This is what happens when you give landlords a big tax cut #1

Remember how National promised to attack backroom bloat but not touch frontline services?

It seems that it has a different definition of these terms. Because National has put an abrupt halt on funding given to support for families of disabled Kiwis.

Respondible Minister Penny Simmonds has chosen to respond to the issue by initially suggesting the funding was being abused but then claiming it was all Labour’s fault because it had set the budget. While Labour did funding pressures happen all of the time and what usually happens is that further funding is allocated.

But to cut the funding without even consulting or warning the sector it was on the way has caused major disruptions. And a great deal of angst.

Yesterday Simmonds poured petrol on the situation by claiming that it was not a cut but a policy situation to stop parents from using the fund for their “personal care”.

From TVNZ:

Minister for Disability Issues Penny Simmonds says criticism of a funding cap for equipment for disabled people is “absolute rubbish” — and has revealed her ministry is within “days” of running out of its funding.

She claimed carers had been taking advantage of a “broad” funding criteria to use public money “for massages, overseas travel, pedicures, haircuts” for themselves.

Earlier today, Labour leader Chris Hipkins said the disability community will pay for the Government’s “fiscal incompetence”, with restrictions on funding for equipment and modification services.

The change — cited as due to financial pressures on Government departments — was announced by Whaikaha the Ministry for Disabled People on Monday after an email leak.

It announced it would make changes to its purchasing rules “to clarify how people can use their disability support funding”. The changes were effective immediately.

Simmonds has subsequently attempted to walk back her earlier comments by blaming the Ministry.

From Radio New Zealand:

Whaikaha, the Ministry for Disabled People has done an inadequate job in conveying changes to disabled people’s funding, Minister for Disability Issues Penny Simmonds says.

The ministry has unveiled changes to purchasing rules for disabled people’s equipment and support services.

Labour’s Disability Issues spokesperson Priyanca Radhakrishnan said funding was effectively being cut, the changes reduced flexibility and choice and took the sector back 20 years.

One of those affected is Joshua Perry, who lives at home in Dunedin. He feared he couldn’t afford to pay for caregivers to travel with him for work and shopping.

However, Simmonds clarified on Morning Report on Wednesday the cuts would not affect those travelling within their community.

This incident speaks volumes about the Government’s priorities. It is happy to wreck havoc on the public service trying to find money to pay for tax cuts for landlords. But it cannot find money to help some of our families that are in dire circumstances.

And if Simmonds is right and the Ministry was days away from running out of money then you have to wonder what she has been doing in the lead up to the problem.

National’s promise to only cut backroom bloat is looking increasingly shaky. As does its chances of winning the next election.

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