BUDGET 2021 : THE ROBERTSON SHUFFLE

Some enthusiastic commentators think that the benefit increase announced in Budget 2021 represents Labour fighting back against its neoliberal past. The reality is that the neoliberal status quo remains entirely undisturbed and the increase will not lift beneficiaries out of poverty. And, waiting in the wings, is privatised welfare and an unemployment insurance scheme. The revolution doesn't start here.
 

WRITING IN The Guardian  Bryce Edwards suggests that the Budget increase in benefit levels, representing a maximum increase of some $55 a week, represents a major strike against New Zealand's chronic level of poverty and inequality. He speculates that many activists 'will be thankful that this government is finally acting in a truly progressive way.' Just to make sure that we get the message his column is headlined 'A 'righting of wrongs' as Arden finally tackles New Zealand's inequality crisis'.

RNZ's Tim Watkin goes further than Edwards, who at least maintains a degree of sobriety. Again underlining where RNZ's obvious political loyalties lie these days, Watkin tries to resuscitate Labour's social democratic corpse, insisting that Budget 2021 'is dyed the deepest red'. He even goes as far as claiming that Labour's doggedly centrist politics has all been part of a cunning plan: 'The ability to deliver this suite of policies is the reason Ardern flipped and flopped over a capital gains tax, wealth tax and changes to super. Politics is about compromise, and these were just some of the dead rats swallowed so that you finally, finally get to feast on all these tasty treats'. Watkin though is on a healthy salary as a RNZ journalist and obviously doesn't know that a benefit of $315 a week will buy you few 'tasty treats', if any.

If we are to believe Watkin and, to a lesser extent, Edwards, the Labour Party has suddenly morphed into the Labour Party that existed before Roger Douglas and his cabal arrived on the scene. Indeed Minister of Finance Grant Robertson suggested that Labour was turning away from 'the dark side' by undoing the damage done by Ruth Richardson's 'Mother of All Budgets' nearly thirty years ago. Tim Watkin has took the hint writing 'Take that Ruth. This is Labour fighting back, Roger'.

In truth, it represents a little bit of fancy footwork that avoids upsetting the neoliberal status quo and for commentator and Labour loyalist Chris Trotter to suggest that this is 'democratic socialism with keynesian characteristics' is simply absurd - as well as being a contradiction in terms. Call it the 'Robertson shuffle' if you like because the guy isn't about to storm the citadels of capitalism. The Labour Government was facing ever more growing discontent from even its own supporters, disillusioned by its centrism. The benefit increase will go a long way to restore political harmony and normal business can now continue, relatively undisturbed. Even certain people, who profess to socialist politics, have announced in the social media that only ungrateful 'leftists' (like me) could find cause to complain about the benefit increase. Which kind of misses the point.

The corporate media interviewed several beneficiaries, who all declared how happy they were to be receiving more money. But, given the worsening economic conditions, that's hardly surprising. Any extra cash was going to be welcomed but it will be interpreted by the chattering class as support for the Labour Government's overall economic approach. Which it isn't.

Auckland Action Against Poverty (AAAP) have pointed out that the increase in core benefits does not represent an economic transformation in any shape or form and beneficiaries will still be forced to apply for hardship grants. It should be noted that the increase is based on what the welfare working group recommended in May 2019 and those recommendations were made before the coronavirus pandemic struck. While Grant Robertson might talk loftily of 'restoring dignity' the benefit remains far less what could be reasonably conceived as a livable income. Beneficiaries will remain trapped in poverty.

Brooke Stanley Pao, coordinator for AAAP, has commented : 'Labour lauded this as a Wellbeing budget, one of compassion and which restores dignity to people and whanau which shows how disconnected they are from the very people they're meant to serve'.  I might add that most of The Commentariat are also disconnected from the lives that beneficiaries actually live.

Also of concern is that Grant Robertson acknowledged that work is continuing on a unemployment insurance scheme and which has received the green light from the union top brass. This would be little more than the introduction of a  privatised welfare system and so it comes as no surprise that ACT is all in favour of it. The move to introduce a two tier welfare system will only help to dismantle our present welfare model rather than strengthen it. ACT knows that but it looks like the CTU wants to be an active participant in its destruction as well.