www.wairaka.net/ubinz/IR/pov99/WinElectionKit.html

The incidence and severity of poverty in New Zealand has been well documented by many studies. Research also shows that during the post-1990 economic reforms there has been a growing polarisation of households in New Zealand, where those on high incomes benefit disproportionately compared with others who remain trapped in an underclass on the margins of our society.

Evidence of poverty is seen in the growing number of foodbanks which, over the last decade have become an established part of our communities. There were few foodbanks before 1983, in 1998 there were over 365. In the Wellington region 9% of all households had to ask for food from a foodbank at least once during 1996 in order to survive.

A 1999 Statistics New Zealand report revealed that:

• between 1986 and 1996 there was a 9% increase in the number of children without a parent in paid work,
• more than 40% of Maori children and 37.9% of Pacific Islands children have no parent in paid work, compared with 13.8% of European children,
• two thirds of children in one-parent families have a parent who is unemployed or not in the labour force.

The WIN on Poverty Campaign has concentrated on specific solutions that would make a practical difference now, in the lives of those on low incomes, most of whom are women and children.

The WIN goals are building blocks towards longer term solutions for the eradication of poverty in New Zealand. They are based on seven key areas: income, housing, health, employment, education, childcare, retirement.

The following sections provide a background to each key issue and explain, where relevant, why some of the goals have been amended for this second phase of the campaign (WIN on Poverty 2000) leading up to the 1999 election, related 'stats & facts' and offers two suggested questions for each issue.

In light of the growing gap between rich and poor, WIN on Poverty 2000 also requires that all social policies devised by Government should be evaluated against the outcomes of:

• social justice

• alleviation of hardship

• reduction of dependence on government

• responsible government spending.

Income must be adequate to meet basic necessities such as housing, warmth, food and clothing. Income must also ensure a person can live with dignity and participate in community life (such as children being able to go on school trips). For people on very low incomes, small events in the ebb and flow of daily living can seriously affect the ability to cope.

During the first phase of the campaign, WIN focused on inadequacies in the Special Benefit and Special Needs Grant in the hope that by improving these small measures, people on a low income could make the changes needed to break the poverty cycle. However during the first 18 months of the campaign, Government failed to implement either of the two income goals, and WIN members realised that tinkering with the existing system was not really addressing the problem of inadequate income.

Research on income (in)adequacy continues to reveal increasing levels of hardship in New Zealand:

• Easton (1994) used the 1972 Royal Commission on Social Security standards adjusted to 1994 figures to estimate that 16.3% of New Zealanders live in poverty (590,000 people).
• Waldegrave et al (1995) concluded 16.5% of New Zealanders (598,995) live below a poverty line of 60% of median equivalent household disposable income.
• Podder and Chatterjee (1998) showed that half of the New Zealand population had lower real incomes in 1995/96 that they had before the economic reforms started in 1984.
• Dalziel (1999) revealed that the lowest income households (weighted by family size) experienced substantial cuts in their real purchasing power of up to 8.7% between 1984 and 1996.

In 1999 WIN is convinced that the fundamental question of what is an acceptable level of minimum income for New Zealanders must be addressed. Vigorous debate will need to include the reasons for having (or not) an official poverty measure and an understanding of how much it costs to provide the basics of modern life.

NB
New Zealand has no official poverty line, but a major study of poverty between 1984 and 1998 defined a minimum adequate standard of living as one that would allow three meals a day ($16 a day to feed a family of two adults and three children) and replacement of assets (eg. repairs when a washing machine breaks down), but no holidays or restaurant meals and no requirement of food parcels, special needs grants or special benefits.

(New Zealand Poverty Measurement Project, Paul Frater, Charles Waldegrave, Bob Stephens)

FACTS & STATS

• The basic cost to feed an adolescent boy is $58 per week, for an adolescent girl it is $49. (Otago University Nutrition Department, Food Cost Survey 1999)
• 50% of adult New Zealanders earned less than $16,300 annually before tax, in the year ended March 1996. (Household Economic Survey)
• In 1997, almost half (48%) of Maori households earned less than $27,800 compared to 39.3% of non-Maori households. (Progress Towards Closing the Social and Economic Gaps Between Maori and Non-Maori, Te Puni Kokiri, 1998.)
• In 1998 there were over 365 foodbanks in New Zealand. (New Zealand Council of Christian Social Services, Foodbank Use in New Zealand, February 1998.)
• At any given time 45% of families may be at risk of poor outcomes for their children if their adverse circumstances continue. (Department of Social Welfare Post-Election Briefing Paper, 1996.)
• 9% of all households in the Wellington region received food from a foodbank at least once in 1996. (4th National Food Bank Conference, 1998)
• Only 3.4% of domestic purposes beneficiaries are teenage mothers. (Department of Social Welfare Statistics Report, 1998.)
• The purchasing power of the DPB (sole parent with 1 child) declined by 19.3% over the 10 years between 1986 and 1996. [Calculated from weekly DPB payment (DSW Annual Reports) & the Consumer Price Index (Statistics NZ.)]
• For every $1 cut from government spending on welfare, generally only between 1c and 10c is replaced by charitable donations. (Steinberg, 1996, in Burlingame et al, Capacity for Change? The Nonprofit World in the Age of Devolution, Indiana University Centre of Philanthropy, Indianapolis.)
• The benefit cuts of 1991 equaled $1,300 million. By 1994, assistance for foodbanks (from church & public donations) was estimated to be $25 million. (R. Mackay, "Foodbank Demand & Supplementary Assistance Programmes: A Research & Policy Case Study", Social Policy Journal of New Zealand, 5, Dec 1995.)
• "Regrettably, it is not exceptional in modern-day New Zealand to be hungry and without funds to buy sufficient food." ( Comment by Justice McGechan while overturning a Social Security Appeal Authority decision in the High Court, as reported in the Dominion 15/9/97.)
• In 1987, the non-Maori average yearly household income was $5,500 higher than that for Maori. By 1997, this disparity had increased to $10,000. (Progress Towards Closing the Social and Economic Gaps Between Maori and Non-Maori, Te Puni Kokiri, 1998.)

SUGGESTED QUESTIONS

Foodbanks have become an institution in New Zealand. Foodbanks are used both by low waged families and families on benefits throughout the country. For example, 9% of all households in the Wellington region had to use a foodbank at least once during 1996.

In 1999 Government introduced compulsory budget advice for beneficiaries who seek a Special Benefit on three or more occasions. However, budget advice counsellors report that only a small proportion of their clients are able to reduce their spending - most need more income.

HOUSING BACKGROUNDER

Housing is central to all social policy. WIN members consider everyone is entitled to affordable and safe housing. There should be a range of different and diverse forms of housing provision to meet the different and diverse needs of those on low incomes.

Issues of homelessness, affordability and choice are fundamental to people on low incomes with housing needs. Homelessness, defined as including overcrowding, living in transient or substandard accommodation has not been adequately addressed by the Government.

State housing was a key component of New Zealand welfare for over 50 years. Rents for state houses were originally based on the average cost of each type of state house. By 1973 income-related rents at one-sixth of the family wage were introduced. By 1991 this percentage had increased to 25% of the tenant's income. The 1991 housing reforms introduced market rents for state-owned houses and an asset and income tested cash benefit, the Accommodation Supplement. Also large numbers of state houses were sold off.

These changes dismantled what had been one of the cornerstones of the New Zealand's welfare state and contributed to increased hardship for many of those on low incomes. Surveys of foodbank users reveal that rent is the single most frequently mentioned reason given for needing to seek help.

While the first phase of WIN on Poverty also called for an increase to the level of the Accommodation Supplement, the experience of 18 months of campaigning on housing led WIN to change the focus of the second housing goal.

The Minister of Housing refused to meet WIN members throughout the period of the first phase of the campaign. However, several meetings were held with Ministry of Housing staff during which, WIN voiced concern at the absence of that Ministry from the Government's main welfare project - the Strengthening Families strategy. WIN members found inconsistencies with the quality, evaluation and extrapolation of data in research done by the Ministry of Housing. When the Ministry of Housing policy unit became part of the Social Policy Agency of the Department of Social Welfare, late in 1998, crucial research on housing affordability still had not been completed.

Overseas research shows that the best form of housing assistance is to have a combination of cash income supplement and the provision of houses available at affordable prices to rent. While WIN believes that to address the issues of affordability and choice, central government must return to the specific provision of houses for rent, this must be based on accurate up-to-date knowledge of the specific needs within the New Zealand environment.

Therefore for the WIN on Poverty 2000 campaign, the second goal on housing has been changed to: Complete the research on the affordability and accessibility of low cost housing in New Zealand.

NB
Access to affordable housing is a key measure to alleviate poverty.

State housing was a central component of the NZ welfare state for over 50 years until the housing reforms of 1991. Income-related rents, introduced in 1973, were abolished in 1991.

Since 1991, the Accommodation Supplement (AS) has been New Zealand's primary form of housing assistance. The AS formula is set to always fall short of the true housing costs. If a beneficiary earns any income, there is an immediate abatement of their AS, even though the main benefit allows up to $80 a week to be earned. (see Backgrounder on Employment, page 28, for details)

Housing problems impact negatively on other aspects of life.

When families move from one house to another because they are unable to keep up with rent payments, they:

• disrupt children's schooling, friendships and social development

• interrupt regular medical attention or immunisation programmes.

When several families share a house to afford the rent there is often:

• no quiet space for children to study

• disruption of children's early-to-bed patterns which affects concentration in the classroom.

FACTS & STATS

• During March 1996, 92.2% of the 1100 people who used Salvation Army foodbanks (from whom information was available) spent 30% of their income on housing, and 57.6% spent at least half of their income on housing. (Housing the Hungry, J. Gunby, 1996.)
• 32% of Accommodation Supplement recipients had $100 or less to cover all their living expenses after paying accommodation costs, and almost half had $150 or less. (Ministry of Housing research using March 1997 data, obtained under the Offical Information Act, December 1997.)
• In the decade between 1987 and 1997 household expenditure on rent increased by 67%, well ahead of the overall increase in the Consumers' Price Index (CPI) which was 25% during the same period. (Statistics New Zealand)
• In 1996 there were 46.4% of Maori households in rental accommodation, compared with 25.9% of non-Maori households. (Closing the Gaps, Te Puni Kokiri, 1998)
• 9,582 state houses have been sold in the period from 1992/93 to April 1999, for a total of $892,287,735. Of these only 27% were sold to Housing NZ tenants. (WQ 10178/98, 4040/99 and 4041/99)
• Over recent years there has been an increase in hospital admissions from childhood diseases known to be associated with overcrowding, such as meningococcal disease and respiratory infections . (The Social,Cultural & Economic Determinants of Health in NZ: Action to Improve Health, National Health Committee, 1998)
• 50,000 New Zealand children live in households that are crowded to the extent that they need two or more additional bedrooms to properly accommodate all the occupants. (Child Policy Briefing Paper, Children's Agenda, June 1999, quoting NZ Now - Housing, Statistics NZ, 1998)

High rental costs is the most common reason people give for seeking help from a foodbank. Research by the Ministry of Housing in 1997 showed that one third of people receiving an Accommodation Supplement had $100 or less to cover all their living expenses after paying accommodation costs.

Cold, damp, overcrowded accommodation has seen hospital admissions for meningococcal disease and repiratory infections increase in recent years. 50,000 New Zealand children live in such crowded households, that two or more additional bedrooms are needed to properly accommodate all the occupants.

HEALTH BACKGROUNDER

Over half of New Zealanders are eligible for a Community Services Card (CSC). However, only about three quarters of those eligible actually have a CSC. A recent study (Parks, 1996) showed that barriers to take-up of the card included the means testing, complexity of forms, lack of knowledge of entitlement, confusion about the benefits of a card, difficulty with the family unit as the unit of assessment and concern about the perceived 'big brother' aspects of the card. Information is power and, in this case, economic power.

Consultation, prescription, and ACC charges are not the only costs of accessing health care. There are also the costs of time off work, child care and travel, all of which bear more heavily on low income groups. The Parks study revealed that over a 12 month period, 27% of CSC holders were unable to collect prescriptions due to cost.

The 1996 Women On Low Incomes Report prepared by the YWCA and the New Zealand Council for Christian Social Services identified lack of money as a major factor affecting health status and well-being. It is also the main reason women do not seek medical care. Women on low incomes, especially Maori and Pacific Islands women, were found to have insufficient nutritious food, substandard housing, and no money for heating - all of which affects their health and well-being and exacerbates chronic conditions such as asthma, bronchitis and respiratory tract infections. Even women who gave their children's health needs a high priority, put off seeking medical care until they were absolutely sure it was necessary.

A 1996 Consumer Institute price survey of doctors fees, published in April 1996, showed that for an adult with a CSC the cost of a GP visit was $14 - $20 or $17 - $30 (after hours) depending on where one lived, and for a child over 5 years costs were $5 - $15 or $5 - $25 (after hours). No similar survey has been undertaken since 1996 but in 1997, the Coalition Agreement provided free doctors' visits and prescription medicines for all children five years and under. By March 1999, the Consumer Price Index (CPI) showed that the average GP consultation fee for adults had increased by several dollars.

Transport is a major barrier to accessing health services, particularly for rural women. Many hospital services are now centralised and transport to these and medical centres is expensive. The Health Funding Authority (HFA) has not yet finalised a national policy on transport costs with criteria for support based on CSC eligibility. The costs of taxis and the time-consuming nature of public transport can prevent women and children getting access to the health services they need, when they need them.

Access to health provision is a complex issue which involves much more than affordability or geographical isolation. Access also includes having a choice of health provider and being able to communicate with the health provider without a language barrier. Although access is not included in the new code of consumers' rights initiated by the Health and Disability Commissioner; WIN believes it ought to be.

STATS & FACTS

• In 1960 Australia and NZ were similarly placed in the OECD ranking of life expectancy. By 1996 NZ had fallen to 17th out of 25 OECD countries for female life expectancy and 13th for males, while Australia had risen to 7th for females and 6th for males. (Briefing Papers for the Minister of Health 1996)
• Between 1980 and 1996, the public health component of total health expenditure dropped from 88.1% to 75.9%, while the private health expenditure proportion more than doubled. (Health Expenditure Trends, Ministry of Health 1998.)
• Thousands of low income New Zealanders who are eligible for a Community Services Card do not have one. Many are unaware of their entitlement. ("A Study of the Community Services Card in Five Primary Care Practices in the Auckland Region", Carol Dee Parks, Auckland School of Medicine, 1996.)
• About 200,000 New Zealanders had not seen a doctor when they needed to during 1996/97 because of user charges. (1996/97 New Zealand Health Survey, Statistics New Zealand, July 1998.)
• Maori women are 4 times more likely to die from coronary heart disease as non-Maori women, and 3 times more likely to die before reaching hospital. (Post Election Briefing 1996, Te Puni Kokiri)
• Since the accident compensation reforms of July 1999, Wellington doctors are charging an extra $10 to $40 for accident injury treatment because of time-consuming new paperwork. (Wellington Independent Practice Association chair Cathy O'Malley, Dominion 15/7/99)
• More than 58,000 people on waiting lists do not know if or when they will get an operation under the public health system. (Health Funding Authority report covering the quarter to March 1999).
• More than 109,767 patients are still waiting to see specialists to learn if they are eligible for surgery under the public health system. (as above)

SUGGESTED QUESTIONS

Thousands of New Zealanders who are entitled to a Community Services Card do not have one because they are unaware of their entitlement. Despite 3 years of lobbying by WIN on Poverty campaigners, no improvements have been made to the way this card is promoted.

There has been a rapid growth of new private health facilities, while public health facilities such as hospitals are down-sized and closed This has made access to health services difficult for many low income people, either because of affordability, transport difficulties or geographical isolation.

EMPLOYMENT BACKGROUNDER

Between May 1991 and June 1995, the Household Labour Force Survey and the Quarterly Employment Survey showed that five new part time jobs were created for every full time job. Statistics New Zealand reveals that in the year from March 1998 to March 1999 the number of people in full time work decreased by 19,000 while the number in part time work increased by 30,000.

However, there is very little information about the quality of these new part-time and non-standard jobs (i.e. the conditions and degree of job security). The main sectors in which non-standard jobs grew were the wholesale and retail trade, restaurants and hotels and business and financial services. These sectors traditionally employ more women and people from different ethnic groups and were the ones which experienced the greatest loss of union membership when the Employment Contracts Act was passed. With significantly less collective representation they are less likely to have retained penal conditions and other allowances.

The first employment goal of the WIN on Poverty 2000 Campaign calls for the monitoring of the changes in conditions and security of low waged work.

Since the last election there have been significant changes to encourage people off benefits into paid employment:

• The Community Wage has replaced the Unemployment benefit, Young Job Seekers Allowance, Training benefit, Sickness benefit, Emergency Unemployment and Emergency Sickness benefits.
• Since February 1999 widows and sole parents on the Domestic Purposes Benefit are work-tested, for part time work if they have children 7 to 13 years, for full time work when their youngest child is 14.
• Spouses of those on Invalids and Emergency benefits are also work-tested.
• DPB recipients with youngest child 5 years or under must comply with a yearly planning meeting with WINZ.
• Failure to comply with these requirements result in cuts to the benefit.

These requirements are adapted versions of the American workfare programme known as Wisconsin Works or W-2. The sanctions in the New Zealand scheme are less draconian than in the US, but the provision of assistance to the beneficiary is also less significant.

While American beneficiaries receive a variety of help with financial planning, transport, new work clothes and childcare, New Zealand beneficiaries are disadvantaged in several ways. Even though beneficiaries are able to earn up to $80 before facing an abatement to their main benefit, any income earned will be reflected in a reduction to their Accommodation Supplement (AS). 25 cents is lost from the AS for every gross dollar earned up to $80, and since February 1999, people receiving the DPB or Widows Benefit with no children or youngest dependent child 14 years or over, lose 70 cents of their benefit for every dollar earned over $80.

Overseas research shows that countries with low cost flexible childcare have low levels of sole parent unemployment. WIN believes that any initiative to get women off benefits into the workforce, must be accompanied by the availability of childcare which is accessible and meets appropriate standards. New Zealand must not allow a decline in quality standards in order to increase availability as has happened in Wisconsin.

NB
Since February 1999, sole parents and other caregives on income support have work-related responsibilities from the time their youngest child turns 5. In light of this, a new 'out of school' care (OSCAR) subsidy for children aged 5 -13 has been introduced for all low income families needing help with childcare costs when they are working or preparing for work. It pays part of the costs of before and after school care (up to 20 hours per week) and school holiday programmes (up to 30 hours per week).

The childcare subsidy for pre-school children is paid direct to the childcare provider, whereas the childcare subsidy for school-age children (OSCAR) is paid to the caregiver.

(Childcare Subsidy, Changes from 1 February 1999, Work and Income NZ, Dec 1998.)

• The Household Labour Force Survey (HLFS) defines as employed any person, who during the survey reference week, worked for pay for an hour or more. (HLFS Definitions, Statistics New Zealand.)
• A person working 30 hours or more a week is defined as a full time worker, regardless of the number of jobs held, or whether that person works for no pay, such as in a family business. (HLFS Definitions, Statistics New Zealand.)
• In June 1998 there were 140,000 people officially unemployed - one in every 13 of those who wanted work. (HLFS June 1998 Quarter, Statistics NZ)
• In March 1998 there were 226,000 people - or one in eight - who were without a job and wanted a job, but were classified as "jobless" beause they did not meet the "official" definition of unemployed. (Labour Market '97, Statistics NZ, June 1998)
• Between May 1991 and June 1995, five new part-time jobs were created for every full-time job. (HLFS and Quarterly Economic Survey)
• From March 1998 to March 1999, the number of people in full-time work decreased by 19,000 while the number in part-time work increased by 30,000. (Statistics NZ)
• Some groups are over represented amongst the unemployed. 35% are under 25, although under 25's are only 19% of the workforce; 22% are Maori, who are less than 9% of job seekers, 12% are Pacific Islanders, who are less than 4% of job seekers. (HLFS June 1998 Quarter, Statistics NZ)
• In March 1996 the majority of sole mothers with qualifications above School Certificate level were in the labour force, either employed or actively seeking work. (Beyond Assumptions: Informing the Debate on Sole Mothers and Employment in New Zealand, Kay Goodger, paper for Work, Families and the State conference, November 1997.)
• In 1996 more than 40% of Maori children and 37.9% of Pacific Islands children had no parent in paid work, compared with 13.8% of European children. (A 1999 Statistics New Zealand report, as quoted in Dominion 23/6/99)
• Between 1986 and 1996, the number of families with two prime working age adults in jobs increased by 60,000, but the number of families with no adult in paid work increased by 23,000. (Paul Callister, 1999, "Work Rich and Work Poor Individuals & Families: Changes in the Distribution of Paid Work from 1986 -1996", Social Policy Journal of New Zealand, Vol 10, 1998)

SUGGESTED QUESTIONS

A rapidly increasing number of New Zealanders rely on part-time jobs to live, but very little is known about the quality of these jobs. Are these jobs short term? Do they involve irregular hours? Do they require workers to be "on call"? Do they create difficulties in meeting parental responsibilities? We don't know.

More and more people are being urged to get a paid job, especially sole mothers on the Domestic Purposes Benefit. Overseas research shows that all countries with low childcare costs have low sole parent unemployment. (see 'facts & stats' page 16)

EDUCATION BACKGROUNDER

WIN believes that an economic and social strategy for prosperity and full employment in New Zealand needs a well educated and trained workforce. Initiatives in this area must allow and support second chance and life long learning opportunities to reflect the changes people go through during life.

Research has highlighted a link between employability of sole parents (the majority of whom are women) and education and skills. Those on low incomes who seek to increase their skills (and therefore seek employment) need support to make the transition to work through education and training. WIN members believe that user pays in education and training is a barrier to accessing opportunities. There are also indirect costs to education and training which have to be met by all students, such as books and equipment. Students with dependents or with disabilities have additional indirect costs.

The Training Incentive Allowance is paid to people receiving the DPB, Widows or Invalids Benefit for course costs and other costs of study or training. The TIA is not available for a person who already has a qualification but is seeking to re-train (for example as a teacher). In 1998 the Government announced that only 60% of fees and course costs would now be covered by the TIA.

Four out of five tertiary students now use the loan scheme which was introduced in 1992. By 1999 the student loan debt amounts to $3 billion. Interest on each student loan starts accruing immediately even while a student is studying. The cost of tertiary education is expected to keep thousands of New Zealanders in debt throughout their working lives. Even if their income is insufficient to require them to make repayments, the interest and thus the debt will continue to accumulate.

A 1994 the Ministry of Education commissioned a report using gender breakdowns of loan statistics on average annual borrowing, and Census data on average graduate income by age, to determine the amount of time it would it take a male and a female to repay their debts. The time-to-repay for women was 38 years, for men it was 15 years. In 1999 the Aotearoa Polytechnic Students Union and the New Zealand University Students Association (NZUSA) reproduced and updated this analysis to show how time-to-repay for men has risen from 15 to 17 years whereas the increase for women is from 38 to 51 years.

The reasons why the Student Loan Scheme impacts more severely on women than men are many. Women are less likely than men to receive parental financial support while studying, generally earn less than men and are more likely to take time out of the workforce to care for children or older dependents. The 1997 New Zealand Income Survey showed that even when the factors of age, occupation, ethnicity, highest qualification and usual hours worked are standardised, women still earn 17% less than their male counterparts.

In late 1998 the government announced a number of policy changes with regard to the Student Loan Scheme. If these changes go through, on average women will still take twice as long as a man to pay off her loan. It is estimated that up to 35% of Maori women graduates will still be paying off their loans at 64.

STATS & FACTS

• Children from low-income families do less well in mathematics, literacy and problem-solving than others. (Six Years Old & Competent, Cathy Wylie with Anne Else, NZ Council for Educational Research, 1998)
• Compared to non-Maori, Maori are less likely to attend early childhood education, attain a formal qualification upon leaving secondary school or undertake formal tertiary training. (Progress Towards ClosingSocial and Economic Gps Between Maori and Non-Maori, Te Puni Kokiri, 1998)
• Females are less likely than males to receive parental support to undertake tertiary studies. (The Tertiary Education Participation Study, Bruce Parr, Ministry of Education, 1995)
• The student loan debt is currently $3 billion.
• A 1994 Ministry of Education report estimated that because women tend to earn less than men and have interrupted careers due to childbearing, they would take an average of 38 years to repay their student loan, compared with 15 years for men. A 1999 update by University and Polytechnic students associations show the time-to-pay has increased to 51 years for women, and to 17 years for men.
• In 1996, 55.2% of Maori women tertiary students had a student loan compared with 49.9% of non-Maori women. (Statistics NZ, New Zealand Now - Women, 1998)
• Up to 35% of Maori women graduates will still be paying off their loans at age 64. (Ministry of Education, replies to Select Committee questions, 1 May 1998).
• One in three students goes on to university from the wealthiest 20% of secondary schools compared to one in sixteen from the poorest 20% of schools. (The Myth of Equal Opportunity: Wealth of School-District as a Determinant of Tertiary Participation. APSU/NZUSA, 1998)
• New Zealand public university funding is below that in the UK, US, Canada, Japan and most European countries. In 1999, government funding covers less than 65% of the universities' total operating costs. (A Super Future? Anne Else & Susan St John, Tandem Press, 1998)
• In 1996 there were 895,209 New Zealanders (33.9%) aged 15 and over with no qualifications. (1996 Census)

SUGGESTED QUESTIONS

Universally, education is seen as the means to escape poverty. Increasingly people are expected to retrain as technology and patterns of employment change.

Women want to participate in the "knowledge-based" society, yet female graduates face on average 51 years of student debt repayment.

CHILDCARE BACKGROUNDER

Childcare is a major issue for all women caring for children, especially those on low incomes. People on low incomes, especially those seeking to make the transition to work, require the harmonisation of work and family responsibilities. Children, too, need quality care and education.

A recent study found that an estimated 60% of New Zealand children under five years of age and approximately 20% of those aged 5 - 13 years, have childcare, early childhood education or out-of-school arrangements. Most people use unpaid care by family members and changes to the childcare arrangements were wanted for 20% of all children under 14 years of age. (NB 14 years is the lowest age a child may legally be left at home alone.) 15% of parents found that access to childcare was a barrier to their participation in employment over the last year and 68% of parents with at least one child under 14 years are in employment.

A childcare subsidy (which does not cover the full costs of childcare) is available for a maximum of 9 hours per week where the family is on a low income. A maximum of 30 hours subsidy is available per week when the family has a low income, and a care-giver in employment or in training and a partner isn't available to look after the child or a member of the family has a serious illness of disability.

The WIN on Poverty goals are focused on assisting women and children in two ways.

• First by making more subsidised hours available to low income families when they need them such as:

• increasing opportunities for children to attend early childhood education,

• when the caregiver is looking for paid employment,

• when the caregiver undertakes unpaid work in the community or schools,

• when a caregiver needs relief,

• when the family is experiencing social and welfare stress.

• Second by making childcare more accessible to families in rural areas by supplementary funding to cover things such as additional transport costs for parents or additional overhead costs for childcare providers in rural areas.

NB
Traditionally New Zealanders have held the view that children are both a private and public benefit and society has a great deal to gain from ensuring good outcomes for children.

Recently, some media sources have suggested that bearing and raising children is solely a private choice, not a public good. "Life is a matter of choices. Women do not have to have children; they are not obliged to get married - and many don't." (Editorial, National Business Review, August 1996.)

STATS & FACTS

• 15% of parents found that access to childcare was a barrier to their participation in employment over the last year. [Childcare Survey 1998, Department of Labour & NACEW (National Advisory Council on the Employment of Women), 1999]
• In New Zealand, it is illegal to leave a child under the age of 14 years, at home alone.
• In 1996, 27% of all families with dependent children were one-parent families. Of these, 85% were headed by women (Department of Social Welfare figures prepared in August 1997 from 1996 Census).
• All countries with low childcare costs have low levels of sole parent unemployment. (Bradshaw et al, 'The Employment of Lone Parents: a comparison of policy in 20 countries', Family Policy Studies Centre, 1996).
• In 1996, 45.7% of all employed people were women. (Statistics New Zealand, New Zealand Now, Women, 1998)
• The usual Childcare Subsidy for children under 5 from low income families is $20.88 for 9 hours per week. A maximum subsidy of up to 30 hours per week ($ 69.60) applies when the main caregiver is also in work, without a partner to help look after the child. (Work and Income NZ, Dec 1998)
• Childcare centres in New Zealand charge from $100 to $280 per week depending on location. (NZ Childcare Association)
• In 1998 an estimated 60% of New Zealand children under 5 years of age and approximately 20% of school children aged 5 - 13 years have childcare or early chilhood education arrangements. (Childcare Survey 1998, Department of Labour & NACEW , 1999)
• 68% of parents with at least one child under 14 years of age are in employment. (Childcare Survey 1998, Department of Labour & NACEW, 1999).

SUGGESTED QUESTIONS

The New Zealand Childcare Survey 1998 showed that for 15% of parents, costs and access to childcare and early childhood education were a barrier to participation in employment. Those most affected were parents who had low incomes or who worked part-time.

Early childhood education is important for the social development of children and their ability to learn. This is increasingly so as our society becomes more technologically complex. Children from low income families must have access to early childhood services to enable them to realise their potential.

RETIREMENT BACKGROUNDER

WIN considers the current level of New Zealand Superannuation does not provide an adequate standard of living for those with little or no other income. Most older people live on an income of less than $15,000 per annum. New Zealand Superannuation is the main source of income for 85% of people aged 65 years and over. i.e. $212.69 per week, or $11,060 per annum for a single person and $16,930 per annum for a married couple.

In September 1997, the Coalition Government held a referendum on whether New Zealand should instigate a compulsory retirement savings scheme. The result was an overwhelming rejection of this proposal. Many people believe that the best scheme is a universal, pay-as-you-go scheme funded by general taxation.

From April 1999 the Government has implemented a process for New Zealand Superannuation (NZS) to be lowered over the next three years until the after-tax amount for a married couple is 60% of the average wage. Single people living alone will receive 65% of the married couple rate. NZS will continue to be adjusted annually to accommodate changes in inflation, in line with the Consumers Price Index. Previously, under the Accord, NZS used to range from 65% of the average wage for a retired single person to 72.5% of the average wage for a retired married couple. Therefore, these changes represent a considerable drop in income for older people, especially those with NZS as their only income.

User charges in areas such as health care, transport, housing and for essential services such as telephone, electricity, water and gas significantly reduce the ability of older people to manage their incomes, especially if emergencies arise. Older people living alone and those with rented accommodation appear to have the greatest difficulties in meeting basic living expenses.

Researchers for the Todd Task Force Report found that in 1995/96, only 49% of superannuitant households in rental accommodation had a telephone, a washing machine and a car. The 1997 Todd Task Force Report emphasised the need to research the adequacy of current levels of superannuation for those living on their own without access to other income (the majority of whom are women). In 1998 the multi-party Accord was abandoned and a new independent group, the Superannuation 2000 Taskforce, was set up. This group is to work with politicians to seek a long-term solution to superannuation for New Zealanders.

By 2020, 21% of the New Zealand population will be over 60.

NB
New Zealand's pension scheme has undergone many changes.

In 1898 only the poorest got an old-age pension. Today's system is universal, everyone who meets the criteria receives New Zealand Superannuation.

A compulsory savings scheme was introduced by Labour in 1975, but ended nine months later when National won the election in November of that year.

Compulsory savings schemes have been seriously considered, and rejected, in 1988, 1992 and 1997. Labour introduced the 'surcharge' in 1985 which the Coalition government removed in 1998.

• In 1996 just under 12% of the population was over the age of 65. This group will grow to comprise over 22% of the population by 2031, and 26% of the population in 2051. (Statistics New Zealand, New Zealand Now 65 Plus, 1998)
• Older people living alone are concentrated in the lowest income group. (Statistics New Zealand, Incomes, 1998)
• In 1996 there were 132 women to every 100 men in the 65-and-over groups and 244 women to every 100 men in the 85 -years-and-over group. (Statistics New Zealand, New Zealand Now Women, 1998)
• New Zealand Superannuation is the main source of income for 85% of people over 65. This is $212.69 net per week or $11,060 per annum for a single person living alone and $325.58 net per week or $16,930 per annum for a married couple.
• Approximately half of all older Maori are entirely dependent on New Zealand Superannuation. (Statistics New Zealand, Ageing and Retirement in New Zealand, 1997.)
• In 1995/96 only 49% of superannuitant households in rental accommodation had a telephone, washing machine and a car. (Interim Todd Task Force Report, 1997)
• After they reach 60, divorced and separated women are five times more likely than other women to be renting. (A Super Future? Anne Else & Susan St John, Tandem Press, Auckland,1998)
• Two thirds of the men and nearly half the women who are 2 or 3 years off getting NZ Super (i.e. in their early 60's), do not get any state support. They live off some combination of their own earnings, their partner's earnings, and a private pension or savings. (A Super Future? Anne Else & Susan St John, Auckland, Tandem Press, 1998)
• Only 4.9% of older people live in a residential home and 2% are in long term hospital care. (Statistics New Zealand, 65 Plus, 1998)
• Approximately one in every three people aged between 65 and 74 participates in unpaid work in the community. (Statistics NZ, 65 Plus, 1998)

SUGGESTED QUESTIONS

The Todd Task Force report (1997) criticised the fact that although New Zealand Superannuation is the main source of income for 85% of people over 65, there has been no research of the current living standards of retired people.

Many people have lost their confidence of a secure retirement because New Zealand Superannuation has been tinkered with so many times over the last twenty years. (NB see page 18 if you want to give details)

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