Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

New Zealand A Non-Starter

New Zealand A Non-Starter

NEW ZEALAND A NON-STARTER

Figures released today from the US National Center for Policy Analysis show how successful Canada and the United States have been in reducing welfare dependency. The number of individuals receiving welfare in the United States fell 46 percent from 1994 to 2002 and Canadian welfare rolls fell 38 percent over the same period.

By comparison, New Zealand's welfare rolls have remained virtually static despite a big drop in unemployment. Of the working-age population, in 1991, when unemployment was high, 20 percent were on a benefit. In 2002 the percentage was 19.8 percent.

Welfare is the government's single biggest expenditure item. Excluding superannuation, it still accounts for more than the spending on either education or health. This means that salaries for staff working in those areas must stay relatively low on an international scale. This makes New Zealand extremely vulnerable. This vulnerability is worsened when other countries seeking to import teachers, nurses, pharmacists and doctors are making real inroads into their welfare bills, allowing more to be spent on respective salaries.

Equally, reduced welfare spending allows tax relief. The Center reports, "In an age of mobile capital and labour, provinces have strong incentives to keep their personal and corporate tax rates competitive in order to attract investment. Indeed, Alberta and Ontario not only cut their welfare rolls faster than all the other provinces, they also benefited from stronger economic growth spurred by tax relief."

There is a race going on, not only between provinces and states, but globally, to attract labour and capital. It is heightened by the pressing need to support rapidly aging populations. There is a race going on and New Zealand hasn't even left the starting blocks.

Source; Ending Welfare as We Know It: Lessons from Canada
http://www.ncpa.org/pub/ba/ba457/

Lindsay Mitchell
Petitioner for a Parliamentary Review of the DPB
forms available from http://www.liberalvalues.org.nz

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them.

Finally, yesterday’s announcement by the Ardern government that a new state agency will be set up to assess and plan the manned re-entry to the mine (on a set timetable) goes a long way to meeting the families’ remaining request: that they be enabled, if at all possible, to bury their loved ones. More>>

 

Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>

ALSO:

Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. More>>

ALSO:

Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>

ALSO:

Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>

ALSO:

Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election