Saturday, April 21, 2012
ACT conference - a cursory comment
And then he made amusing comparisons between various historic big name leaders who wanted NZ to be like another country ( as per Shearer and Finland). For Norm Kirk it was for NZ to be the Switzerland of the Pacific. (My comment - not forgetting that ACT has cited Ireland and Singapore enviously in past times). Or the many versions of a 'smart' economy promoted over the years culminating in Clark's 'knowledge' economy which had Prebble envisaging the "E = M whatever it was......" floating over the country. Notably Prebble did describe Key as possibly the "most talented politician" he has witnessed.
But when it came to Banks, I gradually lost interest. Nothing new was canvassed (although to be fair, the content might be new for him). What he said about his adopted children and the merits of "unconditional love" was winning. That came early and warmed for whatever followed . But he failed to move beyond the usual ACT travail of slumping economic relativity (in fairness he may have later but I'd switched off.)
Thinking about Jim Anderton and Peter Dunne, no party yet has rebuilt from one, although Winston Peters overcame even worse odds. I am not going to make a prediction about whether or not ACT can. Prebble talked about a book which had tested 80,000 (that sounds high? May be misheard) political 'expert' predictions which found that in the main, tossing a coin would have been more accurate. And I don't wish ACT ill.
My husband wasn't hanging on Banks' every word and wondering why I was tuning in. As I said to him, we will have to vote for someone next time. And this is one of limited options.
Bennett doesn't mince her words
"We used to have a benefit system that provided for a few. We were a nation that saw welfare as a backstop, as something you went on if you hit dire straits. Many were on Welfare because they were hit alright Welfare was a way out of domestic violence. It was also for those who were cruelly widowed and there was no such thing as being born into welfare. But what about today? In the context of welfare; who are we now? Now we have 220,000 children living in welfare dependent households. We have nearly 7,000 babies born to teen mums, most of who will be on a benefit for at least seven of the next 10 years and many for a lifetime. One third of women currently on the DPB started on the benefit as teen mums. That is more than 30,000 people. Is this the system we envisaged? It is not who we were. It is who we are. But is it who we want to be? I am the Minister of Social Development. I head up this mammoth beast we call the welfare system and I will not sit back and accept that this is the best we can do by people. I do not apportion blame. I think no less of someone on a benefit than I do on any other New Zealander. In fact I often think more of them because I acknowledge and respect how damned hard a life it can be. So, I will believe in them, their ability and their contribution. I will believe in their path out of welfare into a path with opportunity. I will reform the system."
And then she talked about the recent goings on with some providers, notably the Waipareira Trust headed by John Tamihere:
"Family Start. You have probably already heard about some changes to Family Start. Family Start is one of MSDs flagship programmes. It costs about $31 million a year and on average about $5,000 or $6,000 per baby. I have heard it called the ‘Rolls Royce’ of programmes because it is ‘top of the line’ and worth so much more than any other program. Family Start has been running for more than 14 years. As Minister I had to question if it was getting the kind of results that it should be. After two independent reviews it was ascertained that some Family Start providers were doing a great job, some were doing okay and some were doing a poor job. But what was alarming was that some were considered to potentially be doing damage. The next logical question is why? And of course there were a number of complex reasons. One of which though was the level of support from MSD. These providers were more or less being left to it They were being asked to tick boxes and fill in a ream of nonsense paperwork. So I spoke directly to providers and pulling no punches, I laid it out straight. There had to be change and I would spend more time and money supporting that change. A year later and some changes had been made but not enough. Again I fronted and told them that although progress had been made, some had not made any changes and more needed to be done. In fact in that speech I said, “…for some of you this is your second strike. Three strikes and you‘re out." A few weeks ago Family and Community Services announced that five providers would not have their contracts renewed this year. This was not done lightly but the families these providers were supporting needed results. I know that home based visiting can and does work and so I will back it. But results are absolutely paramount. This process doesn’t end with Family Start and we will be working our way through all of our contracts. There is over $550 million of contracting for services that MSD does and we are demanding that they all be up to a high standard. You will see the outline of this programme of work over the upcoming months. I know what you demand of me as your Minister. You demand that I provide quality services to those families that need it most and that I do it in partnership with you. The New Zealand public also demands that I don’t turn a blind eye to substandard practice and that I have the courage to stand up and make the hard calls."
If I may indulge myself for a moment, this time last year I blogged the following after speaking at the select committee hearing regarding the Future Focus reforms:
In brief I urged them to focus their attention where it is needed - young, unskilled, uneducated women entering and remaining in the benefit system for years. I cautioned that the proposed work-testing will not deter this group and could see even more children added to existing benefits as an avoidance tactic.Returning to Bennett's speech:
"In New Zealand we are lucky to have a welfare system for those who need it. But under the old system the back to work clock was reset when an additional baby was born to a woman on DPB. For example; if a woman on benefit had another child when their youngest was 18 they would automatically get another 18 years on benefit. In some cases that clock has been ticking for over 35 years and counting. This is not happening in isolation. Around 29 per cent of those on DPB have had a subsequent child while on benefit. Relying on a benefit indefinitely is not healthy, especially for children. As I just mentioned we there are well over 200,000 children living in benefit dependant homes. Tackling this growing problem has been left in the ‘too hard’ basket for too long. It is time to make the hard calls."
At the very last sentence in her speech repeats that sentence:
"It’s time to make the hard calls."
I truly hope that she isn't thwarted by nay-sayers, second-raters or even her own Ministry.
Friday, April 20, 2012
Right place at the wrong time
But here's the thing. They scheduled two days and only needed one and a bit. So the rapidity of the process opposition member and submitters were vociferously complaining about had an effect. Apparently the Green MP moved that the submission period should be re-opened and extended but was outvoted by one vote.
Here's a report regarding the submitters I missed:
Proposed new welfare laws run the risk of discrimination, a parliamentary committee has been told. The Human Rights Commission says there's insufficient evidence to justify imposing compulsory budget management on young beneficiaries.
Under the Social Security (Youth Support and Work Focus) Bill benefit payments can be made through cards that can only be used for accommodation and food, with a small cash-in-hand allowance.
Chief Human Rights Commissioner David Rutherford told the social services select committee on Friday "the evil of discrimination" had to be avoided unless it could be justified and he didn't think in this case that it was.
Deputy Children's Commissioner Jo Cribb said in her submission there must be monitoring to assess the impact of the proposed new welfare regime on young mothers and children.
The bill delivers payments for childcare while it imposes new work obligations on sole parents.
Ms Cribb said it was essential for childcare to be high quality and accessible - particularly for young mothers in remote areas.
Seems to me that laws discriminate against young people canstantly. I don't have to list the ways. As regards young mothers in "remote areas", the Jobs Op policy Labour ran which made unemployed people ineligible for the dole if they moved to areas where there were no jobs should apply to anyone being work-tested.
Thursday, April 19, 2012
What went on at today's select committee
- there are no jobs
- the reforms are punitive and mean-spirited
- they contravene women's human rights and their sexual and reproductive freedom, as prescribed by the UN
When the chair, National MP Sam Lotu-liga asked the second submitter, Robin Gwynn, if he was aware that Seek is advertising 15,000 jobs he was reprimanded by Labour MP Rajen Prasad for engaging in such a manner . Prasad told the chair to "desist or it will lead to disorder". Having heard from Mr Gwynn that "the government has a moral and humane responsibility to make sure the jobs are available before passing such legislation" which was "bullying the weakest and most defenceless elements of our society" I thought the chair had a reasonable point but the Labour MPs were quite indignant at having such relevancies mentioned.
Next up was an arch lefty unbeknownst to me but recognisable by content, David Tolich. He vehemently objected to the video process and that is was arranged by a "private company with taxpayer money" no less. (Ignores that fewer tax payer dollars are required for this facilitation than the alternative). He said it contravened Te Riti O Waitangi and the Constitution. He said that the DPB reforms were an insult to parenting, an abuse of children and parents, and culturally abusive to boot. He wanted the benefit levels pre-1990s cuts restored and, surprise, surprise, the IWTC given to beneficiary parents. It would only cost $400m which he described as "chicken feed". He spoke so long there wasn't much time for questions but Jacinda Ardern managed a patsy about whether he agreed (or words to that effect) that the incentives to work in NZ are very high because of "how low benefit rates are."
Next came the Women's Health Action Trust. The presenter, Christy Parker, senior analyst, tried to cram in as much as she could but focussed on the policy that will require women who add a child to their benefit to be available for work after one year. This creates "a differential gender impact because it undermines women's sexual and reproductive rights, fails to value parenting, increases social stigma..."
There was no support for;
-raising the DPB age to 19
-the youth payment
-private providers working with youth
-information sharing
-compulsory parenting courses
Parents should be "supported, celebrated and empowered". This legislation would "jeopardise women's self determination." You get the drift.
Labour's Mangere MP Sua William Sio, to his credit asked if the group had had any practical experience with private providers that led to their opposition. The submitter pointed to the UK reforms and private providers, and "welfare reforms internationally that have been a failure" but admitted she had no personal experience to call on.
Next Leonie Morris of the Auckland Women's Centre. Again she complained bitterly about the process. She wanted to be able to speak in person and described what she could see at her end; just the committee chair and the back of each MP's monitor. She requested that each member introduce themselves. They obliged, but it wasted her tight time allocation. She hammered her organisation's expertise in the DPB. Said that 50 percent of women on the DPB came from a background of domestic violence. (I will attempt to investigate this claim). The other 50 percent have "experienced traumatic separation". She said about women on the DPB, "Most live in poverty, the majority have health problems, the majority have low educational qualifications" but then that the reforms were "mean-spirited and punitive". After such a testimony about life on the DPB it was ironic to hear her slamming attempts to change the system.
National MP Mike Sabine (who had been the only National MP engaging with the submitters bar the chair and there were 3 more) asked if the Centre had any problem with women who chose to go back to work when their children were very young (responding to the constant theme that requiring mothers to be available for work devalued parenting and even verged on child abuse according to Tolich). The submitter from the Women's Health Action Group butted in and said the key word was 'choose'. Women being work-tested were unable to choose.
If I could have had one moment of redress this is when I would have used it. These women go on and on about rights (human), freedom and choice for beneficiaries not once acknowledging the loss of rights (property), freedom and choice imposed on all those who fund the DPB.
I might return tomorrow. Sucker for punishment that I am.
An experiment
This arrived in my e-mail inbox recently:
An economics professor at a local college made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that socialism worked and that no one would be poor and no one would be rich, a great equalizer.
The professor then said, "OK, we will have an experiment in this class on socialism".. All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A.... (substituting grades for dollars - something closer to home and more readily understood by all).
After the first test, the grades were averaged and everyone got a B. The students who studied 'hard' were upset and the students who studied 'little' were happy. As the second test rolled around, the students who studied little had studied 'even less' and the ones who studied hard decided they wanted a free ride too so they studied 'little'.
The second test average was a 'D'. No one was happy.
When the 3rd test rolled around, the average was an F.
As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.
To their great surprise, ALL FAILED and the professor told them that "socialism" would also ultimately 'fail' because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed.
Wednesday, April 18, 2012
Latest benefit statistics
All benefit numbers are down over the year to March 2012. The DPB had the smallest decrease of 72 or 0.1 percent. But at least the trend is positive.
Compared to five years ago there are increased percentages of males, Maori and Pacific, 18-24 year-olds and 40-54 year olds making up the total. And a smaller percentage of beneficiaries have worked during the previous year.

John Minto deliberately malicious
The far left pretend to loathe racism but are happy to invoke its overtones when it suits.
Colin James on the future of ACT
Economists and politicians talk endlessly of economic "recovery". But what are we "recovering" to?
And can we go there?
A "re-" prefixed to the wrong word can seduce us away from the uncertain future to a comforting - but lost - past.
Take the Act party, in conference this coming weekend.
Twenty years ago, Act's formula for economic and, as a result, social policy powered a lot of thinking and a large amount of government policy, here and in many market-economy countries.
Much smaller government, greater individual and corporate freedom and weariness of "welfarism" formed a tide in intellectual and political circles.
But by the late 1990s National Party ministers had tired of and grown resistant to Act's lectures and those of its supporting think-tank, the Business Roundtable.
More
Tuesday, April 17, 2012
Something is growing but I'm not sure it's poverty or inequality
"New Zealand's biggest growth industry isn't agriculture or manufacturing – it's poverty, a Waikato University professor says
Social scientist, Professor Darrin Hodgetts, said New Zealand was "growing poverty".
"It's our growth industry and it's growing at three times the OECD average," Prof Hodgetts said ahead of a public lecture in Hamilton tonight....
...New Zealand had gone from one of the most equitable societies – in terms of income distribution – to one of the worst.
"And the cracks are getting bigger."
Look at the following graphs from the OECD Factbook:

What these graphs show is that New Zealand's percentage point change in the Gini index (official measurement of income inequality) was greatest between the mid-1980s and mid 1990s. Between the mid 1990s and lates 2000s the percentage point change was negative.
Not according to the professor:
"Things like Working for Families have had an impact but they haven't stopped the growth and the OECD figures are pretty conservative," he said.The OECD measures relative poverty. If the Gini index shrinks there is less relative poverty.
In respect of OECD poverty rates go here and look at the graph on page 4.
It shows that between the 1980s and late 2000s New Zealand's poverty rate grew at two and a half times the OECD average. But the highest rate of change was in Sweden at 3.7 times the OECD average. Other countries with higher rates of change than NZ were the Czech Republic, Austria, the Netherlands and Ireland.
Featuring in negative rates of change were Greece, Spain and France. And they are all in the doggy-do.
NZ's population poverty rates have been falling. This table shows the most commonly used poverty indicator - percentage living below the 60 percent threshold of median household income after housing costs:
| AHC ‘fixed line’ 60% |
1998 | - |
2001 | 25 |
2004 | 22 |
2007 | 18 |
2009 | 15 |
2010 | 15 |
In a nutshell poverty/inequality grew after the mid eighties. It decreased over the 2000s but has yet to fall to mid-eighties levels.
But what is actually growing right now? The number of people clamouring about, and the level of noise being made about poverty and inequality.
Monday, April 16, 2012
Rajen Prasad: holier- than- thou hypocrite
Families Commissioner On A Slippery Slope
The Chief Families Commissioner unwisely entered into a political debate and should not now try to wiggle out of it, Labour’s Associate Social Development spokesperson and former Chief Commissioner Rajen Prasad says.
“Carl Davidson has taken it upon himself to publically comment on Sue Moroney’s paid parental leave proposal and the economics around it...
...“There is overwhelming consensus on the value of paid parent leave. The Commissioner needed to base his advice on the merits of the case and not on what he believes the country can afford. That is what Treasury is for.
“The Commissioner’s credibility has been damaged and he must seriously consider his position.
But he is no stranger to the game. Prasad used to enter the political debate when he was Chief Commissioner. From 2005:
Rajen Prasad once again shows his political colours
"Families Commission boss Rajen Prasad is clearly protecting his own job with his misguided outburst today attacking Don Brash," says National Party Families spokeswoman Judith Collins....
"It's nothing short of an outrage that the Chief Families Commissioner is defending the current DPB structure in such an overtly political manner.
"Hard working taxpayers have every right to expect those receiving a welfare cheque will perform their duties as responsible parents.
"Why shouldn't parents be held accountable if they knowingly allow their children to remain truant?
"Why shouldn't beneficiary parents be expected to present their children to the doctor and dentist for regular checks, like every other responsible parent?
"Dr Prasad should be making a more balance contribution to this discussion. Instead, he has chosen to play politics," says Ms Collins.
Speedy Nats on welfare reform process
April 16 Peseta Sam Lotu-liga advises submissions closed, 82 received and 34 will be heard 19 and 20 April.
I think I like the pace this government works at. Regarding an earlier social security amendment bill, I had just submitted my comments when the phone rang and I was told to appear the following week.
This time I missed the boat. But mainly because I didn't prioritise, I support the reforms and it's the school holidays. But I will try to attend one of the hearing days as audience, if only to blog back on how it's running or provide some offsetting comment to the media. I imagine that 90-something percent of the submissions will be in opposition and presenters will be looking to garner press coverage.
The veto was just a temporary reprieve
"We think when the Government's balance sheet is in order, that provides greater strength for families overall because it is not just paid parental leave we support; it's Working For Families, it's access to early childhood education and many other initiatives."
It is a waste of time pointing out how much Key once purported to loath WFF. It's on the record. Perhaps politicians fancy themselves as 'maturing' after a few terms. To me the behaviour smacks more of buckling under the weight of righteous redistributionists professing noble causes.
But then one wonders about Key's "we". Surely not all National MPs share Key's enthusiasm for vast social spending, which is what, in the final analysis, has driven European countries to the point of such turmoil?
Was I alone in thinking that National was going to get serious about reducing spending this term? Not just as a response to the recession but because it would benefit New Zealand in the long term?
How easily I forget my own past utterances. Labour/National late eighties/early nineties were aberrations. Now it would seem NZ has reverted to the familiar political pattern of Labour ramping up the social spending and National falling in behind. This it would seem is a political stalemate there is no escape from.
Saturday, April 14, 2012
Vested interests and statistics
Domestic Violence is Going Up, Not Down
“Domestic violence is going up, not down” says MANA Leader Hone Harawira.
The Minister of Police, Anne Tolley, stated last week that “...we [New Zealand] have safer communities and far fewer victims of crime”.
Statistics from the NZ Police include:
• In 2009 police callouts to domestic violence were 78,693. In 2011 that figure has risen to 86,710 - an increase of 9.25%.
• Despite the increase of callouts, between 2009 and 2011 there have been 12,678 less arrests. That is a decrease of 31.71% arrests.
“The picture being painted is obvious. While there is an increase in the number of reported incidences of domestic violence, the cops are not arresting the offenders of the crime”.
“Women’s Refuge is now saying that the threshold for an arrest on the grounds of domestic violence needs to be higher for the cops to lay charges. So your husband will only be arrested if he tries to kill you, but a black eye is ok. It is a deliberate trick to manipulate the stats so the government can look good”.
“If you need proof, NZ Police no longer specifically record family violence offences in their official statistics. We will be on the only country in the OECD not to report these figures! That will mean in future years the government will declare that domestic violence is coming down. Yet organisations like Women’s Refuge know that such statements are bullshit – much like what Tolley has had to say last week”.
The business of 'up or down' has pre-occupied me recently. A couple of weeks back the Families Commissioner had a heated interview with Michael Laws. He claimed DV is going down which makes the White Ribbon campaign a success (Laws claims the campaign is biased and a waste of time).
But Women's Refuge are dubious about government presentation of statistics. Their primary interest is to obtain funding for their operations. Worsening statistics are more likely to achieve this - especially from government.
The Police want to look like they are doing a good job and the opposition want to make the government look bad. I guess that's where Hone fits in. (His example of a "husband" beating the wife is a bit rich though. Crime surveys show that women in marriages experience the least amount of domestic violence.)
A strong indicator of DV is represented in sexual assaults and police say that the recent surge in recorded sexual assaults - 3.1% 2009/10 - was almost entirely driven by assaults within intimate partner relationships. This may also apply to the 2010/11 larger increase of 14.9 percent.
Then there is the old 'reports versus actual crime' trick. When it suits, the government says that reports are up and that's good. 'People are coming forward due to all our efforts' they say. Reports may be up but that doesn't necessarily equate to the actual level being up, they say.
Yet Women's Refuge maintains need for their services is growing. Even then some of that may be driven by economic need (homeless women) as opposed to more violence.
Where Hone is on safe ground is criticism of the way statistics are recorded. It is impossible to make year- on- year comparisons when methods vary and police re-categorisation of crime has confused the picture significantly. (Re-categorisation is going to pose a huge problem when the government changes benefit types.)
The best rule on hearing a statistic is, even before you attempt to weigh up its veracity independently, look at whose mouth it is coming out of.
Friday, April 13, 2012
Most people already take 6 months to a year when having a baby?
Employers and Manufacturers Association employment services manager David Lowe said most people took six to 12 months off when they had a baby.
Those who did come back at 14 weeks usually did so because of financial constraints and were often "unsettled".
"If you have a look at the returning parent and the child, everyone is more settled if they take a little bit longer off."
A longer period of paid parental leave would be better for those parents and employers would generally not mind, he said. However he acknowledged the Government faced financial constraints.
If he is right then there is no case for extending PPL to 6 months because most people already take that amount of time. Most people can afford to pay for it themselves. End of story.
Thursday, April 12, 2012
Good on National
- Right (62%)
- Wrong (33%)
- I'm not sure (5%)
Update on poll: At almost 16,000 votes 60 percent say 'right'.
There are times when I get called by the media I am sure because I am the only commentator taking a dissenting view to social spending (apart from the government). The left would like to paint people like me as complete heels for not agreeing that mothers should have ample time to bond with their babies. In fact that's not what I am saying at all. Of course babies should get the best start but that is for their parents to provide for.
So it lifts my spirits when I see that a good number of joe public also agree, or at least believe now is not the time.
Wednesday, April 11, 2012
Next welfare reforms
Tuesday, April 10, 2012
Paid Parental Leave
Tuesday, April 10, 2012
EXTENDING PAID PARENTAL LEAVE SHOULD BE REJECTED
At a time when the government is struggling to get the country's borrowing under control New Zealand cannot afford to spend more on extending Paid Parental Leave (PPL).
Welfare commentator Lindsay Mitchell said today that Labour MP Sue Moroney's private member's bill to extend PPL from 14 weeks to 6 months should be rejected by National and its support parties.
"Since PPL was introduced in 2002 the uptake has exceeded predictions. Like any welfare benefit, once introduced, they become difficult to control. Spending on PPL increased 175 percent between 2003 and 2010 yet the number of babies born increased by only 14 percent. (In the past five years the figures have been respectively 60 percent and 7.9 percent.)"
"In economic defence of her bill, Moroney argues that it will create employment as 'employers engage staff to replace those on PPL.' On that basis it would be equally valid to claim the bill will reduce employment when employers shed staff as those on PPL return to the workforce. In reality PPL is a hiatus from the workforce paid for by the taxpayer. It is a cost to the economy."
"If this bill is passed it will cost a minimum of $300 million by 2014, double what it is now. However, it is likely to be significantly more based on experience to date."
Did a couple of interviews on the back of this with Larry Williams, NewstalkZB (crosses over these two links ) - and Andrew Urqhart at Radio Rhema. I don't know what the listenership is on Rhema but I always enjoy my interviews there, with more time to develop a thought, or talk more extensively around a point the interviewer is making.
Sunday, April 08, 2012
Friday, April 06, 2012
Housing and claustrophobia

Red Road flats are apparently notorious. A quick search describes them visually. Eight 31 storey blocks on the outskirts of Glasgow husing 4,000. The tallest social housing in Europe when built in 1971 according to one report. I was unaware of them.
When I lived in London I accompanied my not-well-to-do brother looking to buy a flat (which I would also inhabit). We looked at some awful life-sapping dives. Yes, even the private sector built revolting concrete blocks. Some that were comfortably habitable inside looked straight into the neighbour's windows and had virtually all natural light curbed as a consequence. The sense of claustrophia was crushing.

Not a 'complainer' by nature, shown into a miniscule hotel room in a Hong Kong (with a toddler in tow), with a window no less than 2 metres away from a neighbouring highrise block, but deep down the tens of levels, I discovered I could put my foot down with a result. We were moved to a room with an outlook. (Cactus will shake her head at my 'delicacy'.)

On reflection I don't know I am born (a colloquialism for Fred Dagg's "You don't know how lucky you are".)