Clayton Mitchell: Inequality rife, even in the Bay

While the New Zealand housing market continues spiraling out of control, with houses in Tauranga being put on and taken off the market within 24 hours, our Tauranga NZ First office is helping more families than ever get into Government housing each week.

The stark disparity between the haves and the have-nots here in New Zealand is shocking, and our beautiful Bay of Plenty is not sheltered from this gross inequality. It is an inequality that affects all of us in one form or another. One of its many effects, in addition to the irreparable cost to human life, is the damage to our local, as well as national, economy.

Redistributive policies and social benefits, such as eliminating the Goods and Services Tax (GST) on foods, could help begin to alleviate some of this disparity, which would in turn begin to strengthen our economy.

Eliminating GST on groceries would also increase the quality of life and health among Kiwi families, as well as alleviating the strain on their incomes. Only paying $85 for $100 worth of groceries would help all New Zealanders, particularly those that need help the most! Families spending between $200-400 a week on food could start saving between $30 and $60 a week. Getting rid of the GST on groceries could translate into a savings of thousands of dollars a year.

VAT/GST from food was eliminated in the UK, as well as in Australia, long ago and they show no interest in going back to the days where their system remotely reflected our own.

The cost of eliminating GST from food is estimated at $3 billion. If the Government attempted to collect even half of the current $7 billion of uncollected taxes in New Zealand, we would have $3.5 billion to re-appropriate.