Tuesday, September 07, 2010

Sole parents: blighted by poverty and mental illness

The following graphs paint a clear picture of the deprivation associated with sole parenthood.

But first, the extent of sole parenthood, which grew from 10 percent of all families with dependent children in 1975 to 28 percent in 2006:



The second describes the extent of poverty amongst sole parents:



And the third describes the extent of mental illness amongst sole parents:



The natural reaction to this is concern. Especially as these circumstances affect not just the parent but the child living with the parent.

The response of the left is to call for more money to be diverted from two parent families into one parent families. This ignores the likelihood that in doing so more sole parent families will be created. In any event a well-known Swedish study into a huge cohort of relatively advantaged (in comparison to other countries) sole parents in that country showed that their children still suffered higher rates of mental illness, suicidal ideation, drug addiction etc which suggests the parents were similarly afflicted.

Of course there is something of the 'chicken and egg' scenario occurring. Does a mental disorder predispose to sole parenthood or does sole parenthood make mental illness more likely? I believe it is at least safe to say that an existing mental disorder will generally be exacerbated by becoming a sole parent.

So are we between a rock and a hard place with sole parents? Is the only way to reverse the trend a withdrawal of the subsidy? And isn't that unthinkable?

No.Yes.No.

But the subsidy shouldn't be removed over night or in totality. In practice that means time-limits and exemptions. It certainly must not be increased. And as well as mental illness requiring more medical intervention, there are other safeguards - having work and a partner.

An over-simplified analysis? Quite probably. But sometimes we just get bogged down in detail and paralysed by the parameters and politics of the problem.

Monday, September 06, 2010

Cows don't know they are crims

Here's an uplifting story to permeate the sense of gloom the earthquake and bad weather has cast. It concerns a Corrections-run a prison farm near Milton in the South Island;

This farm is run by the Corrections Inmate Employment (CIE) scheme,and in three years is footing it with any well-run dairy farm, evident from its two milk-quality awards from Fonterra last season.

CIE southern farms manager Allan Gorton said the awards for high milk quality (a low somatic cell count) were tributes to the farm instructors and prisoners...

The farm is run as a commercial venture and also as a training facility for prisoners before release.

In conjunction with daily farm work, inmates are offered training through the Agriculture Industry Training Organisation.

Last season 75 prisoners gained 283 unit standards in a variety of courses. For some these were their first qualifications.

The credits were earned for courses as diverse as animal health, animal handling, chainsaw safety, Grow Safe and tractor and all-terrain vehicle driving.

Mr Gorton said he knew of seven men who were now working on dairy farms as a result of training at the Milton property. Others had jobs in related farm industries...

"For some, it is the first time they have passed something in their life. To them it's very meaningful. It lifts their self-esteem."

For many, it was the first time they had worked with large animals, which could be intimidating as well as rewarding.

"The thing about animals is that they don't argue, condemn or criticise," Mr Gorton said.


I am never able to fall into one or other camp when it comes to crime and punishment. Prisons are essentially places that make most who go there more likely to re-offend. Yet sending them there is often unavoidable.

So why don't we do more of this sort of stuff? I can see a strong libertarian argument that objects to using taxpayer money to create competition with other tax-paying farms. But if the primary role of the state is to maintain law and order doesn't rehabilitation take a higher priority?

I am reminded of a recent conversation I had with a man who did a spray painting apprenticeship in prison. By sheer chance he got the opportunity to demonstrate his proficiency with a potential employee. He told me how he had stepped into the booth, done all the right things bar neglecting to don the mask of the usual worker. He was stopped and asked if he had heard of OSH? To which he replied, "Listen. I've just come out of jail. I've got me a clean bill of health. No hep. No HIV." Of which he was evidently very proud. "You think I'm putting that germ-riddled thing on, your mad." Suffice to say, he got the job.

Friday, September 03, 2010

Child Support - facts and figures

As Child Support is topical here are some facts and figures produced through an OIA request last year;

* In 2008 IRD collected $363 million in child support

* Of that sum $136 million went into the consolidated fund to offset the $1,530 million DPB bill

* At March 31, 2009 there were 130,762 liable parents

* Of these parents 59,536 (46 percent) paid the minimum amount of $66.60 per month

* A typical monthly payment to a sole parent with two dependent children living in Auckland receiving the DPB, accommodation supplement and other allowances could be $2,513

* Under that example, a liable parent paying the minimum for two children would be contributing 5.3 percent of the custodial parent's benefit payment

* At 31 March 2009 there were 201,900 children subject to child support. That has risen to 210,000 in 2010 - approximately one in five under 18s.

* 45 percent of liable parents had incomes of under $20,000; 3 percent had incomes in excess of $100,000

* 27 percent of liable parents and 54 percent of custodial parents received benefit income during the month of April 2009

* 18 percent of liable parents are female (some parents share custody of children and both incur liabilities)

* At March 31, 2009 7,135 or 1 in 20 liable parents lived overseas

* In NZ child support is payable up to 19 (unless he or she becomes 'financially independent'); in the UK child support is payable up to 16 (unless the child remains in non-advanced education)

Thursday, September 02, 2010

Maharey was wrong

Way back in 2001 I started challenging the Minister of Social Development about the time people were spending on the DPB. Steve Maharey commonly cited 3 and a half years which was accepted on his authority and became the standard line for DPB proponents.



But I said it was more like double that because people had repeated stays and he was only counting each individual stay. A fair bit of correspondence passed between us. In 2003 I took my calculations before the select committee which was debating removing work tests on the DPB. That generated the following news report;

April 4, Page 2, Dominion
Public misled on DPB - campaigner

By David McLoughlin

The length of time the average sole parent spends on the domestic purposes benefit could be almost double the official 3.7 years.

This is because thousands of sole parents go off, and then back on to, the DPB, but each period drawing the benefit is counted separately rather than cumulatively.

Wellington woman Lindsay Mitchell, who is campaigning for a select committee review of the benefit, calculates from official data that shows how many times sole parents have drawn the DPB that the average real time spent on it is 6.5 years.

Mrs Mitchell, of Eastbourne, obtained Social Development Ministry data on how many people currently drawing the DPB had been on it previously. She found that 25,058 of the current 101,000 paid the sole parent DPB had drawn on it once before, 11,493 had drawn it twice, 5043 three times and 3663 for or more times previously.

With the help of her husband David, who formerly worked for Statistics New Zealand, she calculated the 6.5 years average from the number of times each sole parent has drawn the DPB.

She was critical yesterday of politicians, including Social Services Minister Steve Maharey, as well as the news media, for continuing to repeat the 3.7 years when it was "misleading".



Yesterday I was reading a new report

Sole parenting in New Zealand: An update on key trends and what helps reduce disadvantage

snuck onto the MSD website with no corresponding media release. Here is what it says;

... when the benefit histories of all New Zealand sole parents receiving benefits at June 2008 are examined, half appear to have become parents before age 23, and the median share of time spent on benefits in the previous 10 years (or a shorter period in the case of younger groups) is 83 percent (mean: 72 percent).


The mean time spent on the DPB in the last ten years is 72 percent or 7.2 years. By my crude method I calculated a minimum figure of 65 percent (or 6 and a half years) over a similar period, assuming the data MSD gave me in 2002 extended back to 1993, the limitation of their benefit history at that time.

I suppose an apology from Mr Maharey, now Vice Chancellor of Massey University where he is probably continuing to infect young minds with socialist propaganda, would be too much to expect.

Wednesday, September 01, 2010

Pork barrelling in local government elections

Lower Hutt Mayor David Ogden is offering free swims for seniors. My letter to the Hutt News;

Is David Ogden morphing into Winston Peters? His campaign promise of 'free' swimming for seniors sounds very nice but must be recognised for what it is. A vote-buyer. And politicians can only ever buy votes with somebody else's money. It's called pork-barrelling. Rife in central government, it is a shame to see it appear so unabashed in local government.

Mayor Ogden cloaks his vote-buying with the well-meaning intention of encouraging "healthier and more active lifestyles." Is that where we want local government to go? Using ratepayer's money to nanny them?

He says it is time to "invest in the people" . It is the individual's prerogative to decide for themselves what they want to invest their money in. There are probably far more elderly folk worrying about paying their rates than fretting over paying $4-50 for a swim in the local pool.

The worst of it is, his only opponent agrees. In fact Ray Wallace will no doubt soon be upping the ante. Those who want lower rates and a focus on core services are faced with choosing between the lesser of two evils.