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Archive for the ‘Social Issues’ Category

2015 – Ongoing jobless tally

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Unemployment logo

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Continued from: 2014 – Ongoing jobless tally

So by the numbers, for this year;

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Events

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January

February

March

April

May

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Statistics

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new-zealand-unemployment-rate-january-2014-march-2015

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December 2014 quarter – Employment & Unemployment

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Employment at a glance
Dec 2014 quarter Quarterly change Annual change
(000) Percent
Employed 2,375 +1.2 +3.5
Unemployed    143 +5.8 -2.6
Filled jobs 1,800 +0.1 +2.5
Percent Percentage points
Employment rate  65.7 +0.4 +1.0
Unemployment rate 5.7 +0.3 -0.3
Labour force participation rate 69.7 +0.7 +0.9

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Notes:

1. All figures are seasonally adjusted. Data source: Household Labour Force Survey: December 2014 quarter

2. Employed: Includes people who worked one hour (or more) per week, whether paid or unpaid.

3. Statistics NZ  has combined the Household Labour Force Survey (HLFS), Quarterly Employment Survey (QES), and Labour Cost Index (LCI) information  into one combined Labour Market Statistics release.

Source

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March 2015 quarter – Employment & Unemployment

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March 2015
quarter
Quarterly change Annual change 
(000) Percent
Employed
2,355 +0.7 +3.2
Unemployed   146 +2.1  -0.6
Filled jobs 1,832  +1.8 +3.3
Percent Percentage points
Employment rate 65.5 0.0 +0.7
Unemployment rate   5.8 0.0  -0.2
Labour force participation rate 69.6 +0.2 +0.6
Level Percent
Average ordinary time hourly earnings $28.77 0.0  +2.1
Wage inflation (salary and
wage rates, including overtime)
1105 +0.3 +1.7
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From Statistics New Zealand;

The unemployment rate remained at 5.8 percent in the March 2015 quarter (from a revised 5.8 percent in the December 2014 quarter), while the labour force participation rate reached an all-time high of 69.6 percent, Statistics New Zealand said today.

“This is the greatest share of New Zealanders we have ever seen in the labour force. The largest increase came from 20 to 34-year-olds, who accounted for nearly half this year’s increase,” labour market and households statistics manager Diane Ramsay said.

Over the year to the latest quarter, the number of people employed increased 74,000 (3.2 percent) while the number of people unemployed fell 1,000 (0.6 percent), as measured by the Household Labour Force Survey.

“We saw strong employment growth over the year, with Auckland and Canterbury making the most significant contributions,” Ms Ramsay said.

The employment rate was unchanged, at 65.5 percent. However, the rate for men reached its highest level since the December 2008 quarter. The female employment rate was down slightly from last quarter’s record high.

Annual wage inflation, as measured by the labour cost index, was steady, at 1.7 percent, while consumer price inflation remained low. Average hourly earnings, as measured by the Quarterly Employment Survey, increased 2.1 percent for the year, the lowest increase since the year to the June 2013 quarter.

Source

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Additional Information

The  under-employment stats;

People who are underemployed are those who work part-time, would prefer to work more hours, and are available to do so. In unadjusted terms, the number of underemployed grew by 12 percent over the year. While the number of part-time workers increased over the year, the ratio of people underemployed to employed part-time also rose – from 17.1 percent in June 2013 to 18.7 percent this quarter.

Official under-employment: up

Definitions

Jobless: people who are either officially unemployed, available but not seeking work, or actively seeking but not available for work. The ‘available but not seeking work’ category is made up of the ‘seeking through newspaper only’, ‘discouraged’, and ‘other’ categories.

Under-employment: employed people who work part time (ie usually work less than 30 hours in all jobs) and are willing and available to work more hours than they usually do.

Employed: people in the working-age population who, during the reference week, did one of the following:

  • worked for one hour or more for pay or profit in the context of an employee/employer relationship or self-employment 

  • worked without pay for one hour or more in work which contributed directly to the operation of a farm, business, or professional practice owned or operated by a relative 

  • had a job but were not at work due to: own illness or injury, personal or family responsibilities, bad weather or mechanical breakdown, direct involvement in an industrial dispute, or leave or holiday.

Source

Other Sources

Statistics NZ:  Household Labour Force Survey

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[To  be periodically up-dated]

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The cupboard is bare, says Dear Leader

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a-country-of-opportunity

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The latest on Budget 2015;

Prime Minister John Key is lowering expectations about measures to combat child poverty in this week’s budget.

Mr Key says there’ll be “some support” for those suffering material deprivation.

“But you’d appreciate that there’s a limited amount of resources that we’ve got in very tight financial conditions,” he told reporters on Monday.

Key has driven home the lack of “resources” (ie; money) in this year’s budget. On the Paul Henry show – that great bastion of critical thinking –

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cartoon

 

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–  Key was his usual relaxed self as he casually informed his host;

“We don’t have a lot of money. But again what I’d say to you is that we already do a lot, but there could be more we could do.”

And just to drive home the point, again casually;

“When you go to a Budget, you don’t have a lot of cash – and we haven’t, because we’ve been wanting to get the books in order.”

Of course National doesn’t “have a lot of money“.

Remember the tax cuts that Key promised during the 2008 general election? That was the  money National gave away in 2009 and 2010.

2008 was election year, and National’s aspiring leader, John Key, was pulling out all stops to win. His promises of tax cuts were the lynch-pin of National’s campaign strategy.

On  2 August 2008, National announced;

National will fast track a second round of tax cuts and is likely to increase borrowing to pay for some of its spending promises, the party’s leader John Key says.

But Mr Key said the borrowing would be for new infrastructure projects rather than National’s quicker and larger tax cuts which would be “hermetically sealed” from the debt programme.

The admission on borrowing comes as National faces growing calls to explain how it will pay for its promises, which include the larger faster tax cuts, a $1.5 billion broadband plan and a new prison in its first term.

On  26 September 2008, the Herald reported;

GDP shrank 0.2 per cent in the June quarter, confirming what everyone already knew – that the country is in recession. The smaller than expected June quarter decline followed a fall of 0.3 per cent in the three months to March, so the country now meets the common definition of recession: two consecutive quarters of economic contraction.

Undeterred by the country entering into recession, on  6 October 2008, Key promised;

John Key has defended his party’s planned program of tax cuts, after Treasury numbers released today showed the economic outlook has deteriorated badly since the May budget. The numbers have seen Treasury reducing its revenue forecasts and increasing its predictions of costs such as benefits. Cash deficits – the bottom line after all infrastructure funding and payments to the New Zealand Superannuation Fund are made – is predicted to blow out from around $3 billion a year to around $6 billion a year.

With a looming election only a month away, on 14 October 2008, National maintained it’s commitment to tax-cuts;

National will not slash spending at a time when people are looking to the government for a sense of security. In developing our economic management plan, we have concentrated on the fundamentals of the economy, and particularly on laying the foundations for a future increase in productivity.

National’s rebalancing of the tax system is self-funding and requires no cuts to public services or additional borrowing.

Over the next term of government the total cost of National’s personal tax cuts is balanced by the revenue savings from:
• Changes to KiwiSaver.
• Discontinuing the R&D tax credit.
• Replacing Labour’s proposed tax cuts.

Overall, our fiscal policy does not result in any requirement for additional borrowing over the medium term.

National won the election on 8 November 2008.

By 6 March 2009, the Global Financial Crisis had crashed New Zealand’s economy;

Budget deficit worse than forecast; debt blows out by NZ$15.4 bln

The New Zealand government’s operating balance before gains and losses (OBEGAL) for the seven months ended January 31 was NZ$600 million, which was NZ$800 million below the pre-election update and NZ$300 million below December forecasts, Treasury said. Tax revenue and receipts during the period were NZ$500 million lower than the pre-election forecast. Meanwhile, Treasury also disclosed a NZ$15.4 billion rise in Gross Sovereign Issued Debt to NZ$45.4 billion (25.3% of GDP) from the pre-election forecast. This included fresh Reserve Bank bill issuance to mop up the liquidity from lending to the banks against securitised mortgages.

Despite falling tax revenue, and increased borrowing by the government,  the tax cuts went ahead regardless. First, on 1 April 2009. The second trance on 1 October 2010.

The cost of these tax cuts was in the billions.

According to Key, the 2009 tax cuts cost the government $1 billion;

“…The tax cuts we have delivered today will inject an extra $1 billion into the economy over the coming year, thereby helping to stimulate the economy during this recession. More important, over the longer term these tax cuts will reward hard work and help to encourage people to invest in their own skills, in order to earn and keep more money.”

And according to information obtained from Parliamentary Library, and released by the Greens, the 2010 tax cuts cost the country an additional $2 billion;

The Green Party has today revealed that the National Government has so far had to borrow an additional $2 billion dollars to fund their 2010 tax cut package for upper income earners.

New information prepared for the Green Party by the Parliamentary Library show that the estimated lost tax revenues from National’s 2010 tax cut package are between $1.6–$2.2 billion. The lost revenue calculation includes company and personal income tax revenues offset by increases in GST.

All up, National gave away an estimated $3 billion – per year – in tax cuts.

That is why John Key has reneged on his promise – made on 22 September 2014, on TV3’s ‘Campbell Live‘ – that his third term would be spent combating child poverty.

No money.

Not only will National abandon any serious work to alleviate growing child poverty in this Country of Plenty, but it seems that the viability of  community organisations doing invaluable work  are threatened by chronic under-funding.

These community groups are often the ones on the front-line, picking up the pieces after government programmes are cut back or cancelled entirely. Even as our Brave New Free-Market World widens the wealth-gap even further, year after year.

Since National came to office in 2008, their cuts to community organisations has been systematic and dire.

From Women’s Refuge;

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Women's Refuge cuts may lead to waiting lists

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Then it was the turn of  Rape Crisis;

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NZ Herald - Govt funding cuts reduce rape crisis support hours - government funding cuts

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To medical clinics serving our most vulnerable, in-need youth;

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Christchurch's 198 Youth Health Centre to close its doors as management fails to implement directives from CDHB - National cuts to community organisations

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A Radio NZ report on 19 May revealed that yet another community organisation has become the latest victim of National’s mania to starving community organisations of funding;

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Relationships Aortearoa - funding cuts - Anne Tolley - budget 2015

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Relationships Aotearoa is facing closure as Radio NZ outlined on 19 May;

Relationships Aotearoa, New Zealand’s largest provider of counselling services, says its funding has been cut by $4.8 million since 2012 and the situation is increasingly dire with no assurance of more government funding.

The organisation posted a $271,000 deficit for the year ended 30 June 2014.

[…]

Relationships Aotearoa spokesman John Hamilton said since 2012 its funding from government agency contracts had fallen by $4.8 million – a fall of about 37 percent from $13.1m to a forecast $8.2m.

“There’s been no grants or injections to the bottom line … there’s been no CPI increase for MSD services for seven years but there has been increasingly complex demands in reporting requirements.”

Mr Hamilton said the situation was increasingly dire and more than 120 staff and 60 contractors would potentially lose their jobs if went goes under.

A funding cut of $4.8 million…

A deficit last year of $271,000…

Staff cuts of  46…

When interviewed on Radio NZ’s Morning Report, Minister Anne Tolley’s outright denial of any cuts to Relationship Aotearoa’s funding – despite evidence presented to her –  left seasoned journalist and interviewer, Guyon Espiner, frustrated with her moronic semantics game-playing;

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radio nz - Min. Tolley responds to potential collapse of counselling - relationship aotearoa - underfunding

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Tolley’s exercise in word-games beggars belief and if she thinks any intelligent person listening to her comments gave  credence to her obvious avoidance-tactics, then she is delusional. There is a world of difference between Radio NZ’s critical audience – and those who stare stupified and lobotimised at ‘X Factor‘/’My Kitchen Rules‘/’The Block‘.

As Key lamented,

“We don’t have a lot of money. But again what I’d say to you is that we already do a lot, but there could be more we could do.”

“When you go to a Budget, you don’t have a lot of cash – and we haven’t, because we’ve been wanting to get the books in order.”

Though there is always cash for really important things that “matter to New Zealanders”.

Things like corporate welfare;

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PM defends $30m payout to Rio Tinto

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Or like a flag referendum – $26 – $27 million;

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John Key defends cost of flag referendums

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And even spending $6 million of taxpayer’s money to build a sheep farm for a Saudi millionaire;

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NZ Government gifts $6m to offended Saudi businessman

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Key will always find money for things that matter to his government.

Child poverty just doesn’t happen to be one of them.

 

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References

NZCity News:  PM lowering expectations on child poverty

NZCity News: Child poverty targeted in budget

TV3 News: Child poverty targeted in Budget – John Key

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

NZ Herald: Recession confirmed – GDP falls

NZ Herald: Key –  $30b deficit won’t stop Nats tax cuts

Jo Goodhew MP for Rangitata: Newsletter #41

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

Parliament: Hansards – Tax Cuts – Implementation

Scoop media: Govt’s 2010 tax cuts costing $2 billion and counting

Dominion Post: Women’s Refuge cuts may lead to waiting lists

NZ Herald: Govt funding cuts reduce rape crisis support hours

NZ Doctor: Christchurch’s 198 Youth Health Centre to close its doors as management fails to implement directives from CDHB

TV1 News: ‘Devastating news for vulnerable Kiwis’ – Relationships Aotearoa struggling to stay afloat

Fairfax media: Government may let Relationships Aotearoa fold

TV1 News: Relationships Aotearoa hanging on at ‘awful’ 11th hour

Radio NZ: Counselling service rejects claim it’s badly run

Radio NZ – Morning Report: Min. Tolley responds to potential collapse of counselling (alt. link) (audio)

NZ Herald: PM defends $30m payout to Rio Tinto

NZ Herald: John Key defends cost of flag referendums

TV1 News: NZ Government gifts $6m to offended Saudi businessman

Other blogs

Local Bodies: Government Kills Relationships Aotearoa

Previous related blogposts

That was Then, this is Now #6

Budget 2013: petrol taxes

“It’s fundamentally a fairness issue”- Peter Dunne

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200000-abandoned-for-national-tax-cuts-ht-william-joyce

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This blogpost was first published on The Daily Blog on 20 May 2015.

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The Mendacities of Mr Key # 12: No More Asset Sales (Kind of)

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Lying National lying john key

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On 25 February 2014, Dear Leader John Key announced to the nation that his government’s asset sales programme was over;

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“Just as we did before the last election we’re making our position on share sales clear to New Zealanders before we go to the polls later this year. We’ve achieved what we wanted with the share offers in energy companies and Air NZ. We’re now returning to a business-as-usual approach when it comes to  [state-owned enterprises]. The truth is there aren’t a lot of other assets that would fit in the category where they would be either appealing to take to the market or of a size that would warrant a further programme, or they sit in the category that they are very large like Transpower but are monopoly assets so aren’t suited.”

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Like so many of  the Prime Minister’s promises, that “Key Committment” did not last long. Not even a year.

As Fonterra’s payout to farmers collapsed and weakening exports to China’s slowing economy began to impact on the government’s tax-take,   Bill English’s much-heralded promise of a Budget surplus sank deeper than the m.v. Rena in 2011. English promised almost exactly a year ago on 16 May 2014;

It’s a real surplus and it follows a string of improvements in deficits starting at $18 billion four years ago, this year about $2.5b and next year a surplus of $370 [million], and then bigger surpluses after that.

Barely three months after the 2014 elections, Treasury had bad news for English and the National government;

Treasury this morning delivered a body blow to the Government’s hopes of returning to surplus, saying it now expects a deficit of over half a billion dollars for the June financial year.

At this morning’s Half Year Economic and Fiscal Update, Acting Treasury Secretary Vicky Robertson said despite solid growth in the economy, the Crown’s finances would take a hit from lower than previously forecast tax take.

That had seen Treasury change its forecast operating balance before gains and losses (Obegal) for the 2014-15 year from a slim surplus of $297 million to a deficit of $572 million.

Treasury said softer outlook for economic drivers of the tax such as lower dairy prices and interest rates had seen the expected tax take for the year fall by $600 million.

In the same Herald report, English and Key  were both frantically doing their best King Canute impersonations since King Canute took a day to go to the beach;

But Finance Minister Bill English was this morning still clinging to the hope Treasury is wrong and the books will indeed be back in black this year as he and Mr Key have promised for some years.

I’m hopeful we will,” Mr Key told reporters this afternoon.

The view of the Minister of Finance is that we can still achieve that surplus. There’s a lot of different factors moving around here at the moment.

By 2 May of this year, even  National’s spin-meisters had run out of steam, and on TV3’s ‘The Nation‘, English was forced to admit that the world was indeed round and not flat; money-printing pixies did not exist; and dreams of a budget surplus were a Tory fantasy;

No, I don’t call it a failure. It is what it is, and that is for the 14/15 year, we budgeted $370 million surplus. It looks like it will be a $500 or $600 million deficit, and the surplus will be the next year. So we’re on track.”

So “the surplus will be the next year“?

The Minister had better be hoping that the Christchurch re-build; the Auckland housing boom; and renewed growth in China’s economy,  will continue to stimulate the economy. Otherwise, that “500 or $600 million deficit” will balloon into $1 billion or $2 billion or…

National’s expensive, multi-billion dollar 2009 and 2010 tax cuts may not have been such a clever move after all.

English, though, is not about to surrender. His government’s policies may be predicated on tax revenue from re-building a semi-destroyed city; an unsustainable housing boom in Auckland; and waning dairy exports – but National’s Finance Minister has other ideas up his sleeve.

In his 2 May interview on ‘The Nation‘, English committed the government not to cut spending;

Lisa Owen: Okay. Well, before on The Nation, you said that the Government would not make any cuts to reach surplus. Is that still your plan?

Bill English: That’s right. We’re not going to make any specific extra decisions now just because our tax revenue’s a percentage point – 1 percent down.

If past experience has taught us one thing about this government; if they promise you one thing, you can be sure that somewhere, in some back room; they are planning something completely different.

English has committed the government not to “make any specific extra decisions now just because our tax revenue’s a percentage point – 1 percent down”.

It’s just a shame we can’t believe a word of what he says. The cuts had begun long before English uttered his lies to Lisa Owen.

The story unfolds…

16 May 2014…

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Budget 2014 - Surplus real, says English .

National’s “economic whizz-kid” had promised the country a “$372 million surplus” – as well as “an increase to paid parental leave from 14 weeks to 18, free doctors’ visits and prescriptions for children under 13,  extra money to ease the cost of early-childhood education, eligibility for paid parental leave extended, and the existing parental tax credit to  rise“.

Labour’s social policies had been nicked by National. English basked in political glory. Sceptics were ignored. The country went to the polls four months later.

20 September 2014…

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National Party wins third term

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And then reality began to reassert itself.

16 December 2014…

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No surplus this year - Treasury

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National’s core policy; it’s raison d’être; it’s reputation amongst New Zealanders who are only vaguely politically conscious – is it’s so-called “reputation for fiscal prudence and responsible economic manager”, and it was rapidly being sucked down a flushing toilet of indebtedness. If it couldn’t deliver on it’s promise of returning the books to surplus – as Labour’s Finance Minister, Michael Cullen, had done between 2000 and 2008 – then what good was it?

English looked at his options to cut spending, and to raise money without creating headlines that shrieked “panic” or “broken promises”.

28 January 2015…

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Up to 8,000 state houses could be sold under John Key's radical plan - asset sales

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So much for Key’s assertion that “the truth is there aren’t a lot of other assets that would fit in the category where they would be either appealing to take to the market or of a size that would warrant a further programme”.

Truth and John Key parted company a long time ago. Key’s announcement that up to 8,000 State houses could be sold came only eleven months after his earlier committment to New Zealanders that no further state assets would be sold.

13 April 2015…

John Key denies there is a housing crisis in New Zealand;

No, I don’t think you can call it a crisis. What you can say though is that Auckland house prices have been rising, and rising too quickly actually.

21 April 2015…

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No free GP visits for all children - Government - broken promises - health cuts - National - under 13s

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National’s broken promise flew in the face of committments made prior to last year’s general election, as then-Health Minister, Tony Ryall said;

Free doctors’ visits and prescriptions for children aged under six will be extended to all children aged under 13 from July next year, Health Minister Tony Ryall says.

Budget 2014 is investing $90 million over three years from 1 July 2015 so primary school-aged children can go to a doctor for free, any time of the day or night, and get their prescriptions free as well, he says.

“National brought in the policy of free GP visits and prescriptions for children under six, including free after-hours visits. Thanks to our prudent management of the health budget, we are extending this policy to all children under 13.

This is what careful financial management can deliver to Kiwi families.

Interestingly, there was a very minor – but all-important word missing between two otherwise identical Facebook postings by John Key and the National Party;

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Facebook - free GP visits for all children - Government - broken promises - health cuts - John Key - under 13s

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Facebook - free GP visits for all children - Government - broken promises - health cuts - National Party - under 13s

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Note the one missing word – “all” – from Key’s Facebook statement.  Otherwise, the statement is identical to the National Party Facebook page. Someone in the National Party’s politburo obviously wasn’t keeping track of re-writing their election promises.

Green Party Health and ACC spokesperson, Kevin Hague, hit the nail on the head when he demanded;

If one in ten kids have to pay up to $38 to go to the doctor when they have an accident, then that visit is not free and that’s a broken promise. It begs the question: what other promises are the Government going to renege on this year in a bid to save a bit more money?  This shows how desperate the Government is to reach a surplus that it’s trying to pinch pennies from injured children.”

30 April 2015…

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Government offloads 2800 state houses to Auckland development company

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Attempting to justify the transfer, English announced;

Over half of the new houses will be sold to help offset construction costs, and the remainder will be retained as social housing. Our bottom line is that there will be at least as many social houses in Tāmaki as the 2800 there now.

As with previous promises, National’s assurances cannot be relied upon. Ministers will utter soothing reassurances one day – and weeks, months, or years later will find justification why they had to retract.

National ministers simply cannot be trusted to keep their word. Even if 7,500 new homes are built, there is no guarantee that “half of the new houses will be … retained as social housing“. National will find a reason to sell them.

English further stated;

The Government owns one in 16 houses in Auckland and we need to do a better job with them for the sake of tenants and aspiring homeowners, as well as for the neighbourhoods they live in and the wider city…

…This transfer of ownership of HNZC properties and the responsibility for tenancy management to TRC will enable faster construction of warm, dry and safe houses that better meet people’s needs.”

His comments are a repetition of National’s spin that NZ Housing properties are ‘badly run down and in dire need of maintenance';

Finance Minister Bill English has confirmed the Government will need to spend $1.5 billion upgrading state houses as they are sold to social housing providers.

Mr English conceded many state houses were not up to standard and had not been properly maintained.

He said the cost of deferred maintenance had risen to $1.5 billion and that the matter had been raised during discussions with social agencies considering buying state houses.

“They’ve highlighted that. So part of the benefit of the process we’re going through is that these agencies are going to apply a very tight scrutiny to the state of the houses that maybe they might be looking at buying.”

Mr English blamed the former Labour-led Government, saying it had focused more on building new state houses than on maintaining existing homes.

English’s apportioning of blame to the previous Labour government is disingenuous.

The sole reason why Housing NZ has not been able to maintain it’s properties is that it has had to pay dividends from income (rent paid by low-income/beneficiary tenants) to successive governments. According to National’s Building and Housing Minister, Dr Nick Smith;

The average dividend under the 5 years so far of this Government has been $88 million. The dividend this year [2014] is $90 million…

Fairfax reported Nick Smith as stating;

Smith said the dividend had been been fairly consistent in the past several years – $71m in 2010, $68m in 2011, $77m in 2012 and $90m in 2013.

Four years worth of dividends – $306 million – were paid to the government’s Consolidated Fund. No wonder Housing NZ is unable to maintain it’s properties.

National was brutal in it’s expectations of huge windfalls from Housing NZ;

The letters reveal that on six occasions ministers asked for dividends to be hiked, or paid faster. In March 2010, Maurice Williamson wrote: “I expect . . . a significantly higher annual return to the Crown.”

Phil Heatley, when he was housing minister, asked that in 2011-12 and 2012-13 the dividend be $45m higher than that forecast in the 2011 Budget. Later he revised expectations upwards, to $251m over three years.

In July last year, Smith said “dividend levels should be significant enough to represent a challenge”.

These demands from National ministers were placed on a government department charged with housing the poorest and most vulnerable in our society. Williamson, Heatley, and Smith were content to bleed Housing NZ and let tenants live in cold, damp, miserable conditions.

Williamson, Heatley, and Smith – National’s 21st century slumlords.

As with Solid Energy, National exploited government departments and SOEs such as ACC, as “cash cows”, with which to balance their books to return to Budget surplus. (see: Solid Energy – A solid drama of facts, fibs, and fall-guys )

It is also worthy to note that National Ministers are employing spin when it comes to state house  sales. English and other ministers use the term “transfer” and not sale.

On 6 May, Bill English stated that  houses would not be sold “unless tenants get better services and taxpayers get fair and reasonable value“.

On TVNZ’s Q+A on 10 May, Minister for Social Housing, Paula Bennett, admitted that her government was selling state housing;

@ 2.13

Corin Dann: “But the point is, they are going to get these houses, they’re going to be sold these houses, aren’t they? You say transfer but it’s a sale of houses at a discount, right?

Paula Bennett: “Well, I’m sure it’ll be less than the market value, yes.

These are sales, not a transfer. “Transfer” implies a change of ownership without cost or exchange of money. There is Big Money involved in state house sales.

[Incorrect information deleted. – FM]

6 May 2015…

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 Invercargill and Tauranga chosen for first state house sales

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The Great Sell-off of Housing continues under National – with the government disposing of all state housing in Tauranga and Invercargill. Radio NZ reported;

The Government has announced it will begin selling off up to 1600 state houses in Tauranga and Invercargill to social housing groups.

There are 370 state houses in Invercargill and 1250 in Tauranga and it’s understood all of them could be sold if buyers come forward.

Only vetted and registered community housing providers will be able to buy them and, depending on their negotiations with the Government, they may not have to pay the market price.

There is nothing to stop private developers from acquiring state houses through back-door means, as this report on a landlords website explained;

The state houses will only be available for sale to registered Community Housing Providers (CHPs).

However, Housing NZ Minister Bill English said that registered CHPs can partner with other organisations to acquire and develop social housing.

Any transfer of houses will not affect the rent tenants pay or their eligibility for subsidised housing, and properties transferred as social houses will also have to stay as social housing unless the Government agrees otherwise.  In both Tauranga and Invercargill, Housing New Zealand owns a significant number of houses so there is potential for more than one organisation to acquire houses for community ownership.

This means there could be scope for private investors to get involved in the provision of social housing – either by becoming a registered CHP or by partnering with a registered CHP.

Speaking on TVNZ’s Q+A on 10 May, Minister for Social Housing, Paula Bennett confirmed that private investors could “partner” with Community Housing Providers to purchase state houses; re-develop the properties; and sell new residences at a profit.

On 6 May, English assured the public;

Any transfer of houses will not affect the rent tenants pay or their eligibility for subsidised housing, and properties transferred as social houses will also have to stay as social housing unless the Government agrees otherwise.”

Of course National will agree. This is a wholesale sell-off of state housing. Why wouldn’t they agree to new owners on-selling these properties for a profit? Otherwise new owners would be stuck with old, dilapidated properties, requiring expensive repairs, and soon getting into deep debt.

This is privatisation, by stealth,  through the back-door, using intermediaries. This is a whole new level of government subterfuge.

It also exposes John Key’s assurance – that state assert sales have ended – as a lie.

Conclusion

Finance Minister Bill English is desperately scrabbling for every dollar he can claw back. Miserly does not even begin to aptly describe this government’s actions.

It seems that the tax cuts of 2009 and 2010 are being paid for by paperboys and girls; sick children; welfare beneficiaries; and Housing NZ tenants.

It remains to be seen what further cuts in social spending Bill English has planned. His reassurances on 2 May 2015 – that there would be no cuts to social spending – are to be treated with the same contempt as other promises, assurances, and committments that have been made, and broken, by John Key, Bill English, et al.

Governments are at their worst and most dangerous, when desperate. And this is a desperate government.

Addendum1

Karol, writing for The Standard, has more on this issue. See: “Key Govt asset stripping state housing‘.

Addendum2

Registered community housing provider, Habitat for Humanity Invercargill-branch  chairman, Stephen Falconer, is an enthusiastic cheerleader for National’s covert privatisation programme. He told the Otago Daily Times on 7 May;

We’re a private organisation, essentially, and we think that private enterprise can actually do a better job than Government on most things.

Because private enterprise has done such a stirling job thus far in meeting demand for housing in Auckland, Christchurch, and elsewhere?

It is disappointing that an ostensibly community organisation like Habitat for Humanity has bought into the government narrative, complete with parroting neo-liberal cliches that “private enterprise can actually do a better job than Government“.

If it were true that “private enterprise can actually do a better job than Government“, then why does Habitat for Humanity exist?

Addendum3

Social Housing Minister Paula Bennett is interviewed by Corin Dann on TVNZ’s Q+A. Along with Bill English’s admissions, her comments are a disturbing indication where National is going with state housing.  See:  Govt social housing target 3000 homes

 

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References

NZ Herald: PM – no more SOEs to sell after Genesis

John Key: My key commitments to you

NBR: Weak dairy prices prompt analysts to pull back Fonterra forecast payout for next season

The Independent: How China’s slowing GDP growth could drag down the global economy

TV3 News: National Party wins third term

NZ Herald: No surplus this year – Treasury

Fairfax media: Budget 2014 – Surplus real, says English

TV3: The Nation – Bill English

Fairfax media: Budget 2014 – Surplus real, says English

TV1 News: Up to 8,000 state houses could be sold under John Key’s radical plan

Radio NZ: Key denies Auckland housing crisis

NZ Herald:  No free GP visits for all children – Government

National Party: Free doctors’ visits, prescriptions for under 13s

Facebook: John Key

Facebook: National Party

Scoop media: Govt breaks free doctors visit promise to kids

Fairfax media: Government offloads 2800 state houses to Auckland development company

Radio NZ: Govt to spend $1.5b fixing up state houses

Parliament: Hansards – Questions for Oral Answer — Questions to Ministers – 8 May 2014

Fairfax media: Nats milking Housing NZ – Labour

Fairfax media: Not much in the cupboard for English to dine on

NZ Herald: State houses in Tauranga and Invercargill to go on the market

TVNZ Q+A: Govt social housing target 3000 homes

Landlords – For Kiwi Property Investors: State houses to go on sale in Tauranga & Invercargill

NZ Herald: Budget 2012 – ‘Paper boy tax’ on small earnings stuns Labour

Fairfax media: Invercargill and Tauranga chosen for first state house sales

Radio NZ: Tauranga, Invercargill state houses to be sold

Otago Daily Times: Invercargill among first state house transfer sites

Previous Related Blogposts

Can we do it? Bloody oath we can!

Budget 2013: State Housing and the War on Poor

Budget 2013: State Housing and the War on Poor

National recycles Housing Policy and produces good manure!

Our growing housing problem

National Housing propaganda – McGehan Close Revisited

Housing; broken promises, families in cars, and ideological idiocy (Part Tahi)

Housing; broken promises, families in cars, and ideological idiocy (Part Rua)

Housing; broken promises, families in cars, and ideological idiocy (Part Toru)

“It’s fundamentally a fairness issue”- Peter Dunne

Solid Energy – A solid drama of facts, fibs, and fall-guys

The Mendacities of Mr Key #11: Sorry, Prime Minister, what ‘mandate’ were you referring to?!

Other blogs

Polity: Housing horrors

The Jackal: Nationals housing failure

The Standard: Key Govt asset stripping state housing

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I will never turn my back on the poor

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This blogpost was first published on The Daily Blog on 10 May 2015.

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Why should tradies be prosecuted for doing “cashies” and not paying tax?

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“My name is Mr Smith. I am from Inland Revenue and Bill English sent me to help.”

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Before we go any further, just to remove all doubt from certain quarters, as the IRD points out with crystal clarity;

“New Zealand does not have a capital gains tax.”

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IRD - capital gains tax - investor - speculator

Source

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IRD - new zealand does not have a capital gains tax

Source

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Meanwhile, the IRD today (5 May) announced a crack-down on ‘tradies’ and other businesses who  do “cashie” (cash) jobs whilst not declaring that income with Inland Revenue and subsequently not paying their full measure of tax.

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IRD - crackdown on cashies jobs

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First of all, let me state that  everyone should pay their taxes. Without a comprehensive taxation system, our infra-structure would never have been built and our social services would be non-existent.

We need taxes for our education system; our public healthcare; judiciary; housing; police; DoC; border controls; public transportation, et al. As Inland Revenue’s marketing and communications group manager, Andrew Stott, stated in a NZ Herald report;

“Tax in New Zealand pays for many of the things that we enjoy about this country and so it’s important to encourage everyone to do that.”

But it’s a bit “rich” (excuse the pun) for the IRD to be clamping down on an underground “cash” economy  when we have – in broad view of the entire nation – a massive tax loop-hole costing society billions in lost tax-revenue.

I refer to a lack of Capital Gains Tax (CGT).

A tradesman is expected to pay tax on thousands or tens of thousands of dollars received for sub-contracting jobs.

An investor/speculator can pocket hundreds of thousands (perhaps millions)  of dollars in Auckland’s over-heated property market – and not pay one dollar in tax on profit;

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People making more on their homes than they earn at work - nz herald - auckland property market - daily blog - capital gains tax

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In effect, the current taxation system rewards doing very little work. For “Jonathan”, a property investor/speculator, he will just sit back in his Italian-leather recliner-rocker; and watch property inflation increase values. Then cash-up and make a tax-free windfall.

Meanwhile, “Gazza”, a tradesman living across town  to the property investor/speculator, gets up at 6am; goes to work in cold or shine; rain or fine; puts up with the risk of workplace injuries (or worse); goes home; and repeats the next day. For his efforts, he is taxed. And if he dares pocket a dollar without paying a percentage to the Taxman – he can be fined 150% plus interest; taken to Court; perhaps even bankrupted.

The latter is called “a mug’s game”.

Let me demonstrate this  with a highly complex, detailed,  financial diagramme;

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Taxpayer and Speculator

(L-R) “Gazza; works six days a week; earns $150,000 p.a.; pays income tax on earnings plus GST on any new home he builds – “Jonathan”; works in his garden tending to his geraniums; made $1 million selling three houses in Auckland he bought a few years ago; paid nil tax.

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“Gazza” then gets a letter from IRD saying he’s being audited because he  may have done a few “cashies” sometime in the last few years when things were a bit lean after the GFC. Seems he forgot to pay tax on a few thousand dollars.

Meanwhile, “Jonathan” thinks he and his wife will enjoy a round-the-world cruise with their tax-free gain.

“Gazza”, who built the houses, paid tax on every cent he earned (except for the “cashies” he  may or may not have done elsewhere).

“Jonathan”, who has lifted a hammer only to put a picture up on the wall, who built nothing, and simply bought and sold existing houses – paid nothing in tax.

Only in New Zealand do we have a law going after the battlers like “Gazza” – who actually get up each morning to build new houses. National and ACT think this is a perfectly sane state of affairs.

“Mr Smith” from the IRD is knocking on “Gazza’s” door.

“Gazza” wonders why he bothers getting up in the mornings.

“Jonathan’s” geraniums are  doing very well.

Addendum

Stuart Duncan sold his 1982 fibre-cement home at 116 Oaktree Ave in Browns Bay in November 2013 for $751,000.

Now the new owners have on-sold for $1,205,000 – despite doing little work on the property – giving them a 16-month profit of $454,000 – about $940 a day.

“I’m still in shock,” Mr Duncan said after learning how much his old property fetched. “It’s just disbelief.

“It was an 80s house, three-bedroom do-up. Where is the market going? God help New Zealand.”

NZ Herald

I doubt if we’ll be receiving much assistance from an invisible supernatural deity. Not when New Zealanders seem unwilling to help themselves sort out this crazy mess. And not when we, as a nation, keep re-electing a government hell-bent on doing nothing about a crisis that has spiralled out of control.

We have only ourselves to blame.


 

References

IRD: International

IRD: Residential Property

Fairfax media: Cash jobs crackdown by IRD

TV3 News: IRD launches campaign to crack down on cash jobs

NZ Herald: IRD chases down tradies’ cashies

NZ Herald: People making more on their homes than they earn at work

This blogpost was first published on The Daily Blog on 6 May 2015.

 

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John Key, Tania Billingsley, The Waitress, and me

29 April 2015 5 comments

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it's never ok to touch someone without their consent

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After The Daily Blog published the story of the [then un-named] cafe waitress who has been harassed by our esteemed Prime Minister for seven months, it now becomes apparent why he was so reluctant in this case;

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Tania Billingsley - I won't apologise - PM on diplomat case - John Key

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Key’s reluctance to apologise to Ms Billingsley over the atrocious way in which MFAT mishandled the Malaysian Diplomat, at the center of attempted rape and burglary allegations, appears to be a pattern of misogynistic behaviour from the man.

Note Key’s statement why he would not apologise;

“I don’t make apologies unless there’s a serious reason to.”

Many New Zealanders now have a greater insight into Key’s psyche; he did not believe there was a “serious” reason to apologise to Ms Billingsley.

Just as  Key dismissed his behaviour with the waitress by minimising it as some sort of harmless play;

“There’s always lots of horsing around and sort of practical jokes and that’s all there really was to it.”

The problem for Key is that his (not hers) “lots of horsing” was non-consensual (as well as utterly inappropriate on many other levels). Very rarely is it acceptable in New Zealand – or wider Western Society – to touch complete strangers, unless invited; eg; a handshake.

The waitress made it clear that Key’s attention and touching were unwelcome;

On Saturday, 28th February (which I specifically recall as there was to be a protest outside his home the following day) he approached me from behind, security personnel by his side, as I stood with my back to him filling water glasses, and he pulled my hair before once again pointing the blame at Bronagh. I couldn’t believe it, he was still persisting and by now he had definitely got the message that I was not enjoying it – that seemed to be why he was enjoying it so damn much. It had really crossed the line by this point and I didn’t need to tell him to stop because now Bronagh herself was already telling him to stop what he was doing, and not for the first time I might add. I exclaimed “Really?!!”, to my manager beside me, and shot him a look of utter disbelief and frustration.

The waitress has nailed it;

I couldn’t believe it, he was still persisting and by now he had definitely got the message that I was not enjoying it – that seemed to be why he was enjoying it so damn much.

Let me explain why her observation that Key “ was enjoying it so damn much” is so apt.

My first job out of High School was at the age of 16, around 1974/75. I was employed in the mail room, sorting mail – this was waaaay before email. Or faxes. Everything was done by post, and the company – Blue Star Port Lines, situated at the time in the IBM House on The Terrace – received and sent hundreds of letters and shipping notifications every day.

A few months later, I was promoted to the role of a junior shipping clerk. I had my own desk, surrounded by (mainly) men doing similar work to me. Women were primarily in secretarial roles.

I was excited – my own desk! That excitement did not last long and after few weeks had passed, I began to receive unwanted attention from one of the male staff, who would lean close into me when talking; hold my shoulder as he looked over it at whatever work I was doing; and talking to me suggestively.

I’ve no idea if he was gay, hitting on me as a young man, or straight and just teasing the hell out of me.

It was a situation I had never faced before. High School had prepared me  for muddy games of rugby and the odd scrap with whichever bully was rostered on that day to give us smaller kids a hiding. (Stupidly, I almost always stood my ground and never ran. Subsequently received more than my fair share of bruises. I should have watched more “Dr Who” and realised there is nothing ignoble about running from a bigger foe…)

But sexual harassment? The term barely existed in the mid-1970s. It was simply an unknown concept. You might as well have come from the 21st Century and asked me where the nearest wi-fi hot-spot was…

It got worse. The touching. His face close to mine. Then, one day, he pressed his body close to mine in an otherwise empty elevator. I was terrified. I  felt repulsed. I felt totally powerless.

For fuck’s sakes, I was 16 (nearly 17) – hadn’t even lost my virginity. And here was a guy in his late 30s (early 40s?) coming on to me.

The next day, I called in sick. The following day, I went to work, hoping like hell he wasn’t there.

He was. It continued.

After a while, I simply quit. I couldn’t cope. I had no idea what to do; who to go to. I just felt totally powerless. To someone who has not experienced anything remotely like harassment, when you are utterly powerless and the abuser plays on that power-imbalance, then it is hard to comprehend. You cannot hope to feel what a victim has felt, unless it is in your head as well.

Luckily, it was the mid-1970s, and you could walk out of one job and straight into another. I collected my final pay; an additional reimbursement from Labour’s superannuation fund (about $25, if I recall), after Muldoon scrapped it; and never went back.

Everyone else in that office had seen what was happening (it was open-plan for ordinary workers – only managers got enclosed offices).

Not one person said or did anything. Not one.

And all the while – and this is a memory I retain decades later – I can remember the smiling and grinning on his face. He was enjoying my discomfort. That’s how he was getting his ‘jollies’.

People like that; they get pleasure from the discomfort of others. For them, it’s “horse play”.

It was my entrance into the world of being an adult.

So,  to hell with those who try to excuse Key’s behaviour. They are the enablers who allow bullies – whether it be a senior shipping clerk, or a Prime Minister – to keep raping a person’s mind.

 

 


 

References

The Daily Blog: EXCLUSIVE – The Prime Minister and the Waitress

TVNZ News:  I won’t apologise – PM on diplomat case

NZ Herald: John Key – Pony-tail pulling ‘just horsing around’

Additional

Amy Adams, MP for Selwyn: Prime Minister John Key jokes with Brooke Coburn about cutting her hair (Hat-tip:  Greg Presland)

NZ Herald: Audrey Young – Today I’m embarrassed John Key is Prime Minister

 

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This blogpost was first published on The Daily Blog on 24 April 2015.

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The closure of three prisons and loss of 262 jobs – five issues for the National govt

18 April 2015 2 comments

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justice-for-sale-600x337

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The closure of three prisons and loss of 262 jobs

The closure of units in Waikeria, Tongariro-Rangipo, and Rimutaka Prisons, and the subsequent estimated loss of 262 jobs has been openly conceded as a re-distribution of inmates to the new, privately run prison at Wiri.  Corrections chief executive, Ray Smith, stated on 9 April;

I am also proposing to close units at three prisons – Rimutaka, Waikeria and Tongariro/Rangipo…

… With the opening of Auckland South Corrections Facility (at Wiri), and the subsequent reduction in pressure on prison capacity, we can now look at closing these end of life facilities.

The Wiri facility will be managed by multi-national corporation, Serco, as a profit-making venture, paid by the tax-payer.

Smith has blamed the closures and redundancies on the Waikeria, Tongariro-Rangipo, and Rimutaka Prisons being  “50 years old, surrounded by facilities that are 100 years old“. He claims “it would be uneconomic to bring them up to scratch“.

The closure of units at Waikeria, Tongariro-Rangipo, and Rimutaka is estimated to save the National government $165 million. This will be a godsend to Finance Minister Bill English, who admitted on 10 April that National’s much heralded promise of a budget surplus was looking more and more unlikely;

We’re (the Government) is continuing to manage the books carefully but lower inflation, while good for consumers, is making it less likely that the final accounts in October will show a surplus for the whole year.

With the  planned sale of state houses to the  Salvation Army, and other social services, having collapsed, English’s expectation of reaping big cash dividends from the housing sell-of has evaporated.

As I wrote in October 2014;

Meanwhile, Bill English was outlining National’s true agenda, whilst Key was putting on his benign face to the New Zealand public.  As TV3’s Brook Sabin reported,

A big state-house sell-off is on the way, and up to $5 billion-worth of homes could be put on the block.

The shake-up of the Government’s housing stock will be a key focus for the next three years, with Finance Minister Bill English to lead it.

On the block is everything from a tiny 75 square metre two-bedroom state house in Auckland’s Remuera, on the market for $740,000, to a three-bedroom home in Taumarunui for just $38,000. Thousands more properties will soon hit the market.

The reason for putting up to  $5 billion-worth of homes  on the block?

Crashing dairy prices had left a gaping hole in the National Government’s books, and their much-vaunted Budget surplus next year was under threat. Remember that  Key was candid in the implications for the economy and the  government’s tax-take; when he stated – also on 6 October;

It can have some impact because if that’s the final payout, the impact would be as large as NZ$5 billion for the economy overall, and you would expect that to flow through to the tax revenue, both for the 14/15 year and the 15/16 year. My understanding is Treasury is working on those numbers for the incoming Minister of Finance, which fortunately is the same as the outgoing Minister of Finance as well.”

Faced with the imminent sinking of one of National’s cornerstone election promises – a return to surplus by 2014/15 – $165 million saved by the closure of prison units will be  a relief to an increasingly frustrated Bill English.

Key and English couldn’t flog of $5 billion of state housing to social services. So now they are looking at what is effectively privatisation-by-stealth with our prison services.

And bugger the inevitable consequences…

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Justice not for sale logo

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Five issues for the National govt

The closure of units at Waikeria, Tongariro-Rangipo, and Rimutaka Prisons will not be without dire consequences that impact on nearly every aspect of New Zealand society, regions, and the economy.  Even the political landscape may be altered if this ill-considered plan goes ahead.

1. Sending “clients” to a private facility

There is something decidely immoral about up-rooting hundreds of prisoners whose freedom of movement and freedom of choice has been curtailed by State sanctions, and handed over into the hands of a private corporation – Serco – where the prime motivator is making a profit for shareholders. (Overseas shareholders, to be precise.)

In no way can this dystopian scenario be considered part of the “free market”, as all forms of choice have been removed from the prison “clients”.

Serco have been handed “clients” into their “care” whether wanted or not by the prisoners. Not since the slave trade from the 16th to 19th centuries have human being been treated as commodities by Western nations.

Make no mistake; private prisons turn human beings into “things”, to be used by business as investment commodities.

How long before prisoners are sold, bought, and traded by competing corporatised prisons? How long before their labour is sold to other businesses, for profit?

2. Regional economies and job losses

The loss of 262 jobs in Upper Hutt (Rimutaka),  Waikeria, and Tongariro-Rangipo will impact considerably on those regional economies already badly hit by loss of industries, closed businesses, population moving away, and continuing down-turn in the dairy industry.

It is this sort of regional neglect that resulted in Northland voters abandoning the National Party and electing NZ First leader, Winston Peters, as their electorate MP.

Waipa District mayor, Jim Mylchreest, was frustrated and angry at National’s further under-mining of what remained of regional economies;

Here they are with a major change and not even bothering to let us know plans are afoot.

I assume that they’ve done their sums and it’s more efficient for them but they’re not looking at New Zealand in terms of what are the benefits to try and keep employment in the regions.”

Mayor Mylchreest has every right to be angry – closure of a high-security wing at Waikeria Prison will  result in the loss of 148 jobs – creating considerable impact on nearby Te Awamutu (pop: 10,305), only sixteen kilometers away.

Is this how the National Party “supports” the regions?!

It seems that National has not learned a single thing from the Northland by-election.

Rimutaka may well be a safe Labour seat. But it also delivered 15,352 Party Votes for National – now at risk as Upper Hutt will be hard hit by job losses at Rimutaka Prison.

National may have mis-calculated the political fall-out from this move.

3. NZ First/Country Party

A loss of 262 jobs. Millions lost from regional economies. Small towns losing more people. Businesses closing, through lack of turn-over. Which, in a vicious circle leads to more job losses…

A recipe to increase NZ First’s re-positioning on the politicalk spectrum as a de facto “Country-Regional Party”?

It certainly sounds like it.

National may have handed Peters an early Christmas gift to campaign on. Disaffected voters seeing hundreds of jobs lost in their communities – with  subsequent closures of down-stream businesses in their town Main Streets – may wonder why on Earth they should keep voting for National? What’s in it for them?

Not much it would seem.

“Vote National – Lose Your Job” would appear to be the new slogan for National for the 2017 elections.

I have no doubt that even as I write this, and you the reader are reading my words, that Winston Peters and his NZ First strategists are already working on how to maximise these events for their own political gain.

I have no doubt whatsoever; the “Northland Experience” will be repeated throughout the country – much to Winston Peters’ delight.

4. Prisoner’s families

National’s Corrections Minister Peseta Sam Lotu-Iiga has stated;

I understand that this proposal may be unsettling for affected staff but Corrections will have extensive support and assistance in place should the proposal go ahead. I also believe that the proposal reflects our commitment to providing safe and secure working conditions for staff and a safe and productive environment for prisoners.

Prisoners have a much better chance of successful rehabilitation in modern facilities where they have access to education, training and employment opportunities.

Being close to their families is an important factor in rehabilitation for some prisoners.”

However, transferring several hundred prisoners from as far afield as Rimutaka, to Auckland – a distance of some 650kms – is hardly “being close to their families”  and one can only imagine how increasing isolation from family and community will give  “prisoners […] a much better chance of successful rehabilitation”.

The distances involved are considerable, as this Corrections Department map illustrates;

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[6] Waikeria Prison [8] Tongariro/Rangipo Prison [13] Rimutaka Prison

[6] Waikeria Prison
[8] Tongariro/Rangipo Prison
[13] Rimutaka Prison

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Minister Lotu-Iiga needs to explain why he thinks that isolating prisoners in this manner, can possibly assist in their rehabilitation and reintergration back into their communities?

It seems that transferring prisoners out of their communities flies in the face of the Minister’s assertions.

It may also prove more expensive, as prisoner’s families make increased calls upon the Child Travel Fund;

The Child Travel Fund provides financial support to eligible children traveling to visit a parent in prison. The fund also supports parents traveling to visit a child who is under 18 years of age and in prison.

Does National even care?

They should. Increasing prisoner’s alienation from family and communities undermines every effort made by the judicial/corrections system to rehabilitate prisoners.

It should definitely be cause for concern for  the corporate managers of Wiri, for whom rehabilitation and reduced re-offending is part of their contract, according to Corrections chief executive, Ray Smith;

They can earn up to $1.5 million in incentive payments if they can reduce the rate of reoffending by up to 10 percent more than the department can do.”

According to Derek Cheng at the Herald, writing three years ago;

For Wiri, Serco will face stiff financial penalties if it does not meet rehabilitation targets – which will be set at 10 per cent lower than public prisons.

The Corrections Department has a target to reduce re-offending by 10 per cent. If that is achieved, Wiri would have to achieve a rate 20 below the current rates or face fines, which have yet to be set.

Though Finance Minister Bill English – quoted in Scoop at around the same time – was more cautious;

It will also face financial penalties if it fails to meet short-term rehabilitation and reintegration measures including prisoner health and employment targets, and safe, secure and humane custodial standards.”

However, speaking to Paul Henry on Radio Live, Corrections chief executive, Ray Smith, was more circumspect when asked directly what penalties were involved in prisoners re-offended after release;

(@ 7:35)

Henry: “If rehabitation rates, if recidivism rates deteriorate, is there a penalty?”

Smith: “Well they just can’t earn the incentive payment if they can’t [meet the targets(muffled)].”

Henry: “So there isn’t actually a penalty?”

Smith: “[Stuttered words]...the penalties are associated with failure on security. The incentives are geared towards having to actually achieve better outcomes than the Department.”

So unlike penalties associated with prisoner escapes, where Serco actually has to pay the government, the only “penalty” associated with not meeting rehabilitation targets is foregoing $1.5 million in incentive payments?

Under Serco’s contract to manage Mt Eden Remand Prison, it is fined $150,000 each and every time a prisoner escapes, as happened in 2011 and 2012.

Under the contract to manage Wiri, it appears that the “penalty” is foregoing incentive payments.

The two “penalties” are not exactly the same and Minister English was being less than clear when he referred to Serco facing “financial penalties“.

Repeating the question – does National care? Not in the least, one may rightly guess. After all, chances are that National will no longer be in government when the ‘chickens come home to roost’ on this little social time bomb, and John Key will be writing his memoirs somewhere on an idyllic Hawaiian beach.

5. Relocating staff?

There seems to be confusion as to what will happen to the 262 staff who will lose their jobs from  Waikeria, Tongariro-Rangipo, and Rimutaka Prisons.

In his interview with Paul Henry on Radio Live on 10 April, Corrections CEO Ray Smith offered to do his best to find replacement jobs at other facilities for 262 redundant staff.

Suggestions that staff would be relocated to Auckland, with a “$20,000 relocation assistance-payment” appears to be farcical for two reason;

1. $20,000 payment to a Corrections staffmember living in a small town, where properties are worth considerably less than the over-heated Auckland housing market, is unhelpful. There is a worsening housing shortage in Auckland, and it seems to be verging on incompetence for this government to be adding to the housing problem by encouraging more workers and their families to move to the the city, thereby adding to congestion.

2. According to various media reports, the new Wiri facility is already fully staffed;

And unfortunately for staff who will be laid off, the opening of a large new prison in South Auckland next month is no consolation as all jobs are already filled. – TV1 News

A new prison in south Auckland will pick up the relocated inmates, but it is already fully staffed.TV3 News

So where are the jobs? Certainly not at Wiri.

Which makes this statement from Corrections Minister Lotu-Iiga unconvincing;

It should also be noted that the number of prisoner places is not reducing and will in fact increase with the opening of [Wiri]. We will have a net increase of 433 beds.”

The closure of three facilities; 262 redundancies; and contracting out to a private provider all reeks of National’s mania for cost-cutting.

As with many other cost-cutting exercises, it is New Zealanders; their families; and economically-fragile regions and small towns, that are having to pay the price. Treating prisoners as commercial commodities adds a particularly nasty aspect to this exercise.

Meanwhile, foreign-owned Serco stands to gain $30 million of tax-payer’s money, per year, from managing the new Wiri prison.

Someone is benefitting, and it is not us.

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Justice not for sale logo

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Prison facts and statistics – December 2014

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Number of prisoners in each prison - nz prisons

Source

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Justice not for sale logo
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References

Fairfax media: Up to 262 prison jobs may be cut in major Corrections restructure

TV3 News: Union – Prison staff can’t afford to move to Auckland

TV1 News: Budget surplus looking increasingly unlikely this year, Bill English admits

TV3 News: State housing sell-off worth $5B

Hive News: Treasury re-crunching Budget numbers for low Fonterra payout

National Party: Remaining on track to Budget surplus in 2014/15

Wikipedia: Serco

TV1 News: Town’s fury at being left in dark over prison closure

Wikipedia: Te Awamutu

Election Results 2014: Official Count Results — Rimutaka

Department of Corrections:  Sustainable Development Framework

Department of Corrections:  Travel assistance for visits

TV3 News: Union – Prison staff can’t afford to move to Auckland

NZ Herald: New private prison at Wiri given green light

Auckland Scoop media: Amazing promises for new Wiri prison: less offending, better safety, superior service

RadioLive: Around 260 staff face redundancy at Waikeria, Rangipo and Rimutaka prisons (audio)

Auckland Scoop media: Private operator of Mt Eden fined $150,000 for prison escape; security improvements made

Radio NZ: Serco fined after another prisoner escape

TV3 News: Govt criticised over prison job cuts

Radio NZ: Serco expects $30m revenue from Wiri prison

Department of Corrections:  Prison facts and statistics – December 2014

Previous related blogposts

The lunatics are running the Asylum

Housing; broken promises, families in cars, and ideological idiocy (Part Rua)

 


 

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140105 Housing in prisons

 

 

This blogpost was first published on The Daily Blog on 13 April 2015.

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There’s never a towie around when you need one…

10 April 2015 2 comments

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UFO dumped stupid people

 

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On Tuesday (7 April) morning, in Kilbirnie’s Bay Road, we spotted this black ute parked on the road, blocking access to the disability carpark. Note that the ute wasn’t actually parked IN the carpark. He just parked blocking it, and creating a nuisance to those trying to drive past.

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towtruck parked blocking disability carpark - kilbirnie wellington - 7 April 2015 (2)

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towtruck parked blocking disability carpark - kilbirnie wellington - 7 April 2015 (3)

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The vehicle belonged to “Total Towing”. I wonder if I could’ve called up the company’s office and asked for their offending vehicle to be… towed?

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towtruck parked blocking disability carpark - kilbirnie wellington - 7 April 2015 (4)

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Note the car behind the ute, in the next image. The poor old bugger was patiently waiting to use the disability carpark. That made him double-park as well.

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towtruck parked blocking disability carpark - kilbirnie wellington - 7 April 2015 (5)

 

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Poor guy, I felt sorry for him. So decided to do something about it.

The ute’s engine was still running. That indicated that the driver had “popped out quickly” to do an errand, rather than longer-timed shopping.

Which suggested an errand quickly achieved… like going to the local Post Shop.

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towtruck parked blocking disability carpark - kilbirnie wellington - 7 April 2015 (1)

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Such as the Post Shop only a few metres from the carpark.

I walked inside and immediately saw the long queue waiting to be served. What’s the bet—?

In my best, loudest voice, honed after years of bellowing slogans at protest marches, I loudly asked,

 

“WHO OWNS THE BLACK TOW-UTE PARKED OUTSIDE THE DISABILITY CARPARK? THERE’S A DISABLED DRIVER WAITING TO USE IT!”

 

A guy with “Towtruck” emblazoned on his black t-shirt popped his head out of the queue…

Gotcha.

That would be me,” he said, quickly leaving the queue, “Sorry, thought I could just pop in and out quickly.”

No, mate, you weren’t thinking.

My reply was non-committal. I wasn’t going to sympathise with him one bit.

He quickly climbed into the ute, and drove off. The old guy moved in and parked his car.

Happy ending.

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(Originally posted on Facebook group, You’ve got my Car Park, want my Disability too?, on 9 April 2015)

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= fs =

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