.

Grant Robertson analysed the current foreign policy shifts under National and the likelihoodof where it’s goes next. The best quote of the session was when he said if there was any bi-partisanship at the moment it was between National and the NZ Herald!

Caleb Tutty is the NZ Labour rep for IUSY (International Union of Socialist Youth). He talked about the importance of looking beyond our geographical borders on all policy and understanding that we have a role in the global community. “If poverty is not ok in NZ then why should it be ok anywhere else?” We can have a role in influencing global policies he says.

He also talked about our aid policy and the importance of increasing aid to particularly pacific nations. Looks like this is going to prove difficult under National along with many other things.

A meaty session and I learnt stuff.

Tags: bi-partisanship, labour, summer school 2010, US, West Papua
Filed under: Foreign Affairs, history, human rights, international, national, overseas aid, politics, poverty

10 Comments

Rent rises hit lower income earners

Posted by Chris Hipkins on November 29th, 2009

Figures released by Statistics New Zealand last week highlight the plight of some of our lowest income households. While those with mortgages are enjoying a bit of interest rate relief, those who are renting have seen their rental costs increase by 8.1 percent. Average total household income from all sources has increased by 5.6 percent during the same period.

Just under a third of Kiwi families rent the house they live in. Those on lower incomes are far more likely to rent rather than own the property that they live in, so they are the ones most likely to be feeling the pinch.

About 65 percent of those households earning $43,900 or less rated the adequacy of their income as ‘just enough’ or ‘not enough’. Around half our Kiwis households fit into this demographic. Over 70 percent of those households with an income of $86,700 or above rated their incomes as ‘enough’ or ‘more than enough’.

It’s been a tough year for those at the bottom of the economic ladder. The very first thing the new National-led government did was take away tax cuts for the lowest income earners so that they could give that money to those on the highest incomes. As unemployment has continued to rise, the Nats have been asleep at the wheel. Let’s hope they wake up next year!

Tags: Cost of Living, household incomes, Statistics, Unemployment
Filed under: economy, housing, jobs, national, poverty

9 Comments

The shadows of life

Posted by Grant Robertson on November 24th, 2009

It was American politician Hubert Humphrey who said

It was once said that the moral test of Government is how that Government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; and those who are in the shadows of life, the sick and the needy

I have long felt that this summed up a key aspect of my own political philosophy. The first two categories (children and the elderly) are the focus of much government action, and rightly so. While political parties might disagree on the nature and extent of the work with the very young and old it takes up much of the time of government.

Those who live in the shadows of life are not always so fortunate. People who fall outside the system are often not given the attention they need. This is one reason why I am very pleased to see that my colleague Moana Mackey is leading a call for a parliamentary inquiry into homelessness.

This is a much misunderstood issue. It starts with the definition. It is not just people living under bridges (though there are many of those who need support and assistance). It is people who with a variety of health and social problems find themselves unable to hold down permanant accomodation. They might be alcoholics who”couch surf” from one risky situation to another, they might be mental health consumers who spend time in sub-standard boarding houses or night shelters. They are almost certainly not getting the help they need to address the issues that have driven them to this situation. There is a huge human cost here- but also an economic one, with cost borne by the health sector, police courts and correctional systems and social service agencies.

As a society we do not always want to know about these problems. If we see people living on the street we feel an urge to look away. The recent response to the proposed Wet House in Island Bay in Wellington is a case in point. While the specific proposal may have had some shortcomings, the attitude of many in the community is to want to wish the problem away.

We can’t do that if we want to live in a caring and humane society. We can’t do that if we don’t want to throw millions of dollars at the consequences rather than the causes of issues like homelessness. Last night I attended the 40th anniversary of the Downtown Community Ministry in Wellington. For 40 years they have looked after those who live in the shadows of life. Their work is inspiring and often under the radar. As a wider society we need to acknowledge it, and take steps to ensure we all play a part in responding to the social needs of the most vulnerable in our community.

Tags: Downtown Community Ministry, homelessness, Hubert Humphrey
Filed under: housing, inequality, poverty, social development

7 Comments

Super city should be more than roads rates and rubbish

Posted by Phil Twyford on November 20th, 2009

Much of the debate about the Auckland super city has focused on the structures of the new Council. Precious little air time has been devoted to some of the most interesting things the Royal Commission had to say about social wellbeing in the new city.

The Government has tried to sell the super city on the basis of efficiency, and the economic benefits. But it has been virtually silent on whether some of this ambition for Auckland should also be applied to the arc of entrenched poverty and inequality that stretches across our southern and western suburbs.

The Royal Commission recommended a new partnership between central and local government to promote social well being. It proposed devolved decision making to a Social Issues Board that would include a Minister, the Mayor, some councillors, the city CEO, and the heads of central government social service agencies. The Board would be responsible for developing one regional social wellbeing strategy and making recommendations to Cabinet and the Council on resourcing.

On Paula Bennett’s advice Cabinet junked the idea. She thought it would put her as Minister in an untenable situation having to sit on a board with mere mortals. Instead they decided to set up a Social Issues Forum. No decison making. Just a talkshop.

Aucklanders are deeply sceptical about the super city. Perhaps if they thought it would team up with central government to tackle important quality of life issues like public transport, housing affordability, and more liveable sustainable communities, they might warm to the idea.

Labour says the Government is wasting an opportunity. We believe social well being should be at the heart of the super city project.

I am setting out Labour’s vision for social development and the super city at a conference today hosted by North Shore City. Click here for the full speech.

Tags: Auckland, poverty, Royal Commission, social development, social wellbeing, super city
Filed under: Auckland, local government, poverty, social development

14 Comments

Gizza house*

Posted by Phil Twyford on November 2nd, 2009

We have a housing affordability crisis in this country. Close to one in three New Zealanders are in strife – spending 30% or more of their disposable income on housing. The 30% is an internationally agreed benchmark for housing affordability. Pay any more than that, if you are on a low income, and you’re likely to be in trouble.

The numbers of New Zealanders paying more than 30% have been high for years. But they just got higher. To record levels.

Housing costs this high can mean there just isn’t enough left over at the end of the week for food, clothing, transport, medical care or all the other expenses of raising a family.

If you’re heavily mortgaged it can mean your family is one job loss away from a mortgagee sale.

Our houses are amongst the most expensive in the OECD in relation to incomes. It is driving more and more Kiwi families into poverty. And it is a major driver of income inequality.

We all know house prices have gone up. But according to a paper produced last year by the Department of Prime Minister and Cabinet they have gone up a whopping 80% since 2002.

If you got into the market in the 70s or 80s you might be sitting pretty. Skyrocketing prices have effectively transferred huge amounts of wealth to home owners through capital gain. Net wealth per capita doubled between 1980 and 2001. And doubled again 2001-6 as a result of the housing bubble.

But for the growing number of Kiwis who cannot afford to get into the market that dream of home ownership is disappearing into the distance. A big wealth gap has opened up between homeowners and renters. It is yet another way that the babyboomers have grabbed the best cuts, leaving Generations X and Y to fight over the scraps. By 2006 only 29% of renting couples and 2% of renting individuals could afford to buy a cheap house in their region (spending 30% of income on mortgage payments).

Scarily, the long term trend is heading in the wrong direction. In 1988 only 11% were spending 30% or more of their income on housing. By 1997 it was up to 25%. It dropped 2001-4 but has been rising rapidly since and is now up to 29%. The recession is bound to have slowed the trend with house prices stabilising but there are already signs the market is picking up again.

According to the 2009 Social Report lower income families have been particularly hard hit by the increases. The proportion of households in the lowest 20% of income spending more than the benchmark 30% on housing trebled between 1988 and 1994 (rising from 16% to 48%). It dipped and then levelled off for a while but has been rising steeply for the past couple of years, going from 33% in 2007 to 39% in 2008.

That increase in the last couple of years ate up much of the benefit from Working for Families tax credits. And without doubt is a big factor behind the rise in poverty levels in 2008.

As you’d expect, rates of home ownership are now plummeting too. Owning a home has been one of the main factors keeping older people’s heads above water financially. As things stand Gen X and Y won’t have mortgage-free homes to get them through their twilight years. Add that to the question mark over superannuation caused by National’s suspension of pre-funding and it is not a pretty picture.

Something has to be done.

* Borrowed from “Gizza job, I can do that” the immortal line of Yosser Hughes a character in Alan Bleasdale’s 1980s TV drama The Boys from the Blackstuff.

Tags: 2009 Social Report, housing, housing affordability
Filed under: housing, poverty

31 Comments

Finlayson on mealbreaks

Posted by Trevor Mallard on October 28th, 2009

Wilkinson wasn’t in the House today so Finlayson answered. I don’t know what the Chief Justice saw in him. He is [deleted after careful consideration - Clare]

He totally misrepresented the current legislation. Failed to mention that the air traffic excuse for this shocking bill was solved using the amendments passed under Labour last year.

Here is what he said, and what it means I think is that it is the intention of the government to force the bill through before Christmas with no Select Committee:

11. Hon TREVOR MALLARD (Labour-Hutt South) to the Minister of Labour: What has happened since compulsory rest and meal breaks for employees came into effect this year, which has led to her proposing changes to that legislation?

Hon CHRISTOPHER FINLAYSON (Acting Minister of Labour): From complaints received by the Minister it has become clear, if it was not already, that not everyone has a cup of tea at 10 a.m. and 3 p.m. and stops for lunch precisely at 1 p.m., except possibly Parliament when it is in urgency and, on most occasions, the courts. The changes are aimed at ensuring flexibility in the workplace by allowing employers and employees to time their breaks in a way that does not disrupt their work. The Government does not believe it should restrict the rights of employees to ask their employer if they can skip afternoon tea and go home a little earlier than usual in order to pick up their children from sports practice.

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Tags: Chris Finlayson, kate wilkinson, meal breaks, workers issues
Filed under: consultation, democracy, labour, national, parliament, poverty, select committee, union

19 Comments

Those bureaucrats

Posted by Phil Twyford on October 20th, 2009

Chris Finlayson answering questions for Murray McCully this afternoon in the House, revealed something about the National Party mindset. A recent hearing at Parliament convened by the Parliamentarians for Population and Development uncovered the appalling rate at which women in Papua New Guinea are dying in childbirth.

I asked the Minister: “How will the Government’s policy to re-orient New Zealand’s overseas aid to private sector economic development help reduce the rate at which women in Papua New Guinea die in childbirth, which is 23 times the NZ rate, given that the recent ActionAid report put NZ second to last in the OECD on aid for social protection?” Hon Chris Finlayson: “Unlike the Labour Party the Government doesn’t believe that bureaucracy equates to aid.”

The reason PNG is on a par with Afghanistan when it comes to mothers dying in pregnancy and childbirth is a shortage of midwives. So midwives are bureaucrats? Why, because they are mostly employed by the state? Very revealing.

Tags: bureaucrats, Hon Chris Finlayson, maternal death rate, midwives, overseas aid, Papua New Guinea
Filed under: Foreign Affairs, overseas aid, poverty

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