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.
Theproblem for Ardern and her Government is that those arguing for a big spend to tackle child poverty are getting impatient.
In their eyes, Ardern is morelikedickens’
Ebeneezer Scrooge.
Post-electionhope wasmetwith disappointment. More than60charitable organisations from Salvationarmyto Barnados, foodbanks to housing providers wrote an open letter toardern and her ministers of Finance and Social Development asking them to raise benefits beforechristmas.
“Before the election, the Labour Party has consistently said there’s morework to be done to lift families out of poverty.” the letter said, “You nowhave the mandate and opportunity to doso.”
Ardern’s response? Afirm no. She also said: “This isnot going to be an issue that can be resolved in one week, or one monthor 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 is allmade 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 first place. Here, success is laid out in thechild Poverty Reductionact that the Labour-led Government passed in 2018 that outlines three and10-year targets.
Meeting the 2028 targets requires morethan tinkering at the edges. Crucially, thewaythe
incomemeasures have been devised, the onlyway to meetthem is a considerable spendoncore benefits.
Thegovernment’s Advisory Group suggested raising benefits by asmuchas 47 per cent, an extra $5.2 billion every year. For context, $13 billionwasspent onwage subsidies this year.
Treasury modelling suggests that several of the income-based measures are close to
meeting the 2021 targets, however thematerial hardship measures (things like regular
meals, clothing, and housing) have barely moved, 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
progressive policies, the Cabinet canno longer blame recalcitrant coalition partners.
Complicating matters, 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 gap between the Government’s talk onthis issue and its actions continues, it will be eatenup by a political chasmof its ownmaking.