Truth column Jan 17-23

Truth's site is coming together. Here's my column from Jan 17-23. Bit out-of-date now but the topic is perennial:

A friend texted to tell me her partner was down at the local cop shop. Making enquiries about an unrelated matter, police had smelt dope and entered his flat demanding he reveal what he had. Was that legal, she asked? Yes, I responded.

More

Ministry of Men's Affairs

A press release about the topic of the day, prosecuting beneficiary partners, has appeared from the MINISTRY OF MEN’S AFFAIRS, MINITATANGA MO NGA TANE

 This proposed legislation reaches a new low in the financial exploitation of men and also represents a giant backward step for women to a past patriarchal era in which men were held legally responsible for their spouses’ behaviour.

 A Domestic Purposes Benefit (DPB) fraudster commits an offence by signing a legal document affirming (s)he is not in a marriage-type relationship. The partner committed no offence but Chester Burrows wants to make the partner pay for the beneficiary’s offending even if that partner in no way encouraged it. Burrows’ law will only apply to the partners of DPB and ‘Sole Parent Support’ fraudsters not to other types of benefit fraud, and his public statements have made it clear this distinction is based on the gender of the beneficiaries concerned. The intention of the law is to make men pay for female offending.

 

Anyone know who's behind this group?

RNZ bias

If you ever wanted confirmation that Radio NZ, or Kathryn Ryan at least, is utterly biased listen to the difference in her treatment of the interviewed lawyer compared to the associate Minister for Social Development Chester Borrows here.

Prosecuting beneficiary partners

National's new law that will see partner's of beneficiaries prosecuted is a good step forward.

Most of the currently prosecuted fraud - after claiming while employed - is claiming the DPB while living in a marriage-type relationship.

Most DPB claimants are women so this change generally affects men though other situations will occur. Same-sex partnerships are now recognised in  the Social Security Act so a lesbian partner could also be prosecuted. And obviously the main beneficiary might be male.  Given there is provision for couples to live together and claim a benefit in their own right - albeit at a reduced rate - the government has every right to start cracking down on people who break the rules. Both of them.

Also this move should reduce the vulnerability that having a secure income and home creates for DPB recipients - especially young, low esteem, malleable types who are all too willing to let a male sponge off her.

It's no surprise that the Maori Party aren't supportive. It's my belief that this sort of living arrangement whereby one half of the couple brings in the DPB and the other has no income, draws a benefit or works, is more common amongst Maori. It might not reflect intent to defraud necessarily. But it does reflect more transient, haphazard living.

In any case there are probably thousands of people who already know their living arrangements are not legit (some because a protection order also forbids them from living under the same roof.) Now it's a matter of changed dynamics as the blame and punishment spreads.

Will it make a difference? These people - mainly men - are risk-takers anyway. They probably have unpaid fines, other debt, previous convictions, child support debt, are possibly unemployable, possibly ex-prisoners, gang members, drug dealers. Is the threat of a $5,000 fine or prison going to change this particular behaviour? I doubt it.

But it does give the female another tool though, if she wants shot of the guy. Perhaps National should go a step further and offer an amnesty to the claiming partner if the other refuses to move out during the period following the new law implementation.

Update: Something was niggling at the back of mind about the business of actually defining someone as a partner. I had forgotten that Work and Income must demonstrate that the beneficiary is in a relationship with the required "emotional commitment" and "financial interdependence" for the other person to be defined as a de facto partner.

"...when considering if a client is in a relationship and the client indicates they are a victim of domestic violence, extra care must be taken when determining if the required level of emotional commitment is present." Here we go again with bad incentives. If he hits her he won't be a 'partner' and he won't go to prison or pay a fine. Good lord. What a mess the benefit system is.

Justice and injustice

Just finished reading Liberty Scott's post featuring a case of carping, chronic entitlitis when I came across this:

Liberty means the security given to each man that, if he employs his energies to sustain the struggle on behalf of himself and those he cares for, he shall dispose of the product exclusively as he chooses. It is impossible to know whence any definition or criterion of justice can be derived, if it is not deduced from this view of things; or if it is not the definition of justice that each shall enjoy the fruit of his own labor and self-denial, and of injustice that the idle and the industrious, the self-indulgent and the self-denying, shall share equally in the product.
 

- William Graham Sumner, "Socialism" [1880s]

...and so it came to pass and this is what it looks like.

Child support and teen Dads

I'm writing a belated post about this article from Sunday because there seems to be some confusion over liability.

One rogue 19-year-old is a liable father to 13 kids to different mums.
A source has confirmed the man is named on the birth certificates of 13 children, and is liable to pay child support for them.
Figures released by the Inland Revenue Department show 943 teenage fathers were liable to pay child support at the end of last year. Some were just 15 years old, and already liable for two children.

If this liable teenage father does exist he will be assessed for 13 x $16.30 weekly, the minimum, or $$211.90 in total. With that kind of liability going on for the next 18 plus years he may well have skipped the country and become one of the many the Australian government are now trying to chase - or was that student loans?

In any discussion about the merits or otherwise of child support I inevitably come back to the DPB.

Couples will always split or divorce and courts have always ordered maintenance be paid by the father (or occasionally) mother of any dependent children. That's fair. That morphed into today's child support (around 1991-2). Some couples negotiate the payment privately. Some choose to involve the state and subsequently, there is a good deal of argument over whether the current assessment formula is fair.

But for those fathers supporting a child being raised on the DPB from birth, fathers who were never in an ongoing relationship with the mother; who were never told about the pregnancy, had no opportunity to discuss what to do about it; who may have been knowingly used to provide a child/meal ticket - I am very uncomfortable about their liability. Yes, they are responsible to a point but if the DPB didn't exist, the mothers wouldn't have been using them or making the decision which leads to their 18 year liability.  Let's put it another way. A female finds herself pregnant. She knows if she has the child she will get an income equivalent to the minimum age and a home. She can get it from the state on the condition (and even this is easy enough to get around) she names the father so he can pay some probably pathetic amount to the taxpayer. And it usually is a trifling amount because of the socio-economic group these children are generally produced from.

Get rid of this gaming and a good deal of the child support problems disappear.

(BTW I have no idea why, according to the article, "welfare workers were shocked". There are always a few thousand teenagers on the DPB at any given. It's not surprising at least some of the fathers of those children would be teen Dads. Throw in another known fact - male Sole-Maori identifiers are three and a half times more likely to have a partner pregnant by age twenty than non Maori - and none of this is surprising).

DPB trivia

Around 10,000 sole parents on the DPB have had children to more than one child-support paying partner. (There will be more who have failed to name the father).

This piece of information was contained in an answer to a written question from Jacinda Ardern to the Minister of Revenue.

Wonder why she kept it quiet?

The current minimum child support payment is $16.30 - a mere 3 percent of a typical weekly payment to a single parent with two children living in Auckland.

And the left don't even want that tiny amount to go towards offsetting the DPB bill.

Sally Army report and the Living Wage campaign

It's hardly surprising that the Salvation Army Report, She'll  Be Right, got little media coverage. There's nothing particularly remarkable about the statistics, only the spin that Major Campbell Roberts puts on them. Every year he says something in his introduction that demonstrates his socialist bent. Last year he said the Prime Minister had no moral authority for the welfare reforms (despite having been elected on an overt agenda to overhaul the benefit system). This year Roberts writes:

"...the solutions to our challenges around child poverty, youth employment and housing—The Salvation Amy considers it’s naïve to believe and dishonest to suggest that these solutions do not require more tax dollars. The source of these extra tax dollars is, of course, a problem particularly considering the global economic situation. In our view the need for a society that is just and gives every citizen the right to participate economically and socially is so important, that ways must be found to find this additional tax revenue."

As Michael Laws commented yesterday, when did the Sallies become communist?

And in the related matter of a living wage, at last Bill English is pointing out that many people have their minimum wage topped up with various forms of government assistance.

Here's the problem for the living wage campaigners. If a worker receives a higher wage, he will lose his means-tested government assistance. He'll quite probably be no better off.

I'm quite happy for the employer to pay more so the tax payer pays less. It's is the employer that benefits from the labour purchased. But the bottom line is, the worker is no better off. And isn't improving worker well-being and prosperity the whole aim of this campaign?

Cycling between benefit and prison

There are people who cycle between benefit and prison. It's highly likely that there's significant overlap between the numbers below.

I've just got the data for 2011.

Benefit ceased for reason of 'in prison' numbered 4,304
Benefit granted for reason of 'released from prison' numbered 3,815

The numbers in 2009 were respectively 4,192 and 3,496
2008 - 3,050 and 3,144
2007 - 2,860 and 3,171
2001 - 3,563 and 4,467

There's a trend there. Interesting. Under a Labour government more people were granted a benefit on release than had a benefit stopped on incarceration. Under a National government, that has reversed.

What can be said for certain is that more people on benefits are going to prison. Of course, it's still only a tiny fraction of the beneficiary population.

But it's quite a large fraction of the prison population.

Cop-out by Corrections

Here's a classic piece of public service obfuscation contained in Corrections latest Annual Report 2011/12:

 "The profile of the prison population also provides challenges. Maori continue to be over-represented in our prisons, reflecting the high proportion of Maori population in the crime-prone age range."

The highest crime-prone age group is 20-24.

8 percent of the total male Maori population is 20-24.

7 percent of the total male non-Maori population is 20-24.

Of the crime-prone 20-24 year-old  age group Maori represent only 17 percent.

What a cop-out.

Ethnicity of prison population at September 2012:

Footnote. By coincidence, searching for something else, I just came across the following statement in the 1939 NZ Yearbook:

"The total number of Maoris convicted and sentenced in the Supreme Court during the last five years is only 216, indicating that serious crime amongst the Native race is far from prevalent."

Homeless with $70K

This guy's problem isn't really unemployment - it's mental illness.

If he was able to think straight he'd have worked out that he could buy a small property in rural NZ, claim more in dole payments as a result, and get the taxpayer to pay his mortgage through the accommodation supplement. By 65 it'd be paid off and he'd be collecting Super. Having learned to live off the smell of an oily rag he'd then be able to save and travel on his Super as well as keep his house as his nest egg for "a rainy day."

May as well go down that track because the way he looks after himself - or fails to - he's not going to work again.

"Inequality: A New Zealand Crisis"

A new book about NZ's rising inequality is due to be published in May this year. It's by Wellington journalist Max Rashbrooke. He wrote an article for an international project known as Sustainable Governance Indicators (SGI) which is here. Gives you an idea of how the book will pan out.

In New Zealand, a widening gap between the rich and the rest threatens many of the country's greatest strengths, writes Max Rashbrooke, who argues for a new settlement of welfare...

New Zealand's recent history has been marked by an increasingly punitive approach towards beneficiaries, despite evidence of their strong work ethic and desire to fill jobs if they are available.

A more humane – and ultimately more productive – approach would be to invest in them as well, by increasing benefits to enable them to participate better in society, and by matching that with greater investment in personalised retraining and job placement programmes, in order to tackle the low skills that prevent many from rejoining the workforce. This could be funded by higher – and thus fairer – taxes on those who have done well while enjoying the benefits of our common investment in roads, healthcare, education and other public services.

(Hat-tip Gordon Campbell)

Beneficiary discrimination

I'm certain beneficiaries are discriminated against. But it isn't usually the state doing the discriminating because the law makes that almost impossible. It's employers, landlords, retailers, service providers etc discriminating.

But here's another angle to consider. Aren't beneficiaries sometimes discriminated in favour of?

Landlords who prioritise guaranteed rent payments may prefer someone receiving a rent subsidy every week. A secondhand goods dealer may prefer a beneficiary buyer who qualifies for a WINZ grant. A youth employer may prefer a young candidate who has been through one of Work and Income's training courses or mentored by a contracted organisation.

It's conceivable that some employers may even prefer to employ someone on a benefit because of their particular type of social conscience eg the beneficiary needs a job more than the already employed applicant.

Some beneficiaries have been able to jump public waiting lists for surgery to enable them to regain capacity to work. Beneficiaries with children will take priority on Housing NZ waiting lists.

And here's an uncomfortable but feasible stretch. Female beneficiaries in the market for a partner might find potential mates discriminate in their favour because they have a secure income and home (after a fashion).

There's always more ways to look at circumstances than the one stuck under your nose by a self-interested party.

ACT Conference 2013

I was sent a a book of columns by Jamie Whyte, who is guest speaker at ACT's conference in a couple of weeks. The first few columns (all I've read so far) are very entertaining. For instance, in The Good Life With David Cameron, published in the Wall St Journal, he questions the idea of using divorce statistics as a factor in the calculation of Gross National Happiness (the newfangled alternative to GDP) when his own divorce contributed to his  personal happiness. Ultimately, what business does government have trying to measure such things anyway? Along with economist Eric Crampton of the unusually sane Offsetting Behaviour blog, two very apt speakers for an ACT Conference:

Media Advisory

ACT’s Line of Speakers to the Annual Conference on Saturday 23 February at Gibbs Farm, Kaukapakapa

Keynote addresses:

Jamie Whyte - Head of Research and Publishing at the management consultancy firm Oliver Wyman, a fellow of the Institute of Economic Affairs and a senior fellow of the Adam Smith Institute.

Mr Whyte will speak at 12.05pm

Hon John Banks - Leader - ACT New Zealand,

Mr Banks’ Leader’s address is at 2.15pm

Hon John Boscawen - Incoming ACT President, Former ACT MP and Minister of Consumer Affairs

Mr Boscawen’s Presidential address is at 12.40pm


Other speakers:

Alan Gibbs - Businessman, Entrepreneur, Philanthropist
Cameron Brewer - Auckland Council member, Publicist
Greg Fleming - CEO, Maxim Institute
Hon Rodney Hide - Former ACT Leader, Economist and Founding Chairman of ACT
Catherine Isaac - Chair of the Partnership Schools / Kura Hourua Working Group
Dr Eric Crampton - Senior Economics Lecturer, Canterbury University

....any enquiries should go to info@act.org.nz. Or 09 523 0470.Lunch is provided in the rego price and there will be a shuttle leaving Newmarket to the Farm and return also. That will save people having to drive there if they don’t want to do that.

'Life' is a lie

Pardon my naivety but 'life' imprisonment sounds like a very long sentence. One that should encompass the remainder of one's life.

Gwenda Sloane has been sentenced to life imprisonment for the murder of Michelle Hoffman-Tamm in Rotorua last November.
The judge has also imposed a minimum non-parole period of 17 years.

Many women could fit 5 such  'lives' into their natural term of existence.

AAAP on contraception for beneficiaries

The Auckland Action Against Poverty group is all mouth and ... no trousers:

Low MSD uptake figures confirm that the contraception programme instigated as part of National’s welfare reforms is all about stigmatising woman on benefits, rather than any genuine kind of support, says Auckland Action Against Poverty spokesperson Sarah Thompson.
“This policy is simply another weapon in the war against women on benefits, implemented as a way of garnering the beneficiary bashing vote in time for the next election.
“It's a deep irony that the outright misogyny of recent welfare reforms, including this one, has been lead by two women- Paula Bennett and Paula Rebstock.

Can we also have a companion press release calling the offer of free vasectomies to male beneficiaries "war against men on benefits" and "misandry"?

“This blaming and shaming tactic can be seen in other proposed policies which attempt to paint beneficiaries as drug users and criminals who don't care for their children."

Thousands of beneficiaries are drug users and criminals. Whether they care for their children, who knows. And whether their idea of 'care' is the same as my idea of care is another point to ponder.

Is inequality growing?

Depends over which period you measure it.
 

Treasury fudges numbers to hide growing inequality

Published: February 1, 2013

The Greens are complaining that Treasury is misleading us about NZ's comparative inequality rating, intimating it is behaving like a "right wing think tank" - dishonestly they say.

(I've commented - in moderation currently - to the effect that recent trends show inequality reducing in NZ and linking to my sources)

NZ First endorses long term dependency on DPB

It's never been clear to me where NZ First stands on the DPB.  Here's an indication:

NZ First spokeswoman for social policy and welfare Asenati Lole-Taylor said ... "I'm one of those people who just don't accept that people can become statistics on the welfare system, knowing full well that they're capable of working. I object to the idea of the welfare system being seen as an easy way of accessing money... Anyone who's on a benefit for more than 15 years, who is not a solo mother with young kids ... it's just madness."

International Housing affordability - NZ rates a mention

I found the following from NCPA fascinating, especially that the US has the best housing affordability, so have cut and paste it for your interest:

The 9th Annual Demographia Housing Affordability Survey for New Geography rates housing markets based on the median multiple, which is median house price divided by pre-tax median household income. Affordable housing markets have a median multiple of 3.0, while severely unaffordable housing markets have a median multiple of 5.1 or over, says Wendell Cox, an adjunct scholar with the National Center for Policy Analysis and principal of Demographia, a public policy firm located in St. Louis.

• Hong Kong, Vancouver, Sydney, San Jose, San Francisco and London were the least affordable housing markets of the 337 metropolitan markets analyzed in the study. Each had a median multiple close to 8.0 or above.
• Detroit, Atlanta, Cincinnati, Rochester and St. Louis were the most affordable housing markets in the study. Each had a median multiple close to 2.0.

Of all the nations in the world, the United States has the most affordable or moderately unaffordable markets. The United States had an overall median multiple of 3.2, compared with 5.1 for the United Kingdom, 3.6 for Ireland, 13.5 for Hong Kong and 4.7 for Canada.

• Overall trends in the nine years the study has been conducted by the Performance Urban Planning organization indicate that housing affordability has risen most in the United States and Ireland.
• Australia and New Zealand have the most unaffordable major markets that have not shown any sign of improvement. Every major market has been severely unaffordable in every single year.

Empirical evidence suggests that urban containment policies, particularly urban growth boundaries, raise the price of housing relative to income. Cox notes that urban planning results in reduced standards of living, increasing poverty rates and lower discretionary income.
Cox says that urban policy needs to be reset. To make housing more affordable, cities and nations need to shift away from designing urban areas and instead let free market principles allocate land efficiently. With major demographic shifts underway in most nations, access to affordable housing will play a large role in the duration and quality of life of each nation's people.


Source: Wendell Cox, "Demographic and Economic Challenges: The 9th Annual Demographia International Housing Affordability Survey," New Geography, January 21, 2013.

Banks' response to PM's 2013 opener

This isn't a bad message - shame about the messenger.

What would your response have been as the single ACT MP holding a ministerial position?

In three sentences, mine:

Direction passable.

Speed not.

Acceleration barely discernible.