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Posts Tagged ‘bene card’

“More exports, more real jobs” – Really?

1 November 2011 2 comments

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Another of National’s public “mission statements” on their billboards promises, “More exports, more real jobs”,

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However, National past policies in cutting training programmes has seen an increase in youth unemployment from 25,000 to 58,000.

National’s Grand Plan, at it’s recent Conference was simply to introduce a “bene card” and pay beneficiaries’ living costs directly.

The only problem is;

A) A “bene card” to stop 16 and 17 year olds from buying booze and tobacco is kinda pointless when it’s already illegal for retailers to sell these products to 16 and 17 year olds.

B) WINZ already has the option to pay rent, power, and phone directly for beneficiaries.

Of course, one also has to wonder if this is as good as it gets under National – a “bene card”?!

This is a far cry from National’s bold election statements in 2008,

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The National Party has an economic plan that will build the foundations for a better future.

  • We will focus on lifting medium-term economic performance and managing taxpayers’ money effectively.
  • We will be unrelenting in our quest to lift our economic growth rate and raise wage rates.
  • We will cut taxes, not just in election year, but in a regular programme of ongoing tax cuts.
  • We will invest in the infrastructure this country needs for productivity growth.
  • We will be more careful with how we spend the cash in the public purse, monitoring not just the quantity but also the quality of government spending.
  • We will concentrate on equipping young New Zealanders with the education they need for a 21st century global economy.
  • We will reduce the burden of compliance and bureaucracy, and we will say goodbye to the blind ideology that locks the private sector out of too many parts of our economy.
  • And we will do all of this while improving the public services that Kiwis have a right to expect.  Source

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Instead of “concentrating on equipping young New Zealanders with the education they need for a 21st century global economy“, National has cut the Training Incentive Allowance and $146 million from skills training,

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Even their much vaunted cycleway has not produced the 4,000 jobs that were anticipated,

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Source

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It is little wonder then, that even “Business NZ” – this country’s employer group and traditionally allied to the National Party –  has voiced serious concerns about National’s ability to lead this country and questions whether it has any long-term economic policy,

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Full Story

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Deloitte New Zealand’s chief executive Murray Jack stated with brutal candour,

Despite the prime minister saying this morning he has confidence in his party’s plan, a lot of people in this room are not sure there is one.”

When National’s own allies voice doubts that National has any coherent plan – then it is time to get worried. Very, very worried. Rod Oram also voices his doubts.

It is time for New Zealanders to consider: does National have plan for economic growth; increase wages; and reduce unemployment?

Or is it sitting back and replying on the “free market” to achieve it’s lofty-sounding goals and promises? Is National relying on a “roap map” – or a “wish list”?

Labour may not be perfect, but they are sounding a whole lot more cohent than their rivals.

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Well, it looks like the unemployment rates are not “co-operating” with National’s stated intentions,

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Additional:

Wages, salaries up 2% – but inflation’s up 4.6%

Radio NZ: Rod Oram, economist & business commentator

Wellington economy flat lining

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58,000 Youth Unemployed

30 October 2011 3 comments

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= 2008 =

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In July 2008, John Key made these committments to New Zealand voters;

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National wants all young people to have the opportunity and responsibility to better themselves, no matter what their circumstances, abilities, or track record.

We expect that all those under the age of 18 should be in work, education, or training. To make this possible, National will provide a universal educational entitlement for all 16- and 17-year-olds.

We know there are plenty of 16- and 17-year-olds who have jobs and are learning from them. We also think there are some who might be more motivated and who might achieve more if they could learn in a non-school setting.

This Youth Guarantee will be different from the education entitlements of the past – because we won’t presume that in the 21st century, school will always be the best place for every young adult to be educated.

Our policy will help a large and potentially productive group of young people make a smoother transition from school into further education.

OUR PRINCIPLES

• Building opportunity for all.
• Encouraging ambition.
• Higher standards in education.

NATIONAL’S PLAN

The Youth Guarantee

National will provide a Youth Guarantee – a universal education entitlement for all 16-and 17- year-olds.

This will allow them to access, free of charge, a programme of educational study towards school-level
qualifications.

Most will continue their education at school, but others might be more motivated and might achieve more if given the opportunity to learn in a non-school setting. They might choose to continue their education at, for example, a polytechnic, a wananga, a private training establishment, or through an apprenticeship.

Courses offered under the Youth Guarantee will have to meet strict quality criteria.

This new entitlement will be on top of, not instead of, the education entitlements young people have now.

Sixteen and 17-year-olds who are not working, and who fail to take up this new entitlement, will not be eligible to receive a benefit.

National estimates these new initiatives will cost $65 million a year.

Source

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= 2011 =

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Since then, New Zealand’s youth unemployment has burgeoned from the 25,000 quoted in John Key’s speech, to over double that:  58,000 young New Zealanders.

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Full Story

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Far from “those under the age of 18 should be in work, education, or training“, National has actually scrapped or severely cut back programmes that assisted  young people  into skills training,

Govt cut $146m from skills training, Goff says

Bennett cutting a benefit that helped her – Labour

Even policies designed to specifically create jobs have been either failures, or undone by other National policies. For example, National promised the following,

” * $5.3 million to encourage developers of cycleway projects to hire 500 young people”

* $2.6 million for extra training places in the defence forces

Source

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Actual results,

Morale slumps as job cuts hit Defence Force

Cycleway jobs fall short

Army shifts $2m contract to China

Since then, National’s policies for unemployed young people consist of, tinkering with youth welfare benefits,

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Full Story

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Amongst National’s  “bold” ideas is,

Anyone aged 16 or 17 on a benefit – other than the invalid benefit – would be also paid in a different way…

… Money for basic living costs like food loaded on to a new payment card that could not be used for things like alcohol or cigarettesSource

Which is kinda bizarre, since it is already illegal for retailers to sell cigarettes and alcohol to 16 and 17 years olds.

Another of National’s  “bold” initiatives is to return to youth rates, which Labour abolished in 2008,

Nats propose starting-out youth wage

Election explainer: New Zealand’s minimum and youth wage rates, what’s happened in the past, and why they are an election issue – interest.co.nz

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To some people, introducing a youth rate to give young school leavers and unemployed a chance to get into a job sounds fair and reasonable.

Unfortunately, were it that simple.

A youth rate is counterproductive on several levels.

  1. There is often little difference in productivity between a 19 or 21 year old. So it’s an issue of fair pay for fair work.
  2. A youth rate simply shifts job opportunities from one age bracket to another. There is no net increase in employment.
  3. A youth rate is another driver toward reducing wages in the country – and we already lag far behind Australia.
  4. Employing young people on youth rates certainly won’t mean cheaper “charge out” rates for services (or products)  – employers would simply make a larger profit from lower-paid workers.

Even John Key admitted last August,

While a youth minimum was a factor, the Government didn’t want the public to believe it was the only factor. “Because I think if it’s the only factor someone’s getting employed on, we’re probably getting off on the wrong track here.” Source

It seems obvious that National has no real plan to address our growing youth unemployment. Their reliance on fiddling with youth unemployment is ad hoc tinkering; their plan for a “bene card” is laughable; and their proposed policy to re-introduce youth rates is basically an admission of surrender.

Instead of creating new jobs, National’s plan will simply shift employment from one age group to a younger, cheaper group. It pits one sector of society against another – an all to common tactic in right-wing politics, that values Individualism above Community.

National’s track record on this problem is abundantly clear,

2008: 25,000 unemployed young people

2011: 58,000 unemployed young people

Plus, on top of that, valuable policies designed to train and upskill young people into jobs have been cancelled or suffered funding cutbacks.

The answer is blindingly obvious. We need more jobs – not lower wages for some unemployed. This is not what John Key promised us  in 2008, when he said,

Why, under Labour, is the gap between our wages, and wages in Australia and other parts of the world, getting bigger and bigger?

We will be unrelenting in our quest to lift our economic growth rate and raise wage rates.” – John Key, “2008: A Fresh Start for New Zealand

By National’s own Standards, they have failed to deliver on their promises.

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Additional

Speech by John Key: 2008: A Fresh Start for New Zealand

Youth rates will not solve youth unemployment

Return of youth wage unlikely – Key

Youth unemployment a growing problem

Nats propose starting-out youth wage

Making young poor won’t help jobless

Editorial: Hiring policy leaves youth vulnerable

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