David Cunliffe delivered one indisputably accurate comment during his State of the Nation address this week. “We need,” he said, “to put our resources where they will do the most good.” The Labour Party leader was referring to the requirement of any government to focus on children, but his comment was appropriate for any spending of taxpayer money. Why, then, does he propose paying families earning up to $150,000 a sum of $60 a week for each newborn baby until the child’s first birthday? Clearly, most people earning anywhere near the top of that range and many middle-income earners have no need for such money. Government resources would, therefore, be being put where they do the least good.
It’s an attempt to buy votes, but one that I think will fail. Most families that are better off would rather receive tax cuts than welfare. Better to pay less tax in the first place, than to be over-taxed and then have the Government hand back to you some of your own tax money as welfare.