18 May 2011

Welfare Rights Whangarei is a coalition of community groups and individuals seeking Welfare Justice in the social security system. The Coalition has come out today to make two progressive calls on the Government before Thursday’s budget release: to raise the minimum wage to $15 per hour – and to extend the Training Incentive Allowance for people on Domestic Purposes, Invalids’ and Sickness Benefits.

These two moves – called for by the Green Party in their pre election announcements – are common sense ones that would reduce inequality as well as help Government reduce its deficit. Welfare Rights Whangarei describe these policy shifts as “two small ways to make a huge difference in Thursday’s Budget.”

Extend the Training Incentive Allowance

“We call on the Government to restore and extend the Training Incentive Allowance. Its availability has been reduced by the Minister of Social Development, so it is only used for sub-degree level study. Besides being patronising - and ironical, in that Paula Bennett herself got employment through this Allowance helping her get a degree – that move disregards the improved employment prospects that have been proved to follow from sickness beneficiaries and sole parents getting degree-level qualifications,” said Welfare Rights Whangarei spokesperson Tim Howard.

“Welfare Rights Whangarei anticipate that Government should well respond positively to this call, especially as it can be proved to cost very little or nothing in the long run to Government.”

Lift the Minimum Wage to $15 per hour

Welfare Rights is also joining the call for the Minimum Wage to be lifted immediately to $15 per hour. “At a time when living costs are sky-rocketing, an extra $60 a week or so would make all the difference to the 300,000 earning less than $15 per hour at present. This would go some way to reducing the growing level of inequality that is a major concern to New Zealanders across the board,” said Welfare Rights Whangarei spokesperson Tim Howard.

“Some assistance from Government may well be needed for small businesses on the edge to back up this move. But overall – with the reduction in benefit costs that go to low income workers that this move will mean, and the GST and PAYE tax increases that will mean revenue for the Government - the costs will be neutral or insignificant. And governing is ultimately about seeing to the wellbeing of the people.”

Attacking those least able to defend themselves

Welfare Rights Whangarei makes these two calls in the context of what it sees as more sinister Government moves. The Government has been indicating it will implement its own Welfare Working Group’s recommendations. Welfare Rights Whangarei describes the overuse of the terms ‘welfare dependency’ and ‘dependency’ (used respectively 95 and 146 times) in the Group’s report as “manufacturing a crisis to justify punitive actions against beneficiaries.” Real issues like poverty and low income are hardly addressed in the Group’s report (the term ‘child poverty’ is only used 11 times).

“This is a beat up on the poor,” said Tim Howard. “We are really concerned that this ‘beat-up’ language used by Government and its allies has a sinister subtext – that it’s okay for Government to take drastic measures and punish the poor, even if that might be a little unpleasant. We need to name the language used for what it is: an attack on those least able to defend themselves.”

Small Moves, Big Effect

In that context, Welfare Rights Whangarei are making these two proactive calls – and would like to see the Government honouring the community by adopting them.

“These two small moves are practical while achieving significant positive effects, and should be included in Thursday’s Budget announcements. The Government has a choice – to benefit the whole community, including those on low incomes, or to cut social spending to serve the well-off. We call on Government to act for the good of the whole community, not the selective few.”

Welfare Rights Whangarei will be watching the Budget announcements closely, and will be circulating their reflections to media on Friday.

ENDS

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