Parties jockey to press their point

Poverty and inequality are two different issues for New Zealanders but during the election campaign, the issues have been blurred. Political editor Dene Mackenzie reports on how political parties are addressing the issues.

Child poverty has been hitting the headlines recently with the Green Party taking the lead after launching a $1 billion package aimed at reducing child poverty in New Zealand.

Prime Minister John Key believes giving people jobs lifts them out of poverty while the Left believes pouring more money into selected sectors will have the same effect.

Co-leader Metiria Turei told the Otago Daily Times the Green Party was the only major party committed to ending child poverty.

''We have made child poverty one of our three key election priorities this year and we are putting our money where our mouth is - committing $1billion to raise incomes and provide more and better services.''

In the past 30 years, successive governments had tolerated shocking levels of poverty and deprivation among children, she said.

The Greens would create a new top tax rate of 40% above $140,000, harmonise the trust tax rate with the top income tax rate and introduce measures to make it hard for people to avoid paying their fair share of tax.

However, Social Development Minister Paula Bennett believes child poverty is reducing. Looking back at the minister's statements this year, there is a clear message of a reduction in child poverty.

A Household Incomes report in July showed child poverty had fallen 3%, she said.

From a survey conducted between July 2012 and July 2013, findings showed median household incomes rose 4% in real terms in the two years since July 2011.

While the gains since 2011 were shared reasonably evenly across incomes, the global recession in the two years previously, impacted slightly more on lower incomes, Mrs Bennett said.

The report also showed trend-line inequality remained flat.

''This latest research shows New Zealand households have bounced back.''

In the past year, 84,000 more jobs had been added to the New Zealand economy, 8600 sole parents had come off benefits and there were 30,000 fewer children in benefit-dependent households compared with two years ago, she said.

The Government recognised more had to be done to support the most vulnerable families. On top of free breakfasts to all schools wanting it, a social worker in all decile 1-3 schools and warming up nearly 300,000 homes, the Budget invested nearly $500million over four years in services and support for families.

Among the measures introduced by the Government were: $171.8million to boost the paid parental leave scheme; $42million to increase the parental tax credit; $90million to enable GPs to offer free doctor's visits and prescriptions for children under the age of 13; and an additional $155.7 million to help early childhood centres remain able to meet demand pressures and increase participation towards the Government's 98% target.

Recognising housing costs were a significant issue for low income families, the Government was investing $95.7million of new money into social housing over the next four years, Mrs Bennett said.

A report out at the end of last month prompted debate on child poverty.

The report, released through the Children's Commissioner, showed the expert advisory group had worked hard to address the complex issues surrounding poverty which cut across social development, health, housing, education and other areas.

Mrs Bennett asked her officials to work with the advisory group to provide input into the White Paper on Vulnerable Children.

''This Government is already moving in the same direction on many of the issues raised, though we can always do more.''

The report's strong focus on the benefits of full-time work were welcome, she said. A parent obtaining full-time work was the most important event to lift children out of poverty.

Labour Party social development spokeswoman Jacinda Ardern pointed to the Netherlands Study, commissioned by Every Child Counts.

The message was clear. If New Zealand wanted to have the best outcomes for its children, it had to invest in policies supporting children and parents and ensure they had the right tools and support.

''All the evidence shows poor outcomes for kids associated with child poverty cost taxpayers between $6billion and $8billion a year.

''New Zealand currently spends about a third less on children each year than Nordic countries. The Netherlands spends less than half but continues to achieve excellent outcomes.''

Mrs Bennett had so far refused to admit 20% of Kiwi kids lived in poverty, Ms Ardern said.

''She believes because children `move in and out of poverty on a daily basis', we have no way of measuring child poverty and doing so was not a priority.''

Labour continued to call for the adoption of national, regional and local indicators of child well-being and increased paid-parental leave, she said.

dene.mackenzie@odt.co.nz

 

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