Proposed reforms will leave 200,000 people destitute

by Janice Hamilton

According to the Federal Government think tank, the ultra reactionary 
Centre for Independent Studies (CIS), the problem of long-term unemployment 
would be solved by just cutting access to unemployment benefits after six 
months. If implemented this outrageous policy would leave 200,000 
destitute.

The authors of the report How to Reduce Long Term Unemployment claim 
placing time limits on unemployment benefits would reduce the number of 
long-term dole and disability support pension claimants by one third.

They propose a new system to obliterate the Newstart Allowance and replace 
it with a "Temporary Assistance for job seekers Allowance" that would be 
limited to six months in duration. It would be similar to that of the 
current US unemployment payment system, but with a difference.

After the six-month period of welfare payment unemployed people would be 
required to participate in a compulsory "Work for the Dole Program".

The CIS also says that stripping the award system, the lowering of the 
minimum wage and agreement by the Senate to demolish unfair dismissal laws 
would also fix the long-term unemployment problem.

The Report says the abolition of the award system so that employers and 
employees would be free to negotiate their own terms and conditions of 
employment including wages but not excluding wages, and the lowering of the 
minimum wage to a level which would be competitive with countries like 
Britain and the US.

Critics of the proposal — including Peter Costello's brother the Reverend 
Tim Costello — say it would simply lead to more workers being in financial 
distress and possibly losing their jobs, thus only aggravating the problem.

At the same time as cutting welfare, the report recommends the lowering of 
tax rates for low income earners and high flyers, saying that our tax rates 
do not reward effort and risk.

Reverend Costello argued, "Most of the long term unemployed, as we know are 
the ones who are in chronic poverty. Rather than punishing them, when there 
are structural reasons for their unemployment.... We need to give them the 
resources they need, like education and training."

The CIS proposal in fact neglects to mention anything about education and 
training as a means to assisting the long-term unemployed.

ACOSS President Andrew Callum said, "It is akin to using euthanasia to free 
up beds in nursing homes. What is the logic to cutting people arbitrarily 
off unemployment benefits if they don't have something to go to."

The CIS cites international findings that the US policy of a time limit on 
welfare payments has been effective in reducing unemployment.

"Almost all other OECD countries have time limits in one form or another. 
Time limits in the US are one reason why the incidence of long-term 
unemployment is so low in America", the report says.

The report neglects to mention that millions of Americans are homeless or 
living in severe poverty.

The Federal Government has already implemented this think tank's policies 
in relation to Single Parent and Disability Pensions. There is no doubt 
that it is thinking seriously about implementing these "reforms" as well.