Seeking solution to ‘persistent disadvantage’

The Productivity Commission is seeking public input as it prepares for its inquiry into how to break the cycle of long-term disadvantage.

The commission is developing the terms of reference for the inquiry and is inviting the public to help decide where it should direct its focus – either through a series of questions on its website or by making a submission.

‘‘We are keen to hear from the public, experts, groups and communities, to help shape this important mahi [work],’’ said commission chairman Ganesh Nana. ‘‘We look forward to hearing the insights and advice from those who work across the range of social support services and education sectors, as well as iwi, Ma¯ori, and Pacific groups, and many others.’’

Persistent, intergenerational disadvantage represents lost opportunities through economic and social exclusion and significant loss of wellbeing. The lost potential flows through into substantial fiscal costs such as welfare payments and health costs and impacts the country’s productivity and economic potential.

The commission said people may become stuck in disadvantage at any point, from life events such as job loss or illness, or because they were born into disadvantaged circumstances. Children in particular are affected by persistent disadvantage.

The commission noted that Ma¯ ori have been systematically dispossessed of their land and other resources, and suffered significant losses to their population, language, culture, authority, wealth and wellbeing, which has led to intergenerational cycles of disadvantage for many wha¯ nau.

It said the big shift in income inequality happened in the reform period of the late 1980s and early 1990s when those on the lowest incomes saw their incomes fall through higher unemployment, benefit cuts and downward pressure on wages, while higher incomes held stable.

Since the mid-1990s, income growth has been relatively evenly spread, which means the level of income inequality and poverty has persisted at the level reached in the 1990s, it said.

According to the latest statistics, about 7.5 per cent of people live in households facing material hardship.

The inquiry will investigate who gets stuck in persistent disadvantage and why, and what can be done to help break that cycle, to help lift the wellbeing of all New Zealanders.

The commission is seeking public input by August 27 and expects to report back to the Government with findings and recommendations by November 2022.

About 7.5 per cent of people live in households facing material hardship.