Letter No.7
20 December, 1994

5 December 1994

International Volunteers Day.

6 December 1994

A bill to allow the unemployed longer in short-term work without being penalised by stand-down periods for the dole, was passed in Parliament.

Strong growth in the food export and horticulture sectors is leading to a shortage of skilled workers.

7 December 1994

A Youth Employment Strategy is unveiled by government. Social Welfare benefits are cut to 16 and 17 yr olds. Family Support to low income families will rise. A Youth Action programme of individualised support will be introduced to the Employment Service, and special attention will be paid to beneficiaries on the Independent Youth Benefit.

8 December 1994

Jim Bolger says the government will provide more money to secondary schools whose rolls are boosted as a result of changes to the youth unemployment benefit.

Several bank economists are predicting that NZ's much-heralded low inflation rate will soon exceed the government-imposed limit of 2%.

9 December 1994

100 thousand beneficiaries have delays in benefit payments due to a Postbank `processing error'.

Government releases its report to the United Nations on the development of social welfare policy in NZ over the last 50 yrs. it will be presented to the UN World Summit for Social Development in Copenhagen in March.

Angry service staff picket the North Shore hospital in Auckland to protest the possible loss of more than 100 jobs.

10 December 1994

Higher tax revenue boosted the government's operating budget surplus to $942 million in the four months to the end of October, compared with a $246 million deficit predicted on Budget night.

12 December 1994

Social Welfare decides to pay its fortnightly benefits as usual on December 27, a public holiday when banks are closed, instead of a few days early in time for Christmas, as in previous years.

Student debt has increased by 35% in the past year, averaging $8,262, according to the NZ University Students Association.

Adventurer Graeme Dingle and his partner Jo-Anne Wilkinson launch a two-month trek from Nelson to Auckland as part fundraising for a $1 million project to give young people wilderness experience and essential skills to cope with urban life.

13 December 1994

Fred Turnovsky OBE 1916 - 1994

Reserve Bank Governor Don Brash gives his verdict on the state of the NZ economy ... indicating his approval for a substantial rise on mortgage rates, because of a concern over an overheating economic growth rate. Mortgage rates have already risen this year from a brief 20-yr low of 7.4% to the present 9.5% benchmark.

14 December 1994

Bill Birch says the government will spend an extra $200 million in priority areas such as education and welfare.

15 December 1994

Government announces a pre-Christmas welfare package estimated to cost $48 million a year. The package includes changes to special needs grants, changes to the special benefit and accommodation supplement, and extra funds for budget advice.

15 December 1994

Westpac, Trustbank and Countrywide banks raise their variable mortgage rates by 1.5% to 11%, and hint at another round of increases in the new year. .

Social Welfare now says that beneficiaries will be paid early for Christmas - but only so that banks can process the payments before their holiday break. Only beneficiaries with ATM cards will be able to get the early money.

16 December 1994

A new range of tariff cuts is announced which will effect thousands of manufacturing jobs in the carpets, apparel, footwear and motor vehicle industries.

Bill Birch's $200 million in extra welfare money - widely interpreted to mean entirely new spending - turns out to include many of the assistance packages already announced over the last month.

17 December 1994

The buying power of wages fell 0.4% during the year ending Sept 94.

Steve Maharey complains that the government is implementing some of the Employment Taskforce recommendations before the multi-party consultation process is complete.