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


Taxpayers Should Be Viewed As 'Clients'

May 16, 2005

Taxpayers Should Be Viewed As 'Clients'

A study released today by the New Zealand Business Roundtable suggests the government's Working For Families package will fail to achieve its stated goals - not least of which is to encourage more beneficiaries into work.

Greg Dwyer, expressing his personal viewpoint, believes that attempts to reduce welfare dependency need to be far more direct. As well as time limits and work requirements, he floats the idea that WINZ should consider, 'contracting out the administration of benefits and employment services, especially for long-term beneficiaries. This might help to sharpen incentives within Work and Income. Taxpayers should be viewed as their 'clients' rather than the beneficiaries.'

Petitioner for a Parliamentary review of the DPB, Lindsay Mitchell, concurs with Greg Dwyer's findings and congratulates him on his proposals. "Mr Dwyer is right on the button in his assessment of WFF. Because the redistribution package will make DPB recipients better off the chance is more people will be drawn onto it. He reminds us that Treasury predicts only 2 percent of these parents will move off benefit and into work. At the same time, because of the high effective marginal tax rates faced by couples with dependent children under the WFF package, second income workers will be discouraged from taking a job. If they do they will stand to lose family support or accommodation assistance."

"Also tackled is the programme's attempt to reduce child poverty. Again Dwyer's insight is worth quoting;' Over 25 percent of children are brought up in low income households because their parents or, more commonly, their sole parent is dependent on welfare. While income redistribution may alleviate poverty in the short run, it encourages more people to become dependent on welfare than otherwise and undermines acceptance of personal responsibility. If income transfers alone could overcome poverty, it would have been eradicated a long time ago.' "

"This study is to be recommended. Dwyer backs his findings with detailed analysis and international comparisons. He understands that broader policies to encourage economic growth are far more important than income redistribution. He writes, 'The performance of the economy in producing a growing supply of goods and services that consumers are willing to buy and generating jobs for everyone who is willing to work - not redistribution - ultimately determines the material standards of living of citizens. ' "

It is Mitchell's view that the WFF package is an example of government intervention at its worst. In the main, it discourages work and penalises effort." The long term economic prospects for all New Zealanders will be reduced by this programme."


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election