on the Tax Cuts and Social Policy Bill from The Jobs Letter No.38 / 8 May 1996
"Alongside these measures [increases in education and health expenditure], the government
will take new steps to assist, strengthen, and empower low and middle-income families in their
efforts to achieve higher incomes and better quality of life. All families benefit as a result of
those changes, but the largest gains are reserved for low and middle-income working families..."
"The government's Tax Reduction and Social Policy Programme is poor policy. It does not
meet its stated objective of targeting assistance at low and middle-income families, and it
systematically excludes beneficiaries. The clients of Christian Social Services agencies are being offered
scant relief from the increase in poverty created by the 1991 benefit cuts. "
"It is punitive. It says that those who are in work are worth more than those who are not."
"It is the most socially divisive legislation put before parliament."
"The government's assumption that the Bill will improve the social and economic lot of
New Zealanders is flawed. The encouragement of people to enter the workforce fails to recognise
that some people cannot get a job for reasons beyond their control. After all, unemployment is
expected to remain at 6-7% for a few years, and some cannot get a job because of location,
sickness, or looking after a dependent person. In addition, some jobs are not giving people a
living wage..."
"The effects of this Bill will be to generally increase the gap between rich and poor (in
employment), and between worker and beneficiary... "
"Beneficiaries and low-income single people will not gain as much as working families in the
first instance. For these people, the real gain from the programme is the additional encouragement
and assistance to improve their lot by increasing their participation in the labour force and
upgrading their skills. This `hand up' into employment for those out of work, and into better incomes
for those with jobs, is a key objective of the total programme."
"The government has decided that the present `surplus' is to be distributed to the community
in the form of tax cuts rather than the reinstatement of public services in areas such as health
and education. Given this decisions, the low income earners who have borne the brunt of the
economic and social reforms of the past ten years should receive their fair share of that
distribution. This should be regardless of whether or not they are in paid work."
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