Oxfam report says inequality is deepening

Monday, 21 January 2019

The two richest New Zealanders - Graeme Hart and Richard Chandler - increased their wealth by over $1 billion in the 2017-2018 financial year, a new Oxfam International report says, but the poorest 50 per cent became poorer still.

With figures taken from the Credit Suisse Wealth Databook and the Forbes Billionaires list, the report has been released in time to coincide with the yearly World Economic Forum in Davos - a talking shop for the global elite, which New Zealand Prime Minister Jacinda Ardern is attending.

The number of billionaires worldwide has doubled since the financial crisis, while their collective wealth grows by US$2.5b a day, the report said.

The richest 5 per cent of the population now owns more put together than the poorest 90 per cent.

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In New Zealand, the poorest 50 per cent decreased their collective wealth by $1.3b in the 2017-2018 financial year.

Rachael Le Mesurier, executive director of Oxfam New Zealand, said the country had a long way to go before every Kiwi had a fair go.

'The statistics that we are seeing, those that are struggling the most are women, Maori, Pasifika, also many in both rural and urban areas. That's the very population we need to ensure have access to good health care, roads, transport, good social welfare.'

She said the report was specifically looking at collective wealth. 

'About what people are able to draw on beyond their day-to-day living expenses. People have less to draw on when they have an emergency or an event they haven't planned for. It is endemic, it is a real challenge. It's not like saying everybody is living in poverty but the gap is huge.'

Le Mesurier wants to see the Tax Working Group impose greater taxes on wealth 

'This government are looking more closely at multinationals, and reducing the profit movement. [but] why are we one of the few OECD countries that don't have a wealth tax?

'What we are actually saying is that the tax working group look at capital gains tax. We know the Minister has asked them to look at the kind of tax regimes that could do more on this.'

Le Mesurier said that the Prime Minister would be meeting with Oxfam International's executive director Winnie Byanyima at Davos this week.

'They will be discussing the issues women face. The way that misogyny excludes women from working opportunities. The global report highlights that globally men own 50 per cent more of the total wealth than women.'

She said she hoped that New Zealand would take a leadership role in the creation of a new UN international tax body.

'It has been strongly recommended and there is a degree of interest. It would be great to see New Zealand make something clear.'

She said the tone at Davos this year was beginning to change and that attendees understood people were paying more attention to the ethics and behaviour of the wealthy.

''This is something that we feel very passionate about [combating] - wealth begetting wealth, wealth just to make more money - more money than someone could spend in a year or even a lifetime. The public need to start having this conversation.'

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