New Zealand's welfare system is being set up for reform, with a Government-appointed working group saying it is "unsustainable, outdated and fragmented".
Prime Minister John Key supported the working group yesterday, saying rising levels of "welfare dependency" were a major concern and that at least some of the group's final recommendations would be adopted.
He says the benefit system has gone beyond what it was when it was established by the first Labour government in the 1930s.
We'll have a decent read of this once we get out to the airport, and it's highly likely that we'll have something more to say before we fly back to Auckland - watch this space!
UPDATED: Lindsay Mitchell has, as one would expect, some very interesting comments on data released by MSD
5 comments:
There's a very simple reform that solves all benefit problems including the unsustainability of welfare and super for Gen-Xers etc:
stop all benefits
No dependency. No unaffordability. No moral hazard.
Every single problem with benefits solved.
I wonder how Key thinks that fragmenting the cost of employee welfare onto employers isn't making the welfare equation more fragmented. The man has lost the plot. He has two mouths, one at the top which never speaks.
Solution:
Drastically reduce compliance cost for businesses. Eliminate employment laws that draw lines with fear; anything like a 90 day bill and anything like a disputes resolution process. Let people decide and agree between themselves how they want to be treated. No additional wailing to government authority required.
I wonder how Key thinks that fragmenting the cost of employee welfare onto employers isn't making the welfare equation more fragmented. The man has lost the plot. He has two mouths, one at the top which never speaks.
He was on radiosocialism this morning disclaiming any additional employer levies or compliance
Drastically reduce compliance cost for businesses. Eliminate employment laws that draw lines with fear; anything like a 90 day bill and anything like a disputes resolution process.
Absolutely
Let people decide and agree between themselves how they want to be treated. No additional wailing to government authority required.
Not really, no. What we need is a real "fire at will" law - to remove costs of hiring people. We should also of course remove employer ACC levies and any payroll taxes - why should employers have to pay for slack employees who get injured? - and these taxes are basically finally taxes on employment.
So-called "rights" for the NZ Communist Party (i.e. unions) to infect workplaces also greatly prevent employment. These need to go, as well as any law tilting in favour of unionism - laws to dock pay; and especially laws meaning unions (or the members) cannot be sued to recover the damage to employer's business.
Oh and that's the last labour law that needs to be changed - so that damanging business is both a criminal and civil offense, so that employees can be jailed or/and fined for any damage or cost they impose on business.
Finally - and perhaps most important of all - remove the Dole, and minimum wage which greatly tilt the market against employers!
Pity the Brash report got not only got kicked to touch but was so deep into the crowd it disappeared. At least Mr Key acknowledged that this report had some merit but I wont hold my breath as the polling has not dictated the true response as yet.
Anonymous at 10:13
I don't agree with tilting the playing field, for anyone. No Dept. of Labour, no employment court, if people have problems they can go through civil law courts. Tilting will cause problems with productivity. A slave nation doesn't turn out innovative and high quality goods, they are only good for basic processing of agricultural and mineral materials. I find the whole "We're employer class and we're owed, so lick our boots" approach just a bit infantile. Employers hide behind laws and like to say they're the best. Well once all the laws are gone, we'll see who really is the best and who is just a social climber. Sort the men from the boys and get some real captains of industry.
I agree there is no need for dole or minimum wage if there was a healthy tax free bracket.
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