2012 Budget:Is the budget relaxed about child poverty?

Friday 25^th May, 7:15am – 8:45am

Via live video stream from Auckland

Come and enjoy breakfast with us and find out how the 2012 budget affects children and young people

Speakers

Prof Jonathan Boston, Co-Chair, Children’s Commissioner’s expert group on Poverty

Dr Fiona Cram, (Ngati Kahungunu), Children’s Commissioner’s expert group on Poverty

Assoc Prof Susan St John, CPAG Economics spokesperson and founding member

Chair

Alan Johnson, CPAG Housing spokesperson and Salvation Army senior policy analyst 

Location

Whangarei Hospital

Video conference room, 3rd floor (off middle corridor)

BOOK NOW TO AVOID DISAPPOINTMENT! 

Numbers are restricted due to venue size.

Tickets: $10 waged or koha for unwaged, Pre-payment is preferred

Direct deposit:  Kiwibank 38-9003-0066858-00 Please use your name, number of tickets you require and ‘WhaBB’ as a reference e.g. MSmit 5 WhaBB Make sure to use “WhaBB” as events are occurring in other centres as well.

Cheque: Please address cheques to Child Poverty Action Group Inc, PO Box 5611, Wellesley Street, Auckland, 1141

Book here or telephone 09 303 9260 with your details.  Any other queries please contact admin@cpag.org.nz

Read CPAG's full submission here

Spokesperson Mike O’Brien says the reforms continue to ignore the fact that raising children is work, and that sole parents are doing the work of two people on their own.

“We remain concerned that there is no protection in the legislation currently before the Select Committee or in yesterday’s announcement for parents who are unwell. New Zealand research has shown over and again that many sole parents are sick or suffer addiction or mental health problems, yet there is nothing in the Minister’s statements that even attempts to deal with that. Likewise, there is nothing about caring for disabled or chronically ill children.

“It is also unclear what jobs parents will get, especially when they will be competing for suitable part-time work with unemployment, sickness and other beneficiaries. This seems more like a handout to employers rather than a rational welfare policy. The Minister’s paper[1] says the jobs will come but about 150,000 New Zealanders have been waiting for about three years now and there’s no sign things are improving,” said Mr O’Brien.

CPAG is also alarmed about the proposal for free long-term contraception for beneficiaries and their children.

“Our concern is twofold. First, it carries the message that beneficiaries and their daughters are incapable of making rational reproductive choices. This is not common sense as the prime Minister suggests, it is about stigmatizing and blaming.

“And second, why not make contraception free to all women without discrimination? There are plenty of women who would be grateful for some financial help with their family planning costs.”

CPAG says that if the government is serious about beneficiaries escaping the poverty trap, they would increase beneficiaries’ abatement-free earnings and reduce abatement rates on earned income. Increasing incomes will do much more to improve the lives of children in benefit households than any provision of free contraceptives.

“If this is about improving people’s welfare then we have to improve their incomes. There is nothing in the government’s package designed to do this.”

The government has announced students will have to pay back their student loans at a faster rate of 12%, while the threshold for repayment remains frozen.

Spokesperson Susan St John says, “The threshold for repayment is already set far too low at an annual income of $19,080, and freezing it makes it bite more over time, increasingly affecting the low paid and those on benefits with loans. The repayment rate of 12% on income above that threshold is far too high and contrasts with Australia where there is proper indexation of thresholds and no loan repayment at all on incomes under $47,000.”

CPAG says welfare policies and student loan policies interact in absurd ways because the government has failed to look at the whole picture.

For example, under the latest welfare reforms many parents on benefits will be expected to work 15 hours.

The government wants them to work, but when they do work they retain very little after tax and other losses.When a sole parent earns over $100 their net benefit reduces sharply. For each extra dollar between $100 and $200 the net benefit is reduced by 30 cents and then by 70 cents for every dollar over $200. And many of those sole parents have student loans. In gross terms, the DPB is now very close to the threshold for repayment of a student loan.

Thus a sole parent with a student loan earning $200 gross a week, retains only $40 in the hand for the last $100 earned.  If the sole parent works 15 hours at $15 an hour, earning $225 gross, the last $25 earned or nearly 2 hours of paid work gives her only a few cents in the hand. 

When the rate of repayment increases to 12% then the last $25 earned will actually make the sole parent worse off. They will be effectively taxed more than they actually earn for the last 2 hours of work. Work cannot be the way out of poverty with such a vicious poverty trap.

CPAG says it is vital that the government consider the full impact of its policies on all those affected.

The 12^th Annual CPAG Post-Budget Breakfast Series

Friday 25^th May, 7:15am – 8:45am

Come and enjoy breakfast with us and find out how the 2012 budget affects children and young people. 

Auckland: Is the budget relaxed about child poverty?        

Speakers:

Prof Jonathan Boston, Institute of Policy Studies, Victoria University. Co-Chair, Children’s Commissioner’s expert group on Poverty.

Dr Fiona Cram, (Ngati Kahungunu), Member of the Children’s Commissioner’s expert group on Poverty.

Assoc Prof Susan St John, Economics Dept, University of Auckland.  CPAG Economics spokesperson and founding member.

Chair:           

Alan Johnson, CPAG Housing spokesperson and Salvation Army senior policy analyst 

Location:    

School of Population Health, Tamaki Campus, University of Auckland

Bldg 730, Function Room 220 entry via Gate 1, 261 Morrin Road, Glen Innes, Auckland.  Free parking in visitors’ section.

Wellington: Post Budget Analysis - how do children fare?

Co hosted by the Public Health Association

Speakers:   

Assoc Prof Mike O’Brien,  Faculty of Education, University of Auckland. CPAG Director and Social Security spokesperson.

Dr Bill Rosenberg, Economist and Policy Director, New Zealand Council of Trade Unions (NZCTU)

Asher Emanuel, Young leader, Victoria University of Wellington

Chair:             

Eileen Brown, National executive member, Public Health Association.    

Location:    

St John in the City Conference Centre, Corner Willis and Dixon Streets, Downtown Wellington

Christchurch: Are we reducing intergenerational inequality?                     

Speakers:  

 Prof Paul Dalziel, Dept of Economics, Lincoln University.  Alternative Welfare Working Group member.

Dr Sue Bagshaw, Paediatrics Department, University of Otago.  Youth Health Expert.

Chair:          

Dr Bronwyn Hayward, Senior Lecturer, School of Political and Social Sciences, University of Canterbury.  CPAG Christchurch convener (021 2727069).

Location:  

Reboot cafe, Erskin Building, University of Canterbury (on Science Rd enter off Ilam rd) 

BOOK NOW TO AVOID DISAPPOINTMENT! 

Tickets: $20 waged or $12 for unwaged. Pre-payment is preferred

Direct deposit: Kiwibank 38-9003-0066858-00 please use your name, number of tickets you require and either ‘AuckBB’, ‘WellBB’ of ‘ChchBB’ as a reference e.g. MJones 5 AuckBB

Cheque: Please address cheques to Child Poverty Action Group Inc, PO Box 5611, Wellesley Street, Auckland, 1141.

While Paid Parental Leave (PPL) in New Zealand is in need of attention and extending the time PPL is available will be a great improvement for some families, CPAG urges a wider view.

PPL currently excludes too many newborns and the alternative Parental Tax Credit is only for low income families who satisfy work criteria. Parents on a benefit are not entitled to any extra assistance for their newborn children.

All newborns have the right to parents who can put their needs first because they have enough money to do so.

Australia does it much better and is far more generous and inclusive. Their government-funded  PPL scheme pays eligible working parents for 18 weeks at the rate of the National Minimum Wage, currently AU$590 a week before tax. And newborns not covered by PPL get a baby bonus worth $5,437.00 for each eligible child, paid in 13 fortnightly installments, and they get generous family tax credits.

Our current appalling child health statistics show us that not funding the necessary support is false economy.

RE: SOCIAL SECURITY (YOUTH SUPPORT AND WORK FOCUS) AMENDMENT BILL SUBMISSIONS

The organisations listed below have a history of engagement with and commitment to issues around social security and welfare and collectively bring considerable expertise and information to legislation and policy in these areas.

The current Bill in our view requires considerable debate and wider discussion if the aims of an effective welfare system are to be met.

The issues are urgent, complex and critical, and too much haste now could compromise the future options and possibilities for our young people.

While the broad outline of the government’s position and the recommendations of the Welfare Working Group have been known for some time, the details have only now appeared in the legislation.

The very short time period (effectively 11 working days) makes it impossible to contribute adequately to that debate and discussion and makes the process of preparing comprehensive submissions impossible.

This brings into question the integrity of the Select Committee process and leaves us wondering if the Bill will be given the careful attention that is required.  The risk is the enactment of poor legislation.

We urge the Select Committee to press for an extension of the deadline so that the Bill can be properly considered.

• Child Poverty Action Group
• Auckland Action Against  Poverty
• Caritas Aotearoa New Zealand
• Council of Trade Unions
• Life Wise Auckland
• Service and Food Workers Union Nga Ringa Tota
• Women’s  International League for Peace and Freedom 
• Waitemata UNITE

When:  Monday, 23^rd April, 6pm for a 6.45pm screening
Where:  Roxy Cinema, 5 Park Road, Miramar, Wellington

THIS EVENT HAS NOW SOLD OUT!

Thank you for supporting CPAG.  We look forward to seeing at the Roxy.

In a country that has long been a major food producer it is scandalous that so many New Zealanders report going without food in order to make ends meet.  The fact that this is the experience of so many New Zealand children makes the scandal even worse.  The effects of this lack of food (‘food insecurity’ to use the technical phrase) are seen by teachers daily in the school classroom and is experienced by children in both their educational achievements and in their relationships with their peers. 

One of the most tangible results of the growth in child poverty over the last two decades in New Zealand has been the increase in foodbanks and in school meal programmes and arrangements within schools to provide food for children.  This report adds significantly to the literature we now have in New Zealand about foodbanks, food shortage and food insecurity. 

One of the worst aspects of the growth in child poverty and in the numbers of children not having enough to eat has been the complete failure of government to respond sensibly and effectively.  The failure to put in place effective and appropriate policies to reduce child poverty tells us very clearly that children are not very important.  Words are easy, but actions (or perhaps here inaction) is a much clearer signal of how little children really matter, especially if those children are poor.  

The work and results reported here show a frightening picture for too many children in Whangarei.  The responses of the local communities as schools, community and social service groups provide support and assistance for families and children are clear and well documented and invaluable.  The challenge is for government to respond with a range of policies which will make a real and significant contribution to reducing child poverty.