Oxfam report shows rich Kiwis getting richer as poorest 'miss out'

January 21, 2019

Executive Director Rachael Le Mesurier says measures should be put in place by the government to equalise wealth.

Oxfam says the gap between the very rich and the rest of the population is getting bigger in New Zealand, and has urged the government to make "brave' changes to address the inequality.

Executive Director Rachael Le Mesurier, speaking this morning on TVNZ1's Breakfast, talked about her organisation's annual Global Inequality Report, which it has been producing since 2013.

She said the richest five per cent of New Zealand's population now collectively owns more wealth than the poorest 90 per cent.

"We have a long way to go before we can say that every Kiwi is getting a fair go," Ms Le Mesurier said.

"We know inequality is harmful for us all. It perpetuates poverty, erodes trust, fuels crime, makes us unhappy, negates economic growth, and robs opportunity from the poorest – including shortening their lives.

"And women and girls suffer the most – across their lifetimes women have less opportunity than men to get paid work, they earn less and are less able to invest in assets."

She called on the government's Tax Working Group to make "brave" changes to tax laws.

"One of the key things we can do to tackle inequality here and across the world is to tax wealth more," she said.

"Our taxes pay for schools, hospitals, and infrastructure such as communications and roads on which we all rely ... across the world, rich multinational corporations and extremely wealthy individuals are not paying their fair share.

"When big business and the super-rich don't pay their fair share of tax, the rest of us pay the price – with kids without teachers, long waiting lists for health interventions, and not enough police in our communities."

As one example, Oxfam said in its release that New Zealand's two richest men, Graeme Hart and Richard Chandler, added $1.1 billion to their personal wealth, while the poorest Kiwis "missed out".

New Zealand inequality stats, according to Oxfam:

• New Zealand’s two billionaires increased their collective wealth by NZ$1.1 billion in 2017-2018
• The poorest 50% of the population decreased their collective wealth by NZ$1.3 billion in 2017-2018
• The top 5% has more wealth (45% of wealth) than the bottom 90% (42% of wealth)
• The top 10% of the population has more wealth (58% of wealth) than the bottom 90% (42% of wealth)
• The top 1% of the population has more wealth (26% of wealth) than the bottom 70% (18% of wealth)
• The top 1% of the population has 25% of all wealth in NZ

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