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Posts Tagged ‘WINZ’

“If one budgets properly, one can pay one’s bills.”

28 April 2012 3 comments

From a multi-millionaire Prime Minister who had the benefit of a free, taxpayer-funded tertiary education, and lived in a subsidised State House, courtesy of New Zealand’s once-proud social welfare system…

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… to a government that cut taxes for the rich; raised GST for the poor; and has done precious-little to implement any meaningful job-creation policies,

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It appears that one can’t budget, Mr Key?

Of course, it’s easier to point the finger at the unemployed who’ve lost their jobs since the recession impacted on our society in 2007. Never apportion responsibility  at a government who appear unable to count.

It’s far, far easier to blame the solo-mums (but never solo-dads), invalids, widows, and sickness beneficiaries. After all, the Boardrooms of Goldman Sachs, Lehmann Bros, AIG, General Motors, Bank of Scotland, Lane-Walker-Rudkin, and over 40 finance companies here in New Zealand, were all run by welfare beneficiaries.

Let’s check some incomes and wealth levels,


Current benefit rates (after tax):

* Unemployment & sickness benefits: $204.96
* Domestic Purposes Benefit (one child): $293.58
* Invalids’ Benefit: $256.19
* Pension (single): $367.45

May also qualify for allowances: accommodation supplement (max of $225), childcare, allowance, disability allowances ($58.13).

Current wealth/income estimate for John Key & Ministers:

* John Key’s wealth: $55 million (Source)
* John Key’s  salary:  $411,510 p.a.  (Source)
* Paula Bennett, Social Welfare Minister salary: $257,800 p.a. (Source)

May also qualify for allowances: free accommodation; free transport; generous superannuation; and 90% subsidised airfares after retirement (after three terms in Parliament)

As our Dear Leader sez,

If one budgets properly, one can pay one’s bills.”

Perhaps he  and Ms Bennett should go onto the equalivalent of welfare benefits. Beneficiaries tend to know how to make ends meet living on a meagre amount of money.

In fact, maybe Key and Bennett should  do a straight swap – I know a few beneficiaries who could do a better job running this country.

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Paula Bennett on unemployment: spin baby, spin!

9 April 2012 8 comments

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All ministers have a coterie of staff. They consist of  PAs, researchers, speech writers, policy analysts, media experts, and… ‘spin doctors’. Actually, any of the previous list can be labelled a “spin doctor”.

“Spin Doctors” take a piece of information and presents it in a certain, carefully constructed way, that makes their respective Minister look good to the public.

Example; National’s recent policy on 16 and 17 year old unemployed youth was “reformed”, announcing that they would be issued “purchase cards”, to eliminate wasting their benefit on cigarettes and alcohol.

End goal: to make National look good in the public eye, by getting “tough on welfare”.

(Except for one thing. It’s already against the law for retailers to sell tobacco and alcohol products to 16 and 17 year olds.  The law is already in place to deal with this issue. And if retailers are selling these products to 16 and 17 year olds, then it’s a RETAIL problem – not a welfare problem.)

But the Spin Doctors quietly ignored that salient fact and simply pushed the message: National is “getting tough on welfare”.

That’s the message being spun and put out to the public to absorb. One simple line.

Anyone who doubts the efficacy of spin doctoring of  such messages should check letters-to-editors and on-line fora to see how many low-information, National-friendly “armchair experts” now repeat that one, simplified Official Line; the government is “getting tough on welfare”.

That’s “spin”.

Today, Bennet’s media people released this apparently positive news into the public arena,

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But not before her Spin Doctors got their hands on it first,

More than 5000 people cancelled their unemployment benefits because they found jobs last month.”

It could well be that 5,000 “cancelled their unemployment benefits”.

But as to how she could possibly know that they all “found jobs last month”? How could she possibly know that?

Those 5,000 could easily have been part of the exodus of New Zealanders moving to Australia,

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Kiwi exodus to Aussie at new high

11:30 AM Wednesday Mar 21, 2012

New Zealanders continued to abandon their home country for Australia, with the speed of annual departures accelerating to a record 53,000 last month.

New Zealand lost a net 39,100 people to Australia in the 12 months ended February 29, 4,100 of whom left in the month of February alone, Statistics New Zealand said today.

That’s the biggest-ever annual net loss to Australia, as just 13,900 people crossed the Tasman to live in New Zealand, though short of the monthly record of 5,000 in February 2001.

People have been quitting New Zealand for Australia for years as they seek higher wages and a better standard of living across the ditch, and in 2008 the National Party won office campaigning on a promise to stem the outflow. ” – Source

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If any one of those 5,000 entered into a relationship or marriage/civil union with a working partner – they are no longer eligible for welfare.

If any of those 5,000 began a part time or seasonal job – they may no longer be eligible for welfare.

If any of those 5,000 went on to ACC; a programme of some description; jail; or died –  they’re no longer eligible for welfare.

Nek bit,

Social Development Minister Paula Bennett says the number of people on that benefit is now at 53,479, which is the lowest March level since 2009.”

When they’re raising welfare as an election issue, National spins the figures high, and quotes all recipients of  state assistance,

More than three quarters of all beneficiaries will be forced to seek work or face cuts to their payments under sweeping recommendations from the Government’s Welfare Working Group…

That would more than double the numbers required to look for work from 133,200 of the 360,000 people presently on a benefit to 277,200. ” – Source

At such times, it suits National’s agenda to “spin” the figures as high as possible and accentuate them in the media.

When it suits their purpose to paint themselves in a good light, they quote low figures, and focus on those. The “spin” is more positive.

Moving along,

Ms Bennett is particularly pleased that 2800 young people who were beneficiaries moved into work last month.”

Let’s give Minister Bennett the benefit of vthe doubt. Let’s assume that every single one of those 2,800 young beneficiaries is now in  paid work. Let’s assume that work is full time, and not a part-time burger-flipper. Let’s assume it’s ‘permanent’ and not seasonal fruit-picking.

What  has the media release not covered?

Answer: it doesn’t state how many young beneficiaries there were to start with. And the figures are tragic,

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Tuesday, 16 August 2011

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Though undated, Duncan Garner’s blog-entry was written during National’s party conference in August last year.

So in one month, 2,800 young people moved into employment. Let’s hope that those jobs are permanent, because at 2,800 young people per month, it will take National just under two years to move all 58,000 into employment. That’s not counting new school leavers, graduates, young people returning to New Zealand, etc.

Next,

The National Government has shown real leadership with initiatives for youth employment, including the recently announced Job Ops with Training.”

That’s highly arguable. In fact, National has made a fetish out of leaving job creation to the market. Aside from the cycleway, it has created very few new jobs. Quite the opposite, they’ve thrown 2,500 state sector workers onto the unemployment scrap-heap.
As the media story states,

Overall the number of people on benefits fell by 6698 in March to 322, 951.”

And again, there is no way of telling where those 6,698 ended up.  In employment? Gone overseas? Prison? Shifted on to ACC? Entered new relationship? Died? Kidnapped by aliens?
As a point of interest, New Zealand’s ranking of NEET (Not in Employment, Education or Training) Youth 15-24, is near the OECD average. We are stacked between France and Portugal.
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By contrast, our Scandinavian/Nordic cuzzies are all within the top twelve on the ranking list.

Finland is #9.

We are #19.

I think Gerry Brownlee needs new Spin Doctors. Maybe he could borrow Paula Bennett’s?

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National signals epic fail – and waves flag of surrender

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Last year’s election was fought on two main issues;

  • the economy and jobs
  • a tea-party in Epsom

Ignoring the last item, National was adamant that it had policies that would deliver 170,000 new jobs for this country,

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Key said,

New Zealand can’t keep borrowing money at $380 million a week. We can’t have New Zealanders exposed to high interested rates, New Zealanders need a plan for jobs.

This is a budget that actually delivers that.

Treasury say in the Budget, as a result of this platform on what we’ve delivered, 170,000 jobs created and 4% wage growth over the next three to four years.” – Ibid

Unfortunately, even the pro-National Party group, Business NZ could see no discernible plan from National,

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Nearly five months after Business NZ’s extraordinary criticism, National still appears to have no plan for job creation, aside from relying on Christchurch’s re-build – and a fair whack of sheer hope. Instead of implementing an economic plan from jobs, what we have is,

When the Ministry of Economic Development and Ministry of Science and Innovation, Steven Joyce, said,

A more efficient and effective ministry focused on lifting overall productivity and supporting the growth of competitive businesses is a crucial element in creating more jobs and higher wages, and boosting our standard of living.” – Source

… it appears that National has some fairly bizarre ideas as to what will create jobs.

No less disappointing is this statement from Finance Minister Bill English,  and Development Minister Steven Joyce, speaking in unison like Tweedledee and Tweedledum,

“Sustainable economic growth which creates permanent worthwhile jobs is best achieved by building a competitive economy that allows business to trade successfully with the rest of the world,” the Ministers say. ” – Source

In effect, National has adopted a hands-off policy to job creation, leaving it to the “market” to deliver new jobs,

The reality is that if we want more and better jobs for New Zealanders we need to encourage more businesses to be based here. To do that, the Government is focused on making it easier for businesses to access the six key areas they need to grow.  ” – Ibid

So having abrogated all responsibility for direct job creation in this country, National is defaulting to Plan B;

  • Deflect reponsibility by shifting blame on to victims on economic stagnation
  • Paint welfare beneficiaries as “lazy lifestylers”
  • Make life harder for welfare recipients
  • Look tough in front of National voters

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National’s Bene-Bashing Bill  will include,

  • Managed payments for young people and teen parents that will pay essential costs directly and provide a payment card for living costs.
  • Youth service providers will be incentivised to help young people into work, education or training.
  • Young people will be encouraged to take budget or parenting courses with weekly bonus payments.
  • Introduction of a guaranteed childcare assistance payment.
  • Information sharing between government departments to target school leavers likely to go on a benefit at 18.
  • Sole parents on the DPB, women alone and widow’s benefits will have to look for part-time work when their children are five or older.
  • They will have to look for full-time work when their children are 14.
  • If they have additional children while on a benefit they will have to look for work after one year.

Source

No mention of jobs.

No suggestion of  “more exports, more real jobs”,

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In fact, like Dear Leader’s   “State of the Nation” speech on 15 March, there is very little emphasis at any job creation whatsover. Throughout his  2,990 word-speech, job-creation is not mentioned once. But Key does refer to an expectation in  “reduction in long-term welfare dependency“.

How a “reduction in long-term welfare dependency” can be achieved whilst not investing in job creation is one of those unanswerable puzzles  of right wing parties like National.

It probably also did not help the plight of unemployed, solo-parents, etc, that Paula Bennett did away with most of the Training Incentive Allowance – an allowance she herself benefitted from when she was a  solo-mother,  going through University.

National is trapped. Trapped in a free-market paradigm of  hands-off government where only the ‘Market’ can create jobs, and a right wing government’s role is simply to keep taxes low; ministeries small; and regulations minimal.

The trap is that when the ‘Market” fails to deliver expectations, National is left with the ultimate responsibility of why the economy is still stagnating and so many people are out of work.

Default Plan B: shift responsibility onto welfare beneficiaries and infer that they are choosing a deliberate “lifestyle” and “welfare dependency”.

Outcome: National absolved of reponsibility.

The irony is that while right wingers are hot on personal responsibility – right wing parties like National are quick to dodge any form of it.

I leave the final word to the National Party and it’s “values”,

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Actually, no, I’ll have the last word: when National fails to deliver – expect blame to be dumped on scapegoats. Preferably the most vulnerable ones who can’t fight back.

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Additional

TVNZ: Budget 2011 – Govt predicts 170,000 new jobs

NZ Herald: Business NZ sees no economic plan

NZ Herald: Cycleway jobs fall short

NZ Herald: ‘Super ministry’ plans unveiled

Bill English: Business success at heart of Govt growth plan

Previous Blog posts

Performance Pay? Why not!

Once upon a time there was a solo-mum

Great Myths Of The 21st Century (#2)

Hypocrisy – thy name be National

Good onya, Sue!

Hon. Paula Bennett, Minister of Hypocrisy

Can we do it? Bloody oath we can!


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Once upon a time there was a solo-mum…

… and a Wicked Wacko Witch.

Sally* is 37 and a solo-mother with an 18 year-old (Wayne*) and 11 year (Zack*) old sons.

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Sally had Wayne to her first partner, but the relationship did not last because of drug-taking and violent abuse on his part. (Some months after they separated, he committed suicide.) Sally went on to the DPB, raising her newborn son by herself.

Seven years later, Sally met someone else and formed a relationship with him. The relationship went well and she became pregnant (a son, Zack) to her new partner.

As  her pregnancy progressed, Sally’s partner seemed to go of the rails,  and he increasingly  took up  drink and drugs with his boozy mates. As Sally said, he “was more into his mates than his family” and she finally  threw him out.

Sally was adamant she did not want someone like him as a role-model for her sons. She went back on the DPB and began to examine her options in life.

Eventually, Sally  applied for a course at Victoria University for a bachelors degree  in early childhood education. She applied for, and got, the Training Incentive Allowance (TIA).

Zack’s father saw his young son a couple of times during his first year as a newborn and infant, but thereafter showed little interest in maintaining contact. He eventually disappeared from Sally and her children’s life. She was on her own to raise her sons – a role she took seriously, and sought no new relationships with men.

Instead, she applied herself to her university course.

Sally says that the TIA helped her immensely, paying her transport, study-costs, fees, and childcare for her sons. She says,

You could only get the TIA on the DPB, not on the dole, which I thought was unfair.”

After her graduation, Sally followed up with a Masters degree, which took another four years in part-time study. During the final two years of her uni studies, she took up a part-time job. This decreased the amount she received on the DPB, and her part-time job was taxed at the Secondary Tax Rate (her benefit was considered as a “primary job” by the IRD).

Sally took out a student loan for her M.Ed, as WINZ would not pay the Training Incentive Allowance for higher university education.

One could view the “claw back” of her DPB and higher tax-rate on her part-time job as a dis-incentive which penalised Sally, and others in her position, but she persevered. With end-of-year tax refunds, she says it “all squared out” – but she could have done with the extra money through the year.

Sally graduated and got her Masters degree in early childhood education. By this time, Wayne was 14 and Zack, 6. One month later, she found a full time job and replaced the DPB with a good salary. She says that the MA gives her an extra $11,000 per annum.

During her studies and part time job, Sally raised her two sons – one of whom was increasingly “challenging” with Aspergers and ADHD.

(This blogger can confirm that young Zack – whilst a bright, personable child – can also be “a handful”, and was effectively thrown out of his previous school for “disruptive behaviour”.)

We discussed the Training Incentive Allowance, which Paula Bennet used to put herself through University. I asked her,

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With being on the DPB, and with the availability of the TIA, do you think it assisted and motivated you to get yourself of the Benefit?”

Sally replied,

With the TIA, definitely. If I’d have to borrow money, yeah, I think that would’ve been quite daunting, I guess. I mean, I had to take out a student loan anyway, so if I’d have to borrow more, it would’ve taken longer to pay back. The extra assistance helped.”

I asked,

So the TIA, you believe, was a good incentive?

Sally responded,

Yep, yep, otherwise some people would probably stay on the benefit, especially when working part-time and being on a part benefit, is  hardly  worth it, especially at a certain level. So I think training to get a higher income to make it worth going off the benefit and not have to borrow thousands of dollars for it, yeah, that’s a good incentive.”

Sally has now been off  the DPB; in paid employment for the last four and a half years; and paying tax on a good salary. She is also spending more, and her oldest son, Wayne is now doing tertiary education himself.

Being a taxpayer means that she is now “paying it forward”, to support the next person who requires state assistance. This is what welfare should be about.

Unfortunately for us, the Minister for Social Welfare, Paula Bennett, who was on the DPB herself and used the Training Incentive Allowance to gain a University degree – has canned the TIA.

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Paula Bennett was on the DPB and used the Training Incentive Allowance to gain a University degree.

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Bizzarre.

Only a National Government can screw up a system that actually succeeded in training and upskilling people; getting them off welfare; and into paid work. One cannot help but wonder if National secretly wants thousands of people on welfare, to create a  pool of cheap labour, and drive down wages…

Sally has worked hard; bettered herself; improved her family’s financial position; and has raised two sons in a good home – one of whom is in tertiary education now.

This is a good outcome due to progressive government policy.

Please, Mr Key, may we have some more?

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* Sally and her son’s names have been changed to protect their privacy.

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“One law for all” – except MPs. (Part Rua)

2 February 2012 4 comments

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The issue of privacy, politicians,  government departments, and ordinary citizens is something that has played out in the public arena in the last few years…

In 2009,  two women;  solo-mothers;  on the domestic purposes benefit;  criticised the Government for cutting the Training Incentive Allowance (TIA).

This was the same TIA that Paula Bennett herself used to put herself through University,

I have never made a secret of the fact I have been on and off the benefit and that I did receive the TIA.

What I can tell those people who are looking at tertiary study is that it’s not going to be easy but if they back themselves, and this Government is backing them as well, then they can get off the benefit. They may even end up a cabinet minister.” – Source

The two women were on training courses to be a teacher and  nurse.

In retaliation to criticism, Bennett gained  access to their MSD (Ministry of Social Development)  files and released figures regarding the two women’s WINZ payments, to the media.  In doing so, Bennett clearly violated the women’s, privacy,

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Bennett defended her actions by stating that she wanted to  “round up a one-sided story“.  Bennett added that “she had not sought the women’s permission she felt they had taken the matter public by talking to the news media and writing on the internet“. (Source)

So there you go, folks. The rules set by the current regime are simple; if you criticise the government and talk to the media – be prepared to have the State retaliate, using your own personal information against you. (Stalin would be proud!)

Fast forward to December, last year,

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WINZ head,  Janet Grossman said,

These people have let us down badly. Their actions cast a shadow over our honest and hard working staff who understand that client privacy is sacrosanct.”

It is a shame that Paula Bennett’s – and other politicians – understanding of “sacrosanct privacy” appears to differ  markedly  from what you and I might think on the subject.

So  it was hardly surprising that  John Key was scathing in the matter of  a secretly-recorded conversation between himself and John Banks,  at the Urban Cafe in Epsom last year,

I’m not bothered in the slightest about what is on the tape, secondly, I am very bothered by the tactics that I believe have been deliberately deployed by the ‘Herald on Sunday’.” – Source

Politicians, though,  have recourse to  the full force of State power – the police – to guard their privacy. And John Key certainly seemed to have no qualms about engaging the Police on this issue. After all, as Key stated,

The good thing is we’ve lowered the crime rate by seven per cent across the country so they do have a little bit of spare time and this is a really important issue.” – Source

A politician’s privacy is “important” – even if half the media-contingent in Auckland were present at the meeeting between Banks and Key.  Folks can see for themselves just how private their conversation really was,

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The “moral” of this story?

If you’re an employee at WINZ, and access personal files of clients without appropriate reasons – then expect to lose your job.

If you’re the Prime Minister – your conversations are always private. Never mind the dozens of  journalists you’ve invited to the latest pre-arranged photo-op. (If in doubt, the Police can be called to enforce the Prime Minister’s wishes.)

If you’re a recipient of social welfare – then your privacy is at the discretion of government ministers.

Have I missed anything out?

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Previous Blog entries

Hon. Paula Bennett, Minister of Hypocrisy

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How can this possibly be?

29 November 2011 2 comments

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More jobs lost?

How can this be?

At a time when an entire city (Christchhurch) needs to be rebuilt, how can we be laying off sawmill workers? How can there possibly  be a downturn in construction???

This is simply too bizarre to comprehend and one wonders what the heck our government is doing??? Are they so pre-occupied with RWC photo ops that they have no clue what is happwening in their own back yard?

Eurocell sawmill site manager Todd McIlvride has stated,

It was hoped the Christchurch rebuild would help boost the timber industry.

However it was not known when that would start in earnest.

“They have got their insurance issues to get through, and the ground there needs to stop shaking before they will give insurance to new houses. That’s obviously the hold-up down there.

“Certainly there will be a lot of wood needed down there, but how far away is that is the million dollar question.

It seems remarkably short sighted that Gerry Brownlee, the Minister for Earthquake Recovery, has not implemented plans to stock-pile building materials. Waiting for reconstruction to eventually kick-off (whenever that might be) to then place orders for sawn timber will simply create a bottle-neck and shortages.

It is mind-boggling that – at a time when we will be needing skilled operators and sawmills to be operating at full capacity – that we are actually down-sizing our timber-processing capabilities? Is there no one with an ounce of common sense in the Beehive who can foresee the inevitable result?!

No, I suspect there is not.

They seem to be too busy, watching rugby. Or in John Key’s case, brandishing unsigned emails sent by unknown persons, making unsubstantiated allegations.

If anyone wonders what a hands-off government is like, where the “free market” is left to address critical problems: we are looking at one now. If National was any more “hands off”, it would be hovering in mid-air.

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And it seems I am not alone in my opinions on this matter,

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There is a proactive role to be played here by government. A “hands-off”, “minimalist government” approach simply will not do.  Rebuildimng a shattered city demands the full resources and powers of the State – not the fragmented, ad hoc “invisible hand” of the free market.

If the National-led government does not comprehend this simple truism, then they need to stand aside. This demands more than a “smile and wave” Prime Minister.

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Further Updates

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Source

Listen to more on Radio NZ’s  Checkpoint

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More than ever, this is another instance of the “free market” destroying people’s lives; damaging the fabric of our social cohesion; and impacting on our economy.

Unfortunately, New Zealanders have either not voted for any meaningful change – or have voted for more-of-the-same in the National Party.

Unless National adopts a more hands-on management of the economy, we are headed for a 1991-style major recession. Unemployment at that time rose to over 10%.

Can we do it?  Bloody oath we can! And here’s how.

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Some other recent job losses

English positive despite job losses

Key fails to quell Lower Hutt job losses

Christchurch earthquake job losses dole ‘disaster’

$15m cuts may mean NZ jobs go

School support staff face job losses in Christchurch

Job losses at The Warehouse

Thirty KiwiRail jobs on the line in capital

Jobs cut at Cavalier

Jobs threatened by Alliance meatworks shut down

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Election Eleven – Tuesday

22 November 2011 2 comments

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Election Eleven – Tuesday

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Now this is just downright creepy:  right wing blogger, David Farrar, is now investigating private individuals who have appeared  as part of TV3’s audience for their Leader’s Debate last night? A screenshot from his Blog,

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I have blanked out the names that Farrar has published and I have not linked back to his article. I have no wish to aid his witch hunt against three individuals.

But I think it is the height of hypocrisy that Farrar and his right-wing colleagues criticised Labour non-stop for “Nanny State” policy – and now he is identifying private individuals for their (supposed) political activities.

Is this to be the new standard set by right wing blogs?

It now appears that if  a New Zealand citizen is even remotely politically active, that they may be subjected to what is essentially an online, public,  “name & shame” campaign. This can only be viewed as a none-too-subtle form of intimidation. Another term is cyber-bullying.

Does this have any place in New Zealand society? Is this the direction of future politics in this country? And what will it do to getting people more involved in politics?

This isn’t “Nanny Statism”. Nope, not at all.

It’s Big Brother – and Big Brother (aka David Farrer, et al) is Watching You!

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I’ll say it now: there is no place in politics – or any other part of our society – for behaviour like this,

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Whilst I disagree with Ms Barry’s politics – she has a democratic right to go about her business without being abused like this.  I sincerely hope that anyone knowing who this man is, take him aside, and tell him that such behaviour is utterly repugnant and unacceptable.

Ms Barry is an intelligent, articulate woman who has achieved much in her life. Disagree with her if you will – but respect her for her accomplisments; her willingness to participate in the democratic process; and for simply being a human being.

Politics is a contest of ideas – not a spitting game that juveniles might indulge in.

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Taken by an observant reader, and sent to me ten minutes ago,

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Hmmmm, I’m guessing that for the Nats to state that “Your vote is crucial this sat”, that they are starting to panic? Something has definitely spooked the back-room National strategy boys…

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… and yet more fear  mongering from John Key,  about Winston Peters? I now believe that National’s internal polling is showing that they are bleeding voter support and that they are probably somewhere around 46-48% – if not lower.

Otherwise, why would Key be wasting his time with the leader of a near-non-existent party that isn’t even represented in Parliament?!

National is right to be worried.

There are National supporters who view John Key’s scheme to sell state assets with considerable unease – if not downright hostility. Such voters are loathe to vote for a left-wing alternative such as Labour or Greens. But NZ First is a “soft Tory” alternative.

Expect Peters to return.

Expect a new Labour led coalition.

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Oh dear. It seems that National is making election promises regarding matters that are already law,

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Someone in the National camp really should check their facts. Promising to implement policy that has been a law for well over a decade seems pointless. Mind you, it is rather a cheap way to make election promises.

They won’t cost anything.

They’ve already been implemented,

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Fraud Investigations

Fraud Investigation teams nationwide work to preserve the integrity of the income support system by preventing and detecting benefit fraud.

Fraud Investigation teams work closely with the National Data Match Centre. The Centre shares data with other government agencies including:

  • Customs
  • Inland Revenue
  • Corrections
  • Housing New Zealand
  • Accident Compensation Corporation
  • Internal Affairs.

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And being already implemented – National can take credit for it!

What a cunning plan!

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Whoopsie! Isn’t it a bugger when a photo-op comes back to bite you?

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Key explains,

Lots of young people decide to go for an OE – I don’t know how long she’ll last. I’m not in a position to go into too much; hope she comes back.” Source

Ummm, John… She’s sixteen. She’s hardly likely to be going on her OE, and probably leaving  with her family. Probably long-term migration.

She and her family are joining 84,400 who have also left New Zealand in the last year.

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Jobs up, jobless down?

7 October 2011 4 comments

Two articles in the Dominion Post today (7 October) seem to suggest that unemployment was on it’s way down and that the country was witnessing a growth in jobs,

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The article states that “more than 4000 people came off the unemployment benefit and more than 2200 youths came off welfare, including 351 youths who came the unemployment benefit.”

However, the article continues with this,  “Bennett said the total number of people on welfare remained high, rising by 0.1 per cent in September to 328,496.”

So, the reality is that a certain number of those 4,000 people who   “ came off the unemployment benefit ”   may well have moved on to another benefit? Because that is what Bennett is saying, quite clearly,  ” the total number of people on welfare … [rose] by 0.1 per cent in September to 328,496 “.

The article also does not state where those 2200 youths who “came off welfare  ” went. Did they find employment? Is is full time or part time – and if the latter, are their wages still being subsidised by WINZ? Have they move “side ways” onto another benefit? Are they in training/education, or one of WINZ’s many, ultimately-futile “training” programmes?

The story simply does not enlighten us.

Paula Bennett’s comment here may be somewhat less-than-helpful,

Job hunting isn’t easy, but it’s fair to say that if you’re not looking, you won’t find a job…”

Thank you, Paula, you’re a real fountain of wisdom.

The second Dominion Post article is also vague and contradictory,

.

Source

.

The article states “SEEK Employment Index rose half a per cent in the last month, showing the new jobs listed on the employment website have grown faster than job applications.”

But then continues with “when seasonally adjusted, the index actually fell by 1.1 per cent in September…”.

It also seems bizarre to read that, “The five most sought category of employees in September were accounting, government and defence, healthcare and medical; engineering and automotive trades.

“Government and defence”?

This seems clearly at odds with current government  policy of curring back the civil service. The military and other government sectors have lost at least 2000 workers, with more job losses planned.

The above articles may sound optimistic, but redundancies are still hitting our economy and impacting on society,

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Full Story

.

Full Story

.

The question that springs to mind is that if the drop in unemployed is real – is it due to new jobs or new job vacancies? The difference may seem subtle, but is very real. New jobs are an indicator that the economy is beginning to grow again.

Job vacancies are existing jobs that have been vacated for one reason or another, and are being replaced. It is sometimes referred to as “churn“.

With current wages low and not keeping pace with inflation and the recent increase in gst, it is hardly surprising that most New Zealanders have had the lowest wage increases in a decade,

.

Full Sad Story

.

By contrast, we had somewhat more generous wage increases during the previous, unfairly-maligned, Labour Government,

Wage growth at a record high

Annual wage growth in the adjusted LCI (which measures changes in pay rates for a fixed set of jobs and excludes performance related pay increases) remained steady at 3.4% in the March 2008 quarter.  This is the equal highest rate recorded since the LCI began in 1992 matching the annual increase for the December 2007 year.

The unadjusted LCI (which includes performance related pay increases) shows annual wage growth of 5.4% in the March 2008 quarter, up from 5.0% at December 2007.
Annual wage growth in the QES (which includes performance related pay increases and is affected by the composition of employment) increased to 4.6% for the year to March 2008, up from 4.1% in the previous quarter.Source

Good times, eh, my fellow New Zealanders?

Despite John Key’s priority-pledge to raise wages – and not just by 38 cents!!! – we now have  a record flight of New Zealanders moving to Australia – 3300!

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Full Story

.

As Ms Visser said,

It’s definitely a wake-up call – with 20 per cent of our workforce looking to leave at any one time it’s a scary thought.

Which indicates that this current government has done very little of practical value to motivate New Zealanders to stay and help build our own economy. Two tax cuts have certainly not worked the “magic” that Key, English, et al, had hoped.

Which suggests that Bill English’s May 2011 Budget statement, promising 170,000 new jobs may be a tad over-optimistic.,

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Full Story

.

I guess the ‘moral’ of this piece is two-fold,

  1. Be cautious about  media stories that do not present the full story. A bit of ‘digging’ soon yields a fuller picture.
  2. Be cautious about politicians who promise you the world (you’ll be the one paying for it).

And I’ll finish this piece with a message from our Prime Minister, John Key,

.

"The billboard also highlights Labour's failure to stem the tide of people voting with their feet and leaving New Zealand." - John Key, 1 Sept 2008

.

***

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Additional reading

Inflation outpaces income growth

Bill English: Focus on Finance – Budget 2011

Labour Market Reports – Archive Wage Growth – March  2008 Quarter

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.

National’s Grand Victory in Employment?!

8 September 2011 5 comments

The number of people on the unemployment benefit has dropped – but more people are claiming welfare.

Social Development Minister Paula Bennett said the figures dropped last month by 1145 to 55,974, the lowest it had been since July 2009.

But, because of a rise in those claiming the DPB and sickness benefits, total beneficiaries were up from 327,990 to 328,355.

In July the overall number rose by 0.1 per cent and an extra 855 people began claiming the unemployment benefit, mostly because of a drop off in seasonal work.

Bennett said more young people were finding work. “Unemployment benefit numbers dropped last month by with half of the decrease due to more young people going into work.”

Last month 7238 claimants found a job.  There were a number of short-term Electoral Commission jobs currently among 15,000 jobs with Work and Income, she said. 

Source


+++ Reality Check +++

The number of people recieving the unemployment benefit does not reflect the true numbers of unemployed. The actual numbers are determined by the Household Labour Force Survey.

This is because not everyone who is unemployed registers with WINZ. For example married/de facto couples where one is working and the other has lost his/her job, cannot claim for the Unemployment Benefit.

Currently the HLFS figures for unemployed are:

For the March 2011 quarter: 155,000 (6.6%)

In the June 2011 quarter: 154,000 (6.5%)

And youth unemployment remains unacceptably high, at over 19%.

The government has a long way to go before they can announce victory over unemployment.

Worse  still, with the government cutting back on youth training to the tune of $146 million, I think we can start to see where our economy is headed: low wage; “McJobs”; and easy investment, as Bill English suggested, not to long ago;

And to achieve those low wages, government has implemented the appropriate cuts;

Which means that, as government investment in education, training, science, and research is cut back, we get this;

But not to worry, fellow New Zealanders. The government is onto it.

16 and 17 year olds will be given a Purchase Card so they cannot buy booze and ciggies.

What’s that? It’s already illegal to sell 16 and 17 year olds alcohol and tobacco products??

Never mind – bene-bashers love it.

Hon. Paula Bennett, Minister of Hypocrisy

1 September 2011 35 comments

When it comes to hypocrisy, this must surely be  contender for the Double Standard of The Year…

I’m not surprised that “Bennet did not return calls”. She was no doubt holed up in her office, waiting for this  s**t storm to blow over.

A bit of background into Paula Bennett’s life before she came to Parliament…

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

 

Source

Source

So for Bennett to then write and state,

“I know many people are frustrated that they and their colleagues and family work hard to support themselves while people on benefits receive state assistance.”

… is hypocrisy on a breath-taking scale.

And to compound that act of double-standards, Bennett is still a recipient of taxpayer funded “welfare”. As a Minister of the Crown, she is currently paid $249,100 p.a. – plus various allowances, perks, and a very generous superannuation. MPs and their partners  also recieve free air travel, at tax-payer’s expense.

Ms Bennett is no longer on the DPB.

She just found a more lucrative way to milk the system.

Hon. P Bennett, Minister of Hypocrisy

Sloppy Journalism 101

30 August 2011 4 comments

How to be a sloppy journalist…

NZ Herald journalist Derek Cheng writes about National’s planned “welfare reforms” on 14 August. Mr Cheng writes,

“The Government will limit how 16 and 17-year-old beneficiaries and 18-year-old teen parents can spend the state’s money to ensure they are not buying items such as alcohol or cigarettes…”

Mr Cheng continues in the same vein, a little later on,

“* money for basic living costs like food and groceries will be loaded onto a payment card that can only be used to buy certain goods and cannot be used to buy things like alcohol and cigarettes…”

That’s all very well and good… but it’s already illegal for 16 and 17 year olds to purchase alcohol and tobacco products.

Why has Mr Cheng not pointed this out in his article?

National’s policy release has been barely challenged by the mainstream media (MSS) and sounds as if 16 and 17 year olds are freely  purchasing tobacco and liquor in this country. They may well be.  But it is not dependent on whether or not under 18s are beneficiaries.

In fact, it could be argued that 16 and 17 year olds on a Living Alone Allowance are less likely to be able to afford expensive cigarettes and booze.

The Independent Youth Benefit rate (as at 1 April 2011) is $167.83 per week – NETT.

That’s right folks, that’s what this is all about: $167.83 a week. Out of that, a young person living independently has to pay board, food, clothing, transport, power, phone, and other outgoings.

That doesn’t leave much for boozing and fagging much, does it?

Yet, Mr Cheng ignores all this and simply parrots National Party policy, without any critical analysis whatsoever.

This is simply unacceptable. It brings to mind government-owned newspapers such as “Pravda” and “Izveztia” from the now-defunct Soviet Union. These newspapers were nothing more than mouthpieces for the Soviet Communist Party. they had as much to do with critical, investigative reporting – as Vegans have to raising cattle and lamb for supermarkets.

Perhaps the Herald should re-brand as “The New Zealand Government Herald“? Or simply, “The State Mouthpiece“?

Because that is what it seems to be evolving into.

As usual, the three Golden Rules to apply to the MSS are,

  1. Don’t believe everything you read, see, and hear.
  2. What am I not being told?
  3. Will it sell advertising?

Great Myths Of The 21st Century (#1)

16 August 2011 7 comments

Perhaps the greatest urban-myth, perpetrated and perpetuated by those whose interests it serves, is that the unemployed are there-by-choice, and unwilling to work.

Of course, this is absurd and an outright falsehood.

Fact 1:  The New Zealand December 2007 Quarter Household Labourforce Survey unemployment stood  at 3.4% . This was prior to the global recession hitting NZ.

Fact 2:  By the end of 2008, the New Zealand December Quarter Household Labourforce Survey unemployed rose to 4.6%.

Fact 3:  The New Zealand December 2010 Quarter Household Labourforce Survey unemployed rate increased to 6.8% .

Fact  4: In three years, the Household Labourforce Survey unemployed doubled from 3.4% to 6.8%

Fact  5: In other countries such as the US, unemployment went from 4.8%  in the fourth quarter of 2007 to stand at 9.1%  by July of this year.

Whether the largest economy on Earth, or one of the smallest, the impact of the global banking crisis and following recession caused companies to collapse; down-size; and “rationalise” (reduce) staff. This caused unemployment to skyrocket.

Events in Wall St, USA, had an impact on Main Sts, New Zealand;

“Jobs to go at textile factories”

“Headlines do not reveal true picture of job losses”

“‘Another kick in the guts for rural NZ'”

“Job losses to hit military next week”

“Lower Hutt jobs to go as shops shut”

“Hellaby’s closes: 18 jobs go”

“Australasian Colorado shops closing”

“Grim day of redundancies”

“Jobs to go at troubled baker Yarrows”

“KiwiRail plans to lay off Dunedin staff”

“Thirty-five jobs may go at Niwa”

“Ovation confirms 304 job losses “

“Dunne defends Greymouth IRD job cuts announcement”

“NZ Post shutting stores, axing jobs”

“Ballantynes faces post-quake job cuts”

“Lane Walker Rudkin 470 Redundancies A Tragedy”

And many more here .

As unemployment increased, the number of job-seekers increased. Even the Prime Minister, John Key, has remarked,

“We’re part of a global environment so we can’t control all of the factors that affect New Zealand, but all the indications we have is that 2011 will be a better year.”

Dozens, and often hundreds of unemployed job-seekers would turn up at businesses, that were hiring staff;

It is apparent that the global recession has caused the demise of some businesses, and forced others to greatly reduce staffing numbers. This is beyond the control of any individual in this country.

So why is there a perception amongst some individuals and groups that the jobless have chosen their unemployment as some kind of “lifestyle choice”? Especially when is it clear that WINZ unemployment benefits are nowhere as generous as some might believe.

Trying to apportion responsibility for people losing their jobs is victim-blaming  and is utterly  repugnant. Such victim-blaming is an unwelcome aspect of the human capacity for bigotry.

Why do people do it?

* The Opportunists.

It serves the purpose of some political parties such as National and ACT to blame unemployed for their predicament.

It allows National the opportunity to escape any possibility of responsibility at addressing this critical economic and social problem. And it’s a vote-winner with the next group,

* The Greedy.

For many neo-liberals who cherish the ideology of the free-market and minimalist-government, any form of taxation by the State is “theft”. And when the State hands over some of that tax-money to the Unemployed so that they can survive – they resent it. And do they complain bitterly!

These neo-liberal free-marketeers resent having to contribute their fair share to the society they live in. (Though they think nothing of driving on tax-payer funded roads; being cared for in tax-payer funded A&E Hospital Wards; protected by tax-payer funded Police; educated in tax-payer funded schools, etc.)

Greed – it does funny things to peoples’ humanity.

* The Perpetually Angry.

The uninformed, perpetually angry, people who obtain their information through TV news and/or Talkback radio. They have friends,, who know someone who has heard of a person, who apparently lives in luxury on the dole

These are people who have very little experience of the society they live in and generally have a circle of friends who validate their misconceptions.  For them, everyone is a dole-bludger; the recession happened to Someone, Somewhere Else; and everyone should be living comfortably, regardless of circumstances. Their worldview generally doesn’t extend much past their front door.

Anger – it stops people thinking clearly.

Unfortunately, The Greedy and The Perpetually Angry have no constructive solutions to offer us.

One hopes that  the National government will reconsider their decision to  cut almost $146 million from skills training.

Nor does it help when we export jobs overseas,

“Army shifts $2m contract to China”

“Chinese firm beats Hillside to KiwiRail contract”

So not only are New Zealanders losing their jobs because of corporate greed and mis-management in Wall St, USA – but our current policies actually encourage contracts to be awarded to other countries,  in effect “exporting” jobs.

Is this making sense to anyone?

Is it little wonder we have high unemployment, who need the dole to simply survive?

Because demonising a vulnerable group in our society will not achieve a single damn thing; create a single damn job; nor give us the Decent Society that we once enjoyed living in.

So far, my fellow New Zealanders,  there is precious little decency going on here.

From “Nanny State” to “Daddy State”…

I don’t think there’s much question that  serious social problems in this country  are not being addressed in any meaningful way by this current government…

So is the Prime Minister, John Key, really  aware of what is actually going on in New Zealand right now?  Well, judge for yourself…

So what is National doing about soaring youth unemployment?

At their recent Conference, held in Wellington, they came up with this…

(Article abbreviated)

They’re going to clamp down on booze and cigarettes?!?!

That’s it?

Oh good lord! And people thought that Labour was “Nanny Statist”?!?!

I wonder who will be next to feel the iron fist of National’s Polit-buro state control? The retired? Civil Servants? Anyone using state hospitals???

Congratulations, my fellow New Zealanders: we have gone past Nanny State to Big Brother.

It might be worthwhile considering that,

  • Not all unemployed youth smoke
  • Not all unemployed youth drink
  • Even if they do,  Key says that they will still receive “a limited amount of money for young people to spend at their discretion“.  Like… on booze and ciggies?!
  • Even if they won’t have enough “discretionary pocket money” – what is to stop them stealing it? Or selling their Food Card for cash, and then buying ciggies and booze?

In the meantime, how many jobs will this piece of neo-Nanny Statism create?

The answer, I submit, is:

Even the NZ Herald was quick to acknowledge this simple fact in their August 16 editorial,

Yet there is also nothing in the Prime Minister’s announcement that creates jobs for young people. There, the Government still has work to do.”

Meanwhile, as National blames the young unemployed of this country for the world recession, and proposes to penalise them by tinkering with their only means of survival – the problem continues unabated,

The last time youth unemployment was this high was in 1992…

1992?

Wasn’t that the previous National government led by Jim Bolger, with Ruth Richardson as Minister of Finance? And didn’t she implement a slash and burn economic policy in her “Mother of All Budgets” that resulted in unemployment reaching over 10%?!?!

Why, yes. It was.

Are we starting to see a pattern develop here, folks?

It is abundantly clear that National has no clue how to address this problem. Attacking welfare benefits which keep people from starving to death, or more likely, breaking into our homes to find food, is not an answer. It is a cheap shot geared toward winning votes from uneducated voters who hold the illusion that living on a benefit is a cosy arrangement (it is not).

There are no policies being announced to create jobs, or to train young people into a trade or profession.

National should be throwing open the doors of our polytechs to train young people into tradespeople that the community desperately needs. With the re-building of Christchurch shortly to commence – where are the necessary tradespeople going to come from? (Most have buggered of to Australia.)

If this is the best that National can come up with, then, my fellow New Zealanders, we are in deep ka-ka.

Meanwhile…

Dr Mapp said the research science and technology was the way to create jobs, economic growth and a higher living standard for the country.

“To that end, it is vital that high-tech, exporting companies maintain their competitive edge in global markets.”

The grants range from $300,000 to $5.9m and run for three years.

They are valued at 20 per cent of the research and development spend in each business and provide a maximum $2.4m a year for three years.

Dr Mapp said they provide the businesses involved with more financial security over that period.

Businesses to get grants in the latest round were involved in  software development, biotechnology, manufacturing and electronics.

Wellington companies which received grants:

Core Technology: $629,400

Open Cloud: $2,394,920

Xero: $4,040,000

Xero was founded by Rod Drury in 2006,  who made $65 million in the same year after selling his email archiving system AfterMail. Xero purchased Australian online payroll company,  Paycycle, in July of this year for A$1.5 million.

Which begs the question as to why the government has given away $4 million of tax-payers money when the owner is ‘flush’ with $65 million and has enough capital to buy off-shore  companies elsewhere.

Is this a prudent use of tax-payers’ money,  especially when,

* government is cutting back on social services?

* government has cut back on youth training programmes?

* government is borrowing $380 million a week, and telling the rest of us to “tighten our belts”?

At a time when government is berrating unemployed 16 and 17 year olds for being on the dole and  “smoking ciggies”, instead of  providing meaningful training and/or employment, it seems that National is still “picking winners” in the field of commerce.

$4 million could go a long way in providing training, and a future, for many 16 year olds.

By contrast, how much do young people, living away from home, recieve from WINZ? It must be a grand sum, to earn the Prime Minister’s stern attention. The answer is:

It’s a shame they’re not “picking winners”  with our unemployed youth.

Unemployment; A right way and the Government way…

13 August 2011 2 comments

As per usual, the National Party conference this year has focused on beneficiaries and social welfare.  Listening to these people, who seem utterly oblivious to the harsh realities of New Zealand in a recession, we have the Prime Minister, John  Key, saying that the current social welfare  system,

“…is not working and needs to change.

When young people go on welfare, by definition, they stay there longer and cost the state more…and rob themselves of a tremendous opportunity.

Every New Zealander can be entitled to that brighter future, no moreso than young people”.

?!?!

Nowhere does Key or any of his colleagues acknowledge that 160,000 people are currently jobless. The current rate of 6.6% is double  that prior to the beginning of the recession in 2008, when it stood at 3.8%.

I wonder – does John Key or any other National MP believe that 80,000 New Zealanders woke up one morning in late 2008 and decided to chuck in their jobs, where they earned $600, $700, $800 or more – to go onto the dole to receive $201.40 (nett, p/w, single person 25+)? Or $335.66 (nett, p/w, married couple)?

I doubt it.

I harbour a suspicion – not backed up by any firm evidence, I admit – that National MPs are not actually thick enough to believe that the vast  majority of unemployed New Zealanders prefer to be jobless.

So why target unemployed Kiwis who happen to have had the mis-fortune to have lost their jobs – and are still being made redundant every day?

Simple. Beneficiary bashing – or “welfare reforms” to give it a more palatable, acceptable term – wins votes. There is a part of middle class New Zealand that envisions every single welfare recipient to be a character out of  “Once Were Warriors” or a dope-smoking hippy.

This chunk of middle-class New Zealand is harshly punitive in it’s attitude toward poverty, welfare, and solo-mothers (but not solo-fathers).  They see the poor; the unemployed; and solo-mothers as being there because of deliberate “bad lifestyle choices”.  Holding such prejudiced views is easier than having to think hard and deep about the complex economic and social causes that have created our own under-class in New Zealand. If someone is to blame, for their own mis-fortune,  we don’t have to act.

And if there’s one thing that human beings love; it’s simplistic answers to hard questions.

National (and it’s right-wing cousin, ACT) understand this dark streak in our collective psyche and exploit it to the last possible vote.

However, it does nothing to address the very real social and economic problem of unemployment. Bashing beneficiaries is like criticising someone for getting sick – ultimately futile and counter-productive.

To date, this National government has done very little to create jobs; to reduce barriers to education; to train young New Zealanders for life in the 21st Century.

National’s contribution to job creation has been… the cycleway. They have also cut the TIA (Training Incentive Allowance) which, for many,  was a ticket off welfare and into paid employment. That happens to be the same TIA that Welfare Minister, Paula Bennett used to get off the DPB.

Nice one, Ms Bennett.

John Key says that the “current system is not working”.

Wrong, Mr Key. The current system is functioning as it should; feeding people who are without incomes.

It is the unemployed who are “not working”.

Where are the jobs, Mr Key; where are the jobs?

***
Sources:

Grim Day of Redundancies

BoP Times : 1,000 people applied for just 90 jobs

Food parcel families made poor choices, says Key

Jobs to go at textile factories

10 applicants for every one shelf-stocking job

National Party Conference – Day One

Employment Blow as Vbase cuts 151 jobs

2700 applicants for 150 jobs

National promises to unleash welfare reforms

Lower Hutt jobs to go as shops shut

Applicants queue for 20 jobs at new KFC store

Getting young people off welfare a priority

300 job losses in Hawke’s Bay

Demand Strong for New Jobs Up for Grabs in Glenfield

National Party Conference – Day One