Sydney
27 April 2003
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Tears as Canadians part with the World Youth Day cross
3 million live in poverty: Vinnies
At lunch with theWiggles
Two Australians in planning for Cologne youth day
Prelates and priests bid Fr Les farewell
Govt urged to act on reconciliation
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Book honours ‘sons’ of Pius X
Fr Michael’s life of friendship, respect
LaSalle College to open its doors to girls
Relationships at heart of religion and humanity, graduates told
‘Space for prayer’ in the heart of the city
3 million live in poverty: Vinnies
By Chris Lindsay
One in every five Australians is under constant financial stress, says Dr John Falzon of the St Vincent de Paul Society.
“Around three million Australians are living in poverty,” he says.
And “around six million Australians over the age of 16 receive less than $16,000 a year”.
More than 60 per cent of the nation’s wealth is held by 20 per cent of the population, and only seven per cent of the nation’s wealth is held by the bottom 50 per cent, according to statistics cited by the Society.
The statistics also show that low income families have suffered significantly in the past 30 years.
The Society has now told a Senate inquiry that a national strategic plan is required to alleviate growing poverty.
The call has been supported by Catholic Welfare Australia.
The Society told the Senate Inquiry into Poverty and Financial Hardship that it is projected that over the next 30 years - if the current trend of inequality is allowed to continue unabated - 70 per cent of the nation’s wealth will be held by the top 20 per cent of the population and less than five per cent by the bottom 50 per cent of the population.
“What concerns us acutely is the growth in the rich/poor gap and the additional burden that it places on low income families,” says Dr Falzon, who is national research and advocacy officer for Vinnies.
“The Australian face of poverty is all too familiar to Vincentians. We are particularly struck by the way in which low income families have been mercilessly hit by increased costs for essential goods and services.
“A growing number of Australians are being squeezed by significant increases in essential household costs such as education, health, transport and housing.”
Dr Falzon said a national forum should be established to prepare the national strategy against poverty.
It should include the federal government, state governments, local government, the business community, the welfare sector, trade unions and academia.
It should establish a time frame, perhaps five years, for a work program and progressive benchmarks to be achieved.
Catholic Welfare Australia has suggested goals of reducing child poverty by at least 75 per cent and adult poverty by 50 per cent of current levels within a generation.
Fr Joe Caddy, spokesman for Catholic Welfare Australia, said Australia should follow the British and Irish examples, which “have a social inclusion unit to improve social participation across the board”.
“They go back to the cause, such as renewing rundown neighbourhoods. They have a real national focus on community development; they set targets and work towards them.
“This is better than not having a focus and finding 20 years later that poverty is so bad it cannot be reduced.”
The St Vincent de Paul Society also argued for a “whole of government” approach to addressing the inequalities of opportunity by:
Job creation and reduction of real levels of unemployment through efforts to ensure national skills requirements are met;
• Education and training with special attention to disadvantaged areas;
• Health, child care and aged care services;
• Transport systems;
• Housing strategies (such as the setting up of a national affordable housing corporation);
• Life skills centres in depressed locations that are structurally disadvantaged.
The Society also recommended that welfare payments be indexed to a higher level to avoid devaluation by CPI increases and that $10 million be provided for research into poverty, wealth and disadvantage. And it called for a change in taxation arrangements.
Dr Falzon said: “Many people are caught in the jaws of low incomes and rising prices.
“There is little hope that life can get better unless all levels of government unite to accept that we have a serious problem as a nation and organise the resources to do something about it.
“And poverty has indeed become a major problem. We need to look at income levels and household costs.
“Lower income families are bearing a disproportionate share of the burden.
“Education increases have been 173 per cent higher than the increase in the CPI over the last 10 years. Health costs have risen 98 per cent higher.
“Essential goods and services are now being treated as commodities rather than fundamental rights.
“The cost of housing is putting it out of the reach of low to middle income earners. In Sydney, no private renters in the bottom 40 per cent of income earners can afford any kind of house at all.
“But poverty and inequality are avoidable if politicians are willing to address the problems.
“Overseas research has shown that those nations who have made a policy decision to halt the growth of inequality have succeeded in doing so.
“It is no excuse to simply say ‘there is no alternative’.
“The trickle down effect hasn’t worked anywhere at any time, so why would it work here. Instead is has become a ‘trickle up’ .