Brief look at the shadow WWG proposals

The shadow welfare working group met yesterday There are reports here and here. In Green MP Catherine Delahunty's words;

Longer term strategies such as a Universal Basic Income or at least some universal provision for children were well supported in order to simplify the system and remove the judgmental attitudes often attached to all benefits other than New Zealand Superannuation.

A UBI requires high tax rates in order that every adult New Zealander receives a basic income from the state. This replaces the current benefit system. I would never support it despite some libertarians having mooted the idea from time to time (of recent times, notably Charles Murray). Briefly, it would badly affect entrepreneurship and productivity and it continues the 'paying people to do nothing' syndrome.

It's a dangerous idea that could, however, easily gain widespread currency in a relatively poor country like NZ.

There was a realistic understanding about the costs of change at both the ideological and the practical levels. The visions of a compassionate and respectful agency which supported people to towards meaningful work were supported, alongside a call for immediate changes.

These included extending Working for Families to all families and restoring benefit rates to pre-1991 levels; restoring the discretionary Special Benefit for people who cannot meet their essential financial commitments; and creating some real jobs appropriate for the diversity of people who need them.

I couldn't agree that these proposals do reflect a "real understanding". Even Labour refused to extend the In Work tax credit to beneficiary families and were backed by the Human Rights Tribunal in that action.

There is nothing new being proposed by the shadow group. It's simply an organised front for advocating greater state involvement in the redistribution of wealth. Their goals are short-sighted and would be implemented to the detriment of all New Zealanders over the long term.