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Posts Tagged ‘$520 million’

How Paula Bennett and National are wasting our taxdollars

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Frank Macskasy - Frankly Speaking - Blog - Welfare - unemployment - reforms

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National today announced that “there will be an upfront investment in welfare reform of $520 million over four years to support more beneficiaries into work“.

What, precisely, does that mean; “to support more beneficiaries into work“?!

A NZ Herald report attempted to provide some answers,

The funding package includes $80 million for early childhood education and childcare assistance payments, $55.1 million for 155 Work and Income staff who will be dedicated to support people back into work, and $148.8 million for youth services.

Ms Bennett said the $287.5 million included $81.5 million of additional funding, but the remainder would come from “reprioritised” funding from within Social Development.” – Source

Bennett added,

The Government’s welfare changes require significant up-front financial support. We’ve made a commitment to provide that investment to ensure fewer people are on welfare long term.” – Ibid

Extra funding for childcare  is always a good thing (though with National, expect the obligatory ‘fish hooks’ – National gives nothing away without a hidden barb somewhere in the deal), and this Blogger congratulates such a move.

But where this Blogger has serious concerns is the euphemism employed by  Bennett, Key, and other well-paid right wing politicians,  when they claim that ‘reforms’  “will be to support people back into work “.

National’s idea of what constitutes “support” is often at stark variance with how others might define support.

The all important issue is; are there enough jobs in the country for beneficiaries to go into?  This is no empty question, as Paula Bennett herself admitted last Sunday (29 April), on TVNZ’s Q+A,

SHANE         
Can I ask you about work, though? Do you think that there is a job out there for all these young people who really really want a job? Is there a job out there for young people who really want a job?

PAULA         
No. There’s not a job for everyone that would want one right now, or else we wouldn’t have the unemployment figures that we do.

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If, as Bennett admits, there there’s not a job for everyone that would want one right now, then what is the purpose of spending over  half a billion dollars of taxpayers’ money on “welfare reforms”?

Next question: why not invest that $520 million in job creation progammes? We have a critical housing shortage; growing poverty;  and unemployment is rising again – why not invest in job creation?

Why invest in welfare “reforms” – when welfare ain’t broke? Welfare is working precisely as intended and is keeping people alive, fed, and housed at a time of economic recession/stagnation.

As Bennett admitted on Q+A, it is the employment market that is broken and there are not enough jobs for those who want one. It’s as simple as that: not enough jobs.

Which means that John Key and Paula Bennett are wasting $520 million of our taxes on a pointless, futile exercise.

How many new jobs will  welfare “reforms” create? Not a single one.

This may give ‘jollies’ to National Party groupies; assorted right wing zealots; anti-beneficiary bigots; and low-information voters – but in the end this waste of resources and obvious exercise in beneficiary victimisation will be  as useful as seeking a meaningful relationship by scouring internet porn-sites.

I don’t mind if right wingers indulge in a mindless,  political, circle-jerk. But not when we, the taxpayer, have to pay for it.

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Postscript

Our Dear Leader, the Prime Minister of New Zealand enjoyed the benefits of a modern welfare society that protects those in need;

  • 1967: Key’s mother would have had access to the widow’s benefit when her husband passed away,
  • The Key family lived in a low-rent,  State House, in Christchurch
  • 1979-81: Key received a free tertiary education at Canterbury University (BCom in accounting)
  • Key would most likely have received a student allowance during his tertiary studies
  • Key received an extra $5,096 p/a from the April 2009 taxcuts
  • Key recieved an extra $7,100 p/a from the October 2010 taxcuts

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Paula Bennett, Minister of Welfare,

  • Paula Bennet was a solo-mother, at age 17
  • Just two years later, she used a Housing Corporation loan to buy a $56,000 house in Taupo.
  • All of this while on the domestic purposes benefit.
  • Paula Bennet was a recipient of the Training Incentive Allowance (a WINZ benefit)
  • Paula Bennet obtained her degree at Massey University, through the TIA – a taxpayer-funded benefit

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References

NZ Herald: Budget: Welfare plans revealed

NZ Herald: Unemployment rate lifts to 6.7pc

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