ACT's blueprint for ending child poverty

Wednesday 15 Dec 2004

Dr Muriel Newman - Press Releases - Social Welfare

ACT Deputy Leader and Social Welfare spokesman Dr Muriel Newman today said the Child Poverty Action Group's call for the Government to raise Family Support payments to ease child poverty wouldn't work, and would only serve to lower New Zealand's standard of living.

"The only way to eradicate child poverty 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 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 Labour was really committed to fighting child poverty, it would immediately cut taxes 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 would make the problem of child poverty worse. ACT believes that lower taxes, less red tape and welfare reform - ensuring that those who can work, do work - is the only way to ensure that living standards increase and, therefore, rescue Kiwi children from the clutches of poverty," Dr Newman said.

ENDS

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