Fourth Vulnerability Report: Tax changes need to focus on children

“Tax reforms must address the issue of child poverty and make low income families better off”, said Shaun Robinson, the New Zealand Council of Christian Social Services (NZCCSS) President. “A reform of the tax system should focus on ensuring all New Zealand children have a reasonable start. The fact that more than 1 in 5 of our children are growing up in poverty is not only unjust but will undermine our future economic competitiveness as a nation. The children of today need to be the skilled workers of tomorrow. If 1 in 5 have had their education, health and ability to be part of our communities damaged by poverty then that is a huge issue for every New Zealander” said Mr Robinson.

“We congratulate the Prime Minister for his commitment to ensure that superannuitants are better-off and we call for a similar “double-whammy” of positive tax breaks and income increases for all of our children”. Shaun Robinson said.

“If tax restructuring will mean that higher income New Zealanders will get even further ahead, with low income workers and beneficiaries only becoming ‘no worse-off’ at best, the ever growing disparity between the haves and have-nots in our society continues to increase” said Mr Robinson. “Christian social service providers see the social costs everyday and our society sees it in crime, poor education and health, and low productivity”.

“We are very concerned about the proposed rise in GST and its impact on children’s wellbeing. We want to see the detail of how added costs of everyday living will be compensated before the policy is finalised by Government.” Mr Robinson stated.

“The fourth quarterly Vulnerability Report shows that many New Zealanders have become significantly worse-off than they were a year ago””, said Trevor McGlinchey NZCCSS Executive Officer. “There has been 20% increase in the total number of all beneficiaries and unemployment benefits have more than doubled”, says McGlinchey. “Of real concern is the increase of more than 30,000 children in benefit dependent families since the first Vulnerability Report was published in March 2008. We also know that there were already thousands of children in poverty in low wage families. When we see the level of youth unemployment and that in 2009 the number of mortgagee sales has grown by 500% when compared with 2007 we know that many families are in trouble”.

The Vulnerability Report shows that social service agencies are developing innovative responses to meet the huge surges in demand they have experienced since December 2008. Agencies are employing extra staff, streamlining services and doing more voluntary work in order to support the significant number of New Zealanders who are struggling with the strains brought on by the recession.

Vulnerability Reports will only be published on-line with printable versions downloadable from the www.justiceandcompassion.org.nz website.

ENDS

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