a. Reduce the divide between the rich and the poor.
Besides the social benefits to be gained there is also a sound economic
argument for this target. Today there is serious concern about the
effects of globalisation and the danger of Australia becoming a
'branch office economy', and one of the matters of concern is the
relatively small size of the domestic market with a population in
the order of 19 million. For items other than the necessities of
life, however, the domestic market is far less - possibly only half
- because of the large and growing social stratification based on
income. Reducing this stratification would help increase the size
of the domestic market.
b. Provide a degree of financial security for all citizens not achievable
with any other form of income support.
The unconditional nature of the income support will be of special benefit
to the labour force and potential labour force. This will allow more
workers to accept part-time or casual employment, thus helping to reduce
the level of unemployment through a sharing of the available work. This
will allow workers to plan for career training and development. And this
will provide greater individual security when negotiating conditions of
employment (described by some proponents as the empowerment of
individuals).
c. Provide life long income security, which in turn will lead to questioning
the role of occupational superannuation, and the responsibility
of the state to provide taxation concessions for income related
retirement incomes."
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In closing the OASIS Newsletter, McDonald commented that "there
is now at least one group with the interest and understanding to
attempt to develop a basic income system for Australia, and to ensure
that Australian social scientists maintain contact with international
developments in this field."
Within the Queensland University of Technology (QUT) School of
Humanities and Human Services a group to be known as the Basic Income
Guarantee Australia (BIGA) will operate on the QUT web site, commencing in
March 2003.
Development of the concept in Europe seems to be a soft-spoken,
back-door approach while in countries such as South Africa and Brazil,
where a lot has been happening lately, a more upbeat front-gate approach
is happening.
The Irish government has published a green
paper, the first major official publication on basic income in Europe
since the 1985 report of the Dutch Scientific Council for Governmental
Policy. South Africa's Basic Income Grant campaign has set a figure: 100
rands or 10 euros per month for every South African.
It is significant that the first Prime Minister (currently in office)
to address a congress of BIEN was from Africa. In his speech at the
opening plenary session, Mozambique's
Prime Minister Pascoal Mocumbi stated that "the BIEN project,
particularly the component that seeks to ensure a minimum income to
guarantee school attendance, represents an innovative perspective which
should be integrated into the national poverty reduction strategy".
Returning to the domestic situation, the Australians Working Together
Bill will extend the notion of mutual obligation, and the risk of breach
penalties, to a range of new groups: single parents, parents whose
partners rely on social security, and older unemployed people.
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This potentially punitive legislation gives rise to further urgency for
reform of the current system.
The overhaul and eventual replacement of the present welfare system is
not something that should be undertaken lightly or at great speed … but
it must be undertaken, and soon.
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