The view from New Zealand...posted with permission of The Jobs Letter. See info on subscribing at end of post. Sally >Comments: Authenticated sender is <[EMAIL PROTECTED]> >From: "vivian Hutchinson" <[EMAIL PROTECTED]> >To: "The Jobs Letter" <[EMAIL PROTECTED]>, > "The Jobs Letter" <[EMAIL PROTECTED]>, > "The Jobs Letter" <[EMAIL PROTECTED]> >Date: Wed, 27 May 1998 10:31:39 +0000 >X-Distribution: Moderate >MIME-Version: 1.0 >Subject: Budget Summary, The Jobs Letter 79 (27 May 1998) >Reply-to: "The Jobs Letter" <[EMAIL PROTECTED]> >Priority: normal > >=============================================== >================================================== >========================== > >F E A T U R E >------------------ >from >T H E J O B S L E T T E R 0 7 9 >a subscriber-based letter >published in New Zealand 27 May 1998 > ------------------------------------- > >BUDGET SUMMARY > >BUDGET 98 - FOLLOWING THE MONEY >The main decisions in Treasurer Winston Peters' second Budget -- > >* Anyone who becomes a sickness beneficiary after July 1st >will be paid the same as the unemployment benefit. The rates for >existing beneficiaries will not change, but within a year it is >expected the new rate will effect about half those receiving a >benefit. The sickness benefit will be merged into the community >wage on October 1st and will be subject to the work test. > >* Invalids and sickness beneficiaries will be assessed on a >case- by-case basis to see if they are capable of doing even five >hours work. These work capacity trials start in November. > >* People on the Domestic Purposes Benefit whose youngest child >is between six and 13 years will be expected to look for part- >time work. Those with their youngest child 14 years and older >will have to look for full-time jobs. > >* A child-care subsidy for low-income working parents and sole >parents will be part of measures to help people get back into the >workforce. A sole parent with two school-age children who takes >up work will have child-care subsidised by up to $72 a week >during the school term and by up to $108 a week during the school >holidays. Sole parents with no access to sick leave in their >first six months of full-time work may be eligible for financial >help if they or their children are sick. > >* The Budget predicts that the unemployment rate will peak at >just over 7% in mid 1998 and then reduce to 5.6% by the year >2000- 2001. Next year, the government expects to be spending >$1.46 billion on paying the community wage (replacing the >unemployment, training and sickness benefits). > >* Employment programmes overall get a $142m boost in the >1998/99 year and a $125m boost in 1999/2000. This includes >however a transfer of money (from Vote Education) of the money >for Training Opportunity Programmes. The Education Ministry is >left with only 40% of the previous TOPS funding and expects to >provide 5,000 training places this year, compared with the 15,000 >training places in the last year. > >* The big boost in funding goes to "services to minimise the >duration of unemployment and maximise participation in community >work and training", which is Treasury's way of describing >measures to tackle long-term unemployment and create community >wage schemes. Target for the next year: 63,000 job- seekers to >take part in these initiatives, or between 22,000 and 26,500 >people at any one time. Balancing the massive increase in funding >community wage initiatives is a cut to many other Labour >Department-funded programmes: > >-- Subsidised work schemes (eg Job Plus) have been trimmed >back $24m to $108m. > >-- Community employment and enterprise development >projects (eg Be Your Own Boss) have had just under $5m trimmed >from their budget to $13.5m > >-- The Army's Limited Service volunteer scheme, which takes young >people on to a six-week military training course, has been >slashed from $2.7m to $1.7m, now providing placements for 700 >job- seekers. > >* The Youth Affairs programmes Conservation Corps and >Youth Service Corps receive much the same amounts as in the last >Budget. Conservation Corps is funded $9.73m to run 123 projects >for 1,670 young people; and Youth Service Corps are funded $1.09m >to run 10 projects for 133 young people. > >* Employment Support for people with disabilities (eg >Workbridge) gets a 30% increase in budget to $16.225m. > >* Student Placement Services keeps the same budget at $1.9m, >as does the Careers Service at $5.45m. > >* The Education and Training Support Agency funding is cut by >about half, reflecting the transfer of funding previously >allocated to TOPS to Vote Employment. > >* Only students receiving a student allowance during the >academic year will continue to have access to the emergency >benefit from July 1st. > >* Also from July 1st, unemployment, training or sickness >beneficiaries aged 18-19 years with no dependents and living with >their parents will receive a new "at-home" rate of benefit - a >cut for up to 8,000 people. > >* $50m has been set aside for families who have become >"trapped in a cycle of disadvantage from one generation to the >next". They will be targeted for intensive home-based assistance >from the birth of a child until he or she is five. > >* New migrants to NZ from July 1st must be resident for two >years before they can access welfare benefits. > >* The Business Development Board grants scheme is finally >closed, while a total of $14.4m is earmarked for business >development measures in the next year. > >* The Accident Compensation Corporation has been opened >up for private competition. Employers and the self-employed will >be able to buy private accident insurance from July next year. > >* Producer Boards will be de-regulated, and they have been >given until November to come up with a plan. > >* The 22.5% vehicle tariff on imported cars has been removed >from Budget night, ahead of the previous deadline of the year >2000. This will cost the government $285m in lost tariff revenue, >and is the final nail in the coffin of local car assembly plants. >Car importers will receive at least $30m in duty refunds for >their unsold vehicles. > >* " The government's employment strategy is about assisting >people into unsubsidised work. It aims to strengthen the focus of >employment assistance by encouraging people to work to their full >potential. In particular, it aims to reduce the number of >long-term unemployed by moving job seekers into unsubsidised >work. > >" Requiring job seekers to undertake work in the community >will be one option available where it is the best way to assist >job seekers into unsubsidised employment quickly and cost >effectively. We must avoid letting the unemployed become >alienated from the labour market. > >" With this strategy, the coalition government is recognising >that unemployment affects individuals, families and communities. >Our aim is to assist New Zealanders to move from state-reliance >to self- reliance..." -- Treasurer Winston Peters, from his 1998 >Budget speech > > > >C R E D I T S >------------------- >edited by Vivian Hutchinson for the Jobs Research Trust >P.O.Box 428, New Plymouth, New Zealand >phone 06-753-4434 fax 06-759-4648 >Internet address -- [EMAIL PROTECTED] > >The Jobs Letter -- an essential information and media watch on >jobs, employment, unemployment, the future of work, and related >economic and education issues. > >The Jobs Research Trust -- a not-for-profit Charitable Trust >constituted in 1994 to develop and distribute information that >will help our communities create more jobs and reduce >unemployment and poverty in New Zealand. > >Our internet website at > > http://www.jobsletter.org.nz/ > >contains our back issues and key papers, >and hotlinks to other internet resources. > >ends >------ > > > >The Jobs Letter >essential information on an essential issue >[EMAIL PROTECTED] >phone 06-753-4434 fax 06-759-4648 >P.O.Box 428 >New Plymouth, Taranaki, New Zealand > >visit The Jobs Research Website at >http://www.jobsletter.org.nz/ >
