Caritas Aotearoa New Zealand
Media Release – For Immediate Release
3 June 2009

Budget 2009: how will the poorest fare?

Caritas Aotearoa New Zealand has both reservations and relief over the government’s 2009 Budget.

Caritas Director Michael Smith said that the Budget was delivered in a time of high economic uncertainty. “The speed with which Budget surpluses have turned into deficits has been extraordinary.” Given the very poor economic outlook, there will have been a great deal of pressure to cut government spending.

“In that context, we welcome the commitment by the Minister of Finance to protect the most vulnerable, and in particular the maintenance of current levels of benefits and family support.” Many Church groups had been concerned that the economic crisis should not provide an opportunity for benefit cuts such as those experienced in 1991.

“However, we need to also remember that many of New Zealand’s poorest citizens were already experiencing very low living standards even during the recent years of prosperity. That hardship is about to be experienced by at least 80,000 more workers and their families, as many more people face job losses over the next 12 months.

“Many of those families will not expect the multiplying effect of losing both their wages and the work incentive part of their Working for Families payments. In these circumstances, more than maintenance of current levels may be needed.”

Mr Smith said that while the government’s stated commitment to an economy that creates new jobs is welcomed, that needs to be set beside the fact that many jobs are being lost in the public sector. “Government should have the same commitment to job protection as it is expecting of the private sector.”

Similarly, while anticipated, Caritas is disappointed that the Government is abandoning the commitment to work towards reaching 0.35 percent of Gross National Income (GNI) spent on overseas aid and development assistance. “The previous goal was still only halfway towards an international commitment first made in the 1970s to reach 0.7 percent of GNI. In an international recession, the poorest suffer most, and we need to redouble our efforts to help the most vulnerable both at home and abroad.”

In other areas of the Budget, Caritas has welcomed the commitment to insulate homes, simultaneously addressing employment, health and environmental concerns, However, it is very concerned about funding to increase the number of beds within existing prisons.

“Is this really the answer to our growing prisoner population? Doublebunking, combined with the long lock-downs already experienced in prisons, is a recipe for violence, intimidation and abuse of people in prisons,” said Mr Smith.

Caritas Aotearoa New Zealand is a member of Caritas Internationalis, a confederation of 162 Catholic aid, development and social justice agencies active in over 200 countries and territories.

ENDS

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