Source: Radio New Zealand
Unsplash / Emil Kalibradov
The war in the Middle East could see inflation in New Zealand hit 3.7 percent in a worst case scenario, Finance Minister Nicola Willis revealed on Tuesday.
Willis said the government was focused on mitigating the impact of the war on critical supply chains and the New Zealand economy.
The cost of filling the petrol tank of an average car had gone up about $23 and about $36 for diesel, she said.
Willis said that the government was aware of the pressure that could put on some households, but warned if there was to be any assistance, it would be very specific.
University of Auckland associate professor of economics Susan St John told Checkpoint New Zealand was already in a “crisis” and low income families were likely most affected.
She said it was about time that “something significant” was done.
“An emergency package could be developed, much like John Key did in 2008 in the global financial crisis,” she said.
“But a package that gets that money directly into the lowest of income families.”
Susan St John. RNZ / Cole Eastham-Farrelly
One way to do that is to pay them the full amount of working for families that they currently do not get, St John said.
St John said they missed out on about $100 a week.
“It could be temporary, as was John Key’s policy in 2008 for 16 weeks and be extended if more time was needed,” she said.
“But that would be very focused and go to the very lowest families, the ones that miss out on the full package, the ones who are on benefits, all part benefits, including about 250,000 of the poorest children.”
If you gave the full working for families package, it would mean nearly $100 extra a week, she said.
She said there was a lot of flexibility.
“The beauty of it is that it’s so highly targeted, which is what the minister wants and it’s not the only thing that should be done.
“Because those families who are getting the full package, the working low income families also need help.”
St John said the government would have provide payments without expecting to make cuts elsewhere.
“They’ve already cut far too much out of people on low incomes and so it can’t be found by making their lives any more miserable in other ways,” she said.
“There are different ways if you do want to do something really significant for families and make it stick and that might involve creaming a little bit off the top end of New Zealand Super and redistributing that back through the programs that need it in the social security budget.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
