Middle miss out in Labour’s plan

January 30, 2014

Labour leader David Cunliffe bemoaned the plight of middle income families who were struggling, in his state of the nation speech.

He then announced a plan which he said would give every family earning up to $150,000 a $60 a week when they had a baby.

What he said isn’t what the proposal would deliver.

Prime Minister John Key told the whole story in Question Time yesterday:

. . . Rt Hon JOHN KEY: Firstly, I would be interested in the Leader of the Opposition tabling this source that he keeps using saying that one in five New Zealand children own only one pair of shoes. I would be very interested, because that is what he has been saying. We know from his speeches that when he says 59,000 families will all get $60 a week for 52 weeks, it is not true—25,000 of them get paid parental leave, and will not get it for 52 weeks. Today we learnt that 15,000 currently get the parental tax credit, and they will not get it for 52 weeks either. In fact, one in three families are the only people who will get $60 a week for 52 weeks of the year, and they are beneficiary families and the new working poor, who, according to Labour, earn $150,000 a year. . .

Calling Cunliffe a liar isn’t permitted under parliamentary protocol.

Patrick Gower doesn’t face that constraint and writes Labour is dishonest on baby bonus:

The Labour Party has been putting voters wrong about its baby bonus.

Labour has been deliberately misleading, and in my view dishonest by omission.

On Monday night I told 3 News viewers that under Labour’s $60 a week baby bonus policy, families would get $3120 a year for their baby’s first year.

A simple calculation you might think, of $60 mutiplied by 52 weeks, given David Cunliffe announced in his State of the Nation speech: “That’s why today, I am announcing that for 59,000 families with new-born babies, they will all receive a Best Start payment of $60 per week, for the first year of their child’s life.

Now most normal people would think that means “all” those parents will get the payment “for the first year of their child’s life”.

But it wasn’t true – not that you would know that from Cunliffe’s speech, media stand-up, the MPs who were there to “help” and all the glossy material handed out to us.

The Labour Party has been putting voters wrong about its baby bonus.

Labour has been deliberately misleading, and in my view dishonest by omission.

On Monday night I told 3 News viewers that under Labour’s $60 a week baby bonus policy, families would get $3120 a year for their baby’s first year.

A simple calculation you might think, of $60 mutiplied by 52 weeks, given David Cunliffe announced in his State of the Nation speech: “That’s why today, I am announcing that for 59,000 families with new-born babies, they will all receive a Best Start payment of $60 per week, for the first year of their child’s life.

Now most normal people would think that means “all” those parents will get the payment “for the first year of their child’s life”.

But it wasn’t true – not that you would know that from Cunliffe’s speech, media stand-up, the MPs who were there to “help” and all the glossy material handed out to us.

Because buried in the material was a website link that takes you to a more detailed explanation policy.

And on page six of that policy document, in paragraph 3, it revealed the payment would commence at the “end of the household’s time of using Paid Parental Leave, ie. after 26 weeks in most cases.”

So translated, in most cases, the $60 a week payment is not for the first year, but for the second six months.

Obviously 3 News had already broadcast that it was for most babies for a year and a total of $3120.

The truth is it was for most babies for the second six months and was $1560.

Now Cunliffe and Labour knew this $3120 for one year figure was wrong, but nobody rang to correct it.

Usually political parties and the taxpayer-funded spin doctors are screaming down the phone if there is an error (and rightfully so, I might add), but in this case Labour was dead quiet.

And I believe that’s because Labour wanted the punters to think it was $60 for a year.

They were desperate to get cut-through and were happy to omit key information and let the wrong message get out there.

And I think that is deliberately misleading and dishonest from Labour.

At some point, I’m sure senior Labour people made a decision to omit key details on the day to maximise publicity – it was no mistake.

This is what politicians of all colours do; they don’t care if they mislead the public, they are venal and desperate and just want to win. It is not just Labour, it’s all of them. It’s really sad.

And it goes on: Labour’s Sue Moroney has just explained to me that there are 60,000 births in New Zealand each year, 59,000 of those families earn under $150,000, 26,000 are eligible for paid parental leave, meaning 33,000 will get the $60 for the full twelve months.

That means Cunliffe should have said 33,000 people will get the baby bonus for a year, which is not “most” of the 60,000 families that have babies each year.

Bearing in mind Labour’s policy does not start until April 2016, with six months of paid parental leave the majority of $60 payments won’t kick in until October 2016 – that would likely be almost two years after a 2014 Labour Government.

Cunliffe also struggled to explain yesterday whether families would be judged on their pre-baby double income (ie. two earners of $140,000 each, getting $280,000) or after-baby income $140,000.

This seems a pretty straightforward aspect to me, and I wonder if it was policy-on-the-hoof. He either didn’t know the policy properly or was trying to avoid showing how generous the policy is. . .

That’s generous with other people’s money to beneficiaries and the new working poor who until very recently Labour would have called rich pricks.
But not very generous to the people in the middle that the speech gave the impression the policy was designed to help.

 

 

 


January 30 in history

January 30, 2014

1018 – The Peace of Bautzen was signed between Poland and Germany.

1648 Eighty Years’ War: The Treaty of Münster and Osnabrück was signed, ending the conflict between the Netherlands and Spain.

1649 King Charles I of England was beheaded.

1661 Oliver Cromwell, was ritually executed two years after his death, on the anniversary of the execution of the monarch he himself deposed.

1790  The first boat specializing as a lifeboat was tested on the River Tyne.

1806 The original Lower Trenton Bridge (also called the Trenton Makes the World Takes Bridge), was opened.

1820 Edward Bransfield sighted the Trinity Peninsula and claimed the discovery of Antarctica.

1826 The Menai Suspension Bridge, considered the world’s first modern suspension bridge, connecting the Isle of Anglesey to the north West coast of Wales, opened.

1835 In the first assassination attempt against a President of the United States, Richard Lawrence attempted to shoot president Andrew Jackson, but failed and was subdued by a crowd, including several congressmen.

1841 A fire destroyed two-thirds of Mayagüez, Puerto Rico.

1847 Yerba Buena, California was renamed San Francisco.

1858 The first Hallé concert was given in Manchester marking the official founding of the Hallé Orchestra as a full-time, professional orchestra.

1862 The first American ironclad warship, the USS Monitor was launched.

1882  Franklin D. Roosevelt, 32nd President of the United States, was born (d. 1945).

1889 – Archduke Crown Prince Rudolf of Austria, heir to the Austro-Hungarian crown, was found dead with his mistress Baroness Mary Vetsera in Mayerling.

1911 An amendment to the Gaming Act at the end of 1910 banned bookmakers from racecourses in New Zealand. Bookies were officially farewelled at the now defunct Takapuna racecourse.

Bookies banned from NZ racecourses

1911 The destroyer USS Terry (DD-25) made the first airplane rescue at sea saving the life of James McCurdy 10 miles from Havana.

1911 – The Canadian Naval Service became the Royal Canadian Navy.

1913 The House of Lords rejected the Irish Home Rule Bill.

1925 The Government of Turkey threw Patriarch Constantine VI out of Istanbul.

1929 Lucille Teasdale-Corti, Canadian surgeon and international aid worker, was born (d. 1945).

1930 Gene Hackman, American actor, was born.

1930 The world’s second radiosonde is launched in Pavlovsk USSR.

1931 Shirley Hazzard, Australian-born author, was born.

1933 Adolf Hitler was sworn in as Chancellor of Germany.

1937 Vanessa Redgrave, English actress, was born.

1941 – Dick Cheney, 46th Vice President of the United States, was born.

1945  World War II: The Wilhelm Gustloff, overfilled with refugees, sunk in the Baltic Sea after being torpedoed by a Soviet submarine, leading to the deadliest known maritime disaster, killing approximately 9,000 people.

1945  Raid at Cabanatuan: 126 American Rangers and Filipino resistance liberated 500 prisoners from the Cabanatuan POW camp.

1945 Hitler gave his last ever public address, a radio address on the 12th anniversary of his coming to power.

1947 Steve Marriott, English musician (Humble Pie, The Small Faces), was born  (d. 1991).

1948 – Indian pacifist and leader Mohandas Karamchand Gandhi was assassinated by Nathuram Godse, a Hindu extremist.

1951 Phil Collins, English musician, was born.

1954 Queens EliZabeth II and the Duke of Edinburgh left New Zealand, bringing to an end the first tour by a ruling monarch.

Queen farewells New Zealand

1956 American civil rights leader Martin Luther King, Jr.‘s home was bombed in retaliation for the Montgomery Bus Boycott.

1960 The African National Party was founded in Chad through the merger of traditionalist parties.

1960 Lily Potter, (fictional character) Mother of Harry J. Potter and Member of The Order of the Phoenix, was born.

1962 King Abdullah II of Jordan, was born.

1964  Ranger 6 was launched.

1968 Prince Felipe of Spain, was born.

1969 The Beatles‘ last public performance, on the roof of Apple Records in London.

1971 Carole King’s Tapestry album was released, it became the longest charting album by a female solo artist and sold 24 million copies worldwide.

1972 Bloody Sunday: British Paratroopers killed 14 unarmed civil rights/anti internment marchers in Northern Ireland.

1972 Pakistan withdrew from the Commonwealth of Nations.

1979 Varig 707-323C freighter,  disappeared over the Pacific Ocean 30 minutes after taking off from Tokyo.

1982 Richard Skrenta wrote the first PC virus code, which was 400 lines long and disguised as an Apple boot programme called “Elk Cloner”.

1989 The American embassy in Kabul closed.

1994 Péter Lékó became the youngest chess grand master.

1995 Workers from the National Institutes of Health announced the success of clinical trials testing the first preventive treatment for sickle-cell disease.

1996 Gino Gallagher, the suspected leader of the Irish National Liberation Army, was killed while waiting in line for his unemployment benefit.

1996 – Comet Hyakutake was discovered by Japanese amateur astronomer Yuji Hyakutake.

2000 Off the coast of Ivory Coast, Kenya Airways Flight 431 crashed into the Atlantic  killing 169.

Sourced from NZ History Online & Wikipedia.


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