Archive

Archive for the ‘Social Issues’ Category

Foot in Mouth Award – Nicky Wagner, because disabilities issues are such a drag on a nice day

24 June 2017 1 comment

.

.

Bennett had it (and probably still does)…

.

.

Key had it;

.

.

… still had it;

.

.

Aaron Gilmore had it;

.

.

Steven Joyce has it;

.

.

Alfred Ngaro has it;

.

.

And it seems Minister Nicky Wagner has it;

.

 

.

Yes, indeed, Ms Wagner, we’re sure you’d rather be out on the harbour rather than having to mess around with boring disability issues. After all, it’s not your responsibility if some people  ‘choose’ to stay indoors rather than go sailing because they happen to have a disability.

Oh, wait, you’re Minister for Disabilities.

Yes, indeed, another National member of Parliament has revealed her innermost thoughts and feelings about us plebes. We are an inconvenience. Especially on a fine, sunny day.

Ms Wagner soon received a barrage of criticism for her 15 June ‘tweet’;

.

1h1 hour ago

really? your response to backlash is to double down and refuse to apologise?? I hope you end up on the news for this.

.

4h4 hours ago

Replying to

Then resign and give your position to someone with integrity and compassion. Shame on you.

.

14h14 hours ago

Replying to

So would everyone with a disability but not everyone gets that choice…

.

2h2 hours ago

Replying to

I suggest you step down then. Our communities deserve someone who wants to be there and makes a difference.

.

3h3 hours ago

Replying to

find a new job as a fisherman if representing our disabled community is too much of a chore

.

12h12 hours ago

Replying to

You tweet this? Clearly your judgement is poor. Make the most of your good fortune

.

2h2 hours ago

Replying to

I hear you- I hate it when our daughters disability gets in the way of our sailing. And biking. And overseas travel. Ugh

.

12h12 hours ago

Replying to

Well sorry for taking up your precious time by having a disability. I’d rather not have to think about it either. Ugh.

.

2h2 hours ago

Replying to

Oh my gosh. Your my mp. From my area. You told me disability was your most important thing to you. You lied to me.

.

9h9 hours ago

Replying to

Resign from your ministerial position. Such a flippant attitude when your meant to be meeting critical stakeholders of your portfolio! Shame

.

7h7 hours ago

Replying to

i can tell this tweet isn’t going to age well over the next few months…

.

And this (amongst many more) which sums things up in a nutshell;

.

10h10 hours ago

Replying to

No worries, sweetie, after September 23 you can spend as much time on the harbour and away from pesky work as you like. 😀

.

One hapless National Party supporter tried – without much success – to mitigate matters;

.

8h8 hours ago

Replying to

Nicky you might pay to reread your tweet slowly & listen to your words.The delivery of this measage is appalling. Goodluck defending it oops

.

Followed by,

.

Good try – but stop digging, Geoff.

Ms Wagner quickly realised the enormity of her blunder and attempted to make good with two follow-up ‘tweets’, about eleven minutes apart;

.

.

But by then, at least one representative from the msm had noticed the twitterstorm that had blown up around Minister Wagner;

.

8h8 hours ago

Replying to

We will all stand by and watch for your ‘clarification and apology.’ See Alfred Ngaro for further help.

.

8h8 hours ago

Replying to

Ummmm.. awkward. You could always resign if you don’t like your job! I know a bloke who does good harbour tours to the whales and dolphins.

.

Garner’s description as “awkward” would be an understatement.

Perhaps, as National Party supporter Geoff Booth said, “We all make mistakes“. But National ministers and mps have a track record of occasionally letting slip what they really think of  us serfs. And it isn’t very flattering.

If this is how Ms Wagner feels about spending time on disability issues, perhaps it explains why we have had three housing ministers – simultaneously – and yet we still have rising homelessness and worsening housing affordability.

Perhaps it explains why we have chronic health underfunding, including  over-stretched mental health services.

Perhaps it explains why we still have high youth unemployment of NEETs (Not in Education, Employment, or Training), and allowing 70,000 migrants to come to New Zealand because we are “short of skilled workers”.

Perhaps it explains why – when the economy is supposedly growing – wages have stagnated.

Obviously, National ministers would rather be doing something else.

In one way, former disgraced MP, Aaron Gilmore was the most honest out of the entire National parliamentary caucus; he really did express the innermost feelings of how the Born-To-Rule view us. I suggest Ms Wagner resign from Parliament and Aaron  Gilmore take her place. At least he’s more upfront and we know what we’re getting.

The rest of his National colleagues can also take a long, long cruise out onto the Auckland harbour.

 

.

.

.

.

References

Radio NZ:  Bennett ‘would consider another privacy breach’

NZ Herald:  Key – US journalist Greenwald ‘a loser’

NBR:  ‘Dotcom’s little henchman’

Mediaworks:  ‘Do you know who I am?’ – Aaron Gilmore

NZ Herald: Minister to students: ‘Keep your heads down’

NZ Herald:  Associate Housing Minister Alfred Ngaro reprimanded, apologises to PM over Willie Jackson comments

Parliament: Nicky Wagner

Twitter: Nicky Wagner

Twitter: Nicky Wagner – would rather be out on harbour

Twitter: Nicky Wagner – follow up on harbour tweet 1

Twitter: Nicky Wagner – follow up on harbour tweet 2

Previous related blogposts

Foot in mouth award – Former ACT MP exposes flaw in free-market system

Foot in mouth award – another former ACT MP plumbs new depths of dumbness

Foot in mouth award – Bill English, for his recent “Flat Earth” comment in Parliament

.

.

.

.

This blogpost was first published on The Daily Blog on 19 June 2017.

.

.

= fs =

National continues to panic on housing crisis as election day looms

.

 

.

The Grand Announcement!

On 3 June, National announced with great fanfare that additional state housing would be made available in Tauranga  and  Papamoa;

Almost 220 new social and transitional places are on the way for Tauranga and Papamoa, the Government has today confirmed.

“We’re on track to have 68 short term transitional housing places available in Tauranga and Papamoa by the end of the year. This will mean we can support up to 272 families in Tauranga and Papamoa every year while long term solutions are found,” says Ms Adams.

“Of those 68 places, 21 places are already open.

“Across the wider Bay of Plenty region, we will be providing a total of 146 transitional housing places meaning we’ll be able to help 584 families every year,” says Ms Adams.

“These houses are in addition to the 290 social houses we’re planning to secure in the Bay of Plenty. These new properties will be a welcome addition to the region, which is an area of growing need.”

Minister Amy Adams emphasised,

“We are working hard alongside providers to address the demand on social housing and help those most in need of warm, safe housing.”

Except…

Which would be fine – except that in December last year, National signed an agreement to sell off 1,138 state houses to IHC subsidiary, Accessible Properties;

Accessible Properties has signed a contract with the Government confirming it will acquire and manage 1,140  [actually 1,138] state homes in Tauranga, and plans to add 150 more houses to its portfolio.

The 1140 homes are currently with Housing New Zealand and will transfer on April 1, 2017. The contract was signed today and Housing New Zealand tenants are receiving letters this week explaining the change of ownership.

It was a similar deal to the one  the Salvation Army walked away from in March 2015;

The Government’s plan to sell off unwanted state houses to community housing providers has been dealt a massive blow with the Salvation Army walking away from the negotiation table.

The Salvation Army announced today it lacked the expertise, infrastructure and resources to deal with the number of houses and tenants that the Government wanted to offload.

[…]

Salvation Army social housing spokesman Major Campbell Roberts said the Government had underestimated the complexity of the task.

“I don’t think there has been enough thinking gone into it.”

Roberts said the current “Housing New Zealand monopoly” wasn’t working, but handing social housing over to single community organisations, like the Salvation Army, would fail.

Community Housing Aotearoa director Scott Figenshow rightly pointed out;

“ Last month the Government confirmed $1.2 billion of deferred maintenance on the state housing stock. Why would a provider want to purchase a liability? ”

IHC/Accessible Properties showed no such hesitation and on 1 April this year the sale was completed. Accessible Properties’ CEO,  Greg Orchard, appeared very pleased with the deal;

“The properties have been assessed as being at a very good standard – we will maintain this and seek to make improvements.”

The sale of the properties took place at the same time that Tauranga was experiencing a housing crisis similar to Auckland’s;

.

.

Which means…

National’s “grand plans” for 220 new social and transitional places remains woefully short of the 1,138 houses that National sold off to IHC’s Accessible Properties at the end of March.

It is also unclear what is meant by “ transitional places“. Are these actual houses? Or motel units, à la Auckland-style;

.

 

.

Only National would have the brazenness to sell off 1,138 state houses and then announce one-fifth of that number of “new houses” as some sort of “stunning achievement”.

Worse still is National’s over-all record when it comes to State housing;

In 2008, Housing NZ’s state housing stock comprised of  69,000 rental properties.

By 2016, that number had fallen to 61,600 (plus a further 2,700 leased) – a dramatic shortfall of 7,400 properties.

No  wonder we have families living in cars in the second decade of the 21st Century.

Where did those state houses end up?

Promises made…

In September 2009, then-Housing Minister, Phil Heatley, announced that state house tenants would be allowed to purchase the state houses they were living in;

From today those state house tenants in a position to buy the house they live in can do so, says Housing Minister Phil Heatley.

[…]

Over the next week, Housing New Zealand will be approaching about 3,800 state tenants who pay market rent and live in a home that is available for purchase, to make them aware of the opportunity.

[…]

To ensure a property is not on-sold to developers, a tenant who purchases their state house will be unable to reapply for a state house for three years from the date of purchase.

Heatley specifically made clear his opposition to state houses ending up in the hands of anyone but occupying tenants.

In January 2015, our then-Dear Leader, Key, repeated National’s plans to sell state houses – but only to social service providers;

We’ll then look to sell between 1,000 and 2,000 Housing New Zealand properties over the following year for use as social housing run by approved community housing providers.

In doing so, we’ll use open and competitive processes.

Community housing providers may want to buy properties on their own, or they may go into partnership with other organisations who lend them money, contribute equity, or provide other services.

Properties will have to stay in social housing unless the government agrees otherwise, and existing tenants will continue to be housed for the duration of their need.

Selling properties in this way doesn’t reduce the number of social housing places. It just means more of the tenancies will be managed by a non-government housing provider rather than Housing New Zealand.

We’re very conscious that the sale of properties has to work for taxpayers.

We’re looking to get a fair and reasonable price for these properties, bearing in mind they’re being sold as ongoing social houses with high-need tenants.

We’re not selling them as private homes or rentals.

Note his unequivocal guarantee; “We’re not selling them as private homes or rentals”.

As with many of Key’s statements, he was somewhat ‘loose’ with truthfulness.

Promises broken.

By May this year, it became very apparent where many of the 7,400 state houses sold off by National had ended up;

.

.

The article by Virginia Fallon makes this extraordinary revelation;

While the Devon St sale gives buyers the chance to choose their neighbours, it marks a bittersweet ending for Kay Hood, who once owned 80 per cent of the street.

“I would have liked to have bought the sixth one, that’s the only eyesore,” she said.

Over 20 years, Hood and husband Peter bought five houses on the street, and she wishes the last one never got away.

“We bought them off Housing Corp and I did approach them for the last one, but we never got it.”

We bought them off Housing Corp…”?!

So while entire families are camping out in cars, garages, or  –  if they are lucky – motel rooms, private investors have ‘snapped up’ State House properties.

In this case, the Hoods on-sold their investments (ie, former state houses), and were candid in their plans;

“ We’re going to go skiing and spend the children’s inheritance. ”

Personally, I hold no antipathy toward the Hoods. In our current social climate of  hyper-individualism  combined with a degree of moral ambiguity, many of our fellow New Zealanders have exploited opportunities for speculation such as this.

But I do hold 100% responsible John Key and his fellow Ministers-of-the-Crown who allowed this travesty to occur.

More so John Key, who benefitted from a state house in his youth;

.

 

.

The over-powering stench I can smell is either a dead, rotting whale on my front lawn – or Key’s appalling hypocrisy.

The sound of a train-wreck hurtling toward you

It is abundantly clear that National is panicking over the issue of housing.

Whether it is homelessness or over-crowding by poor families, or home unaffordability for middle-class Millenials, National has managed to spectacularly cock this up.

New Zealanders may be able to tolerate poverty. This country has had varying degrees of poverty since the Year Dot.

But the notion of homelessness is more than they can stomach. Homelessness strikes at the very core of the “Kiwi Dream”, where a roof over your head and a place to raise a family is one of our strongest values. (The other being the now-mythical notion of egalitarianism. That social ideal had the life throttled out of  it after 1984.)

Housing-related problems (I refuse to call them “issues”) for National keep mounting in a Trump-like way.

On 8 June, on Radio NZ, Major Campbell Roberts (the same Maj. Roberts who, in 2015, had thoroughly rejected National’s invitation to buy properties from Housing NZ)  from the Salvation Army’s social policy unit, had been invited by then Finance Minister English to become part of National’s Housing Shareholders Advisory Group.

Maj. Roberts revealed that now-Dear Leader, Bill English, had described a looming housing crisis as far back as 2010;

“ He [Mr English] said a couple of things; one, the use of of the $15 billion asset of Housing New Zealand, and the second was that he was seeing a major crisis in Auckland in housing in five or six years.  It was a passing comment – but it was one of the reasons for setting up the shareholders group.

English’s prediction has eerily come to fruition;

.

.

Unsurprisingly, English rejected Maj. Robert’s revelations using a highly effective technique from his predecessor. One of English’s tax-payer funded spin-doctors said,

The Prime Minister was having a number of such conversations on housing reform at the time, including with a housing advisory group which included the Salvation Army, and he doesn’t recall exactly what he said.

Who else had memory problems when it came to potentially embarrassing gaffs and scandals?

.

.

Meanwhile, in a latest move to dampen the ballooning housing market, the Reserve Bank is contemplating adding a new “tool” to it’s regulatory powers. The RBNZ wants to cap  debt-to-value ratios at five times a borrower’s income;

The Reserve Bank wants to be able to stop people taking out mortgages that are too big compared to their incomes.

It wants debt-to-income restrictions (DTIs), which limit the amount that people can borrow to a multiple of their income, added to its macroprudential toolkit, alongside loan-to-value (LVR) restrictions.

The restrictions are used in other markets around the world, such as Britain, where borrowers must have a loan no bigger than 4.5 times their income. The Reserve Bank is suggesting a limit of five times.

The size of New Zealand mortgages compared to incomes has increased sharply over the past 30 years. The Reserve Bank said increases since 2014 partly reflected the drop in interest rates over that time, but it was possible that rates could rise again in future.

The RBNZ estimates debt-to-income restrictions could prevent 8,800 investors from buying a property. But 1,600 First Home buyers  would also be caught up in stringent DTI restrictions and locked out of  owning their home.

The Bank’s chief agenda is to prevent a massive housing crash that would impact on the economy; cause mass unemployment; and result in thousands losing their homes through mortgage defaulting;

The housing market could collapse if mortgage rates rise to 7 percent, given the increasing numbers of households heavily in debt, the Reserve Bank says.

The Reserve Bank stress-tested the ability of borrowers to cope with mortgage rates at 7 percent, which is close to the average two-year mortgage rate over the past decade.

It found 4 percent of all borrowers, and 5 percent of recent ones, would be put under severe stress where they could not meet day-to-day bills for food and power.

Auckland borrowers appear particularly vulnerable to higher rates, with 5 percent estimated to face severe stress.

[…]

“So that if a downturn comes, you don’t get a whole lot of forced sales coming onto the market that depresses house prices even further, and create a risk for the banking system and also the broader economy.”

All because National ignored a crisis that Bill English predicted seven years ago, and could have dampened with a capital gains tax equivalent to company tax, and stopping investors from claiming tax deductions on mortgage interest payments.

It is bizarre and inequitable that tax-payers are in effect subsidising investor/speculators on their investments. Especially when, after two years, those properties can be on-sold with little or no capital gains tax paid.

If the RBNZ introduces a debt-to-income ratio of five times a person’s income, it may well succeed in dampening down the property bubble.

But as usual, it will be those at the bottom (or near the bottom) who pay the price. They will be the ones who continue to be locked out of the property market and denied a chance to enjoy the Kiwi Dream of home ownership.

The resentment and anger this will cause cannot be over-stated.

The sound in Bill English’s ear is the roar of a train wreck bearing down on him and his hopeless, self-serving ‘government’. ETA for the crash: 23 September.

All because National stubbornly refused to act to curb property speculation.

.

.

.

.

References

Scoop media:  More social housing coming on board in Tauranga & Papamoa

NZ Herald:   Government sells off Tauranga’s state housing portfolio to Accessible Properties

Accessible Properties:  What is happening?

Fairfax media:  Salvation Army says no to state houses

Bay of Plenty Times:  Accessible Properties takes over state homes

TVNZ News:  Housing crisis hits Tauranga, forcing families into garages and cars

Bay of Plenty Times:  Tauranga’s homeless problem at ‘crisis point’

Sunlive: Housing crisis under the spotlight

Radio NZ:  Housing situation critical – Tauranga principal

Tauranga Budget Advisory:  City’s Rental Housing In Crisis

NZ Herald:   Govt to buy more motels to house homeless as its role in emergency housing grows

Housing NZ: Annual Report 2008/09

Housing NZ: Annual Report 2015/16

Beehive:  State houses available to buy from today

Fairfax media:  John Key Speech – Next steps in social housing

Fairfax media:  Can’t afford your own island? How about buying your very own street?

NZ Herald:  Prime Minister John Key’s childhood state house up for sale as Government offers 2500 properties to NGOs

Radio NZ:  PM spoke of housing crisis in 2010 – Sallies

Otago Daily Times:  Auckland housing crisis expected to drag on

Fairfax media:  PM talked of major housing crisis – Salvation Army

Dominion Post:  Editorial – Prime Minister’s bad memory embarrassing

Fairfax media:  Debt-to-income ratio would stop thousands from buying houses – RBNZ

RBNZ: Consultation Paper – Serviceability Restrictions as a Potential Macroprudential Tool in New Zealand  (p26)

Radio NZ:  Housing market could collapse on 7 percent mortgage rates

IRD: Residential property

IRD: Taxation (Bright-Line Test for Residential Land) Act 2015

Additional

NZ Herald: Key admits underclass still growing

NewstalkZB: Demand for food banks, emergency housing much higher than before recession

Previous related blogposts

Budget 2013: State Housing and the War on Poor

.

.

.

.

This blogpost was first published on The Daily Blog on 10 June 2017.

.

.

= fs =

Health care workers pay increase – fair-pay or fish-hooks?

28 April 2017 2 comments

.

.

Some Context

$

The National Government said that their signature 2010 income tax cut package would be ‘fiscally neutral’ — paid for increased revenues from raising GST. That hasn’t happened. The net cost for tax cuts has been about $2 billion.

[…]

When National claims it must cut spending for vital public services like health and education to control its borrowing, it carries much of the blame.” – former Green Party Co-leader, Dr Russel Norman, 14 May 2012

$

The reliance of New Zealand, of all of us, on the emotional umbilical cord between women working as carers and the older people they care for at $13-14 an hour is a form of modern-day slavery.” –  Judy McGregor, Equal opportunities commissioner, 28 May 2012

$

It’s one of those things we’d love to do if we had the cash. As the country moves back to surplus it’s one of the areas we can look at but I think most people would accept this isn’t the time we have lots of extra cash.

[…]

We put the money into cancer care and nursing and various other things. On balance, we think we got that about right.” – John Key, former Prime Minister, 28 May 2012

 

$

Cabinet today agreed to a $2 billion pay equity package to be delivered over the next five years to 55,000 care and support workers employed across the aged and residential care sector.”- Bill English, current Prime Minister, 18 April 2017

$

The Announcement

On 18 April, Health Minister Dr Jonathan Coleman and Finance Minister, Bill English, announced that healthcare workers in the disability, residential care, and home/community support sector had successfully won their pay-equity claim;

.

 

.

The response from the trade union movement was positive;

Unions representing care and support workers are pleased to be jointly announcing with government a proposed equal pay settlement to 55,000 workers across the aged residential, disability and home support sectors.

The proposed settlement is a huge win and will make a real difference in valuing the work of care and support workers and the people they support, workers in the sector say. It is a significant step in addressing gender inequality in New Zealand.

[…]

E tū Assistant National Secretary, John Ryall says the offer once ratified will mean a “once in a lifetime pay rise which will end poverty wages for this mainly female workforce and set them on the path to a better life. We’re delighted today’s proposed settlement recognises the justice of Kristine’s case and the wonderful work of Kristine and other professional carers.”

New Zealand Nurses Organisation Industrial Services Manager Cee Payne says that “This equal settlement delivers pay rates that truly reflect the skills and importance of the work that care and support workers undertake every day. Decent pay rates and the right to achieve qualifications will grow and retain skilled workers to care for our elderly. This will build public confidence that high quality care will be delivered to our families’ loved ones in our rest homes and hospitals.”

PSA National Secretary Erin Polaczuk says: “This settlement will make a real difference to our members.  Our members in home support and disability support play a vital role in empowering people to live independent lives in their own communities. This settlement recognises the value of the work they do – and the people they support.”

Unions say the government is to be commended for agreeing to negotiate this settlement offer, rather than waiting for years before the legal process was finally exhausted.

However, there remain unanswered questions to this “deal”.

Questions raised

On 22 April I wrote to Health Minister Coleman;

On 18 April you announced that disability, residential care, and home and community support services will  have their pay increased in a pay-equity settlement costing $2 billion over five years.

In your 18 April press release you stated;

“A care and support worker on the minimum wage with three years’ experience and no qualifications will receive a 27 per cent increase in their hourly wage rate moving from $15.75 to $20 per hour from July 1. That rate would progressively increase to $23 by July 2021 and would rise further if they attain a higher qualification.”

I have some questions regarding this issue, namely;

1. Why was the settlement not back-dated when MPs automatically have their pay-increases backdated? Especially when negotiations with relevant parties was announced nearly two years ago on 20 October 2015 (by yourself) and has been on-going since.

2. Will workers who are deemed to qualify for pay-equity wage increases  be determined solely by their employer?

3. What measures will be put in place to ensure that workers are paid appropriately and pay increases not arbitrarily with-held by employer(s)?

4. You state that the amount of $2 billion will be  “spread over five years” and  increases will be implemented incrementally over an annual basis. If so, how will that incremental amount be determined?

5. If the answer to Q4 is “yes”, will the planned increases be inflation-adjusted, to prevent any increase being watered-down by inflation?

6.Will the settlement amount be increased over time to compensate for annual rises to the Minimum Wage?

7. Will the equal-pay settlement and increase in wages have any impact on future Union-Employer wage negotiations? Or will future negotiations and demands for pay rises be considered a part of the pay-equity settlement?

8. Will NGOs who qualify for the pay equity settlement for their workers have their Budget-allocations cut in other areas?

9. How will pay rises for workers who quality for pay equity settlement impact on contract negotiations with relevant NGOs?

10. You state that “The $2.048 billion settlement over five years will be funded through an increase of $1.856 billion to Vote Health and $192 million to ACC.  ACC levies are set for the coming years, but may possibly increase over the next decade to support this”. If ACC levies rise, will workers who qualify for the settlement be compensated for having to pay an increased ACC levy?

Call me a cynic, but I sense fish-hooks in the detail. When National cut taxes in 2010, they gave with one hand;

.

.

– and took with the other;

.

.

When it comes to fish-hooks, National has prior ‘form’. Even when National announces an ‘increase’ in social spending, it often takes that funding from other areas. Even special-needs children are not exempt from National’s shell-scam, as reported in The Daily Blog  in August last year;

Education Minister, Hekia Parata, revealed that primary and secondary schools’ funding for special needs students would be slashed, and the money re-directed to under-fives. As Radio NZ explained;

The [Cabinet] documents also indicated the government would reduce the amount of special education funding spent in the school sector, and dramatically increase the amount spent on those under the age of five.

“Analysis of the spend by the age range of the recipient indicates that a disproportionate amount of the funds are for school-age children. This is despite clear evidence in some areas that early support can have greater benefits in terms of educational outcomes.”

As implications of Parata’s scheme began to percolate through the education sector, reaction was scathing.

I won’t be celebrating until I read the fine print and get some answers.

Watch out for…

.

 

.

.

.

References

Infonews: Government’s 2010 tax cuts costing $2 billion and counting

Dominion Post: Resthome spy hails saint-like workers

TVNZ News: Cabinet agrees to $2 billion pay equity package for ‘dedicated’ low-paid care workers

Beehive: $2 billion pay equity settlement for 55,000 health care workers

NZCTU: Historic day as caregivers offered equal pay settlement

Beehive: Government to enter negotiations over pay for care and support workers

NZ Herald: Budget 2010 – Experts praise tax cuts for all

NZ Herald:  GST rise will hurt poor the most

Fairfax media: Young workers out of pocket

Fairfax media: Prescription price rise hits vulnerable

Scoop media: Vulnerable children at risk from Family Court fees increase

Radio NZ: Govt to phase out ‘special needs’

Additional

Radio NZ: Settlement could help rest homes attract workers

Employment New Zealand: Previous minimum wage rates

NZ Herald: MPs’ pay rise officially confirmed

Radio NZ: MPs given 2.5 percent pay rise

Other Blogs

No Right Turn: A victory for women

The Daily Blog: Courts finally give the poorest workers what the Government wouldn’t and the Unions couldn’t

The Standard: Thank you health care workers

Werewolf: Gordon Campbell on the aged-care settlement

Previous related blogposts

1 March – No Rest for Striking Workers! (1 March 2012)

No Rest for the Wicked (23 March 2012)

“It’s one of those things we’d love to do if we had the cash” (28 May 2012)

Roads, grandma, and John Key (18 July 2012)

John Key’s track record on raising wages – 4. Rest Home Workers (11 November 2012)

Aged Care: The Price of Compassion (16 November 2012)

That was Then, This is Now #22 – Lowest wages vs Highest wages (31 January 2014)

The consequences of tax-cuts – worker exploitation? (31 October 2015)

Special Education Funding – Robbing Peter, Paul, and Mary to pay Tom, Dick, and Harriet (27 August 2016)

.

.

.

.

This blogpost was first published on The Daily Blog on 23 April 2017.

.

.

= fs =

The Rise and Rise of Daddy State: MSD blackmails NGOs for private data

.

.

Nanny State takes a Shower

What do showers have to do with this issue?

Wait and see.

Spying, Spooks, and Silly Journos

Nearly five years ago, the highly controversial Search and Surveillance Act 2012 was passed by National. As reported at the time;

The Search and Surveillance Act, which was passed through Parliament in March, extends production and examination orders to the police and legalises some forms of surveillance.

It will let more government agencies carry out surveillance operations, allows judges to determine whether journalists can protect their sources, and changes the right to silence.

[…]

Police could complete some forms of surveillance and searches without warrants, but [Police Assistant Commissioner Malcolm] Burgess said the situations were pretty common sense.

Yes, indeed. Police surveillance and seizure powers were being massively extended. But according to the Police Commissioner, citizens could rely on the Police using “pretty common sense” to use them.

Then-Justice Minister, Judith Collins offered this excuse for the extension of police powers;

The new Search and Surveillance Act 2012 brings “order, certainty, clarity and consistency” to messy, unclear and outdated search and surveillance laws.

(Interestingly, the fact that Collins felt the need to use irony-quotation-marks, in her Beehive statement, to enclose the phrase order, certainty, clarity and consistency is revealing.)

This is the same Judith Collins who, in 2009, passed personal phone numbers of a civil servant to far-right blogger, Cameron “Whaleoil” Slater.

A year later,  the Government Communications Security Bureau and Related Legislation Amendment Bill  was being hotly debated throughout the country.

Essentially, the Bill (since passed into law), would allow the GCSB to spy on New Zealand citizens which up to then had been the sole province of the NZ SIS.

National’s  ‘spinned message’ – constantly parroted by Dear  Leader Key – was;

In addition, the Act governing the GCSB is not fit for purpose and probably never has been.  It was not until this review was undertaken that the extent of this inadequacy was known

[…]

The advice we have recently received from the Solicitor-General is that there are difficulties interpreting the legislation and there is a risk some longstanding practices of providing assistance to other agencies would not be found to be lawful.

[…]

It is absolutely critical the GCSB has a clear legal framework to operate within.”

In fact, the law was clear with it’s wording and intent and Section 14 of the Act (since altered to reflect the Amendment) stated with crystal clarity;

14Interceptions not to target domestic communications
  • Neither the Director, nor an employee of the Bureau, nor a person acting on behalf of the Bureau may authorise or take any action for the purpose of intercepting the communications of a person (not being a foreign organisation or a foreign person) who is a New Zealand citizen or a permanent resident.

Some journalists were too lazy to fact-check Key’s lies;

.

 

.

Journalists who failed to realise that Key was being disingenuous, and simply parroted the government’s official spin, did immense damage to public understanding of the issues involved.

Others, like Audrey Young and Tracy Watkins were sufficiently experienced and knowledgeable to recognise a government ‘stitch-up’ when they saw it;

.

“ The GCSB Act 2003 expressly forbids it from spying on the communications of New Zealanders.  But, by a series of snakes and ladders through the stated functions and objectives of the act, it convinced itself it was allowed to help the SIS and police spy on New Zealanders.” – Audrey Young, 26 June 2013

.

“ The GCSB’s interpretation of the law was so loose it managed to spy on 88 New Zealanders even though the law specifically stated it was not allowed to do so.” – Tracy Watkins, 3 August 2013

.

National ignored strong public opinion wary of extending the GCSB’s surveillance powers. The Bill became law on 26 August 2013.

The Government Communications Security Bureau and Related Legislation Amendment Act was followed by the Telecommunications (Interception Capability and Security) Act (TICS), made law on 11 November 2013.

The TICS law made it mandatory for all electronic communications companies (telcos) to comply with spy  agencies demands to  intercept and decrypt phone calls, txt-messages, and emails.

The excuse for this piece of intrusive legislation from Communications Minister, Amy Adams;

“ The fundamental reason that I have sought to introduce this bill is to safeguard New Zealand public safety and security. ”

The Telecommunications (Interception Capability and Security) Act was, in turn, followed by the Countering Terrorist Fighters Legislation Bill (split into several Bills after it’s Second Reading in Parliament on  9 December 2014).

This Bill, covering  three existing laws, allowed the  SIS  to conduct surveillance on terrorist suspects without requiring a judicial a warrant for up to 24 hours; to conduct secret video surveillance on private property; gave SIS access to Customs Department data in relation to suspected terrorism, and allowed the  Minister of Internal Affairs increased  powers to arbitrarily suspend or  cancel a passport.

The Labour Party were so opposed to this law change  that they voted for it. (NZ First, the Maori Party, and the Greens,  to their credit, voted against it.)

Then Dear Leader  Key used the usual “defending Kiwis against terrorist” bogeyman to justify the State’s growing surveillance powers;

“ The threats faced by New Zealand have grown and it is important that we have the ability to respond to that. The Government has a responsibility to protect New Zealanders at home and abroad…”

Simultaneously in 2014, the IRD signed an agreement to share data with the Police;

Taxpayer information is required to administer New Zealand’s tax system effectively. This information can be supplied by taxpayers, or it can be collected by Inland Revenue during an audit.

Broadly, the government’s current legislative position is that this information is not shared with other government departments on the basis that it is ‘tax secret’.

However, there are instances where sharing taxpayer information relating to serious crime could bring offenders to justice, support the goals of other government departments, and offer the State broad efficiencies.

Up until that point, the IRD expected everyone who earned money – whether from legal or illegal mean – to pay tax. This meant that, for example, sex workers prior to 2003 would be expected to pay tax on their earnings regardless of the fact it was an illegal activity.

The tax department didn’t care where or how the money was earned – they just wanted their “fare share”.

After 2014, the IRD abandoned that policy, and data-sharing with Police was implemented. It means that taxing other illegal activities such as the production and sale of cannabis, is no longer feasible. This has unintentional consequences – such as the hoarding of cash; use of firearms to protect that cash; and violence.

This is part of an on-going wider process of government departments sharing private information with each other.

The Government Communications Security Bureau and Related Legislation Amendment Act, Telecommunications (Interception Capability and Security) Act, and Countering Terrorist Fighters Legislation Bill all follow on from previous extensions of State power, notably  the  Terrorism Suppression Act 2002.

This poorly thought-out law was Labour’s contribution to George Bush’s ill-conceived “War on Terror”.

Throughout National’s three terms in office, it has extended Police powers; widened the scope for the GCSB and SIS to spy on New Zealanders; and created a vast data-sharing network amongst it’s bureaucracy.

MSD, NGOs, and Demands for Data

To date, New Zealanders have been mostly apathetic as the government build up it’s ability to spy and store personal information on us. Most of the government’s “targets” have been so-called “terrorists”, immigrants, criminals, student-debt defaulters, and those on welfare benefits or living in state houses.

Most of Middle New Zealand find it difficult to identify with these elements of our society.

Recently, however, Radio NZ has been running a series of stories and interviews on a disturbing development regarding state aquisition of personal information.

.

.

On 2 March, on Radio NZ’s Nine To Noon programme, Kathryn Ryan interviewed Brenda Pilott, the chairperson  of ComVoices (an umbrella organisation for NGOs).

At issue was the disturbing revelation that the Ministry of Social Development (MSD), presumably under direction from National ministers,  was forcing NGOs to collect and pass  private information about their clients back to the Ministry,  in return for on-going funding. This proviso was to be written into new contracts set to take effect in July this year after negotiations had concluded after Easter.

>Kathryn Ryan interviews Brenda Pilott – 2 March<

Accordingly to Comvoices, NGOs were expected  to pass on;

  • names of clients
  • birth dates
  • ethnicity
  • other personal details such as dependent children’s names

NGOs that refused to share this information with MSD would forego funding. The result would be predictable;

.

.

According to Brenda Pilot, the Ministry’s excuse to demand this data was;

“ They want to be able to find out what services are effective. And that this will provide information over time that will  allow sensible decisions to be made about government funding and where to apply that funding.”

Ms Pilot voiced concerns that private, identifiable  information would be used for tracking individuals who used NGO services. She said that vulnerable people needing to use services such as counselling, Women’s Refuge, Rape Crisis, etc, would be reluctant to engage those organisations and would “walk away”. Ms Pilot was concerned that passing personal, identifiable data to MSD would force NGOs to violate Privacy Laws.

Ms Pilot said that the Privacy Commissioner was also concerned at MSD’s intentions to obtain such data, and was investigating. She said the Commissioner would most likely report on the issue by the end of this month.

On 3 March, Radio NZ reported; grave concerns held by at least one NGO, Women’s Refuge;

Women’s Refuge chief executive Ang Jury said agencies would have to abide by the contract change if they wanted to keep their funding.

“If agencies choose not to share this information they won’t be contracting with the ministry. That’s pretty much where it sits.”

Dr Jury said it was not an ideal situation for the refuge but they were not in a position to say no.

“This is not something that we would happily go out and say, ‘yes, this is exactly what we want to do’.

“If it is going to happen, our job now is to make sure we get the sort of safeguards built around that information that we need to keep our women and children safe,” she said.

At least one privacy lawyer doubted the legality of MSD’s demands;

Privacy lawyer Kathryn Dalziel said the Ministry of Social Development (MSD) looked to be on shaky ground.

“This is a potential breach of privacy because they don’t appear to have identified, anywhere, the purposes for which they are collecting that information.

“There doesn’t seem to be any transparency around it … I also don’t think it’s fair,” she said.

“Principle 2 of the Privacy Act says that if you want to collect information from third party, you have to have a good reason.

“You also have to have … lawful and reasonable purposes for collecting that information in the first place. Now, none of that has been done.”

However, what really raised fears was Ministry of Social Development deputy chief executive, Murray Edridge’s responses to Kathryn Ryan’s  questions. His answers not only failed to reassure, but raised serious concerns as to MSD’s intentions regarding the storage and end-use of personalised, identifiable data.

>Ministry responds to privacy concerns – 3 March<

Edridge parroted the usual monetarist rhetoric of  “the New Zealand public demands that government spend it’s money well”.

When Ms Ryan  put it to Edridge that MSD was attempting to track NGO service-users, he denied it;

“ No we’re not tracking them. What we’re doing is we’re saying to providers, look, for us to understand the effectiveness of services, to understand where the resources are best invested, where we will decide between priorities in terms of investment we need to understand who the people are and what value they get from the services. For some time we’d had concern that investment’s been made in social services where they’re not the most effective mechanism for the people that require them, and this is part of the mechanism by which we understand the clientele better and we understand how we can serve them better and invest in services that are going to support them.”

When Ms Ryan put it to Edridge that anonymised data would work just as well, Edridge kept referring back to needing to know “who these people are“.

Moments later, Edridge contradicted himself by admitting “we know who the clients are, we know all about them“. If that wasn’t creepy enough, Ms Ryan then asked Edridge why MSD demanded further information about NGO service-users. She asked why MSD needed to know who was approaching  (for example) Women’s Refuge for assistance..

Edridge’s response was further contradictory and throughout the twelve minute interview he could provide no satisfactory answer why MSD was requiring personalised data from NGOs. At one point he attempted to cloud the issue by stating that MSD required “demographic information”.

Ms Ryan dismissed that claim by remind Edridge that MSD was seeking names, addresses, ethnicities, children’s names and that was not simply “demographic information”.

When Ms Ryan suggested that NGO service-users might not want their details passed on to MSD or other ministeries, Edridge could only respond,

“ Well, we need to know where to get the money in the right place.”

Four days later, Rape Crisis draw a line in the sand and announced it would  flat out decline to sign contracts with MSD  in return for  passing private information about service-users in exchange for on-going funding.

>Rape Crisis reject “data-for-funding” contracts – 7 March<

By 16 March, pressure on MSD and Minister Tolley was such that the ministry caved, and was forced to step back from demanding personalised data from some NGOs dealing with sexual violence.

>Temporary reprieve over ‘private data for funding’ contracts – 16 March<

The “reprieve”, however, was only temporary, and would last for only one year until MSD “works out how to securely collect and store their clients’ private data”. It also did not apply to all NGOs.

The Creep of Big Brother and the Daddy State

Up till this point, data-collection has centered on those who come in contact with the Justice system; WINZ beneficiaries; and Housing NZ tenants. These are generally New Zealanders who are usually the most deprived and vulnerable socially and financially, and rely on State assistance to survive.

A person seeking help from WINZ and Housing NZ is forced to supply both ministeries their private data. To refuse means no help. Next stop; the street;

.

.

A citizen in contact with the Justice system has even less option to refuse to provide private data.

MSD’s demand for personalised data from NGO service-users marks a new stage in National’s slow advancement in building a data-base on every person in the country.

NGO service users may not necessarily be unemployed beneficiaries or live in state houses or have broken the law in some way – but their details will still be required to be collected and supplied to the Ministry of Social Development.

The ministry has assumed the de facto role of collecting and storing data on New Zealanders who – up till this point – may never have come into contact with any governmental organisation such as Housing NZ, WINZ, or Police.

The implications of this are staggering.

The net to scoop up data on as many citizens as possible, has just widened considerably.

If you think you – the reader – may never need the services of Women’s Refuge or Rape Crisis, consider for a moment that there are thousands  of NGOs operating in this country and hundreds that are funded by the State.

Victim Support is just one state-funded NGO;

.

.

So if you’ve just become a victim of a crime; Victim Support enters your life;  the State now has your personal data on file;

  • Client: Name, address, gender, date of birth, primary ethnicity, Iwi.
  • Dependents: Name, date of birth, relationship to client.
  • Service Level: Information Programme/service name, start date and end date.”

Middle-class New Zealanders who may never have had cause to have personal data collected on them may soon be on file with various ministeries.  With data-sharing, personal information from MSD can end up throughout other ministeries. Or on the desks of ministers;

.

.

Never mind “Nanny State” – this is the muscular arm of Daddy State flexing it’s strength to reach out to grab more and more of our private information.

And it won’t end with this.

Not until we say “Enough is enough. No more“.

Back to Showers

Remember this?

.

.

In the lead-up to the 2008 general election, National attacked the then-Labour Government for  “Nanny Statism”.

Following on from a disastrous drought in 2007 that cost the country’s economy  over $2.8 billion (in 2008/09 dollars), the then-Labour government sought out ways and means to  conserve water. The alternative was the possibility of further water-shortages or costly storage and irrigation systems. Labour opted for conservation. This included measures to save water in residential areas.

It could be  suggested that water-saving shower heads and energy-efficient light-bulbs are the least of our concerns.  National has surpassed anything that Labour envisaged, as this government  reaches further and further into our private lives.

If there is one thing that history has taught us – governments that spy on their own people do not trust their people, and are fearful of them.

National must be very frightened of us.

.

.

.

References

NZ Legislation: Search and Surveillance Act 2012

NZ Herald: New police search and surveillance law in force

Beehive: Search and Surveillance Bill becomes law

Radio NZ: Collins defends giving details to blogger

NZ Legislation: Government Communications Security Bureau and Related Legislation Amendment Bill

Beehive: John Key – PM releases report into GCSB compliance

Legislation.govt.nz:  Government Communications Security Bureau Act 2003

NZ Herald:  Spying on NZ: More power to watch us

Dominion Post:  Spy bungles start to entangle PM

Fairfax media: Kiwis do care, prime minister

Parliament: Government Communications Security Bureau Amendment Bill

Parliament: Telecommunications (Interception Capability and Security) Bill

Fairfax: Spying bill passes into law

Parliament: Telecommunications (Interception Capability and Security) Bill — Third Reading

Parliament: Countering Terrorist Fighters Legislation Bill

NZ Herald: Foreign fighters bill passes 94 – 27

Fairfax media: Labour backs anti-terror laws, despite attacking it

IRD: Information sharing with New Zealand Police

IRD: Cross-government Information-sharing to Identify, Stop or Disrupt Serious Crime

MacNicol & Co: Tax News – IRD to share information with police

NZ Legislation: Terrorism Suppression Act 2002

Wikipedia: Terrorism Suppression Act 2002

Radio NZ: Government demands private data from NGOs

NZ Family Violence Clearinghouse: Relationships Aotearoa to close; funding models and issues in spotlight

Radio NZ: Govt on shaky ground over data-for-funding contracts, lawyers say

Radio NZ: Rape Crisis reject “data-for-funding” contracts

Radio NZ: Temporary reprieve over ‘private data for funding’ contracts

Comvoices: HomePage

Victim Support: Where does your funding come from?

NZ Family Violence Clearinghouse: MSD to require individual client level data from community agencies

NZ Herald: Bennett gets tough with outspoken solo mums

Dominion Post: Minister defends releasing private details

Fairfax media: Bennett won’t rule out releasing beneficiary details

Scoop: Showers latest target of Labour’s nanny state

NIWA: 2007 – much drier than average in many places

Beehive: Drought costs NZ $2.8 billion

Additional

Fairfax media: UN privacy expert slams government stance on privacy and ‘big data’

Other Blogs

The Standard: Social investment meets the surveillance state

Previous related blogposts

OIA Request points to beneficiary beat-up by Minister Chester Borrows

Audrey Young, Two Bains, old cars, and… cocoa?!?!

National Party president complains of covert filming – oh the rich irony!

An Open Message to the GCSB, SIS, NSA, and Uncle Tom Cobbly

Dear Leader, GCSB, and Kiwis in Wonderland

One Dunedinite’s response to the passing of the GCSB Bill

The GCSB Act – Tracy Watkins gets it right

The GCSB Act – some history

The GCSB – when plain english simply won’t do

The GCSB law – vague or crystal clear?

The Mendacities of Mr Key #1: The GCSB Bill

Campbell Live on the GCSB – latest revelations – TV3 – 20 May 2014

The real reason for the GCSB Bill

Letter to the Editor: John Campbell expose on Key and GCSB

A letter to the Dominion Post on the GCSB

Big Bro’ is Watching You!

The GCSB law – Oh FFS!!!

Dear Michael Cullen: the GCSB is not International Rescue!

.

.

.

.

This blogpost was first published on The Daily Blog on 20 March 2017.

.

.

= fs =

2017 – Ongoing jobless tally

.

Unemployment logo

.

Continued from: 2016 – Ongoing jobless tally

By the numbers, for this year;

.

Events

.

January

February

March

April

Otago University: unknown

May

.

Unemployment Statistics* at a Glance

.

.

(*  See caveat below)

.

Caution: Official Unemployment Statistics

.

On 29 June 2016, Statistic NZ announced that it would be changing the manner in which it defined a jobseeker. This   so-called “revision”  would materially affect how unemployment stats were counted and reported;

.

statistics-nz-logo

.

Change: Looking at job advertisements on the internet is correctly classified as not actively seeking work. This change brings the classification in line with international standards and will make international comparability possible.

Improvement: Fewer people will be classified as actively seeking work, therefore the counts of people unemployed will be more accurate.

The statement went on to explain;

Change in key labour market estimates:

  • Decreases in the number of people unemployed and the unemployment rate
  • Changes to the seasonally adjusted unemployment rate range from 0.1 to 0.6 percentage points. In the most recent published quarter (March 2016), the unemployment rate is revised down from 5.7 percent to 5.2 percent
  • Increases in the number of people not in the labour force
  • Decreases in the size of the labour force and the labour force participation rate

When Statistics NZ ‘re-jigged’ its criteria for measuring unemployment in June, unemployment dropped from 5.7% to 5.2% (subsequently revised again down to 5.1%).

All  unemployment data from Statistics NZ should therefore be treated with caution. Unemployment is  likely to be  much higher than Statistics NZ figures indicate.

 

.

.

.

References

Statistics NZ: Household Labour Force Survey – Revisions to labour market estimates

Statistics NZ: Labour Market Statistics – June 2016 quarter

Trading Economics: New Zealand Unemployment Rate  to January 2017

Previous related blogpost

Lies, Damned lies and Statistical Lies

National exploits fudged Statistics NZ unemployment figures

Lies, Damned lies and Statistical Lies – ** UPDATE **

2016 – Ongoing jobless tally and why unemployment statistics will no longer be used

.

.

.

 

The Mendacities of Mr English – The covert agenda of high immigration

.

if-you-repeat-a-lie-often-enough

.

Context

Bill English was recently caught on-the-spot when challenged why National was permitting high immigration at a time when unemployment was still high, and rising.

Make no mistake, National has opened the floodgates of immigration because it is an easy way to artificially  stimulate the economy. This was pointed out in May 2011,  by then-Immigration Minister, Jonathan Coleman, who trumpeted the contribution made by immigration to economic growth;

“All of us have a vested interest in immigration and I’m pleased to share with you some specific actions the Government is taking to enhance Immigration’s contribution to the economy, service improvement and changes to business migration.

[…]

…I’m confident that you will acknowledge the partnership approach that Immigration is now taking to provide tangible improvements to help support New Zealand’s economic growth.

[…]

Considering the economic challenges the country faces, lifting immigration’s economic contribution takes on more importance.”

Justifying the need for high immigration to generate  economic growth, Coleman cited “New Zealand [going] into deficit in 2009 after several years of surpluses and the economic situation has been compounded by the September and February earthquakes” and unsustainably “borrowing $300 million dollars a week to keep public services ticking over“.

Coleman  admitted that “If we were to close off immigration entirely by 2021… GDP would drop by 11.3 per cent“. He revealed that, “new migrants add an estimated $1.9 billion to the New Zealand economy every year“.

Easy money.

The downside to high immigration has been to put strain on critical services such as roading and housing, and reduce demand for locally trained workers to fill vacancies. There is a downward pressure on wages, as cheaper immigrant-labour is brought into the workforce.

As Treasury pointed out in June last year;

“There is a concern that recently there has been a relative decline in the skill level of our labour migration. The increasing flows of younger and lower-skilled migrants may be contributing to a lack of employment opportunities for local workers with whom they compete.”

Faced with increasingly negative indicators from high immigration, English was forced to explain why we were seeing high immigration at a time of rising unemployment;

.

bill-english-blames-unemployment-on-drug-tests

.

English’s response was predictable if not offensive.

.

Playing National’s Blame Game

As per  usual strategy, English defaulted to National’s strategy of Default Blame-gaming. When in trouble;

  1. Blame the previous Labour government
  2. Blame ‘welfare abuse’/Release a ‘welfare abuse’ story in the media
  3. Blame Global Financial Crisis or similar overseas event

(If the trouble is Auckland-centered, Default #4: Blame Auckland Council/RMA/both.)

This has been the pattern of National’s policy to shift blame elsewhere for it’s consistently ineffectual policies;

.

national-and-john-key-blames

.

The Blame Gaming was applied recently to National’s appalling do-nothing record on housing;

.

housing-crisis-national-blame-game

.

Resorting to Deflection #2, English had the cheek to blame young unemployed for our high immigration level;

One of the hurdles these days is just passing the drug test … Under workplace safety, you can’t have people on your premises under the influence of drugs and a lot of our younger people can’t pass that test.

People telling me they open for applications, they get people turning up and it’s hard to get someone to be able to pass the test – it’s just one example.

So look if you get around the stories, you’ll hear lots of stories – some good, some not so good – about Kiwis’ willingness and ability to do the jobs that are available.”

His comments on 27 February were echoing previous, similar sentiments in April last year, when he again abused unemployed workers as “hopeless”;

.

farmers-agree-kiwi-farm-labourers-hopeless-radio-nz-bill-english-beneficiary-bashing

.

Quite rightly, English’s comments were condemned by many. English admitted that his comments were based solely on “anecdotal evidence” . This is the worst form of evidence possible as absolutely no confirmation by way of actual, real data is involved. “Anecdotal evidence” panders to prejudice – a  difficult thing to shift even when real evidence proves to the contrary.

Real evidence surfaced only a day after English made his slurs against the unemployed, when it was revealed that out of over 90,000 (approx) welfare beneficiaries, only 466 failed pre-employment drug tests over a  three year period. That equates to roughly to 155 failed tests out of 30,000 per year.

As Radio NZ’s Benedict Collins reported;

Government figures show beneficiaries have failed only 466 pre-employment drug tests in the past three years.

[…]

The Ministry of Social Development said the 466 included those who failed and those who refused to take the test.

Some failed more than once.

The ministry did not have the total figure for how many tests were done over the three years, but said there were 32,000 pre-employment drug tests in 2015.

Those 466 over a three year period consisted of (a) those who failed the test, (b) those who refused to take the test, and (c) some failing more than once.

Put another way, 155 failed tests out of 30,000 per year  equates to half a percent fail rate.

Which means that 99.5% of beneficiaries are clean, according to MSD’s own collected data.

There was further confirmation of low fail rates from another media story. On the same day as the Ministry of Social Development released it’s data on failed drug tests, The Drug Detection Agency revealed that fail-rates were as low as 5%;

While the rate of positive tests has remained at about 5 percent, the company is doing more tests and therefore failing more people, said its chief executive, Kirk Hardy.

“We’ve seen an increase overall in our drug testing and we now, annually, conduct about 144,000 drug tests,” he said.

Looked at another way, 95% of the workforce was clean.

Which simply confirms Bill English to be the typical manipulating, lying, politician that the public so consistently distrust and despise.

However, English has his own  sound reasoning for blaming welfare beneficiaries for this country’s immigration-caused problems. He has to do it to obscure the two reasons why National has opened the tap on immigration as far as they can possibly get away with…

.

Cargo-cult Economics

Remember that in May 2011,   then-Immigration Minister, Jonathan Coleman revealed;

If we were to close off immigration entirely by 2021… GDP would drop by 11.3 per cent“.

A 11.3% fall in GDP would have pushed New Zealand into a deep recession, matching that of the early 1990s.

This was especially the case as only a few years ago the economy was suffering with an over-valued New Zealand dollar. Manufacturing and exports had slumped;

.

exporters-tell-inquiry-of-threat-from-high-dollar

.

Combined with the multi-billion dollar Christchurch re-build, mass-immigration was National’s “quick-fix” solution to boosting the economy. It might cause problems further down the track, but those were matters that National could address later. Or better still, leave for an incoming Labour-Green government to clean up the resulting socio-economic mess.

This is  quasi-cargo-cult economics, 21st century style.

.

The Not-so-Free-Market

In Coleman’s May 2011 speech, he also referred – indirectly – to the second rationale for opening the floodgates of mass-immigration;

If we were to close off immigration entirely by 2021… The available labour force would drop 10.9 per cent

This was critical for National.

A crucial tenet of free market capitalism  (aka neo-liberalism) is that the price of labour (wages and other remuneration) should be predicated on supply and demand;

The higher the wage rate, the lower the demand for labour. Hence, the demand for labour curve slopes downwards. As in all markets, a downward sloping demand curve can be explained by reference to the income and substitution effects.

At higher wages, firms look to substitute capital for labour, or cheaper labour for the relatively expensive labour. In addition, if firms carry on using the same quantity of labour, their labour costs will rise and their income (profits) will fall. For both reasons, demand for labour will fall as wages rise.

Note the part; “At higher wages, firms look to substitute capital for labour, or cheaper labour for the relatively expensive labour“.

Mass immigration may or may not supply cheaper labour per se, but more people chasing a finite number of jobs inevitably “stabilises” or even drives down wages, as migrants compete with local workers. As pointed out previously, this is precisely what Treasury warned off in June last year;

“There is a concern that recently there has been a relative decline in the skill level of our labour migration. The increasing flows of younger and lower-skilled migrants may be contributing to a lack of employment opportunities for local workers with whom they compete.”

National is wary of wages rising, thereby creating  a new wage-price inflationary spiral, reminiscent of the 1970s and 1980s. English said as much on TVNZ’s Q+A in April 2011;

Guyon Espiner:  “Can I talk about the real economy for people? They see the cost of living keep going up. They see wages really not- if not quite keeping pace with that, certainly not outstripping it much. I mean, you said at the weekend to the Australia New Zealand Leadership Forum that one of our advantages over Australia was that our wages were 30% cheaper. I mean, is that an advantage now?

Bill English:  “Well, it’s a way of competing, isn’t it? I mean, if we want to grow this economy, we need the capital – more capital per worker – and we’re competing for people as well.

[…]

Well, it is a good thing if we can attract the capital, and the fact is Australians- Australian companies should be looking at bringing activities to New Zealand because we are so much more competitive than most of the Australian economy.

[…]

Well, at the moment, if I go to Australia and talk to Australians, I want to put to them a positive case for investment in New Zealand, because while we are saving more, we’re not saving more fast enough to get the capital that we need to close the gap with Australia. So Australia already has 40 billion of investment in New Zealand. If we could attract more Australian companies, activities here, that would help us create the jobs and lift incomes.”

National is circumventing their own neo-liberal ideology by importing large numbers of workers, to drive down wages (or at least permit only modest growth).

In times of scarce labour, wages should grow. Demand. Supply.

This is the counter to recessionary-times, such as the 2008 Global Financial Crisis, when wages remain static, or fall, due to heightened job losses and rising unemployment. Supply. Demand.

But National is subverting the free market process by ‘flooding the labour market’ with immigrant labour. The price of labour cannot rise because National has interfered with the process of supply  by widening the field of the labour market. The labour market is no longer contained with the sovereign borders of our state.

This reveals “free market economics” to be a fraud. It is permitted to work unfettered only when it benefits the One Percent, their business interests, and their ruling right-wing puppets.

The moment there is a whiff that the “free market” might benefit workers – the goal-posts are shifted. (Just ask Nick Smith about shifting goal-posts.)

The game is fixed. The dice are loaded. We cannot hope to beat the House at their game.

Time to change the game.

Inevitable Conclusion

Welfare beneficiaries. Drugs. Drug testing.  It was never about any of those.

The real agenda is for National to create a false impression of economic growth and reign-in wage growth, through immigration. Anything which threatens to expose their covert agenda is to be countered. Especially before it becomes fixed in the public consciousness.

Welfare beneficiaries are very useful as National’s go-to scapegoats. Or herring of a certain hue…

.

red-herring

.

Postscript: A case of REAL workplace drug abuse

Meanwhile, in what must constitute the worst case of workplace drug abuse, took place on 14 June 1984;

.

drunk-muldoon-calls-snap-election

.

…Muldoon had made up his mind.  In one of the biggest miscalculations in our political history he decided that he would go to the country. At 11.15pm a visibly intoxicated Muldoon made his announcement to waiting journalists.

.

.

.

References

NZ Herald: Beyond the fear factor – New Kiwis can be good for us all

Fairfax media: NZ unemployment jumps to 5.2 per cent, as job market brings more into workforce

Fairfax media: New Zealand’s economic growth driven almost exclusively by rising population

Beehive: Immigration New Zealand’s contribution to growing the economy

NZ Herald: Budget 2016 – Feeling the Pressure

NZ Herald: Treasury warns of risk to jobs from immigration

TV3 News:  Bill English blames unemployment on drug tests

Radio NZ: Employers still struggling to hire NZers due to drug use – PM

Radio NZ: Farmers agree Kiwi farm labourers ‘hopeless’

Radio NZ: Tens of thousands drug-tested, hundreds fail

Radio NZ: Drug use not the whole worker shortage story – employer

NZ Herald: Willie Apiata our most trusted again

Radio NZ: Exporters tell inquiry of threat from high dollar

Wikipedia: Cargo cult economics

Economics Online: The demand for labour

TVNZ: Q+A – Guyon Espiner interviews Bill English – transcript

Radio NZ: Unemployment rises, wage growth subdued

Statistics NZ: When times are tough, wage growth slows 

Fairfax media: Shock rise in unemployment to 7.3pc

TVNZ: Frontier Of Dreams – 1984 Snap Election

Additional

TV3 News: Government gets thumbs down on housing

Other Blogs

The Standard: English hammered on druggies smear

Previous related blogposts

Election ’17 Countdown: The Promise of Nirvana to come

When National is under attack – Deflect, deflect, deflect!

National under attack – defaults to Deflection #2

National under attack – defaults to Deflection #1

.

.

.

yellow-crosses1

.

This blogpost was first published on The Daily Blog on 5 March 2017.

.

.

= fs =

Election ’17 Countdown: Joyce – let the lolly scramble begin!

25 February 2017 1 comment

.

(Or, “Under-funded health, education, and other social services? Let them eat tax-cut cake!”)

.

23-september-2017-elections-nz

.

2017 Election – Opening Gambits and Giveaways

You can tell it’s election year; the lolly-scramble (aka, hint of tax cuts) has begun;

.

steven-joyce-tax-cuts-lolly-scramble-2017-election

.

Historical Context

Cutting taxes (and social services on-the-sly) is one of National’s mainstays when it comes to election promises. Bribes work best when a government has nothing left to offer.

Who can forget the infamous  2008 election campaign, where – despite the Global Financial Crisis firmly taking hold of the New Zealand economy – then-National Party leader, John Key promised tax cuts.

In January 2008;

“We will cut taxes, not just in election year, but in a regular programme of ongoing tax cuts.

[…]

And we will do all of this while improving the public services that Kiwis have a right to expect. ”

In March 2008, then Finance Minister, Michael Cullen warned against borrowing for tax cuts;

“ Those who would actively choose to drive New Zealand into further debt to pay for tax cuts lack real ambition for our economy…

[…]

Even before these challenges hit home John Key wants to increase our debt to at least 25 per cent of GDP. But he does not pretend he wants to borrow more to pay for more services and he does not really believe he needs to borrow more to pay for roads. He only wants to outspend Labour on tax cuts.

His plan would cost an extra $700 million a year in financing costs alone, around what the government has invested in new health services for each of the last two years.

But the real worry is that Mr Key’s pro-debt policy shows he does not take long-term challenges seriously. His risky deal for tax cuts today would leave the bill to our children and grandchildren tomorrow.”

Undeterred, Key pursued his irresponsible promises and in August 2008 announced to a gullible public;

National will fast track a second round of tax cuts and is likely to increase borrowing to pay for some of its spending promises.

Key made the incredible assertion that tax-cuts would not impact on government debt;

So that will be extremely clear cut and rather hermetically sealed.

Key’s claim of “hermetically sealing” tax cuts from the rest of government fiscal activity was never fully explained, and nor did the MSM ever challenge that unbelievable promise.

In October 2008, Key repeated his fantasy of affordable tax cuts;

Our tax policy is therefore one of responsible reform…  We have ensured that our package  is appropriate for the current economic and fiscal conditions… This makes it absolutely clear that to fund National’s tax package there is no requirement for additional borrowing and there is no requirement to cut public services… National’s rebalancing of the tax system is self-funding and requires no cuts to public services or additional borrowing’ .

The rest is history. National was elected to power on 8 November and tax cuts implemented in 2009 and 2010. Government borrowing and  debt rocketed;

.

budget-blow-out-by-national

.

A third round scheduled for 2011 was cancelled as the budget blow-out  caused – in-part – by  unaffordable tax-cuts began to hit home even on a profligate National-led administration.

By May 2011, National was borrowing $380 million per week to fund it’s debt. Bill English and John Key seemed startled by the government’s deteriorating financial position;

Finance Minister Bill English said the Government’s financial position had deteriorated “significantly” since late 2008.

“The pre-election update in 2008 forecast that the deficit for this year would be $2.4 billion,” he said.

“It’s much more likely to be around $15b or $16b.”

That level of deficit, as NZPA has previously reported, will be the highest in New Zealand’s history and Mr English confirmed that today.

Prime Minister John Key confirmed the average weekly borrowing figure, which he said was unaffordable.

Michael Cullen’s warnings over unaffordable tax cuts seem to have been long-forgotten as collective amnesia over-took the National Party leadership.

Worse still, it was the rising army of unemployed who were to pay the fiscal bill for National’s profligacy;

More than three quarters of all beneficiaries will be forced to seek work or face cuts to their payments under sweeping recommendations from the Government’s Welfare Working Group… Working group chairwoman, economist Paula Rebstock, said the present high levels of welfare dependency meant major changes were needed. “ There are currently few incentives and little active support for many people reliant on welfare to move into paid work. Long term benefit dependency can be avoided if investments are well targeted and timely…”  Social Development Minister Paula Bennett said the report was an opportunity to change the welfare system and would feed into Government work in the area.

Key indulged in National’s favourite activity when things went horribly wrong after his administration’s apalling policty-decisions. He blamed those at the bottom of the economic heap;

Prime Minister John Key says beneficiaries who resort to food banks do so out of their own “poor choices” rather than because they cannot afford food. “But it is also true that anyone on a benefit actually has a lifestyle choice. If one budgets properly, one can pay one’s bills. “And that is true because the bulk of New Zealanders on a benefit do actually pay for food, their rent and other things. Now some make poor choices and they don’t have money left.”

By 2016/17, National’s net debt had reached $66.3 billion. (Damn those beneficiaries’ “poor choices”.)

The Joy of Joyce’s Tax Bribe

On 8 February this year, Joyce announced aspects of this year’s coming Budget. Joyce  dangled the tax-cut carrot  in  front of voters;

It is also very important to remain mindful that the money the Government spends comes from hard working Kiwi families. We remain committed to reducing the tax burden on lower and middle income earners when we have the room to do so.

On the same day, Joyce voiced concerns about New Zealand’s massive mountain of private debt;

I have discussed DTIs with the Reserve Bank Governor, who remains concerned about the levels of debt in some households in the context of recent increases in house prices.

Joyce has good reason to be nervous. As of this year, New Zealand’s household debt has reached stellar proportions;

.

new-zealand-residential-property-hits-1-trillion-mark

 

.

Any further tax-cuts will not only be based on cuts to social services (health, education, housing, NGOs, etc), but may further fuel the housing bubble.  This would raise the prospect of a monstrous  three-headed creature of National’s making where;

  • it would likely have to have to borrow to fund the tax-cuts,
  • fuel an increase in private debt as tax-cuts are spent on a property-buying binge,
  • as well as driving first-home buyers out of the market as housing-prices take off again.

Joyce voiced this concern on 8 February;

The use of macro-prudential tools can be complex and affect different borrowers in different ways. I am particularly interested in what the impacts could be on first home buyers.”

So further tax cuts may have negative impacts that a fourth National administration would have to deal with if it wins the 23 Sept election.

On top of which, New Zealanders would be faced with further cuts to social services and increasing user-pays in health and education. From our on-going housing crisis;

.

homelessness-in-new-zealand

.

… to more user-pays in education;

.

parents-fundraise-357m-for-free-schooling

.

…in healthcare;

.

patients-have-severe-loss-of-vision-in-long-wait-for-treatment

.

… and the gutting of NGO services through budget-cuts;

.

relationships-aortearoa-funding-cuts-anne-tolley-budget-2015

 

.

When Kiwis take up National’s tax-cut bribes, they end up paying more, elsewhere.

But even slashing the budgets for the state sector and NGOs is insufficient to meet the multi-billion dollar price-tag for tax-cuts.  National is desperately having to scramble to find money where-ever it can. So-called student loan “defaulters” are firmly in National’s eyesights;

Almost 57,000 student loan borrowers found in Australia

The agreement came into force in October and the details of around 10,000 New Zealanders were found in the first data match. The process has since been refined and a total of 56,897 people have now been located.

“These borrowers have a combined loan balance of $1.2 billion and $430 million of that is in default. Inland Revenue will now start chasing up these borrowers and taking action to get their student loan repayments back on track,” says Mr Joyce says.

Mr Woodhouse says “The data shows that more than half of these borrowers left New Zealand over five years ago, with nearly a quarter having been away for more than 10 years. A third of them have not returned to New Zealand in the past four years. One third of the group has had no contact with Inland Revenue, and 43% have not made a payment since they left New Zealand.

“It’s time these people did the right thing and met the obligations they signed up to when they took out their student loan,” Mr Woodhouse says.

Who else will National target to squeeze money out of?

What social services will National slash to fund tax-cuts?

What further user-pays will be implemented?

One further question; if National does not pay down our sovereign debt – how will the country cope with another global financial crisis and shock to our economy? As Joyce himself pointed out;

 

“ We need to keep paying down debt as a percentage of GDP. We’ve set a target of reducing net debt to around 20 per cent of GDP by 2020. That’s to make sure that we can manage any shocks that may come along in the future.”

 

When National took office from Labour, the previous Clark-Cullen government has prudently resisted National’s tantrum-like demands for tax cuts and instead paid down our sovereign debt. As former Dear Leader Key himself was forced to admit;

In 2005, as Leader of the Opposition;

“ Firstly let me start by saying that New Zealand does not face the balance sheet crisis of 1984, or even of the early 1990s. Far from having dangerously high debt levels, gross debt to GDP is around a modest 25 percent and net debt may well be zero by 2008. In other words, there is no longer any balance sheet reason to justify an aggressive privatisation programme of the kind associated with the 1980s Labour Government.

In 2012*, as Prime Minister Key  justified the partial sale of state-owned assets;

The level of public debt in New Zealand was $8 billion when National came into office in 2008.  It’s now $53 billion, and it’s forecast to rise to $72 billion in 2016.  Without selling minority shares in five companies, it would rise to $78 billion.  Our total investment liabilities, which cover both public and private liabilities, are $150 billion – one of the worst in the world because of the high levels of private debt in New Zealand.”

(* No link available. Page removed from National Party website)

With our current debt of $66.3 billion, we no longer have a safety-buffer. That is the current dire state of our government books.

It is astonishing that Joyce has the nick-name of “Mr Fixit”, as he makes irresponsible hints of tax cuts to come.

Little wonder that Joyce’s unearned reputation as “Mr Fix It” was deconstructed by journalist and political analyst, Gordon Campbell;

The myth of competence that’s been woven around Steven Joyce – the Key government’s “Minister of Everything” and “Mr Fixit” – has been disseminated from high-rises to hamlets, across the country. For five years or more, news outlets have willingly (and non-ironically) promoted the legend of Mr Fixit…

[…]

Of late however, the legend has lost some of its lustre. More than anything, it has been his handling of the SkyCity convention deal that has confirmed a lingering Beltway suspicion that Joyce’s reputation for business nous has been something of a selfie, with his competence appearing to be inversely proportional to his sense of self-esteem. Matthew Hooton’s recent critique of Joyce in NBR – which was inspired by how the SkyCity convention deal had cruelly exposed Joyce’s lack of business acumen – got a good deal of traction for that reason. On similar grounds, Joyce’s penchant for (a) micro-managing and (b) the prioritising of issues in terms of their headline potential has resulted in his ministerial office becoming somewhat notorious around Parliament for (c) its congested inefficiency and for (d) a not-unrelated extent of staff burnout.

[…]

Not only is Joyce’s ministerial office renowned as an administrative bottleneck – where issues tend to be ranked in terms of their p.r. potential for the Minister – none of this seems to be in service of any wider goal or vision. As Mr Fixit, Joyce tends to be engaged in the equivalents of blown fuses and leaking taps – rather in the re-design of the political architecture. Joyce has simply never been – and has never pretended to be – a big picture kind of politician. He has been never someone with an abiding interest in – or the intellectual stamina for – systemic change.

The re-election of National this year – by any means necessary, whether beneficial to New Zealand or not, no matter what the social or financial costs – appears to be ‘Mr Fixit’s’  latest ‘DIY’ project.

And like most DIY budgets, wait for the blow out.

Just like 2009.

.

 

 

.

References

Interest.co.nz: Finance Minister says Government remains ‘committed to reducing the tax burden

Scoop media: Tax cuts still in the mix for Joyce’s first budget

Sharechat: Tax cuts still in the mix for Finance Minister Steven Joyce’s first budget

Radio NZ: Budget date set, tax cuts likely

NBR: Government hints at tax cuts in Budget 2017

Fairfax media: Joyce signals low and middle earners’ top rates target for tax cuts

NZ Herald:  The Economy Hub – About those tax cuts… Steven Joyce, the big interview

NZ Herald: John Key – State of the Nation speech

Scoop media: Government will not borrow for tax cuts

NZ Herald: Nats to borrow for other spending – but not tax cuts

Guide2: National Party – Tax Policy

NZ Treasury: Financial Statements of the Government of New Zealand for the Year Ended 30 June 2010 – Debt

NBR: Tax cuts scrapped in budget

Interest.co.nz: Budget deficit worse than forecast; debt blows out by NZ$15.4 bln

NZ Herald: Govt borrowing $380m a week

Fairfax media: Extensive welfare shake-up needed – report

NZ Herald: Food parcel families made poor choices, says Key

NZ Treasury: Budget Economic and Fiscal Update 2016

Beehive: 2017 Budget to be presented on 25 May

Beehive: Finance Minister requests cost-benefit analysis on DTIs

NZ Herald: New Zealand residential property hits $1 trillion mark

Beehive: Almost 57,000 student loan borrowers found in Australia

Scoop media: John Key Speech – State Sector Under National

Werewolf: The Myth of Steven Joyce

Other Blogs

The Hand Mirror: A crack in the wall

Previous related blogposts

Tax cuts & school children

Letter to the editor: Setting it straight on user-pays in tertiary education

Letter to the Editor: tax cuts bribes? Are we smarter than that?

The Mendacities of Mr Key #3: tax cuts

The Mendacities of Mr Key # 19: Tax Cuts Galore! Money Scramble!

The Mendacities of Mr English – Social Services under National’s tender mercies

.

.

.

tax-cuts-lolly-scramble-bill-english

.

This blogpost was first published on The Daily Blog on 20 February 2017.

.

.

= fs =