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Enhancing Food Security <strong>and</strong> Physical Activity <strong>for</strong> Māori, Pacific <strong>and</strong> Low-income Peoples870,000 dependent children. Checking with HES 2003/04, the number of childrenunder 15 in that year was 880,000, to which should be added dependent childrenaged 15-17. For illustrative calculations here we take 500,000 as being the number ofhouseholds with dependent children, <strong>and</strong> the number of dependent children as onemillion.There are advantages in targeting any subsidy at this group of households, <strong>and</strong>advantages also in making the amount of subsidy proportional to the number ofdependent children. A good part of the concern about ‘<strong>food</strong> in<strong>security</strong>’ is concernabout <strong>food</strong>-adequacy <strong>for</strong> children in such households. Also, an eligibility criterionbased on the presence of children is administratively simple <strong>and</strong> is not stigmatising.An argument against is that it would require the setting up of a dispensing systemadditional to that already existing <strong>for</strong> the Community Services Card. Also <strong>food</strong>insecurehouseholds without children would not qualify. It has been claimed thatincreasing numbers of single people are using <strong>food</strong> bank services. 22The strongest arguments against targeting <strong>food</strong> subsidies at children in general arethat a ‘universal’ benefit’ is more expensive (unless total expenditure is spread morethinly), <strong>and</strong> that most of those receiving the benefit would not be in <strong>food</strong>-insecurehouseholds. In particular, ‘couple with children’ households are generally in the upperpart of the household income distribution. However, were household incomes adjusted(‘equivalised’), to allow <strong>for</strong> the number of persons in the household, <strong>and</strong> one-person<strong>and</strong> two-person ‘pensioner households’ set aside, this approach can be seen to berather better targeted. Also, any tax increase to fund the scheme would tend to fallrather more on better-off households. At a later stage in the discussion in this chapterwe discuss in more detail the issue of ‘equity’, in terms of household income(equivalised) <strong>and</strong> ethnicity, <strong>and</strong> of the extent to which payments based on number ofchildren are successful in targeting lower income <strong>and</strong> Māori, or Pacific peopleshouseholds.Question five: Should the amount of any benefit be capped?Yes. Once only part of the population is eligible, a failure to cap the amount, <strong>for</strong> agiven time-period, would lead easily to trading <strong>for</strong> profit with the non-eligible,discrediting the whole scheme n . Any capping would most easily be achieved byproviding a given dollar quantum at, say, weekly or two-weekly or four-weeklyintervals o , which could be credited immediately in total against qualifying purchases,rather than a given percentage discount allowed to cumulate up to the cap amount.Question six: What is a reasonable amount of benefit?For an approximate one million dependent children, a weekly amount of $5 per child(or $260 per year) would provide a useful supplement p to household income,particularly <strong>for</strong> low-income households more likely to be affected by <strong>food</strong> in<strong>security</strong>.The annual cost would be about $260 million. This fiscal cost is not negligible, butcould be justified in terms of tackling <strong>food</strong> in<strong>security</strong>, helping low-income familiesn One key in<strong>for</strong>mant mentioned anecdotal accounts of holders of the SuperGold card, which providesfree public transport outside rush hours <strong>for</strong> those aged 65 plus, lending their card to friends agedunder 65.o The more frequent the issue, the less the problem of expenditure being high in the first part of theperiod <strong>and</strong> inadequate towards the end.p Particularly <strong>for</strong> family incomes less than $500 per week, which could be expected to be the case <strong>for</strong>many ‘<strong>food</strong>-insecure’ families. The amount of $5 per week per child is a convenient number <strong>for</strong>calculation purposes. Also it is not so large as to be fiscally improbable, nor lead to wide-scale trading ofthe subsidy.23

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