ACT's Alternative Plan To Fight Poverty
Recommendations from the Child Poverty Action Group to ease child poverty will not work, and will only serve to lower
New Zealand's standard of living, ACT New Zealand Social Welfare Spokesman Dr Muriel Newman said today.
"The only way to eradicate child poverty - indeed, all poverty in New Zealand - is to raise our standard of living into
the top half of the OECD, so that working families are better off, and families on welfare have better job prospects,"
Dr Newman said.
"The action group's plan, to raise the basic benefit level, will take such a huge tax hike that it would cause New
Zealand's living standards to slide. As a result, child poverty would increase, not fall.
"If the Government were really committed to fighting child poverty, it would immediately lower tax rates to ease the
financial strain on working families, as well as creating jobs and growth.
"Secondly, it would light a bonfire under the red tape and compliance costs that hold back small business. This would
increase productivity and profitability, again creating jobs and growth.
"Raising benefits is a short-term solution which is simply not sustainable. Indeed, it would make the problem of child
poverty worse. ACT believes that the long-term strategies of lower taxes, fewer compliance costs and welfare reform -
ensuring that those who can work, do work - are the only way to ensure that living standards increase, improving the
lives of all New Zealand children," Dr Newman said.