NiuZila: Land of full fat milk and welfare money

The recession is over!  Yeah right…

One of the responsibilities of a Niu Sila/New Zealand Government being voted in by the public, is for that Government to look at the bigger picture - to make policies, plan for the future, implement changes - things the average Sione and Sina have little power to do themselves.  Yet this Government, with a Palemia/Prime Minister who was a former market speculator, has had a hands off approach to the economy.  That right wing mantra: the market will correct itself.

Little comfort for the nearly 3000 people who lined up last week, to apply for only 150 jobs at a new supermarket opening in Manukau, Aukilani Saute/South Auckland.  It’s an amazing illustration of how people are desperate, and not just a few, but heaps of people!  The majority were Maori and Pacific Islanders.  But there were also Indians, Asians, Palagi/Pakeha/European, people from across Aukilani/Auckland.

What’s the Government’s response?  Do nothing.  Well that’s not totally true.  They appointed a Tax Working Group made up of rich Palagi males to recommend how to make the tax system more efficient.  Their recommendations?  Tax cuts for the rich, increase the goods and services tax (GST) which will affect the poor the most. 

Again I’m being unfair on my representations on the Government.  The Tax Working Group also suggested a capital gains tax which would be like most western nations, where land and property owners would be taxed for the appreciation in value of their land/property.  Of course that would be too bold a step for the Government to make in Niu Sila/New Zealand, a country obsessed with owning houses as their nest egg.  There’s no incentive to put savings into industries that create innovation, further capital, and more jobs.

So when the public see the Government reject the extreme recommendations of the Tax Working Group (such as the capital gains tax), it would make a GST rise and tax cuts for the rich look more palatable for the public to digest.

Meanwhile, 3000 people await to hear the outcome of their job interviews/applications.  For these people it’s about putting bread on the table, paying the bills to keep a roof over their heads, and getting from week to week.  While those entrusted to look at the bigger picture seem to also be looking out for the rich only.

UPDATE:  The Government announced it will raise the minimum wage by… wait for it… it’s a whopper… it will be raised by “25 CENTS!”  That’s right folks.  Meanwhile the struggling Minister of Education, Anne Tolley, will be spending $26 million on propaganda to charm the education sector of her unpopular National Standards policy! Hmmm….

There are three recent Government policies and proposals that have been released in the last couple of days that illustrates what this new Government is all about.

1. Kiwisport programme. 

“Kiwisport delivers on the Government’s promise to put money directly into the frontline to help more New Zealand children participate in organised sport,” Palemia / Prime Minister John Key said.

But Niu Sila / New Zealand’s poorest high schools will lose thousands of dollars each year because of this Government policy billed as helping more children to play sport.  Principal Peter Gall said Papatoetoe High School’s funding for sports staff would fall from $41,000 to $33,000 because the new money was not linked to a school’s decile rating.  “It seems that we’re robbing the poor to pay the rich,” said Mr Gall, who is also president of the Secondary Principals Association.

It’s amazing that not only are the poorest in our society (including many Pacific peoples) are losing out, but this drive to get kids active seems a bit contradictory of the Government scrapping earlier this year the new law which stopped schools selling junk food!  On top of this the Government announced earlier this year they were pumping $60 million odd into private schools while gutting out funding for poorer schools, special needs facilities, adult education and night schools.  This doesn’t look like getting kids active, but more about moving more money towards the rich schools.

2. ACC changes

ACC (Government accident compensation scheme) changes by the Government mean from November 16 visiting the physio will cost patients at least $10-20 each time, now that the ACC has decided to cut costs.  Dr Smith said since the service became free, the number of clients in higher socio-economic areas using the service had “occurred disproportionately”.

But Jonathan Warren, president of the New Zealand Society of Physiotherapists, says the move is “short sighted” and will end up costing the Government more money.  “These changes mean that some people who need treatment will not be able to afford it. If a patient doesn’t get early treatment for an injury, recovery can take much longer and their health may suffer in the long run,” Mr Warren said. “In some cases a simple problem, untreated, can lead to permanent disability … Untreated injuries will end up costing the Government much more in health and social dollars.”  A provision for those with lower incomes was argued by the society, Mr Warren said, but was unsuccessful.

Once again the changes in ACC will affect the poorest people in society.  Usually those that need the free service the most are those that can’t afford it, and are proned to injury due to their occupation (manual labour, construction).  While $10-$20 a visit may sound cheap, if you need to visit every week over 6 months, that’s a lot of money especially when you’re already trying to make ends meet.  As said above, more pacific people who can’t afford the visits will not go at all, leaving injuries untreated and causing more cost in the long run to our health system.

3. GST increases

Currently here in Niu Sila we pay 12.5% of goods and services in GST (goods and Services Tax).  A working group panel reviewing the tax system said lifting GST to 15 per cent would raise an extra $2.1 billion a year. That would rise to $6.2 billion if the tax was set at 20 per cent.  Raising the rate of GST could increase the economy’s efficiency if it was used to shift the mix of taxes away from income tax the group says.  “Increasing the rate could impact on lower-income or vulnerable households, especially in the short run,” the panel said.

Progressive tax systems mean those that earn more, pay more taxes.  This is based on one of the notions that a regressive system such as a flat tax rate would harm those on lower income than those on higher incomes.  Increasing GST is the same in that although everyone will be paying 15% on goods and services, those on a lower income have less discretionary funds to absorb that increase.

Once again, this proposed change will affect the poor and benefit the rich.  Robbing the poor to pay the rich.

Isn’t it highly hypocritical that this co-alition Government has been preaching about cut backs and restraint on spending, yet the Deputy Prime Minister (PM), Bill English has been collecting almost $1000 per week in Members of Parliament (MP) living allowance.

After slashing the benefit for those struggling under the poverty line, Bill English, who is paid $270,000 a year thinks it’s alright for him to collect a taxpayer subsidy close to $1000 a week to live in his own home in Karori (Ueligitone / Wellington) with his wife and children.

The subsidies are for those ministers who live outside Ueligitone, but who need to have accommodation in the capital for their ministerial duties at the Beehive and in Parliament.  Bill English is MP for Clutha-Southland in the South Island, however Bill English is not just renting any home in Wellington. As one commentator has said “Taxpayers pay him to rent his own home, which he and his wife (or their family trust, which is the same thing) have owned, and lived in, for many years.” Mrs English (who is half Samoan) is a Doctor in Ueligitone and their children school in Ueligitone. Their principal home is the one in Karori (valued at $1.2 million).

Even more hypocritical is Sir Roger Douglas’ actions.  Douglas is a list MP (ie was not voted in to Palemia / Parliament by an electorate, but by party vote) for the Act Party.  The Act Party resides on the far right of the political spectrum and has advocated for a slashing of Government spending.  Yet Douglas spent $44,411 on air travel in the first six months of this year!  Douglas said much of the bill was for a trip to Britain he took with his wife this year.

What has their responses to criticism?  Douglas said he is “entitled” to it!  English has defended his accommodation costs as within the rules and said he appreciated the taxpayer support.

Shucks, and when a struggling person on the benefit says they are within the rules for their entitlements, the radio talk back world, and the right wing commentators go berserk: “bludgers!”  “Gravy train”, “Parasites” etc.  Yet they don’t seem so forth coming against politicians from the same ilk!

I’m all for saving money where we can, but when the saving only appears to be coming from the poor and not the rich and privileged, then somethings terribly wrong with our society.

Minister of Social Development, Paula Bennett recently announced the cutting of a Government financial assistance allowance to help beneficiaries into tertiary study (amongst other things also cut).  Two solo mothers on the benefit protested in the media about how without the allowance, they will no longer be able to afford to take on their studies.  In response, Paula Bennett release details from the Ministry of Social Development of each woman’s entitlements they were currently receiving.

There are three issues that I want to explore a bit, arising from the fiasco.

Firstly, privacy.  I find it extremely uncomfortable when a Minister of the Crown believes she can infer consent from a critic of the Government, from being just that, a critic of the Government.  The information the Government holds should not be used for political points, and should definitely not be disclosed to the public by an inference of consent.  People should expressly consent to have their personal details splashed across the media. 

Secondly, Paula Bennett believed she was giving balance to the debate by releasing the details of the two women, but it is an unequal debate when she has the resources of the State behind her, and she is privy to the private information of the citizens of New Zealand.  Whereas the women?  Facebook.  The internet can be a powerful tool, but a Minister shouldn’t be playing tit for tat just because people want to criticise the Government.

Thirdly, and the most disturbing issue, is the disgusting abuse that New Zealanders have shown towards beneficiaries.  Read the mainstream opinion pieces, and people on the benefit are castgated as unworthy citizens of New Zealand.  They are look down upon and seen as worthless bludgers on the State.  Perhaps it’s a sign of these struggling economic times, but where is the empathy in this country?  At times like these, it saddens me to see my fellow countrymen and women express such vile and cruel words to those who are struggling the most.

Sure, we all know of those who are milking the system, who have babies to stay on the benefit, who would rather be a bum on the dole than work an honest days work.  But for the vast majority of people who have unfortunately found themselves on a State benefit, it is because they are a victim of their circumstances.  Most beneficiary recepients are honest law abiding New Zealand citizen who are struggling day by day, and are immensly grateful for Government assistance.

As a Samoan Christian, I often think about when Jesus said “what you do to the least of you, you do to me”.

Have you ever noticed how there are people who on one hand are willing to pour their hearts out when confronted with images of poor starving third world children, yet on the other hand curse and damn the poor in their own town or city?

Charity may begin at home, but aslong as it is out of sight, out of mind…

The current National Government won last years general election on the promise of tax cuts.  These tax cuts are to come in on 1 April.  However, those who are going to benefit the most from the tax cuts are the rich.  Economic commentators have already pointed out that if the tax cuts were to act as an economic stimulus then it should be given to those likely to spend it.  The rich are generally inclined to save the tax cuts, where as the less fortunate would spend it just to help cover living expenses.

Realising the folly of the April tax cuts, Prime Minister John Key has asked the rich to give their tax cuts to charities.  Of course the better solution would’ve been to redirect the tax cuts straight to the poor rather than hoping the rich will donate it.  National realise that option would’ve been a political nightmare, because tax cuts is what they campaigned on, after criticising the previous Labour Government.

But the Prime Minister has included his Public Relations spin to it saying he wants to create a culture of giving like the one he experienced in his time in Amelika / America.  But the American culture of giving is based on the fact that the State does not provide a safety net or public welfare, as the Niu Sila / New Zealand Government does.  The health care system in the US is appalling, education favours the rich and the gap between rich and poor is enormous.

Furthermore, the American givers receive larger tax rebates than here in Niu Sila, pointing not a culture of “giving”, but a culture of “giving because you get some back”.  That’s not the type of culture of giving many New Zealanders would agree with.

So pulling back PM John Key’s spin, we are still left with his plea for the rich to give to the poor.  The PM is a millionaire after making his money as a merchant banker, so he can rightly point to the large amounts he donates to charities.  But even his actions can be critiqued.

The PM is also a Member of Parliament for the largely rural electorate of Hobsonville.  The previous Government had earmarked a 167ha site in Hobsonville, which was previously used as an Airforce Airbase, for housing development to ease the land pressures in the growing Aukilani metropolitan city.  It was intended to be an intense housing development with a mixture of housing catering to high and low income earners, including 500 State houses.  It was one of the most well-planned comprehensive developments in Niu Sila history.

But PM John Key promised before the election that no State houses would be built in his back yard.  And today, reports came out confirming that the Hobsonville development has no plans for State houses, at all.  Not only does this smack of elitism and arrogance, it goes against his PR spun image of being a centrist, a pragmatic person who goes against ideologies and picks what works.  Here was a prime opportunity to create a neighbourhood that has learnt from the planning mistakes of the past, and forms a cohesive society with a mixture of all peoples of all incomes and all ethnicities.  Now it’s just another rich man’s suburb.

So while he urges the rich like himself to give to the poor, it’s as long as they aren’t his neighbours. 

Out of sight, out of mind…

Niu Sila / New Zealand is unique for reasons more than just being the backdrop of the Lord of the Rings trilogy.  Unlike most western countries, if a person was to injure themselves in the workplace, at home, on the playing field, in fact anywhere in Niu Sila, then you will be covered by the state owned Accident Compensation Corporation (ACC) insurance scheme.  It is paid by taxes, employers contribution and car levies.  It provides 24-hour no-fault personal injury insurance cover.  Everyone in Niu Sila is covered! 

The flip side of this is that no-one can sue anyone else for causing the injury.  People in Amelika / America have the opportunity to take the offender to court and there are constant news items about million dollar pay outs etc.

But for people in Niu Sila, it’s quite comforting knowing you are covered no matter what.  Coz while you might not have the potential million dollar payouts, you are also not at risk of getting nothing.  Furthermore we here in Niu Sila chuckle when people in Amelika live in fear of being sued for the smallest things: the lady who sued McDonalds for hot coffee?

Currently however, the new conservative-business-friendly political party in government, the National Government, has started to make changes to ACC with some commentators pointing out this will lead to privatisation of ACC.  There have been murmurings about the current Prime Minister, John Key, having held meetings last year with Australian insurance companies, pre-election, with the prospect of selling (the profitable) parts of ACC to them.

And with this economic crisis, the Government has the perfect excuse to push for privatisation of ACC on the Niu Sila public.  The Minister for ACC, Nick Smith has been harking on about a $22 billion blow out of the ACC budget, then raised the car levies, and has sacked the chairman of the ACC board. 

This National Government has gone through a very long honeymoon, with the general populace showing good will to it.  But I think it’s just got a really good PR spin machine at work.  It’s put itself out as the pragmatic, middle of the road Government ready to put ideologies behind and choose what works.  However, the opposition has long accused the National Government as a wolf in disguise.  That Niu Sila will in time see it for the right-wing, pro-rich, business-friendly Government it really is and has been since day one.

I tend to agree.  The National Government does have a hidden agenda.  It should stop beating around the bush, and show it’s true colours.

Hopefully the voters of Niu Sila will see through all the smoke screens.  This Government’s intentions of privatisation of ACC has had the thumbs down from many economists calling it scaremongering.  The $22 billion dollar shortfall was not about mismanagement, but something all invested money by companies have faced, a degradation of their value.

There have been countless reports and commentators espousing the success of ACC.  Unfortunately, National and it’s insurance business buddies in Australia have only read the reports about which part of ACC will be most profitable once privatised.

Once privatised, only the rich will afford injury insurance.  Only the rich and lucky few will be able to afford lawyers to win any compensation.  Only the rich will make a buck from the profitable parts of ACC leaving under-investment in the rest of ACC.

Once privatised, just hope you don’t injure yourself.  This wolf in disguise is only looking out for their rich business buddies.