Needs of vulnerable today more important than potential future tax cuts

Catholic social justice agency Caritas says the needs of the poorest and most vulnerable in New Zealand today are more important than potential tax cuts in 2017.

In a written submission to Parliament’s Finance and Expenditure Select Committee, the Catholic agency has outlined concerns that reducing expenditure by $1 billion per year for the next two years will limit the Government’s ability to make much-needed social investment in areas such as housing and family poverty.

Caritas Director Julianne Hickey says the agency supports the Government’s stated intention in Budget 2015 to help families living in poverty, but says this needs to be prioritised over future tax cuts.

“The poorest New Zealanders did not benefit from the last tax cuts. The present day needs of vulnerable children and their families must be the priority for economic policy,” Mrs Hickey says.

The Caritas submission also calls on the Committee to use the Budget 2015 process to deal with the economic impact of inequality that has increased in New Zealand over the past 30 years.

The recent OECD report Focus on Inequality and Growth notes that inequality has held New Zealand growth back by more than 10 percentage points over the last thirty years, more than any other OECD country.

“There would be great social and economic benefits in reducing inequality in New Zealand,” says Mrs Hickey.

“We urge the Government and all political parties to take a proactive approach to building an economy of inclusion in which all can participate.”

Spokesperson: Lisa Beech (Advocacy & Research Manager, Caritas Aotearoa New Zealand)

For more information and to arrange an interview, please contact Crispin Anderlini (Communications, Marketing & Fundraising Advisor) on 021 190 9908 or email to crispin@caritas.org.nz

ENDS.

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