Progress

Fairness Ethic Has Its Good Points

The New Zealand government is starting to crack down on some beneficiaries who have their cake and want to eat it too.  The hapless left describes this as "beneficiary bashing".  But the measures are showing up as well supported by the electorate.  This is because New Zealanders don't like "unfairness".  It's a cultural value which has ill-served the nation of often, but at times it proves helpful. 

The first group being targeted by the government is student loan beneficiaries who refuse (or wilfully neglect) to repay their loans.  The worst offenders are those who have gone overseas for extended periods and have declined to repay their loans.  They have effectively skipped town.  The government announced recently that the worst offenders--the hardened recidivists--risk arrest when they return (even temporarily) to New Zealand.  This means they are effectively exiled from their home country. 

It is reported that this has prompted a flurry of activity on the part of some of the overseas negligent payers to start to make appropriate "arrangements" and commence repayments.  It is also reported that a majority of the electorate in New Zealand supports the move.

A hardline Government policy to recoup student loan debt by arresting serious defaulters at the border has proved popular in a Herald-DigiPoll survey.  The policy of arresting the most non-compliant borrowers was introduced in Budget 2013 as part of greater efforts to claw back money from overseas-based ex-students, who were responsible for most of the $500 million in default.

Asked whether they agreed with a Government proposal to arrest the worst defaulters on student loans at the border when they tried to re-enter the country, 56.8 per cent of respondents agreed and 39.6 per cent disagreed.  Tertiary Education Minister Steven Joyce said the poll was in line with expectations. He said the policy was designed to target borrowers who were repeatedly asked to repay their loans but refused to do so.

The second group being targeted is those with outstanding arrest warrants.  There are on average about 15,000 people with outstanding warrants.  About half of these are also social welfare beneficiaries.  The government is moving to reduce or cancel beneficiary payments to those folk.  Clear the warrant, or face reduced or cancelled financial handouts.  This from a government press release:

People who fail to clear outstanding arrest warrants could see their benefits stopped as the next stage of welfare reforms comes into effect this month.  “Taxpayers overwhelmingly say they don’t want to fund people to actively avoid the Police and this Government agrees,” says Social Development Minister Paula Bennett.  From July 15, beneficiaries with outstanding warrants will have their benefits stopped if they fail to come forward and clear their warrant within 38 days.  Those with children will have their benefit reduced by no more than half.

Once again the general public believes this is "fair".  If people are going to accept welfare payments they need to be law-abiding, like the vast majority of everyone else in the country.

All good stuff.