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

12 February 2017 2 comments

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Context

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On 25 January, as Radio NZ returned to it’s normal broadcasting schedule (and putting away it’s dumbed-down “summer programming” until next December/January), John Campbell had his first interview with John Key’s replacement, Bill English.

Campbell raised several issues with English; the US withdrawal from the TPPA; the Pike River mine disaster; and the housing crisis. At this point, English made this staggering claim;

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“We’ve got a government actually with a good record on addressing, in fact, some of the toughest social issues. There may be disagreement over means by which we’re doing it, ah, but our direction is pretty clear. And you know over, certainly heading into election year we think that the approach the government’s developed around social investment, around increasing incomes is the right kind of mix – “

English’s bland assertion that “government actually with a good record on addressing, in fact, some of the toughest social issues” is at variance with actual, real, mounting socio-economic problems in this country.

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Key indicator #1: Unemployment

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The latest HLFS unemployment stats show an increase from 4.9% to 5.2% in the December 2016 Quarter. However, in all likelihood, the unemployment numbers are actually much, much, higher since Statistics NZ arbitrarily altered the way it  calculated what constituted  unemployment.

On 29 June 2016, Statistics NZ announced that it would be changing the manner in which it defined a jobseeker;

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

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

The statement went on to explain;

Change in key labour market estimates:

  • Decreases in the number of people unemployed and the unemployment rate

  • Changes to the seasonally adjusted unemployment rate range from 0.1 to 0.6 percentage points. In the most recent published quarter (March 2016), the unemployment rate is revised down from 5.7 percent to 5.2 percent 

  • Increases in the number of people not in the labour force 

  • Decreases in the size of the labour force and the labour force participation rate

The result of this change? At the stroke of a pen, unemployment fell from 5.7% to 5.2% for the March 2016 Quarter (and subsequent Quarters).

If the “current unemployment figures” from Stats NZ are reported as “5.2%’, they may well be back to the original March 2016 figure of 5.7%, before the government statistician re-jigged definitions.

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Key indicator #2: Housing

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– Home Ownership

According to the 1984 NZ  Yearbook, in 1981 the number of rental dwellings numbered 25.4% of housing. 71.2% were owner-occupied. Nearly three quarters of New Zealanders  owned their homes.

Home ownership reached it’s maximum height in 1991, when it stood at 73.8%. Since then, it has steadily declined.

By 2013 (the most recent census survey), the numbers of rental dwellings had increased to 35.2% (up 33.1% in 2006). Home ownership had decreased to  49.9%  (down from  from 54.5% in 2006). If you include housing held in Family Trusts, the figure rises to 64.8% of households owning their home in 2013, down from 66.9% in 2006.

Whether you include housing held in Family Trusts (which may or may not be owner-occupied or rented out), home ownership has fallen steady since the early 1980s.

Renting has increased from 25.4% to 35.2%.

More and more New Zealanders are losing out on the dream of home ownership. Conversely, more and more of us are becoming tenants in our own country.

As Bernard Hickey from Interest.co.nz said in December last year;

Nearly two thirds of the 430,000 households formed since 1991 are tenants.

Think about that for a moment. It is a stunning revelation of how the young and the poor have been hit the hardest by the changes in New Zealand since the mid-1980s, and on an enormous scale.

It means two thirds of the kids born in those families grew up in rental accommodation, and more than 80% of those are private rentals (although the Housing NZ homes are often no better). That means they often grew up in mouldy, damp, cold and insecure housing. It’s true that some homes occupied by their owners are also below par, but it’s a much lower proportion and owners have the option to improve their homes through insulation and ventilation.

The NZ$696 billion increase in the value of New Zealand’s houses to NZ$821 billion between 1991 and 2015 means the 64% of owners in live-in houses have also had plenty of financial flexibility to improve those houses. Renters have had no access to that wealth creation and are not allowed to put a pin in the wall, let alone put in a ventilation system or some batts in the ceiling. The take-up for the Government’s home insulation and heating subsidies were vastly higher among home-owners than they were for landlords.

Those 284,000 renting households formed since 1991 have also often been forced to move schools and communities and all the roots that build families because New Zealand’s rental market is so transient.

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It illustrates the scale of the fallout from that collapse in home ownership from 1991. Not only has it handicapped the education, health and productivity of a entire generation of New Zealanders, but it is set to magnify the likely growth in pension and healthcare costs of our ageing population. And that’s before the wealth and income inequality effects.

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– Affordability

In 2016, the 13th Annual International Demographia International Housing Affordability survey rated New Zealand as one of the most unaffordable housing markets in the world;

The most affordable major housing markets in 2015 are in the United States, with a moderately unaffordable Median Multiple of 3.9, followed by Japan (4.1), the United Kingdom (4.5), Canada (4.7), Ireland (4.7) and Singapore (4.8). Overall, the major housing markets of Australia (6.6), New Zealand (10.0) and China (18.1) are severely unaffordable. (p2)

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In New Zealand, as in Australia, housing had been rated as affordable until approximately a quarter century ago. (p24)

A 2014 report by the NZ Institute for Economic Research stated  the “the average house price rose from the long-run benchmark of three times the average annual household income to six times“;

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The NZIER report refers to several reasons for increasing housing prices; slow supply of land; demographic demand (from ‘Baby Boomers’); and investor demand caused by lack of a capital gains tax. Interestingly, the Report also refers to an “over-supply of finance”;

The loosening of financial standards and rising household debt relative to income has happened over a long period of time. The increase in indebtedness has coincided with rising house prices relative to incomes. This suggests that increased household indebtedness has at least partly contributed to the increasing price of homes. (p14)

Prior to Roger Douglas de-regulating the banking/finance sector, New Zealand banks could only lend depositor’s funds as mortgages.

As a result, mortgage money was “tight”, and scarcity helped keep house prices down. Vendor’s expectations were kept “in check” by scarcity of bank funds. Prior to the mid 1980s, Vendor’s Finance (by way of a Second Mortgage) were commonly-used financial tools to assist house-owners to sell and buyers to complete a purchase.

Once the banking sector was opened up, and monetary policy relaxed, cheap money flooded in from overseas for banks to on-lend to house-purchasers. As property investor, Ollie Newland vividly explained in the 1996 TV documentary, Revolution;

“I got a phone  call from my bank manager to say some bigwigs were coming up from Wellington to have a chat with me. I thought it was just one public relations things they do. I had a very small office, it wasn’t much bigger than a toilet cubicle, and those five big fellows  crowded in with their briefcases and books and they sat on the floor and the arms of the chairs – I only had one chair in the place – and stood against the walls. Their first words to me were, we’re here to lend you money. As much as you want. For somebody like me, and I’m sure it’s the same for everybody else, to suddenly be told by the bank manager that you could have as much money as you want, help yourself, that was a revelation. We thought we had died and gone to heaven.”

Unfortunately, the side affect of this was to increase vendor’s expectations to gain higher and higher prices for their properties. Combined with recent high immigration, and a lack of a comprehensive capital gains tax, and the results have been troubling for this country;

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As well as increasingly unaffordable housing, we – as a nation – are sitting on a trillion-dollar fiscal bomb.

Think about that for a moment.

Little wonder that in September last year, the Reserve Bank issued the sternest warning yet that we were headed for impending economic mayhem;

A sharp correction in house prices represents a key risk to the financial system, and one that is increasing the longer the current boom in house prices persists. A severe downturn in house prices could have major implications for the banking system, with over 55 percent of bank loans secured against residential property. Moreover, elevated household debt levels and a growing exposure of the banking system to investor loans could reinforce a housing downturn and extend reductions in economic activity, as highly indebted households are forced to reduce consumption and sell property.

As with many other individuals, institutions, organisations, business leaders, left-wing commentators, media, political pundits, political parties, the NZIER was (and still is) calling for a comprehensive capital gains tax to be implemented.

Even then, this blogger suspects we may be too late. National (and it’s predecessor, to be fair) have left it far to late and the economic horse has well and truly bolted.

Even a Capital Gains Tax at 28% – New Zealand’s current corporate tax rate – may be insufficient to dampen speculative demand for properties.

Meanwhile, the dream of Kiwis owning their own homes continues to slip away.

Depressingly, New Zealanders themselves have permitted this to happen.

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– State Housing

If the Middle Classes and their Millenial Offspring are finding it hard to buy their first home, think of the poorest  families and individuals in our communities. For them, social housing consists of packing multiple families into a single house; living in an uninsulated, drafty,  garage; or in cars.

Last year, the story of mass homelessness exploded onto our media and our “radar” as New Zealanders woke up to the reality of persistent poverty in our cities;

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Although on occassion, the mainstream media found them themselves  in embarrassingly ‘schizophrenic’ situations as they attempted to reconcile reporting on our growing housing crisis – whilst raising advertising revenue by  promoting “reality” TV programmes that were far, far removed from many people’s own disturbing reality;

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According to UNICEF;

295,000 New Zealand kids are living beneath the poverty line, which means they are living in households where income is less than 60% of the median household income after housing costs are taken into consideration.

One way to alleviate poverty is to provide state housing, at minimal rental, to families suffering deprivation. Not only does this make housing affordable, but also strengthens a sense of community and reduces transience.

Transience can have deletarious effects on families – especially on children – who then struggle with the stresses of losing friends; adjusting to new neighbourhoods, and new schools.

A government report states that transience for children can have extreme, negative impact on  their learning;

Nearly 3,700 students were recognised as transient during the 2014 year. Māori students were more likely to be transient than students in other ethnic groups.

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Students need stability in their schooling in order to experience continuity, belonging and support so that they stay interested and engaged in learning.

All schools face the constant challenge of ensuring that students feel they belong and are encouraged to participate at school. When students arrive at a school part-way through a term or school year, having been at another school with different routines, this challenge may become greater.

Students have better outcomes if they do not move school regularly. There is good evidence that student transience has a negative impact on student outcomes, both in New Zealand and overseas. Research suggests that students who move home or school frequently are more likely to underachieve in formal education when compared with students that have a more stable school life. A recent study found that school movement had an even stronger effect on educational success than residential movement.

There is also evidence that transience can have negative effects on student behaviour, and on short term social and health experience

Writing for The Dominion Post, in April 2014, Elinor Chisholm and  Philippa Howden-Chapman pointed out the blindingly obvious;

Continuity of education and supportive relationships with teachers are critical for children’s educational performance.

“Churn” is not good for educational performance or enrolment in primary health care, where staff can ensure children are properly immunised and chronic health problems can be followed up.

It was for this reason that, in our submission on the Social Housing Reform Bill late last year, we strongly recommended that families with school- age children should be excluded from tenancy review.

Secure tenure and stability at one school would allow children the best chance of flourishing. In high- performing countries such as the Netherlands, children are explicitly discouraged from changing schools in the middle of the school year.

The bill had announced the extension of reviewable tenancies to all state tenants (new state tenants had been subject to tenancy review since mid- 2011). However, the housing minister, as well as the Ministry of Business, Innovation and Employment, had made clear that the disabled and the elderly were to be excluded from tenancy reviews.

In our submission, we acknowledged the Government for recognising the importance of secure tenure.

People who are compelled to move house involuntarily can experience stress, loss, grief and poorer mental health. Housing insecurity is also associated with poorer physical health.

National’s policy of ending a state “house for life”;  increased tenancy reviews for state house tenants, coupled with the sale of state houses, is inimical to the stabilisation of vulnerable families; the well-being of children in those families; and to communities.

In 2008, Housing NZ owned 69,000 rental properties.

By 2016, that number had dropped significantly to 61,600 (plus a further 2,700 leased).  National had disposed of some 7,400 properties.

Between 2014 and 2016, at least 600 state house tenants lost their homes after “reviews”.

This, despite our growing population.

This, despite John Key’s own family having been provided with the security of a state house, and Key enjoying a near-free University education.

This, despite John Key, ex-currency trader,  and multi-millionaire, admitting in 2011 that New Zealand’s under-class was growing.

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Key indicator #3: Incomes & Inequality

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In June 2014, Oxfam reported on New Zealand’s growing dire child poverty crisis;

The richest ten per cent of New Zealanders are wealthier than the rest of the population combined as the gap between rich and poor continues to widen.

Oxfam New Zealand’s Executive Director Rachael Le Mesurier said the numbers are a staggering illustration that the wealth gap in New Zealand is stark and mirrors a global trend that needs to be addressed by governments in New Zealand, and around the world, in order to win the fight against poverty.

“Extreme wealth inequality is deeply worrying. Our nation is becoming more divided, with an elite who are seeing their bank balances go up, whilst hundreds of thousands of New Zealanders struggle to make ends meet,” said Le Mesurier.

Figures for the top one per cent are even more striking. According to the most recent data, taken from the 2013 Credit Suisse Global Wealth Databook, 44,000 Kiwis – who could comfortably fit into Eden Park with thousands of empty seats to spare – hold more wealth than three million New Zealanders. Put differently, this lists the share of wealth owned by the top one per cent of Kiwis as 25.1 per cent, meaning they control more than the bottom 70 per cent of the population.

Oxfam New Zealand’s Executive Director, Rachael Le Mesurier, was blunt in her condemnation;

“Extreme inequality is a sign of economic failure. New Zealand can and must do better. It’s time for our leaders to move past the rhetoric. By concentrating wealth and power in the hands of the few, inequality robs the poorest people of the support they need to improve their lives, and means that their voices go unheard. If the global community fails to curb widening inequality, we can expect more economic and social problems.”

A 2014 OECD report placed New Zealand as one of the worst for growing inequality;

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Not only was inequality a social blight, but according to the report it impacted negatively on economic growth;

Rising inequality is estimated to have knocked more than 4 percentage points off growth in half of the countries over two decades. On the other hand, greater equality prior to the crisis helped increase GDP per capita in a few countries, notably Spain.

According to the OECD assessment,  income inequality had impacted the most on New Zealand, with only Mexico a close second;

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The OECD Report went further, making this “radical” observation;

The most direct policy tool to reduce inequality is redistribution through taxes and benefits. The analysis shows that redistribution per se does not lower economic growth.

The statement went on to “qualify”  any suggestion of socialism with a caveat. But the declaration that “analysis shows that redistribution per se does not lower economic growth” remained, constituting a direct contradiction and challenge to current neo-liberal othodoxy.

In August 2015, former City Voice editor, and now NZ Herald social issues reporter, Simon Collins revealed the growing level of child poverty in this country;

The Ministry of Social Development’s annual household incomes report shows that the numbers below a European standard measure of absolute hardship, based on measures such as not having a warm home or two pairs of shoes, fell from 165,000 in 2013 to 145,000 (14 per cent of all children) last year, the lowest number since 2007.

Children in benefit-dependent families also dwindled from a recent peak of 235,000 (22 per cent) in 2011, and 202,000 (19 per cent) in 2013, to just 180,000 (17 per cent) last year – the lowest proportion of children living on benefits since the late 1980s.

But inequality worsened because average incomes for working families increased much faster at high and middle-income levels than for lower-paid workers.

The net result was that the number of children living in households earning below 60 per cent of the median income after housing costs jumped from a five-year low of 260,000 in 2013 to 305,000 last year, the highest since a peak of 315,000 at the worst point of the global financial crisis in 2010.

In percentage terms, 29 per cent of Kiwi children are now in relative poverty, up from 24 per cent in 2013 and only a fraction below the 2010 peak of 30 per cent.

In September 2016, Statistics NZ confirmed the widening of  income inequality from 1988 to 2015,  between households with high  and  low incomes;

  • In 2015, the disposable income of a high-income household was over two-and-a-half times larger than that of a low-income household.
  • Between 1988 and 2015, the income inequality ratio increased from 2.24 to 2.61.  

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The neo-liberal “revolution” took place from the mid-to-late 1980s. Hardly surprisingly, the rise in income inequality takes place at the same time.

Income inequality dipped from 2004 when Labour’s “Working for Families” was introduced.

However, income inequality worsened after 2009 and 2010, when National cut taxes for the rich; increased GST (which impacts most harshly on low-income families and individuals); and increased user-charges on essential services such as prescription fees, ACC levies, court fees, etc. Increasingly complicated WINZ requirements for annual re-applications for benefits and complex paperwork may also have worsened the plight of the country’s poorest.

Despite all the promises made by the Lange government; the Bolger government; and every government since, our neo-liberal “reforms” have not been kind to those on low and middle incomes.

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Key indicator #4: Child poverty

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According to Otago University’s Child Poverty Monitor in 2014;

Child poverty has not always been this bad – the child poverty rate in the New Zealand many of us grew up in 30 years ago was 14%, compared to current levels of 24%.

Thirty years prior to 2014 was the year 1984. David Lange’s Labour Party had been elected to power.

Roger Douglas was appointed Minister of Finance. The Member for Selwyn, Ruth Richardson, was also in Parliament, taking notes.

The term “trickle down” entered our consciousness and vocabulary. It promised that, with tax cuts; privatisation; winding back state services; and economic de-regulation, wealth would trickle down to those at the bottom of the socio-economic ladder.

How is that working out for us so far?

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So much for  the “aspirational dream” offered to us by “trickle down” economics.

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Key indicator #5: The Real Beneficiaries

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In June last year, Radio NZ reported  the  latest survey of household wealth by Statistics NZ. It found;

“…the country’s richest individuals – those in the top 10 percent – held 60 percent of all wealth by the end of July 2015. Between 2003 and 2010, those individuals had held 55 percent. The richest 10 percent of households held half of New Zealand’s wealth, while the poorest 40 percent held just 3 percent of total wealth.”

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Following hard on the heels of the Stats NZ report,  Oxfam NZ made a disturbing revelation;

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Three years after her previous public warning,  Oxfam New Zealand’s, Rachael Le Mesurier, was no less scathing. Her exasperation was clear;

“The gap between the extremely wealthy and the rest of us is greater than we thought, both in New Zealand and around the world. It is trapping huge numbers of people in poverty and fracturing our societies, as seen in New Zealand in the changing profile of home ownership.”

National minister, Steven Joyce responded. He was his usual mealy-mouthed self when interviewed on Radio NZ about the Oxfam report;

“There’s always inequality but again you have got to look at those reports carefully because in that report a young medical graduate who has just come out of university would be listed as somebody who is in the poorest 20 per cent because they have a student loan.They’ll pay that student loan off in about four years and they’ll be earning incomes of over $100,000 very quickly.

So although they’re in those figures today, they won’t be in those figures in five years’ time.”

Which appears to sum up the National government’s head-in-sand attitude on child poverty and income inequality.

Economist, Shamubeel Eaqub, though, had a different “take” on the issue and warned;

“Every time we see a new statistic on inequality, whether it’s in terms of income, opportunities or wealth, it shows very clearly that New Zealand is being ripped apart by our class system.”

When economists begin to issue dire social warnings, you know that matters have taken a turn for the worse.

So where does that leave our New Dear Leader Bill English  with his insistence  that “we’ve got a government actually with a good record on addressing, in fact, some of the toughest social issues”?

English’s assertion to John Campbell on Radio NZ, on 25 January, (outlined at the beginning of this story) makes sense only if it it is re-phrased;

“We’ve got a government actually with a good record on addressing, in fact, some of the toughest wealth-accumulation issues. There may be disagreement over means by which we’re doing it, ah, but our direction is pretty clear. And you know over, certainly heading into election year we think that the approach the government’s developed around private investment, around increasing incomes for the wealthiest ten percent is the right kind of mix – “

Not a very palatable message – but vastly more truthful as income inequality continues to wreak appalling consequences throughout our communities and economy.

Otherwise, English appears to reside not so much in the Land of the Long White Cloud, but in the Realm of Wishful Thinking.

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References

Radio NZ: Checkpoint – Bill English on the challenges of his first month as PM

Scoop media: Unemployment rate rises to 5.2 percent as labour force grows

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

NZ 1984 Yearbook: 3A – General SummaryCensus of population and dwellings 1981 (see “Tenure of Dwelling”)

Statistics NZ: Owner-Occupied Households

Statistics NZ: 2013 Census QuickStats about national highlights – Home Ownership

Interest.co.nz: Bernard Hickey says the collapse in home-ownership rates among families formed since 1991 is an unfolding disaster for NZ’s economy, our society and the Government’s finances

International Demographia: 13th Annual  International Housing Affordability

NZ Institute for Economic Research: The home affordability challenge

Monetary Meg: What is vendor finance?

Radio NZ: NZ immigration returns to record level

NZ On Screen: Revolution

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

Reserve Bank: Regulatory Impact Assessment of revised LVR restriction proposals September 2016 – Adequacy Statement

The Guardian: New Zealand housing crisis forces hundreds to live in tents and garages

Fairfax media: One in 100 Kiwis homeless, new study shows numbers quickly rising

Al Jazeera: New Zealand’s homeless: Living in cars and garages

NZ Herald: Homelessness rising in New Zealand

Radio NZ: Homeless family faces $100k WINZ debt

TV3 News: The hidden homeless – Families forced to live in cars

TV1 News: Housing crisis hits Tauranga, forcing families into garages and cars

UNICEF: Let’s Talk about child poverty

Education Counts: Transient students

Dominion Post: Housing policy will destabilise life for children

NZ Herald: State housing shake-up – Lease up on idea of ‘house for life’

Radio NZ: Thousands of state houses up for sale

Housing NZ: Annual Report 2008/09

Housing NZ: Annual Report 2015/16

Fairfax media: Nearly 600 state house tenants removed after end of ‘house for life’ policy

NZ Herald: Key admits underclass still growing

Oxfam: Richest 10% of Kiwis control more wealth than remaining 90%

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

Statistics NZ: Income inequality

Law Society: Civil court fee changes commence

Fairfax media: Prescription price rise hits vulnerable

Salaries.co.nz: ACC levies to increase in April 2010

Radio NZ: Thousands losing benefits due to paperwork

Scoop media: Health Issues Highlighted in Child Poverty Monitor

NZ Herald: Hungry kids foraging in pig scraps ‘like the slums of Brazil’

Fairfax media: Damp state house played part in toddler’s death

NZ Herald: More living in cars as rents go through roof

NZ Doctor: Tackle poverty to fight rheumatic fever

Radio NZ: 10% richest Kiwis own 60% of NZ’s wealth

Fairfax media: Wealth inequality in NZ worse than Australia

Radio NZ: Steven Joyce responds to Oxfam wealth inequality report

Additional

Dominion Post: Kids dragged from school to school

Other Blogs

The Standard: John Key used to be ambitious about dealing with poverty in New Zealand

Previous related blogposts

Lies, Damned lies and Statistical Lies

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

National exploits fudged Statistics NZ unemployment figures

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

CYF – The Hollowing Out of a State Agency

The Mendacities of Mr Key # 18: “No question – NZ is better off!”

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

The Mendacities of Mr English – Fibbing from Finance Minister confirmed

Rebuilding the Country we grew up in – Little’s Big Task ahead

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This blogpost was first published on The Daily Blog on 7 February 2017.

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Lies, Damned lies and Statistical Lies

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ministry-of-truth-update

 

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In the last few years,  my writing has involved a wide range of topics affecting the social/economic/political aspects of our nation. The one common factor in my writing has been the ability to  research facts and figures and put them into some usable context, either for evidential, or high-lighting purposes.

Offering an opinion that the government is hollowing-out Child,Youth, and Family is one thing. Carrying out research; finding information through the ‘net; asking specific questions using the Official Information Act are the means by which hard facts can be mined; refined; and presented to the reader in a form that presents a credible case to the audience. Stories such as  “State house sell-off in Tauranga unravelling?” and “Ongoing jobless tally” are put together using information, quotes, financial and statistical data.

Two stories late last year illustrated how National – with silence or active co-operation by compliant state-sector bosses – has been able to manipulate statistics to present a favourable public perception of it’s management of the country.

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Media stories of the Week - Police Commissioner Mike Bush on dubious police practices

 

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Though occassionally, the truth slips out, as Greg O’Connor revealed on TVNZ’s Q+A on 25 October, last year;

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Weekend Revelations 3 – Greg O’Connor and criminal statistics

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Fudging statistics, numbers, facts, and dollar-figures is not isolated when it comes to this government. Only a few days ago, English was sprung giving false financial information relating to Sue Moroney’s paid-parental leave bill;

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English admits maths error in bill veto defence

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The Radio NZ report went on to state;

Ms Moroney challenged him about the figures in Parliament.

“Does he stand by his statement to Radio New Zealand on 17 June 2016 that extending paid parental leave to 26 weeks would add when it’s fully in place about $280 million a year.”

Mr English admitted he was incorrect and should have used the figures written in the veto certificate he himself had tabled.

“The government currently spends about $280m a year on paid parental leave, Labour’s proposal once fully implemented would cost around $120m per year on top of that – or $100m per year net of tax. Net of tax the proposal would cost $280m over the next four years.”

Ms Moroney then asked how Mr English got it so wrong.

He replied that he did so because he confused the $280m over four years, with $280m a year.

This is our Finance Minister confusing $280 million per year with over a four-year period. No wonder we’re over $60 billion in debt.

National has been crowing for the last few years that “crime has been falling“;

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Offences at 24-year low, crime down for third year running

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Even the Police Commissioner got in on the ‘act’;

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Crime rate falls to 29-year low

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A huge amount of hard work from our Police has gone into achieving these fantastic results,” said Tolley in 2013. “Fantastic” is right – as in fantasy-fantastic.

Because it did not take long before people started realising that the Police stats were dodgy, and most likely bogus.

This was confirmed by  outgoing Police Association President, Greg O’Conner, on TVNZ’s Q+A, on 25 October, in a very candid  interview with Michael Parkin.

On statistics,  Parkin referred  to  National and Police  trumpeting a 30% drop in crime. O’Conner responded wryly;

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“Well, it’s uh, lies, damned lies, and statistics. If you look at the crime stats, um, which is those recorded stats, you’ll say the government and police administration are right. If you look at the stats around calls for service, they’re the phone calls that police receive in communications centes, etc, and just an example, family violence, domestic disputes; up by 10% a year pretty much, and across the board, 20% increase. So it’s the calls for service, to the extent that the communications centres couldn’t manage last summer. There’s a fear, and we’re obviously we’re trying to make sure it doesn’t happen this year. So the two are going in completely different directions.”

Parkin pointedly asked if the statistics are being manipulated. O’Conner’s response  was startling in it’s honesty;

@3.55

“Of course they are. Every government department – I mean, what happens is that, the stats themselves are fair, but I mean I see it as a debate [like] about health, y’know, medical – the waitings lists have going down, but people get kicked of waiting lists and so it’s, you achieve – Put it this way, with crime stats, what we’ve set out to do is the way to cut crime stats is to hit your bulk crime. So if you have any success there, of course, that’s going to be big numbers down. And what you ignore is your small  numbers. You ignore, in fact, interestingly enough you ignore drugs. You ignore a lot of your serious stuff that you only find if you go looking. And in the past that’s got us into real trouble. Got us into trouble with the child abuse files, in particular, and you remember, that they were put aside. Because they weren’t politically known. They were business as usual. All of a sudden we were concentrating on the crime and crash reduction, um, and we ignored that stuff. And so you’ve got to be careful. And this is where the politicisation of policing is really dangerous. It’s not done by the Minister saying ‘you gotta do this and you gotta do that’, it’s done by funding.”

O’Conner’s scorn is confirmed by an event last year where one police district was caught out, red-handed, falsifying crime statistics. Seven hundred burglary offences “disappeared”;

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Police made burglaries vanish - greg o'conner - national - crime statistics

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Herald journalist, Eugene Bingham, reported;

“ It transpired others knew about the allegations around the same time, including the local MP and then-Minister of Justice, Judith Collins.”

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Two-year search for 'ghost crimes' truth - greg o'conner - national - crime statistics

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A police report “raised questions over pressures to meet crime reduction targets”, but Police were quick to assure that the fudged stats were “isolated“;

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Police deny being caught out by false review claims - greg o'conner - national - crime statistics

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“Isolated”? As far back as 2012, Police were issuing warnings for petty-crime, instead of prosecuting;

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Warnings to petty crims 'freeing up police time'

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Then-Police Commissioner Peter Marshall said;

“ These are 19,000 people who would otherwise go to court, who would clutter up the system in terms of court time, let alone police officers preparing prosecution files and spending time in court.”

So the policy of issuing warnings “freed up police time” and “un-clogged the Court system”?

It also created a drop in crime statistics.

How convenient.

The above Herald story, “Warnings to petty crims ‘freeing up police time’ ” appeared in the Herald in January 2012. So by April 2013, Police Minister Anne Tolley was able to say with (almost) a straight face;

“ These statistics show that our Police are getting it right, and I want to congratulate the Commissioner and all Police staff for their efforts in preventing crime and making communities safer.”

It’s easy to reduce crime. Just “massage” the stats  away.

“Massaging” statistics does not work for long, as current Police Commissioner Bush recently discovered;

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Police concerned at national crime spike

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(Listen also to Radio NZ Checkpoint interview (2′ 39″))

Both Police Minister Judith Collins and Commissioner Bush resorted to old-fashioned “spin” (aka “bullshitry”) to explain away this embarrassing development;

Police Commissioner Mike Bush told MPs at today’s Law and Order Select Committee the jump in crime had to be kept in perspective.

“Burglary rates are some of the lowest rates in over a decade, in recent times there has been an increase – now that concerns me,” the commissioner said.

Police Minister Judith Collins tried to put a positive spin on the jump in crime when speaking to reporters later.

“Well there may have been a slight bump in crime and I think the commissioner said that was most likely so, but I think what we’re seeing is if police go after drug offenders, that’s always going to be counting as offences,” she said.

On this basis, if  Police  did not arrest anyone; nor prosecuted anyone, there would be zero crime in New Zealand. According to statistics, anyway.

So much for one one National’s vaunted, lynch-pin policies;

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National hoarding staying strong on crime

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National’s ministers have never liked statistics. They have a tendency to show up the failings of this inept government. Who can forget then-Welfare Minister, Paula Bennett in August 2012 giving an explanation (of sorts) why her government was not willing to undertake measuring the poverty line;

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measuring-poverty-line-not-a-priority-bennett

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“ There is no official measure of poverty in New Zealand. The actual work to address poverty is perhaps what is most important. Children move in and out of poverty on a daily basis.”

Though how Bennett proposed to “address poverty” when she was fearful of even measuring it has never been fully explained.

But as we know, since Bennett’s decision, poverty has increased and stories of people living in garages, cars, and families crammed into over-crowded houses have come to light. Despite not being measured, poverty refuses to go away.

What an inconvenient, annoying nuisance.

On 29 June 2016, Statistics NZ announced that it would be changing the manner in which it defined a jobseeker;

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

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

The statement went on to explain;

Change in key labour market estimates:

  • Decreases in the number of people unemployed and the unemployment rate

  • Changes to the seasonally adjusted unemployment rate range from 0.1 to 0.6 percentage points. In the most recent published quarter (March 2016), the unemployment rate is revised down from 5.7 percent to 5.2 percent 

  • Increases in the number of people not in the labour force 

  • Decreases in the size of the labour force and the labour force participation rate

The result of this change? At the stroke of a pen, unemployment fell from 5.7% to 5.2%.

Simply because if a person was job-searching using the internet they were “not actively seeking work“.

Which beggars belief as the majority of jobseekers will be using the internet. It is the 21st century – what else would they be using?

In fact, a government website – careersnz – states categorically;

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careersnz - use the internet

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Work and Income’s (WINZ) website states similarly;

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work and income - where to look

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On-line job advertising company, Seek,  reported a sharp rise in job adverts on their websites.

For the government statistician to unilaterally declare that “looking at job advertisements on the internet is correctly classified as not actively seeking work” beggars belief. One might as well say that if a person admitted to hospital shows no outward signs of serious illness, then that person is obviously not sick.

When most jobs are advertised online – as stated by government agencies!!! – where else would one look for a job? By studying tea-leaves perhaps?

The result of Statistics NZ’s “improvements” by removing online job-hunting as job-seeking is obvious; the rate of unemployment dropped.

How surprising.

Stats NZ actually seemed pleased with the consequence;

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

How can “the counts of people unemployed” be “more accurate” if large numbers of unemployed are culled from the count?!?! In what Universe is this an accurate count to include some unemployed, but not others, for the most specious reason?

This makes no sense in terms of accurate statistics. To any sober person, an unemployed jobseeker is one who is;

  1. Unemployment
  2. Job-seeking

There is no rationale for arbitrarily removing job seekers who use the internet to seek work. Especially as two government departments encourage on-line searching because “most jobs in NZ are advertised online“.

There can only be one rational explanation: the unemployment statistics are inconvenient. Therefore change the parameters of the statistics.

This change to Statistics NZ is of considerable benefit to the National government. Their policies have consistently failed to reduced unemployment in a meaningful way.

The perception is that “strings have been pulled”; “whispers made into certain ears”; and Ministers’ expectations made clear to certain senior civil servants.

If all this is true, this would have to be one of the most under-hand things that National has done these last eight years. This would have to be one of the worst.

Aside from the fact that it is another in a long list of lies, bendy-truths, omissions, etc, this one is a wilful attempt to hide the consequences of their failing policies.

It was bad enough when Stats NZ defined being “employed” as;

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

If working one hour, without pay, is the minimum measure of being “employed”, then what must our true rate of unemployment actually be?

As much as possible, I deal with facts in my writing. But when supposedly independent, non-partisan, ostensibly-accurate data-collection and presentation is no longer a true reflection of reality, then we have reached a point where I am dealing in assumptions, half-facts, and outright distortions.

This government has done what few other Western democracies have achieved; a state of Orwellianism that Stalinist Russia, Nazi Germany, and other dictatorships required unrelenting brute force to achieve.

When it comes to National, believe nothing; question everything. Misinformation is policy.

Welcome – to National’s “Brighter Future”.

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Note: Some parts of this story are an excerpt from a previous blogpost,  Weekend Revelations #3 – Greg O’Connor and criminal statistics.

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References

TVNZ: Q+A – Police Association president steps down

Radio NZ: English admits maths error in bill veto defence

Beehive.govt.nz: Offences at 24-year low, crime down for third year running

NZ Herald: Crime rate falls to 29-year low

NZ Herald:  Police made burglaries vanish

NZ Herald:  Two-year search for ‘ghost crimes’ truth

NZ Herald:  Police deny being caught out by false review claims

NZ Herald: Warnings to petty crims ‘freeing up police time’

Radio NZ: Police concerned at national crime spike

Radio NZ: Checkpoint – Police concerned at national crime spike (audio)

NZ Herald: Measuring poverty line not a priority – Bennett

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

Careersnz: Job hunting tips

Work and Income: Where to look

Fairfax media: Wellington jobs advertised on Seek up 11 per cent over past year

Statistics NZ: Household Labour Force Survey – Definitions

Other Blogposts

Polity: English canards

The Daily Blog: To make the unemployment stats drop, Government now claims anyone looking for jobs on the internet isn’t unemployed

The Standard: The great big list of John Key’s big fat lies (UPDATED)

The Standard: “Post-truth” politics (and false equivalences)

Previous related blogposts

John Key’s “pinch of salt” style of telling the truth

National – self-censoring embarrassing statements?

Weekend Revelations #3 – Greg O’Connor and criminal statistics

Media stories of the Week: Police Commissioner Mike Bush on dubious police practices

The Mendacities of Mr English – Fibbing from Finance Minister confirmed

The Mendacities of Mr Key # 16: The sale of Kiwibank eight years in the planning?

That was Then, This is Now #28 – John Key on transparency

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This blogpost was first published on The Daily Blog on 3 July 2016.

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Success for National Govt – new bank opens!

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In 2002, the Labour-Alliance Coalition gave us a new bank;

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Kiwibank_Logo_Wide

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This year, National’s policies (or lack of) delivered us this new bank;

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New foodbank opens in New Lynn - Radio NZ - Generation Ignite - John Campbell

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Nothing quite spells “success”  like a new Food Bank opening in a community near you.

Listen to John Campbell interviewing Jo Noema on her foodbank project, “Generation Ignite“. Truly a remarkable New Zealander.

Generous people like Jo are the reason that disadvantaged, impoverished families are able to survive. They are doing what well-paid, well-resourced National Ministers are tasked to  do, but are failing miserably.

When John Key promised us a “Brighter Future”, I don’t think this  is quite  what we were anticipating.

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References

Radio NZ: New foodbank opens in New Lynn

Additional

Facebook: Generation Ignite

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Dear Leader John Key sitting on his hands - Tremain

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This blogpost was first published on The Daily Blog on11 June 2016.

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Letter to the editor – homelessness, class eugenics, and middle class sensibilities

11 June 2016 2 comments

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Frank Macskasy - letters to the editor - Frankly Speaking

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The first three paragraphs are brilliant. The next three are a descent into the depths of wilful human blindness. It is tragic how many people feel this way…

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letter to the editor - homelessness - class eugenics - russell vant

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… as if the right to have a family and raise children to be good citizens of this country  is now the sole privilege of the affluent.

So I replied, with my thoughts;

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from: Frank Macskasy <fmacskasy@gmail.com>
to: The Wellingtonian <editor@thewellingtonian.co.nz>
date: Sat, Jun 4, 2016
subject:Letter to the editor

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The editor

The Wellingtonian

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Russell Vant’s first three paragraphs of his letter, on homelessness, conveyed the true spirit of Kiwi generosity. (26 May)

But his last three paragraphs appears to make a subtle argument for what can only be described as class eugenics; the elimination of undesirables from society for economic reasons.

Mr Vant demands, “at what point does the collective have a say in the reproductive process, coming together to work out how many children our society can adequately support”?

It is a chilling suggestion that our “reproductive processes” should be pre-determined and enforced like some Kiwi version of China’s one-child policy.

Perhaps his idea is more targetted at a specific group in our society? Not Jews – this time it’s poor families. The suggestion that poor people shouldn’t “breed” because of their financial circumstances is not uncommon.

It is a naive, simplistic response to low incomes and growing poverty since the neo-liberal revolution in 1984.

Addressing the real causes of income/wealth disparity is a complex process. That is no reason to make scapegoats out of those who have been crushed by the cold invisible hand of the so-called “free” market.

The day New Zealand allows only the affluent to raise a family is not a day I want to live to see.

.-Frank Macskasy

[address and phone number supplied]

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halloween trickle down - what could go wrong

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This blogpost was first published on The Daily Blog on 6 June 2016.

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Letter to Radio NZ – Homelessness, Poverty, and the Final Solution

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Frank Macskasy - letters to the editor - Frankly Speaking

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from: Frank Macskasy <fmacskasy@gmail.com>
to: Morning Report <morningreport@radionz.co.nz>
date: Wed, May 18, 2016
subject: Homelessness and the Final Solution

Kia ora Suzie & Guyon,

I’ve been hearing some of your listeners making comments that the homeless should not have children.

In effect, what they are doing is blaming the poorest in society for their predicament. Really? When did the poor ever decide economic policy in this country?

What those correspondents are saying is only the well-off should have children.

The only question that remains to be answered is what do working families do when they are made redundant and end up in garages or cars with their children – what method do your correspondents advocate to euthenase those children?

Because that is what they’re advocating; a Final Solution for the Poor.

– Frank Macskasy

 

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National’s Food In Schools programme reveals depth of child poverty in New Zealand

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Recently obtained OIA figures from the Ministry of Social Development reveal that 836 schools currently participate in the Kickstart food-in-schools programme. The programme began in 2009, between Fonterra and Sanitarium, to address a growing child poverty crisis.

According  to MSD’s data, over 100,000 breakfasts  are served to 27,061 children on a weekly basis.

This is in stark contrast to John Key’s claims on 5 November 2014, that hungry children in schools was only a minor problem;

“I do not believe that the number of children who go to decile 1 to 4 schools who do not have lunch is 15 percent. I have asked extensively at the decile 1, 2, 3, and 4 schools I have been to. Quite a number of principals actually even reject the notion that they need breakfast in schools. Those who do take breakfasts in schools tell me that for the odd child who does not have lunch, they either give them some more breakfast or provide them with lunch. But what they have said to me is that the number of children in those schools who actually require lunch is the odd one or two.”

The odd one or two” is contradicted by the ministry’s own figures which states that from 13 December 2013, “more than 5.9 million breakfasts  have been served since expansion“.

This would tally from Key’s own admission, on 18 October 2011, that poverty in New Zealand was continuing to worsen under his administration;

Mr Key made the concession yesterday when asked about progress with the underclass, saying it depended what measures were used but recessions tended to disproportionately affect low income earners and young people.

He said he had visited a number of budgeting services and food banks “and I think it’s fair to say they’ve seen an increase in people accessing their services. So that situation is there.”

National expanded the Kickstart programme in May 2013, in response to growing public disquiet and clamour to address the spectacle of children turning up hungry in our schools. It was also in response to Hone Harawira’s  Education (Breakfast and Lunch Programmes in Schools) Amendment Bill (aka, “Feed the Kids” Bill), which had been included six months earlier in the private member’s ballot system.

As Harawira explained in May 2014,

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"I know this bill isn't the full answer — that families need more work and better wages to feed their kids every day all week long and that much more needs to be put in place to turn around rising child poverty levels in Aotearoa. "All I want to do with this Bill is make sure our kids get fed while this is being done."

I know this bill isn’t the full answer — that families need more work and better wages to feed their kids every day all week long and that much more needs to be put in place to turn around rising child poverty levels in Aotearoa.
“All I want to do with this Bill is make sure our kids get fed while this is being done.”

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National’s subsequent, watered down programme to feed hungry children was derided by then-Labour leader, David Shearer;

“National’s been dragged kicking and screaming to the finish line on this. It’s only through public pressure and the pressure of Opposition parties like the Labour Party that’s got them there. But overall, it’s good for those kids who go to school hungry.”

In June 2013, then Social Development Minister, Paula Bennett, assured Radio NZ that only another hundred schools would take up the expanded Kickstart programme.

By the beginning of 2014, the programme was expanded to include all decile 1 to 10 primary, intermediate, and secondary schools.

However, MSD’s Deputy Chief Executive, Murray Edridge,  revealed that there had been a “47 per cent  increase since the expansion of the programme” in 2013;

“82 per cent of all participating schools are now providing KickStart breakfasts for more than two days per week and 58 per cent of schools are serving breakfasts for all five days of the week.”

This is at variance with Key’s assertions – made as late as 19 March last year – that hungry children going to school was not a problem. In minimising the problem, Key said;

“These are the facts,” Mr Key said. “At Te Waiu o Ngati Porou School, Ruatoria, Decile one, how many children came to school without lunch – answer – zero.”

At Sylvia Park School, decile two – there one or two kids, and at Manurewa Intermediate, a decile one school with a roll of 711, perhaps 12 had gone to school with no lunch.

Yes there is an issue where some children come to school without lunch. That number of children is relatively low.”

The rise in demand for KickStart breakfasts occurred at the same time as those on  welfare benefits was cut dramatically;

Social Development Minister Anne Tolley said today the 309,145 people on benefit at the end of the December 2014 quarter was 12,700 fewer than last year.

“This is the lowest December quarter since 2008 and the third consecutive quarter with such record lows,” Tolley says.

Numbers on the Jobseeker Support benefit had fallen by more than 5500 since last year and had declined consistently since 2010, even as the overall working age population increased.

Even children with disabilities did not escaped this government’s culling of welfare recipients;

More than 11,000 disabled children have lost access to a welfare benefit that is supposed to support them, as officials try to rein in previously-ballooning costs.

A Child Poverty Action Group report on disabled children, launched in Auckland today, said children supported by the child disability allowance almost trebled from 17,600 in 1998 to 45,800 in 2009, but were then cut back to just 34,500 last June.

The cut has been achieved both by tightening criteria and by simply not publicising the allowance.

The problem of hungry school children drew John Key’s attention as far back as 2007, when he was still Leader of the Opposition;

National launches its Food in Schools programme
Sunday, 4 February 2007, 1:21 pm
Press Release: New Zealand Government

John Key MP
National Party Leader

3 February 2007

National launches its Food in Schools programme

National Party Leader John Key has announced the first initiative in what will be a National Food in Schools programme.

“National is committed to providing practical solutions to the problems which Helen Clark says don’t exist,” says Mr Key.

During his State of the Nation speech on Tuesday, Mr Key indicated National would seek to introduce a food in schools programme at our poorest schools in partnership with the business community.

Mr Key has since received an approach from Auckland-based company Tasti foods.

“I approached Wesley Primary School yesterday, a decile 1 school near McGehan Close, a street that has had more than its fair share of problems in recent times. I am told Wesley Primary, like so many schools in New Zealand, has too many kids turning up hungry.

“We’re putting Tasti and Wesley Primary together. This is a fantastic first step. In addition to this, Tasti has indicated they may wish to expand their generous donation of food to other schools in need, and we’ll be looking to facilitate that.

“We all instinctively know that hungry kids aren’t happy and healthy kids.”

Mr Key is also inviting other businesses to contact National so it can work on expanding the programme.

“I want this to be the first of many schools and businesses that we put together. I’m interested in what works and I am humbled by the support this idea has received already. We are going to put together the package while in Opposition. We are not waiting to be in Government, because all our kids deserve better.”

According to National,  this was a critical problem in 2007.

Yet, on 19 March, National and it’s coalition supporters voted down Mana’s “Feed the Kids” Bill (which had been taken over by the Green Party after Hone Harawira lost his Te Tai Tokerau seat in 2014). The Bill was defeated 61 to 59, courtesy of National, ACT, and Peter Dunne.

MSD also disclosed that 26 applications for participation in the KickStart programme had been declined. This included Early Childhood Education (ECE) providers. No reason was given despite the OIA request specifically asking the basis for which applications were declined.

This indicates that pre-schoolers are presently attending ECE facilities and going hungry.

The MSD also admitted that Charter Schools – which are funded at a higher rate than State and Integrated Schools – also participate in the KickStart programme. Their information did not reveal how many or which Charter Schools were participating. The MSD statement confirmed that “the provision of the [KickStart] programme  does not affect a school’s funding“.

Kidscan currently lists fourteen schools that are still awaiting “urgent support, that’s 1,661 children waiting for food, clothing and basic healthcare“.

In contrast, several European nations provide free meals to school children;

The school lunch provides an important opportunity for learning healthy habits, and well-balanced school meals have been linked to improved concentration in class, better educational outcomes and fewer sick days. Given the importance of these meals, what is being done across Europe to ensure all children have a balanced and enjoyable lunch?

Many countries in Europe have policies to help schools provide nutritionally balanced meals which also reflect the general eating culture of each nation. Often, lunch is eaten in a cafeteria-like setting where children receive food from a central service point (e.g. Finland, Sweden and Italy).

In Finland and Sweden, where all school meals are fully funded by the government, lunches follow national dietary guidelines including the ‘plate model’. An example meal is presented to guide children’s self-service…

Finland – which consistently scores highly in OECD PISA educational rankings – introduced free school meals in 1948;

Finland was the first country in the world to serve free school meals. 1948 is seen as being the year when free school catering really  started, though catering activities on a smaller scale had been around since the beginning of the 20th century.

[…]

Section 31 of the Basic Education Act states that pupils attending school must be provided with a properly organised and supervised,  balanced meal free of charge every school day.

[…]

The role of school meals is to be a pedagogical tool to teach good nutrition and eating habits as well as to increase consumption of  vegetables, fruits and berries, full corn bread and skimmed or low fat milk.

Interestingly, the Finns describe free school meals as an Investment in Learning;

In Finland, we are proud of our long history of providing free school meals…

… A good school meal is an investment in the future.

With rising housing and rental costs, and wage increases  at or below inflation, not every family can successfully balance budgets to ensure a nutritious meal for their children. When it comes to a decision whether to pay the power bill, or cut back on groceries for the week – it is often the latter that is sacrificed.

The Salvation  Army recently  outlined the problem of the phenomenon known as the “working poor“;

Every week 314 new people contact the Salvation Army for assistance, and those who are currently working are often at risk too.

[…]

The Salvation Army says it is meeting more and more responsible people who have experienced misfortune that has derailed their lives.

It believes the cost of rent is a dangerous factor, even for those working.

“It doesn’t leave a lot of room for something to go wrong,” says Jason Dilger, a representative for the Salvation Army. “I do believe there are a significant number of people out there who are vulnerable.”

It says an increasing number of Kiwis are living pay-by-pay, but ideally everyone would have a financial safety net set aside to help with any unexpected hiccups.

“So many people aren’t even in a position to think that way because they’re just trying to meet expenses week to week.”

In a 2014 report, the Salvation Army stated;

Given the recent growth in the number of jobs available and the gradual decline in levels of unemployment, we should have seen a  tapering off in demand for food parcels from food banks. We have not seen this. Such demand has remained virtually unchanged since 2010, which suggests that many households are still struggling to pay bills and feed their family despite the economy recovery. Overall living costs of low income households appear to be moving in line with general inflation.

Which illustrates that the problems faced by poor, lowly-paid, and beneficiary families is not choices in expenditure – but low incomes which fail to meet the many day-to-day, week-to-week, demands placed on them.

From the 1950s through to the  1970s, a single income was often sufficient to raise a family and pay the bills.

In contemporary New Zealand, this is no longer the case. Falling rates of home-ownership is just one indicator that incomes are not keeping pace with rising costs of living.

Growing child poverty is another symptom of the increase in inequality since the mid-1980s. Prior to the 1980s, food banks were practically an unknown rarity;

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

Shifting responsibility for this ever-growing problem onto  victims of inequality and poverty is a form of denial. It is little more an attempt to evade the problem, especially when no practical solutions (other than class-based eugenics) are offered.

Addressing the real causes of poverty and working-poor will be a tough call. Ensuring that all children are provided nutritious meals at school is the first step down this road.

As John Key said nine years ago;

“We all instinctively know that hungry kids aren’t happy and healthy kids.

… all our kids deserve better.”

Indeed, John. I couldn’t have said it better.

Postscript

The MSD response to my OIA request also confirmed that the increased up-take of the KickStart programme was not restricted solely to low-decile schools;

Since the expansion [in 2013] 170 schools rated decile five or higher have joined the programme.

Which indicates that schools in middle-class areas are now requiring State assistance to feed hungry children.

 

 

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References

Email: OIA Response from Ministry of Social Development

Kickstart Programme: Home

NZ Herald: Key admits underclass still growing

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

Parliament Today: Questions and Answers – November 5

Scoop media: Hone Harawira – Feed the Kids Bill

NZ Herald: Harawira’s ‘feed the kids’ bill begins first reading

Radio NZ: Govt gives $9.5m to expand food in schools programme

Radio NZ: Government to expand food in schools programme (audio)

Kickstart Programme: FAQ

NZ Herald:  Government votes down ‘feed the kids’ bill

Radio NZ: Parliament rejects free school lunch bills

Fairfax media: Beneficiary numbers fall again: Government

NZ Herald: 11,000 disabled children lose welfare benefit

Scoop media: National launches its Food in Schools programme

Radio NZ: Ministry says charter schools “over-funding” is $888,000

Kidscan: Supporting Schools

European Food Information Council: School lunch standards in Europe

Wikipedia: Programme for International Student Assessment (PISA) – 2012

NZ Federation of Family Budgetting: Why are so many of us struggling financially?

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

Additional

Fightback: Feed the Kids, end the hunger system

NZ Herald: Number of Kiwi kids in poverty jumps by 60,000

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

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

Once were warm hearted

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This blogpost was first published on The Daily Blog on 29 February 2016.

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Letter to the Editor – Rightwinger caught out parroting his own garbage

9 January 2016 7 comments

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Frank Macskasy - letters to the editor - Frankly Speaking

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From the NZ Herald, ex-ACT leader Jamie Whyte had his usual Right wing nonsense about “no real poverty in New Zealand“;

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Jamie Whyte - Poverty statistics suffer from paucity of common sense

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… and the usual cliches, prejudices, and other garbage spouted by a man who has little inkling what poverty is like, and how it crushes the human spirit.

Then came this startling revelation;

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Jamie Whyte defends 'self-plagiarism' claim

 

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To which I replied with  this letter-to-the-editor;

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from: Frank Macskasy <fmacskasy@gmail.com>
to: NZ Herald <letters@herald.co.nz>
date: Fri, Jan 8, 2016
subject: Letter to the editor

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The editor
NZ Herald

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Regarding former ACT-leader, Jamie Whyte’s self-plagiarism (“Jamie Whyte: Poverty statistics suffer from paucity of common sense”, 7 January) – the fact he re-used a ten year old piece he’d written previously, and simply changed a few key identifiers, speaks volumes about his view on poverty.

It implies that he is not so much interested in looking at the facts and data, as simply re-stating his prejudices. His use of two boys (10-year-olds “Jimmy” and “Timmy”) who are inter-changeable between Britain and New Zealand, implies that his examples are made up fantasies, plucked from his imagination, and little else.

The real problem here is that after thirty years, the Right cannot admit that poverty exists in New Zealand. Nor that it has increased since the late 1980s.

To do so would be a tacit admission of failure, and that the whole “trickle down” notion is a fraud.

That is why the Right will argue, like AGW skeptics, that poverty exists.

Because to admit it, the next question must logically follow: what to do about it.

-Frank Macskasy

 

 

[address and phone number supplied]

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References

NZ Herald: Jamie Whyte – Poverty statistics suffer from paucity of common sense

NZ Herald: Jamie Whyte defends ‘self-plagiarism’ claim

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