Disappointment at PM'S reaction to child poverty
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.