Methodist Public Issues

Betsan Martin (PhD)

Convenor, Methodist Public Issues

PO Box 12 297, Thorndon

Wellington

Ph. 04 473 2627 / 021 388 337

RESPONSE TO THE CHILDREN’S COMMISION CONSULTATION ON

SOLUTIONS TO CHILD POVERTY (Final)

12/15th October 2012

INTRODUCTION

The Public Issues Network of the Methodist Church of New Zealand, Te Hahi Weteriana o Aotearoa,highly commends the collaborative approach by the Children’s Commission and the representational composition of the Expert Advisory Group. This will increase the possibility of sustainable solutions to child poverty.

A substantive contribution from the Methodist church comes from the Durham Street congregation in Christchurch. Responses have been submitted from different congregations and members, from a Public Issues Forum on ‘Solutions to Poverty’ and from workshops at the National Methodist Women’s Fellowship Convention, October 2012.

These responses are collated into one submission. I hope this will keep the integrity of the Durham Street contribution while providing acomprehensive refelection of matters proposed by various members, including the Public Issues network. There is considerable convergence on addressing child poverty; divergent views are included.

Methodist Public Issues is a network of approximately four hundred members and over two hundred parishes concerned with public issues. Members are from the constituent parts of the Methodist Church: Te Taha Māori and Tauiwi . Tauiwi is comprised of Sinoti Samoa, Vahefonua Tonga and Wasewase ko Viti Kei Rotuma E Nuisiladi (Fiji and Rotuman), and Pakeha. There are ecumenical groups associatated with the Public Issues Network as well.

Durham St: The signatories to the Durham St response come from within the Methodist Church congregation known as the Durham St Methodist Church which, since its opening on Christmas Day 1864 has occupied a visible presence at the heart of the City of Christchurch. Sadly due to the devastating earthquakes of September 2010, and February 2011, this historic church no longer stands as a physical building but rather its ongoing presence is made real in its ongoing gathering of people committed to seeking a fullness of wellbeing at every level of society.

In seeking to honour the core values at the heart of the Methodist Church the congregation have sought to be attentive in thought and lived action to the pivotal social concerns of the day especially as these interface with the realities of daily living. Out of a critical acknowledgement of current realities of child poverty and all the damage it does individually and collectively we offer the following response to this important initiative of the Children’s Commissioner.

  • The Durham St group believes that child poverty can be reduced through targeted government policies, and that every child must be able to participate as full and equal members of New Zealand society.
  • The proposed solutions to turning this critical issue around belong to all of New Zealand society. We commend the report for its range of practical solutions both in the shorter and longer term which can be implemented by practitioners, community leaders and agencies, schools, churches, social agencies, members of society, parents and families.

A Watershed Time

The Durham St submission notes the timeliness of the Children’s Commission report on child poverty and also that this is a ‘Watershed’ time for New Zealand Society. Child poverty is a symptom of growing disparity and the need for a systemic reassessment of how New Zealand manages the internal economy in relation to our global competitiveness. It could be said that addressing the income dimensions of child poverty and strengthening whanau and family wellbeing is a matter of wealth distribution for the benefit of all New Zealanders.

There is evidence that poverty is costly (Infometrics 2011), and that investment in child wellbeing is economically credible as well as being socially ethical. Collective wellbeing through the sharing of wealth and resources is a fundamental ethic of the church (Alwys).

There is evidence that all members of society benefit from having systems to protect those who are vulnerable (periodically or for long term disadvantage from accidents, illness, disability and life’s misfortune). Wilkinson and Picket’s research has popularized evidence from other sources (Marmot 2010) which indicates the overall benefits of equitable societies.

A Watershed time signals reference to the significant disruptions to the global economy and directs attention to the global quest for sustainable development. The imperative of transition to a ‘green economy with poverty elimination’ at Rio+20 this year means we must see New Zealand in the global endeavour to transition to sustainable economic and social development.

Researchers, economists, theologians, ethicists alike identify the time for a New Social Contract which ties ecological responsibility to human wellbeing. Three pillars proposed as bases for a New Social Contract all relate to poverty in that theyinvolve access to the necessities of life for wellbeing. They are energy, urbanisation and land use (WBGU – German Advisory Council on Global Change ‘World in Transition. A Social Contract for Sustainability 2012). Low carbon energy is the key to turning the trajectory of climate change; in New Zealand is claimed to be renewable but energy pricing has direct implications for poverty. Urban expansion means pressures on housing, public transport , energy consumption and supply, and pressures to convert natural ecosystems (forests, wetlands, national parks) into agricultural land use to secure food supply (see FAO).

Cross-government and Multi-sectorial policies to address child poverty

Overall there is awareness of complexity in addressing of child poverty. The imperative of addressing the causesof child poverty and not just the symptoms was emphasised with recognition of the need of a cross-sectoral approach to solutions as in the following statements:

As a retired community worker I do not believe that the only cause of child poverty is family incomes below the poverty line; I suggest that high home rentals is a cause also (Hall).

Ms Hall considers parenting, food, community gardens, wise shopping and cooking, financial management, insulated homes, reducing power bills all contribute to poverty reduction. ‘All these come under the heading of education, health, housing’ (Hall).

Lack of education, lack of housing, lack of well paid jobs is an excruciating problem for the long suffering families. Lack of well paid jobs can even mean the demise of the highly educated. The Government chooses to ignore this (Kumpala).

Public Issues notes the publication of the White Paper on Vulnerable Children this week. Many of its provisions are commendable, especially their reference to the EAG. We would raise questions of the adequacy of resourcing for this programme and concerns that funds will be taken from programmes that are needed on prevention and on reducing child poverty. The requirement for Heads of Government Departments to share in responsibility for reducing child vulnerability gives a lead in cross-government accountability. With vulnerability closely liked to poverty this will be a policy development to be considered by the Children’s Commission.

Methodist Church members have a range of opinions on teen pregnancies. We commend the concept of ‘every child is welcome’ from Dr Tracy McIntosh at the Solutions to Poverty Forum in Wellington. Methodist Public Issues suggests a policy framework of ‘every child welcomed and nurtured in social, spiritual, economic and environmental wellbeing so as to participate and contribute to society.’ While moral censure can persist regarding teen pregnancies, we support policies that support all children and that keep teen parents in education. There is over-riding concern about teen suicides. Tragically these are increasing in Samoan and Tongan communities.

The Samoan and Tongan synods of the church are undertaking remarkable initiatives to address family violence and have programmes to ensure educational success. Clearly these are beneficial for children. These extensive initiatives borne of communities taking responsibility for their own people must be met with corresponding government support to alleviate poverty and systemic disproportionate disadvantage. We appreciate the specific working papers on Pasifika and poverty, as well as the Working Paper on Māori issues.

A theme of personal responsibility and taking advantage of resources in communities, such as libraries, comes from contributors who are experienced in working in communities. This is strongly evident in Pasifika communities and the submissions from Ms Hall,Ms Kumpula and others note that personal and community responsibility need to work alongside government commitments to reduce poverty. A group of experienced community leaders at the Public Issues Wellington Forum strongly asserted that this is the time for government policy to address child poverty (Curtis et al). Leaning on local solutions is not adequate or sufficient. At the same time community development initiatives are excellent in a context of government policy to reduce poverty (ie through income adequacy, labour market mechanisms, housing policy and so on).

We address specific topics identified in the EAG ‘Solutions to Poverty, as well as additional ones as noted above.

Income, Tax benefits and Employment

The cause of child poverty relates directly to family income being below the poverty line, which is 60% of the median wage. Benefits are too low and many jobs (if they are accessible and readily available) are paid at low rates which can not lift families out of poverty.

  • Review tax credits. Raise the Family tax Credit rate for younger children.
  • Create a Universal payment for young children, ‘The Child Payment’ with targeted assistance for older children and families who need more.
  • Many jobs do not pay enough to live on – support ‘The Living Wage’ Campaign
  • ‘Pass on’ child support paid to the custodial parent
  • Workplaces with flexibility in order to help parents to manage children in child care.

Further comments submitted on income, tax benefits and employment:

‘The most significant factor in child poverty is lack of income from benefits (especially for sole parents on benefits) and low wages. There is strong support in the Methodist Church for a ‘Living Wage’ to pay fair wages that support needs for housing, food, clothes etc and participation in society’.

‘There needs to be a review of Working for Families because it may not be tackling the families that really need it (Malpass).There needs to be adequate income provisions for children in benefit families’.

‘Government should not be in the market for finding ‘incentives’ to push people off benefits in place of providing decent jobs. Child poverty should not exist just because there not enough jobs to go around. Government and commerce ought to be creative to make use of the large pool of workers who are ready, willing and able to work and encourage business enterprises to get started’.

‘Often two jobs fail to provide an adequate standard of living for a family, such as a husband in full time and wife in part time work. Most parents will not let their children suffer, but deprivation is often subtle in how it manifests itself: children going to school without breakfast or inadequately clothed are only two examples and the status of the parent(s) may be irrelevant’.

‘Government policies have lagged way behind creating jobs and wealth for its people. It has not been the guardian angel we expected.’

Proposals:

‘Reduce tax on low wages with no tax on total houshold incomes below the median. Those who earn at the top of the range pay most of the income tax already (the top 20% or so). This solution would save businesses having to increase wages from profits’ (St Albans Uniting Parish Christchurch).

(Comment – this proposal amounts to an alternative to extending Working for Families, without significant loss in tax revenue)

‘Another solution is to create jobs that pay realistic wages. The government should also find a full employment policy that will work’.

‘Businesses could make low level loans for the long term unemployedwilling to train or retrain for jobs or to embark on entrepreneurial ventures.’

‘Clearly the solution to low wages is higher benefits and wages.’

Housing

This generated widespread discussion and suggestions.

‘Housing is a cost that keeps many families in poverty and has a major effect on child health. While building costs keep climbing, the cost of a house on its own may be within the budget of most working people: there are many ‘low-cost’ house designs from ‘low-cost’ oriented building firms. It is the cost of land that is the ‘killer’ for most people. A section is likely to cost as much as the house upon it. Cities and smaller towns give an advantage to people who own land by adding to its value through its scarcity. Perhaps there is a need for a return of the State Advances Corporation.

Racism was raised in respect to access to rentals, with first-hand experience of ‘apartheid’ and the ‘great brown-white divide.’ Non ‘white’ people wrote about being denied rental housing.

A group at the Public Issues Forum considered housing to be a priority. Upgrading existing state housing stock is an effective and achievable goal in the current political and fiscal context. There is deep concern was about social housing provision through the private rental market, the way the Accommodation Supplement benefits private providers and the lack of standards for privately owned rentalshe profit interests of landlords undermine social responsibility dimensions of housing.

Proposals:

‘The state could buy land and let it out on long term leases (99 years) at a fair rental. Instead of paying $200.000 for the title, a person might lease a section for (say) $1,000 a year. Instead of having to borrow heavily the lease of a section might be $40,000 for a lifetime – far less a commitment than the interest on a $200,000 mortgage for 30 or 40 years’ (St Albans Uniting Parish Christchurch).

There should be requirements for upgrading private sector rental houses, with support for the EAG Warrant of Fitness proposal.

A proposal was made to put a cap on rents – this is proposed as a viable option that is policy in some jurisdictions, including Fiji. Unfortunately we have not been able to research this policy and provide detail.

Durham St proposals:

  • Institute a Warrant of Fitness for Rental Properties
  • Review the Accommodation Supplement and Income Related Rents.
  • Extend the Heat Smart insulation subsidy programmes.
  • Increase the number and quality of subsidised ‘Social Housing’ – for low-incomeindividuals and families.

Methodist Public Issues applauds the EAG proposal for housing to become included in National Infrastructure plans. A strategy of increasing the social housing stock is urgently needed, via Housing New Zealand or other means to ensure sufficient provision of social housing for the needs of New Zealanders..

Health:

  • Support the Free Child Health Care Scheme - primary healthcare for all children 0-6years, 24hours/7days.
  • Support proposals that involve further programmes focused on nutrition, immunization, dental care, maternal health care, gambling, addiction, smoking.

Food – a matter not directly addressed by the Children’s Commission EAG.

A nation wide programme of food in all schools would introduce equity and relieve low socio-economic communities of the burden of meeting this need in addition to fulfilling educational responsibilities. Some would promote food in low decile schools. Targeting creates high administrative costs and produces other distortions from threshold points and pressures to go to schools that provide food.

There has been a re-affirmation of the need to make healthy food affordable.

New Zealand’s food producing capabilities needs to benefit all New Zealanders. (There is legislation in South Africa to this effect in regard to the benefits of mining – that all South Africans are entitled to share in the benefits of mineral wealth). Recent New Zealand research on food notes that, as a food producing country, the cost of milk and other food is regulated by global prices (Moira Smith, Louise SignalGlobalization and Health 2009, 5:1 (19 January 2009) . This means that the price of milk is high and the price of sugar enhanced drinks is low.

The Methodist Church is well aware that internal mechanisms to protect food prices may contravene international trade agreements.

Churches and many community groups are providing and supporting community gardens. Churches in particular, have land assets which are being used productively to grow food to meet the needs of communities.

Proposals:

Methodist Public Issues advocates for a system of internal pricing that makes the price of food accessible. We repeat, New Zealand’s food producing capabilities needs to benefit all NZealanders.

Institute a tax break for food production to provide an incentive to community garden initiatives (supported by National Women’s Fellowship participants). Legislation to this effect is in place in Japan. We appreciate that an investigation is needed to address the benefits and effects for farming as well as community level food provision.

The Public Issues Forum proposed that GST be removed from (essential) food including fruit and vegetables.

Establish a government funded programme of food in schools.

Energy

A mounting pressure on family expenditure is the household energy bill. This is not only for light, heat and cooking. Electronic connection is essential for education, participation and for social and economic engagement. The price of power is rising and researchers inform us of changes in energy regulations which remove energy from being a public ‘service’ in favour of incentivizing profit for investors. We are investigating means to make energy supply affordable to low income famiies and refer the EAG to the Domestic Energy Users Network. (DEUN Also DEUN submission to the EAG.

Education

Durham St:

  • Education key to long term poverty reduction.
  • Supportive of Expert Report focus and proposals relating to Early Childhood Education development - structure and ECE costs related to the particular needs of individual children and family contexts.
  • Encourage and utilize community resources and partnerships in developing community hub ‘wrap around’ approaches to ECE, after-school programmes and short-term food in schools, holiday programmes in low-income communities.
  • Long-term – introduce universal school lunch programme.

Additional Comments: