Posts Tagged ‘child poverty’

An unfortunate advertising placement, child poverty, and breathing air

2 September 2015 3 comments



mike hosking - simon collins - 300000 plus kiwi kids now in relative poverty - nz herald


I was reading Simon Collins’ piece on child poverty in the Herald, and a small advert caught my eye… (See image above)

I’m not sure if Mike Hosking wants to be associated with our mounting child poverty crisis. It’s simply not his style. More accurately, it makes people like him feel queasy and uncomfortable. Rich people don’t like feeling uncomfortable – that is what wealth is supposed to eliminate. It reminds Hosking, and others like him, that whilst he is enjoying their wealth, others are surviving their poverty.

That sticks in his mind, deep down, somewhere, in the places where his parents tried to instill values of fairness in him when he was a child. That makes him resentful.

That is why the affluent; the rich; the powerful; the Comfortable Classes,  hate the poor so much. Otherwise, why do they invest so much time writing so defensively and caustically, when a blogger like Chloe King airs her views, in defence of the poor and the powerless? What is Chloe King to them?

Why bother?

Because they feel guilty.

Especially when she reminds them why they should be feeling guilty.

When  Mike Hosking made his views on child poverty perfectly clear on 9 April;

“Children cost money. If you can’t afford it, don’t have them. It’s not hard.”

– he was in full vengeful retaliation mode.

This was Mike Hosking – mouthpiece for the Comfortable Class – sheeting blame for poverty to the victims who have to endure it.

It would be like the victims of the Great Depression being blamed for being out of work; no money; and relying on soup kitchens to survive each day.

Now, when I was young, growing up, we lived off my dad’s sole income; mum stayed home and herded us kids. Dad’s income paid for the mortgage, food, power (a bill once every two months!), fuel for the car (an American  gas-guzzling, noisy, metal beast that I swear was a reincarnated T29 Soviet tank  in a former life), insurance, doctor’s visits (medicine was free – remember that?), and even a camping holiday to Taupo or somesuch place. We weren’t rich by any means. But dad’s income was sufficient for the things that average Kiwi families enjoyed.

And funnily enough, we didn’t need mass consumerism or seven day shopping and other such nonsense to get by.

The point is this; not being able to “afford kids” is like telling someone they are not worthy to breathe the air or drink water.

When did an act of nature become dictated by the amount of money a person had? Especially in New Zealand – a country  once upon a time we thought to be egalitarian?!

If our fellow New Zealanders “can’t afford” to have children, I suggest it’s not the cost of having children that is the problem. It is the inadequart income being earned by New Zealanders that is the core problem (I refuse to call it an “issue”) here.

In his article, Simon Collins presented two charts showing the growth (or lack thereof) of incomes since 1982;





Notice how incomes for the lowest paid have stayed low – even after Working for Familes was introduced in 2004? The lowest ten percent have moved from $15,400 to $17,700. Last year, they failed to be counted as Collins pointed out;

The report does not include figures for the poorest 10 per cent of households, who include most beneficiaries, because the names of benefits changed in 2013 and some beneficiaries appear to have reported only how much they received since the new benefit names were created, missing out their incomes for the first half of the 2013-14 year.

Very convenient for the government, no?

Meanwhile, the top ten percent have increased their income by fifty percent, from $50,200 in 1982 to $75,400, last year.

Let’s be clear here. When right-wing ‘pundits’ and cheerleaders for the rich deride the poor for having children, this is barely-coded moralism and victim-blaming.

It is attempting to paint the poor as suffering “deeply flawed character”, almost to a DNA-level.

In fact, many right-wingers openly refer to welfare recipients as “inter-generational”; the subtle nod to ‘bad DNA’ being made without recourse to the more clumsy eugenics policies of you-know-who.

By blaming the poor for the temerity to have children, the Right shift the blame and deflect attention from the real question; why are people so poor that they cannot afford to raise a family as we used to, before the advent of Rogernomics?

Is it because, since 1986, Baby Boomers have voted seven tax cuts for themselves?

Is it because, as taxes were cut, GST was introduced and increased, as was user-pays in areas such as education?

Is it because simple things like medicine has gone from being free – to five dollars for each item?

Is it because trade unions are no longer able to advocate for their members, and wages have not kept pace with productivity, as this chart from the New York Times showed for US workers (and most likely applies here as well)?




Yes. All of the above, and more.

The next time a right winger is ranting on about the “breeding poor”, remember that what they are really trying to say is;

… it’s their fault they are poor; they are unfit humans. Their bank accounts prove it.

… it’s not my fault I’m paying less tax than my counterparts did, thirty years ago. I just voted for it.

… only the Comfortable Class should breed. For we are superior because we have the moral fortitude (and good genes) to make money and keep it.

… don’t bother me about the poor. I’m trying to enjoy my Beluga caviar and Bollingers, thank you, without being reminded…

Well, too bad.

We will continue to remind you.

Don’t choke on your bolly.





Create a society that values material things above all else. Strip it of industry. Raise taxes for the poor and reduce them for the rich and for corporations. Prop up failed financial institutions with public money. Ask for more tax, while vastly reducing public services. Put adverts everywhere, regardless of people’s ability to afford the things they advertise. Allow the cost of food and housing to eclipse people’s ability to pay for them. Light blue touch paper.” –  Andrew Maxwell, Irish comedian





NZ Herald: 300,000+ Kiwi kids now in relative poverty

The Daily Blog: Now we got bad blood – being poor in a rich world

Newstalk ZB: Mike’s Editorial – The cost of a child

NY Times: Bill Marsh/The New York Times
Sources: Robert B. Reich, University of California, Berkeley; “The State of Working America” by the Economic Policy Institute; Thomas Piketty

Previous related blogposts

When the teflon is stripped away

Mike Hosking as TVNZ’s moderator for political debates?! WTF?!

Mike Hosking – Minister for War Propaganda?




hosking - National - flag - wanker


This blogpost was first published on The Daily Blog on 28 August 2015.



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Poor people – let them eat cake; grow veges; not breed; and other parroted right wing cliches… (part rua)


260,000 kiwi kids live in poverty


When the so-called “reforms” of Roger Douglas – lovingly referred to as  “rogernomics” – swept the country; privatising publicly owned assets; cutting state services; introducing user-pays; down-sizing the state sector; closing post offices in small towns and large cities; and witnessing the wide-spread creation of Food Banks for the first time since The Great Depression, we were told that the restructuring of our economy would pay off with a higher standard of living.

Instead, we ended up with this;

It is not only the government’s figures that reveal alarming levels of poverty. On top of the surge in demand for Income  Support grants is an explosion in food bank usage. Food banks have been described as the most visible face  of poverty in New Zealand. They are the only banks we now own. Only a few food banks existed before National’s election in 1990 on the hollow promise of a ‘Decent Society’. The first food bank in Auckland appeared in 1980, although researcher Adrian Whale noted in a 1993 thesis that throughout the 1980s, food banks were ‘predominantly small scale appendages to welfare services offered by city missions and other voluntary organisations’. But in the early 1990s, food banks established a ‘significant presence among the range of welfare providers in the community’. At least 70 percent of food requests to the Salvation Army  in 1992 were to support families with children. Figures from Presbyterian Support Services show that the number of food banks in the Auckland metropolitan area grew from 16 in 1980 to 130 in 1994.” – Mike Moore, “Children of the Poor”, 1996

Ten years ago, the Child Poverty Action Group reported;

Nationally, the number of foodbanks exploded following the 1991 benefit cuts, and the passage of the Employment Contracts Act (ECA). For those in already low-paid and casual jobs, the ECA resulted in even lower wages (McLaughlin, 1998), a situation exacerbated by the high unemployment of the early 1990s (11% in 1991). The benefit cuts left many with debts, and little money to buy food (Downtown Community Ministry, 1999). In 1992 the introduction of market rents for state houses dealt another blow to state tenants on low incomes. By 1994 it was estimated that there were about 365 foodbanks nationally, one-fifth of which had been set up in the previous year (Downtown Community Ministry, 1999).” – “Hard to swallow – Foodbank Usage in NZ”, Child Poverty Action Group, 2005

In December, last year, the Waikato Times published a story on the growing need for foodbanks in their community. One particular comment stood out;

Humphry has worked with the Christian Combined foodbank for “so many years I can’t remember when I started”, but remembers when it opened in 1998.

“I can’t remember who the prime minister was at the time, but someone [from the prime minister’s office] came and opened the foodbank [in Hamilton] and I remember he said, ‘This will only be a short-term thing, people will only need the foodbank for a few months’.”

If the free market “reforms” of the 1980s and 1990s were such a success, one has to ask the obvious question; why do food banks still exist?

Mike Moore was correct when he pointed out nearly twenty years ago; “Food banks have been described as the most visible face  of poverty in New Zealand.

New Zealand’s poverty – like our domestic violence and child abuse – is best done privately, behind closed doors, and out of sight. The middle classes get queasy at the sight of poverty.

Little wonder that when Bryan Bruce’s sobering documentary, Inside NZ: Child Poverty was broadcast in November 2011, it raised a howl of furious indignation (mostly from the Right) that the election had been “politicised”.

Bryan Bruce reminded us just how far we had come, in the last few decades;

I’m a baby boomer. I went to primary school in the late 50’s when they gave us free milk, free health care and a free education. In those days, Kiwi’s were able to boast that New Zealand was a great place to bring up kids. So when I learned that we’d dropped to number 28 on the list of 30 OECD countries for child well being, with just Mexico and Turkey behind us, I decided to find out what’s gone wrong and what we have to do to fix it.”

Someone in history (the actual utterer remains uncertain) once said of the poor who could not afford to buy bread;

“Let them eat cake.”

Today, in 21st Century New Zealand, it is more like;

“Let them drink coke.”

It certainly is cheaper, as my trip to a local supermarket on 29 June demonstrated;


Pak n Save (1)


One of the most common moralistic exhortations by the Right is that the poor should be able to feed themselves and their families. They just need to “budget more prudently”.

Well, at 95 cents per 1.5L bottle of soft-drink, the poor have a much cheaper alternative than the more pricey (and healthier) option of milk.

It’s just a shame it will probably kill them through obesity-related diseases.

Is this what Roger Douglas really intended for his country, back in 1984?

There are six policy reforms which, if carried out, would go a long way to reversing the ingrained poverty caused by forty years of a failed free-market experiment;

1. Reverse the 1991 benefit cuts. This would allow the poorest families in New Zealand to at the very least buy milk instead of teeth-rotting soft-drinks, and turn the heaters on in winter.

2. Take GST of basic foods – fruit, vegetables, bread, milk, meat, fish, et al.

3. Raise the minimum wage to the Living Wage ($19.25/hr). The increase in take-home pay would be a boon to low-income families, as well as benefitting businesses throughout the country, as expenditure increased. As business turn-over increased; they would hire more people; leading to less paid in welfare, and more paid to the State in PAYE tax (helping Bill English finally balance those pesky fiscal books).

4. Implement Hone Harawira’s ‘Food in Schools’ Bill immediatly. Well-fed children learn better; succeed better; and contribute to society much better.  If our Scandinavian cuzzies can do it, so can we.

5. Build more State houses, and stop flogging them off to every Tom, Dick, and Harriet who comes knocking on Bill English’s door.

6. Free healthcare for all children 13 and under.

Can we do it?

Of course we can. If we can implement radical policies that changed New Zealand from a Fortress Economy (ex Muldoon) to one of the planet’s most open economies (ex Douglas) – then we can implement social policies that will make us a better, fairer, safer country.

Because it’s the right thing to do.





Amazon: Children of the poor – How poverty could destroy New Zealand’s future

Child Poverty Action Group: Hard to swallow: Foodbank use in New Zealand

Waikato Times: Big demand puts pressure on foodbank

TV3: Inside Child Poverty – A Special Report


J R McKenzie Trust:  Child Poverty Monitor

NZ Council of Christian Social Services: Facts about poverty in New Zealand

Previous related blogposts

Can we afford to have “a chat on food in schools”?

National dragged kicking and screaming to the breakfast table

Are we being milked? asks Minister

High milk prices? Well, now we know why

Poor people – let them eat cake; grow veges; not breed; and other parroted right wing cliches






This blogpost was first published on The Daily Blog on 30 June 2015.



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Poor people – let them eat cake; grow veges; not breed; and other parroted right wing cliches…


child poverty graph 1982-2012


One of the most constant cliches spouted by the naive; the well-meaning; and down-right simple-minded Right, is that the poor should be able to supplement their income by growing their own food.

This tenants in this house, located  in one of Wellington’s inner suburbs, grew their own vegetables and raised chickens. The planter-boxes were well-tended, and were well-filled with a variety of vegetables.

One day, a couple of months ago, I noticed that the furniture in the house was gone and the sound of the chooks was no longer evident.

This is what the once well-tended vege-garden looks like now;


poverty - untended vegetable garden


Weeds have become the dominant plants in the garden;


empty house and gardens (2)


Of all the preposterous assumptions of humanity over humanity, nothing exceeds most of the criticisms made on the habits of the poor by the well-housed, well- warmed, and well-fed.”

So said Herman Melville, author of ‘Moby Dick‘.

Lecturing the poor to grow their own food becomes a fatuous  exercise when the poor generally do not own their own homes, and are subject to eviction at whatever whim  takes the landlord. The tenants move on; the food is left behind; and goes to seed and rots.

When confronted with the problem (I refuse to call it an “issue”) of poverty, the response from the well-meaning or politically deluded for the poor to produce their own food is little more than buck-passing. It is a barely-concealed attempt to salve their consciences by pointing the finger back at the poorest in our society, and blame them for their lot.

After all, if the poor are poor by their own lack of determination, then the rest of us don’t have to consider the problem at all. It’s their fault, not ours.

After all, why shouldn’t they be able to grow their own food?

They just need to buck their ideas up. And buy a house.





J R McKenzie Trust:  Child Poverty Monitor

NZ Council of Christian Social Services: Facts about poverty in New Zealand





give the rich tax cuts.

This blogpost was first published on The Daily Blog on 26 June 2015.



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“I don’t know the details of that particular family” – Social Development Minister Anne Tolley

29 June 2015 5 comments


anne tolley - corin dann - tvnz - q+a - poverty - ministry of development


On TVNZ’s Q+A, on 21 June,  political reporter Corin Dann interviewed Social Development Minister, Anne Tolley. To describe the interview as pathetic would be generous.

To describe it as illustrative of how National views the poorest people of this country with barely-concealed disdain would be an understatement.

Tolley was former Minister of Corrections and Police, from 2011 to 2014.  Her crowning “achievement” was showing off  the destruction and compacting of a seized motor vehicle;



Then Police Minister, Anne Tolley, triumphantly standing atop a crushed ‘boy racer’ car (with camera-carting media in attendance) – June 2012. (More)


Her other “achievement” was over-seeing the awarding of a twentyfive year long contract to multi-national company, Serco, to manage the newly opened 960-bed Wiri Prison. That contract will sting tax-payers to the tune of $900 million – almost a billion  tax-dollars over quarter of a century.

Tolley’s latest ministerial ‘gig’  is to hold the portfolio of Minister for Social Development.

Last year, two year old old Emma-Lita Bourne died last year from a brain haemorrhage. Emma-Lita had been suffering from a pneumonia-like illness in the final days of her short, misery-filled, life, leading up to her death.

In a coronial  inquest, Coroner Brandt Shortland concluded;

“I am of the view the condition of the house at the time being cold and damp during the winter months was a contributing factor to her health status.”

Corin Dann pointedly asked Tolley about Emma-Lita’s  death;

@ 6.35 –

“Some would argue with the recent case, for example, with Emma-Lita Bourne who died in the state house, [a] damp house, why not just give those families more money to pay their power bill, rather than give the organisations money to come in and work and all the rest of it?”

Tolley responded;

@ 6.54 –

“And, and, when you look at something like Whanua Ora, they are doing some of that. See, see, what we’ve got with the focus on individual programmes and agencies working in silos, families don’t work like that. They’re very complex issues so if I don’t know the details of that particular family…”

Tolley admitted not knowing the details of that particular family!

Let’s re-cap;

  •  This was a family living in circumstances within her ministerial ambit.
  •  A child died from illness which the coroner has stated was, at the least, exacerbated, by her living conditions.

Any normal, rational  individual in a position of responsibility in such a situation would have called for a full report on the incident, as well as a copy of the coroner’s findings.

Yet, according to her own statement, Tolley has evidently not done so.

She does not  “know the details of that particular family”.

Dann suggested to the Minister “in charge” of Social Development that a solution would be to  provide heating for cold, damp State houses;

“One solution though, one solution at least is that the child, if there are children in that family, they get a guarantee of a warm house.”

Tolley’s response was dismissive, followed by bureacratic gobbledegook double-speak;

“Well, not necessarily. Not necessarily. Um, and, and, you can have a warm house that is completely enclosed, that is high moisture content, and you can have related illnesses to that as well.

So what I’m saying is, one part of that, you can solve one part of that. But actually all the other problems are going to continue. And what we’re trying to do is get, um, much more joined up work from the State agencies, but our focus [is] on actually changing the outcomes for those families.”

So, there you have it.

Heating cold, damp houses is “not necessarily” a solution.

But “joining up State agencies” will somehow provide the warmth to keep children out of hospitals.

This is ‘Pythonesque’ humour at it’s darkest and comes at the expense of sick and dying children.

No wonder Tolley made this eye-brow-raising comment a few minutes into the interview;

@3.40 –

“I liken it to National Standards.”

National Standards – another of National’s misguided, moronic, and messy experiments.

Perhaps the most jaw-dropping comment from  Tolley also came at the very beginning of the interview, when she complained;

@ 0.40

“One of the main difficulties that we have is that we don’t know what works. We haven’t got good evidence. We haven’t got good data.”

There is good reason why we do not have “good evidence” and “good data” –  because former Social Development Minister, Paula Bennett did not want it;


Measuring poverty line not a priority - Bennett


Because having hard data on poverty means government having a measurable, defined problem dumped into its lap. And three years ago, Bennett was having none of that.

As Labour MP, Jacinda Ardern, said at the time;

“The message is clear. Either Paula Bennett doesn’t want to admit to the scale of the problem, or she is afraid of exposing her government’s lack of progress in fixing it.”

Bennett’s excuses ranged from this;

“One week they can be in poverty, then their parent can get a job or increase their income and they are no longer in poverty … This is the real world, and actually children move in and out of poverty at times on a weekly basis.”

… to parroting neo-liberal clap-trap like this on TVNZ’s Q+A, in November 2013;

“At the end of the day, what is going to make the biggest difference for child poverty, in my opinion and this government’s opinion, and it is tackling the tough stuff. That is long-term welfare dependence. It’s actually more jobs, yeah, so that’s business growth. It feels like to me that Labour’s more interested in welfare growth and not business growth, and as a consequence, are we ever going to agree on that? Probably not.”

… and finally, this garbled ‘gem’ for why she refused to measure child poverty, in the same interview;

“So why do an official measure that then by very definition still has, quite frankly, you know, it’s, sort of, wherever you put the measure, you’re always going to have people in poverty, because you’re taking a median income, taking housing prices off it, so there’s always going to be people- “

Hopefully Minister Tolley will read this and understand why the department she inherited from her predecessor (Paula Bennett) has no “good evidence” or “good data”.

As for solving the life-threatening problem of cold, damp houses that are killing our children – Tolley’s plans to ‘re-jig’ government departments  and NGOs will not heat one single house.

Not. One. House.

But it will result in more children becoming ill, and dying.

This is happening on your watch, Minister Tolley.



Emma-Lita Bourne – 2012-2014


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





TVNZ Q+A:  Revolutionary changes in store for social services (14:11)

Green Party: $900 million for empty beds

NZ Herald:  Ana Apatu – Disempowered living in poverty

NZ Herald: Measuring poverty line not a priority – Bennett

NZ Herald: Bennett slammed over child poverty claim

TVNZ: Q+A – Paula Bennett interview


Bryan Bruce – Inside Child Poverty (2011)

Previous related blogposts

The law as a plaything

Random Thoughts on Random Things #3

John Key’s government – death by two cuts

The cupboard is bare, says Dear Leader

Government Minister sees history repeat – responsible for death








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Letter to the Editor – How many more children must die, Mr Key?!

24 June 2015 1 comment


Frank Macskasy - letters to the editor - Frankly Speaking


from: Frank Macskasy <>
to: Sunday Star Times <>
date: Tue, Jun 23, 2015
subject: Letter to the editor


The Editor
Sunday Star Times


Prime Minister John Key has called on tenants of State houses to report cold, damp, neglected conditions of their homes. Key says;

“We want to make sure people get assistance. I mean I accept that there’s a lot of people and the Government’s record actually of improving those houses (has) been a strong one over the course of the last four or five years.

We’ve worked hard on trying to improve them. But I accept that some people are cold and some people have, you know, less resources and on the back of that they should definitely reach out for more help.” (Radio NZ, “More state housing action needed – English”, 23 June)

Mr Key seems unaware that government claims that Housing NZ has sufficient money to fix up delapidated properties is at variance with HNZ’s 2013/14 Annual Report which stated, in part;

The responsive repairs programme, which includes work on vacant properties, is dependent on demand, which was higher than expected in 2013/14. Consequently, the budget was overspent due to higher volumes of work orders. The average cost per work order was also higher as a result of more comprehensive repairs and upgrades being carried out on vacant properties. To mitigate this overspend, we deliberately reduced the planned maintenance programme, which decreased the percentage of maintenance spend on planned activity. [p28]

Part of the problem is that the National Government has demanded tens of millions of dollars in dividends from Housing NZ. This year alone, Housing NZ will pay $90 million to the government in dividends – money that could be better spent on maintaining run-down, leaking, mouldy, cold houses. Heating vouchers for the poorest families would also help alleviate illnesses like rheumatic fever.

That should be our esteemed Prime Minister’s first priority.

How many more children must die before this government acts?


-Frank Macskasy


[Address & phone number supplied]



Radio NZ:  More state housing action needed – English

Parliament: Hansards – Housing, Affordable – Progress and Management of Housing New Zealand

Housing NZ: 2013/14 Annual Report







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The cupboard is bare, says Dear Leader




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 –





–  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;


Women's Refuge cuts may lead to waiting lists


Then it was the turn of  Rape Crisis;


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


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


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


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;


Relationships Aortearoa - funding cuts - Anne Tolley - budget 2015


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;


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


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;


PM defends $30m payout to Rio Tinto


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


John Key defends cost of flag referendums


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


NZ Government gifts $6m to offended Saudi businessman


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

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





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 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






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



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I have seen one future, and it is bleak

31 October 2014 2 comments


nz national party magazine cover


Way back in March, 2012,  I wrote this story regarding a march to support striking workers at Ports of Auckland. It appears there was some prescience about some of my observations at the time…




18 March 2012 – I was looking at several images taken from the March 10 rally and the port picket lines, and for some reason, this one stuck in my mind. The more I look at the image of this young Kiwi girl (I hope I haven’t got that wrong!),  it eventually came to me.

In my mind, I was wondering; what will be her future?

Depending very much on what my generation (“Baby Boomers”) and Gen X does now, in the Present, she probably has three likely futures ahead of her…

Future 1

More of the same. Casualisation of jobs; wages driven downward as businesses compete with each other, and overseas providers of goods and services;  few job opportunities except in  low-paid fast food, care-sector, cleaning, and suchlike. A wealth/income gap that has become so vast that even the Middle Class are now designated as the Shrinking Class. Top earners and asset-holders – the Privileged Class – are paying less and less tax; low income earners having to pay more and more; with fewer social services  readily available. More user-pays; more alienation; less engagement with the electoral process.

This young lass cannot escape to Australia as she is either unemployed or under-employed. She is part of a growing Struggling Class that is resented by the Shrinking Class, and viewed with disdain by the Privileged Class, though grudgingly accepted as a useful pool of cheap labour.

The Shrinking Class know in their heart-of-hearts that they are living under a failed economic system that benefits only a few. But they are too frightened to vote for an alternative centre-left Party; they fear the back-lash from an angry under-class only too happy to exact revenge.

Meanwhile, the Baby Boomer generation has hit retirement – but there are few skilled care-workers left in New Zealand. So the government imports migrant workers from Third World countries under a bonded-system (so they cannot, in turn, escape to Australia). Taxation levels are now so low that government subsidies have ceased and  full user-pays is now in effect for Rest homes. Baby boomers are selling up their residences and investment properties; the market is flooded with cheaper and cheaper houses – but with incomes so low, few can afford to buy them. Those that are sold reap less and less capital gains.

Future 2

More of the same, but she has been fortunate enough to be able to find resources and support from whanau over-seas – and she is of to Australia.

In Australia, she finds a relatively good job with decent pay. Her work conditions are protected by a strong Union; she has access to decent social services; and the government assists her and her new partner to build a house. They are both working; earning higher and higher incomes; and contributing to Australia’s economy and tax-base.

In a year or two, she helps other members of her family escape from New Zealand.

They leave behind a no-longer-smiling Prime Minister who is promising to “revitalise the economy” to “entice overseas Kiwis to come back” – then cuts another  1,000 workers from the State Sector and sells the last remaining profitable State Owned Enterprise.

Future 3

New Zealanders’ appetite for New Right, minimalist government, that has produced very few gains or benefits – has come to an end. The Smile & Wave Prime Minister is thrown out at the next election where he retires to his Hawaiian beach house, and is forgotten.

Meanwhile, a new centre-Left government takes stock and adopts a Scandinavian model of governance, taxation, and social services. The new government starts off with a crash programme of building 10,000 new state houses.  Free school meals for breakfast and lunch starts in the first year. Free doctor’s visits and boosting immunisation rates up to 99% follows. New Zealand returns to a system of free education. (Howls of protest from a few remaining New Right supporters are either ignored or ridiculed. Some are offered a free plane flight to a Libertarian-run state of their own choosing – if they can find one.)

Amongst this “radical” social democratic reform, the young girl above is supported by well-resourced local community groups and by strengthened state social services to journey through the education system. A new “Social Contract” requires that all young people will be in education; a job; or serving in a new New Zealand Civic Corp, which involves fair pay for working on major  infra-structure projects and ongoing tertiary/polytech education.

A Capital Gains Tax and Financial Transactions Tax,  is a first step toward capturing heretofore un-taxed wealth and assets. As returns from these taxes kick in, the government makes the first $11,000 of income tax free. As incomes increase, government looks at Gareth Morgan’s “negative tax” system.

The young girl has grown, graduated, and is now working in the community in the children’s health sector. Her education is on-going, as the State encourages workers to undertake further tertiary education. This increases her productivity and value to society, and she is paying more in tax as her income rises. She is a saving some of her pay in an expanded Kiwisaver Account;  spending more; and local businesses are benefitting from her expenditure. She meets a young man who is finishing his Builder’s Certificate through the NZ Civic Corp.

Together, they have a family.  One stays at home to care for the family, the other remains in paid work. The negative taxation system advocated by Gareth Morgan has been implemented and the stay-at-home parent still recieves an income from the State. People are not disincentivised to have children; raise a family;  who then grow up to be the next generation of tax-paying citizens.

With none of the pressures that young families are currently facing, their home is not stressed because of financial pressures and job uncertainty/insecurity, and the children are raised in a stable, relaxed environment. The children’s future ahead of them is reassured; early childhood education; schooling; tertiary education; and finally tax-paying citizens.

In this reformed society, children are number one on the list and will always have first recourse to resources. The Prime Minister is Minister for Children.

In school, civics is part of the curriculum, and young people are taught recent history of our country; the mistakes we have made; and how they can hold politicians to account.

Meanwhile, she has persuaded some of her whanau to return to New Zealand. They like what they see and can feel themselves ready to become a part of a true, inclusive New Zealand Society.

The best thing about the three futures I’ve described above? The power to choose which one we’ll have is entirely in our hands. No one else can give or take it away from us.

Which is it to be, I wonder?


Perhaps nothing better illustrates the three possible futures for the toddler pictured above than the all-too real – and thought-provoking – story of Aroha Ireland, formerly of low-income area, McGehan Close.

In February 2007, Key shamelessly exploited Aroha’s situation to attack the then-Labour-led government;


Aroha Ireland, John Key, McGehan Close, Waitangi Day


As I further reported on 23 November 2012 on Key’s cynical publicity stunt,

It’s somewhat disturbing to note that National list MP Jackie Blue, who had a close personal  relationship with Aroha’s family, played along with the photo-op. That was despite reservations expressed by some,

“Labour list MP Dover Samuels was the only one publicly labelling Mr Key’s invitation a stunt yesterday, but others quietly voiced similar concerns.”

The family, though, seemed blissfully unaware that they were little more than pawns in National’s pre-election grand strategy and expressed their comfort with events,

“…Mrs Nathan told Close Up last night that the invitation had given her daughter a good opportunity.

She continued to disagree with some of Mr Key’s views on McGehan Close, but she believed he was trying to push for positive changes.”

The 2007 episode ended badly for Aroha and her mother, as the NZ Herald reported on 10 February 2010,

The mother of the 12-year-old girl John Key took to Waitangi three years ago says she has been let down by the Prime Minister, and her daughter now wants nothing to do with him.

Joan Nathan said she and her family were worse off since National won the election.

She’d lost her job with National list MP Jackie Blue, arranged by Key, and a training allowance she received had been cut.

“They gave me the job to sweeten the deal, and then as soon as they got elected I got the sack,” she said.

“I’m pretty anti-Mr Key at the moment”..


“He’s just made everything worse for us and made it easier for ones that are higher up. I’m struggling every week.”


On 7 September this year, Fairfax Media published this up-dated story on  Aroha Ireland, formerly of  McGehan Close, and now residing comfortably in Australia;


Aroha of McGehan Close flees NZ


In his story above, Fairfax reporter Simon Day wrote,

Three years later Aroha, now 20, feels she was used by Key – and the Prime Minister won’t be getting her vote.

“The last time I spoke to him was when he took me to Waitangi Day. After that I have never heard from him again. I absolutely believe that I was used as a publicity stunt,” she says. “I wouldn’t vote for National.”


Now, she says, the opportunities she has in Australia just aren’t available here.

“I have a full time job that pays good, $38 an hour,” she says. “I have a house, rent is cheap, about $265 a week for 3 bedrooms, 2 bathrooms, double garage, me and my husband are close to buying our own house. Life couldn’t be any better. There was nothing left in New Zealand.

“All this from someone who came from a ‘dead end’ street, right?”

She recently returned home to visit her mother. She couldn’t believe how expensive the price of living in New Zealand was compared to Australia.

“Petrol has shot up – $2 for petrol, really? I also brought about seven or eight items from one of the supermarkets and it came to a total of $78. No wonder people can’t fill their fridges. I’m glad I got out of New Zealand when I did.”

Over the past four years she has seen her mother’s financial situation worsen. “My mum works full time and she is still struggling really bad,” she says. “It is like she is worse off.”

“I have everything that I would never ever have in New Zealand. I would probably still be on the benefit if I lived in NZ right now.”

It seems that for Ms Ireland, of the three possible futures I outlined in 2012 – voters have chosen this path to follow;

Future 2

More of the same, but she has been fortunate enough to be able to find resources and support from whanau over-seas – and she is of to Australia.

In Australia, she finds a relatively good job with decent pay. Her work conditions are protected by a strong Union; she has access to decent social services; and the government assists her and her new partner to build a house. They are both working; earning higher and higher incomes; and contributing to Australia’s economy and tax-base.

In a year or two, she helps other members of her family escape from New Zealand.

They leave behind a no-longer-smiling Prime Minister who is promising to “revitalise the economy” to “entice overseas Kiwis to come back” – then cuts another  1,000 workers from the State Sector and sells the last remaining profitable State Owned Enterprise.

The economy in Australia may be slowing – but it still offers job prospects, housing opportunities, and social services that we here in New Zealand seem to be losing on a daily basis.

Especially when our housing crisis is worsening; child poverty continues to be a blight on our society; wages and wealth disparity continues to widen; social services are being pared back; and government is planning to introduce so-called “labour market reforms” that will further drive down wages, conditions, safety, etc.

This is what voters chose on 20 September.

However, be that as it may, there is one thing that every student of Quantum Theory understands – the future is never set in concrete.

The future can be changed.

Because it must.




Fairfax media:  Aroha of McGehan Close flees NZ

NZ Herald: A Day Out with Friends In High Places

NZ Herald: Family still on struggle street after Key leaves

Scoop Media: Employment Relations Amendment Bill


NZ Herald: ‘No point’ in new state houses – Bill English


Election Commission: Orange Guy

Previous related blogposts

John Key: When propaganda photo-ops go wrong

National Housing propaganda – McGehan Close Revisited

What will be her future?

Other Blogs

The Daily Blog: Chocolate milk shortage and creepy Santa? Let’s talk about real news

The Daily Blog: Ideological Blitzkrieg – Privatization of state housing, more charter schools & more union crushing employment law

The Standard: Poverty and the need to belong

The Standard: No point in state houses








This blogpost was first published on The Daily Blog on 27 October 2014



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