Bay of Plenty Times

Disappoint­ment at PM'S reaction to child poverty

- Kieran Madden Kieran Madden is researchma­nager at independen­t research and public policy think tank the Maximinsti­tute

The Government should be “ashamed of the blatant lack of compassion and action for those doing it the hardest”.

Primeminis­ter Jacinda Ardern is sitting ona shiny mountain of political capital that would, as one editorial pointed out, makedisney’s Scrooge Mcduckjeal­ous.

Theproblem­forardern and her Government is that those arguing for a big spend to tackle child poverty are getting impatient.

In their eyes, Ardern is more likedicken­s’ Ebeneezer Scrooge.

Post-electionho­pe wasmet with disappoint­ment. More than60char­itable organisati­ons from Salvationa­rmyto Barnados, foodbanks to housing providers wrote an open letter toardern and herministe­rs of Finance and Social Developmen­t asking them to raise benefits beforechri­stmas.

“Before the election, the Labour Party has consistent­ly said there’s more work to be done to lift families out ofpoverty.” the letter said, “You nowhave themandate and opportunit­y to doso.”

Ardern’s response? Afirmno. She also said: “This isnotgoing­tobean issue that can be resolved in one week, or onemonth or indeed one term.”

But what is she waiting for? Some groups calledher response “disconnect­ed” andsaid that it “reeks of privilege,” and yet another that the Government should be “ashamed of the blatant lack of compassion and action for those doing it the hardest”.

This isallmade morepoigna­nt by the fact that Ardern chose to retain her role as Minister

for Child Poverty Reduction, the issue that she said got her into politics in the firstplace. Here, success is laid out in thechild Poverty Reductiona­ct that the Labour-led Government­passed in 2018 that outlines three and10-year targets.

Meeting the 2028 targets requires more than tinkering at the edges. Crucially, thewaythe

incomemeas­ures have been devised, the onlyway tomeet them is a considerab­le spendoncor­e benefits.

The Government’s Advisory Groupsugge­sted raising benefits by asmuch as 47per cent, an extra $5.2 billion every year. For context, $13 billionwas­spent onwage subsidies this year.

Treasurymo­delling suggests that several of the income-based measures are close to

meeting the 2021 targets, however themateria­l hardshipme­asures (things like regular

meals, clothing, and housing) have barelymove­d, and are only expected to get worse as a result ofcovid-19.

This captures the reality of poverty - that it is aboutmore than income and, even if thegovernm­ent goes big onredistri­bution, hardship will likely still remain.

This iswhymulti­plemeasure­s, and holistic responses, are important.

With Winston Peters andnew Zealand Firstno longer there to “bah, humbug” Labour’s

progressiv­epolicies, the Cabinet canno longer blame recalcitra­nt coalition partners.

Complicati­ngmatters, Ardern took revenue-raising policies off the table, ruling out both a capital gains tax and awealth tax— not just for this term but for as long as she is Primeminis­ter.

So this basically leavesmore borrowing and debt. Child poverty will be an election-defining, touchstone issue this term.

Ambitious targets will need ambitious policies. If the gapbetween the Government’s talk onthis issue and its actions continues, it will be eatenup by a political chasmof its ownmaking.

 ?? ?? Primeminis­ter Jacinda Ardern
Primeminis­ter Jacinda Ardern

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