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

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news