Times getting tougher for many in Taranaki
Taranaki people are turning to budgeting services and foodbanks for help in increasing numbers as they sink under the weight of rising rent, food and fuel costs.
Hāwera Budget Advisory service manager Julie Gaudin said it used to be that if you worked, and didn’t have high-interest debt then you’d be okay, but life had become much more expensive over the last few years.
‘‘We used to mostly help people on the benefit, but now we’re helping young working families, we’re helping elderly.’’
Venture Taranaki’s latest trends report, which looks at the region’s economic state over the past six month, shows food, rent and fuel in the region have increased across the board.
Rents are up 18% – the highest percentage growth in the country – to $530 a week, comparative to the average mortgage in Taranaki.
Fuel costs are up, food prices are up 8% and while wage growth in the March quarter was the best since 2009 – at 3% – it wasn’t even half the level of inflation, which is at 6.9%.
With rent, or the mortgage, a set cost, fuel and consumption were areas that took a hit for people, Gaudin said.
‘‘There’s been a lot of people asking for food grants. Meat’s a luxury, and people aren’t buying good food that they need because they can’t afford it.’’
New Plymouth Foodbank manager Sharon Wills knows this only too well, saying increasing costs were just ‘‘another nail in the coffin’’ for people.
‘‘You’ve got kids to feed, you’ve got your insurance, you’ve got all your other costs. So we’re getting more and more people who come to us who are in paid employment or on the superannuation.’’
Pre-Covid, the food bank was averaging 45 food parcels a week, it’s now doubled.
When someone comes to the food bank the first time they’re usually very embarrassed and feel a lot of shame, Wills said.
‘‘But if it becomes a semiregular thing, like they know the food bank is there for them, and have been there a few times they’re just resigned to the fact that life’s not going to get any better.
‘‘People don’t feel optimistic [about the future], they don’t see a way out.’’
New Plymouth Budget Advisory Service manager Jocelyn Merwood said the economic state of the region, and nation, was really affecting people who weren’t working.
‘‘You know, they’re on sickness benefits so they are actually unable to work. So it’s really difficult they can’t go work to increase their income to pay for the increased prices.’’
The Budget announcement that people earning under $70,000 would receive $350 spread over three months from August was some relief, Merwood said.
‘‘Any additional money is always going to come in handy. For a family, $350 has the potential to become winter clothes for the kids, it could be that they might get dental care that they may not have been able to afford.
‘‘I’ve already had a couple of clients this morning, and one of them talked about how they need a couple of tyres for their car because they had to use their car maintenance money on an emergency dental appointment.’’
While the money wouldn’t make a difference for everyone, she said people were just glad to have some relief.
Venture Taranaki chief executive Kelvin Wright said Taranaki maintained its relatively affordable status compared with the other big centres, but that was little comfort for those struggling with increasing costs across the board.
‘‘New Zealand is going through a challenging period, with high inflation, increased living costs and a runaway housing market, compounded by supply constraints and talent shortages, caused in part by Covid-19 restrictions.
‘‘New Zealand and Taranaki are not alone with these challenges, these trends are echoed across the globe.’’
Wright said there were some pockets of positive news to share in the trends report, such as the Taranaki unemployment rate being at a record low of 2.4% – the lowest in the country.
‘‘However, the flip side of this is a constrained labour market and large skills and talent shortages across the board.’’
Taranaki Chamber of Commerce acting chief executive Michelle Brennan said business owners were hanging out for the borders to fully open in August.
‘‘We are also hearing concerns from businesses around supply chain issues, inflation costs such as fuel and food along with minimum wage increases and the proposed Fair Pay Agreement legislation.’’
While the outlook is bleak at the moment, Eugene Williams, the debt centre manager for Christians Against Poverty which helps people in debt, said anyone who was struggling to see light at the end of the tunnel should ask for help. ‘‘We get people coming to us from all walks of life, managers, people who work in schools, and when they call they feel embarrassed or ashamed, because they never thought they’d be in this situation.
‘‘But this can happen to anyone, maybe you’ve got into an accident or made a decision that didn’t work out, there are services out there to help you.’’