Media Releases

NZ’s two richest men gain $1.1b while poorest Kiwis lose out

January 21, 2019

The two richest people in New Zealand added an astounding NZ$1.1 billion to their fortunes in 2017-2018, while the wealth of the poorest half of the country decreased overall, according to new Oxfam research to be released today.

The report also reveals that the richest 5% of the population collectively owns more wealth than the bottom 90%.

Oxfam’s research forms part of a global report released to coincide with this week’s annual meeting of the wealthiest and most powerful people in the world, as they gather at the World Economic Forum in Davos, Switzerland. Prime Minister Jacinda Ardern is scheduled to attend the meeting, which focuses on global politics, economics and social issues.

Published later today, the full report, Public Good or Private Wealth?, shows how the growing gap between rich and poor is undermining the fight against poverty, damaging local economies and fuelling public anger across the globe. The report reveals how governments are exacerbating inequality by, on the one hand, underfunding public services such as healthcare and education, while, on the other, under taxing corporations and the wealthy, and failing to clamp down on tax avoidance. The research also finds that consistently, women and girls are hardest hit by rising economic inequality.

Rachael Le Mesurier, executive director of Oxfam New Zealand, said: “We have a long way to go before we can say that every Kiwi is getting a fair go. We know inequality is harmful for us all. It perpetuates poverty, erodes trust, fuels crime, makes us unhappy, negates economic growth, and robs opportunity from the poorest – including shortening their lives. And women and girls suffer the most – across their lifetimes women have less opportunity than men to get paid work, they earn less and are less able to invest in assets.

“One of the key things we can do to tackle inequality here and across the world is to tax wealth more. Our taxes pay for schools, hospitals, and infrastructure such as communications and roads on which we all rely. Across the world, rich multinational corporations and extremely wealthy individuals are not paying their fair share. When big business and the super-rich don’t pay their fair share of tax, the rest of us pay the price – with kids without teachers, long waiting lists for health interventions, and not enough police in our communities.

“But to tax wealth more, we need to see it. We need more transparency in our tax system, both for multinational corporations and extremely wealthy individuals. We need more information in the public realm so that we can make sure that the wealthy pay their fair share – and that we grow a New Zealand where everyone gets a fair go in life.

“We are eagerly anticipating the release of the Tax Working Group’s final report early this year. As a country we’ve been talking about wealth taxes, such as capital gains, for some time now. To tackle the stubborn inequality that plagues ordinary, working Kiwis, we need to stop talking and start doing,” said Le Mesurier. “We hope the Tax Working Group takes this opportunity to recommend greater wealth taxes and more transparency, and we encourage the government to take the bold action necessary to reduce inequality”.

Notes to editors

Oxfam’s calculations are based on the most up to date, comprehensive data sources available. Figures on the share of wealth owned by the poorest half of humanity come from Credit Suisse Wealth Databook and relate to the period June 2017 – June 2018. Figures on the very richest in society are based on more detailed data from the annual Forbes ‘Billionaires List’ and relates to the period March 2017 – March 2018.
The two richest New Zealanders are Graeme Hart and Richard Chandler. They own wealth of US$10.1 billion and US$2.1 billion respectively. In 2016 Singapore-based Chandler was named as using Mossack Fonseca, the law firm at the centre of the Panama Papers tax avoidance controversy.

For more information or to arrange an interview please contact:

Kelsey-Rae Taylor | kelsey-rae.taylor@oxfam.org.nz | 021 298 5894

Billionaire fortunes grew by $2.5 billion a day last year as poorest saw their wealth fall

January 21, 2019

Billionaire fortunes increased globally by 12 percent last year – or US$2.5 billion a day – while the 3.8 billion people who make up the poorest half of humanity saw their wealth decline by 11 percent, reveals a new report from Oxfam today.

The report is being launched as political and business leaders gather for the World Economic Forum in Davos, Switzerland.

Earlier today Oxfam New Zealand reported that the two richest people in New Zealand added an astounding NZ$1.1 billion to their fortunes in 2017-2018, while the wealth of the poorest half of the country decreased overall by NZ$1.3 billion.

Public Good or Private Wealth shows the growing gap between rich and poor is undermining the fight against poverty, damaging our economies and fuelling public anger across the globe. It reveals how governments are exacerbating inequality by underfunding public services, such as healthcare and education, on the one hand, while under taxing corporations and the wealthy, and failing to clamp down on tax dodging, on the other. It also finds that women and girls are hardest hit by rising economic inequality.

Rachael Le Mesurier, Executive Director of Oxfam New Zealand, said:

“The size of your bank account should not dictate how many years your children spend in school, or how long you live – yet this is the reality in too many countries across the globe. While corporations and the super-rich enjoy low tax bills, millions of girls are denied a decent education and women are dying for lack of maternity care.”

The report reveals that the number of billionaires has almost doubled since the financial crisis, with a new billionaire created every two days between 2017 and 2018, yet wealthy individuals and corporations are paying lower rates of tax than they have in decades.

Getting the richest one percent to pay just 0.5 percent extra tax on their wealth could raise more money than it would cost to educate the 262 million children out of school and provide healthcare that would save the lives of 3.3 million people.
Just four cents in every dollar of tax revenue collected globally came from taxes on wealth such as inheritance or property in 2015. These types of tax have been reduced or eliminated in many rich countries and are barely implemented in the developing world.
Tax rates for wealthy individuals and corporations have also been cut dramatically. For example, the top rate of personal income tax in rich countries fell from 62 percent in 1970 to just 38 percent in 2013. The average rate in poor countries is just 28 percent.
In some countries, such as Brazil, the poorest 10 percent of society are now paying a higher proportion of their incomes in tax than the richest 10 percent.

At the same time, public services are suffering from chronic underfunding or being outsourced to private companies that exclude the poorest people. In many countries a decent education or quality healthcare has become a luxury only the rich can afford. Every day 10,000 people die because they lack access to affordable healthcare. In developing countries, a child from a poor family is twice as likely to die before the age of five than a child from a rich family. In countries like Kenya a child from a rich family will spend twice as long in education as one from a poor family.

Cutting taxes on wealth predominantly benefits men who own 50 percent more wealth than women globally, and control over 86 percent of corporations.

Conversely, when public services are neglected poor women and girls suffer most. Girls are pulled out of school first when the money isn’t available to pay fees, and women clock up hours of unpaid work looking after sick relatives when healthcare systems fail. Oxfam estimates that if all the unpaid care work carried out by women across the globe was done by a single company it would have an annual turnover of $10 trillion – 43 times that of Apple, the world’s biggest company.

“People across the globe are angry and frustrated. Governments must now deliver real change by ensuring corporations and wealthy individuals pay their fair share of tax and investing this money in free healthcare and education that meets the needs of everyone – including women and girls whose needs are so often overlooked. Governments can build a brighter future for everyone – not just a privileged few,” added Le Mesurier.

Notes to editors

The report, methodology document explaining how Oxfam calculated the figures is available here. The data set is available on request.

Oxfam’s calculations are based on the most up to date, comprehensive data sources available. Figures on the share of wealth owned by the poorest half of humanity come from Credit Suisse Wealth Databook and relate to the period June 2017 – June 2018. Figures on the very richest in society are based on more detailed data from the Annual Forbes ‘Billionaires List’ and relates to the period March 2017 – March 2018.

COP24 – Governments face life and death decisions, says Oxfam

November 30, 2018

Photo: Katie G. Nelson/Oxfam

A global humanitarian catastrophe can still be averted if governments make climate action a priority, said Oxfam today ahead of the UN Climate Change Conference (COP24) in Katowice, Poland from 2 – 14^thDecember.

Oxfam and its partners are already delivering humanitarian assistance to hundreds of thousands of people caught up in deadly floods, storms and droughts, made worse by climate change. This includes a persistent drought in the Horn of Africa that has led to devastating shortages of food and water, affecting at least 16 million people; unusually widespread flooding across Kenya, Somalia and Ethiopia that damaged crops and property and displaced at least one million people in early 2018; and super typhoon Manghut that caused extensive damage across Asia in September – including in the Philippines where 200 mile an hour winds triggered deadly landslides.

Kristen Hite, Oxfam Climate Change Policy Lead for Oxfam said:

“We are already seeing the impact of just one degree of warming – with communities across the globe ravaged by fire, floods and storms like never before. Yet government’s current emissions pledges put us on track for a truly terrifying 3 degrees of warming.”

Climate change is a global threat but it is the world’s poorest and most vulnerable people – those who rely on rain to grow crops, live in poorly built structures in marginal areas, and lack savings or insurance – who are hit hardest.

Even limiting global warming to to 1.5 degrees Celsius could see 100 million more people pushed into poverty according to the Intergovernmental Panel on Climate Change (IPCC). The World Bank has projected that 143million people will be displaced in sub-Saharan Africa, South Asia and Latin America by 2050 without urgent action.

Hite said, “Humanity needs bold, brave leadership and action right now. Countries suffering the worst impacts – like the Marshall Islands – are leading by example. It’s time for the world’s biggest, wealthiest emitters to follow their lead.”

“Governments meeting in Poland must cut emissions faster and further and developed countries must set out how they will mobilise the $100 billion a year they have promised to support climate action in poor countries,” added Hite.

One year on from conflict – dream of a better Mosul remains distant for many

July 11, 2018

One year after Mosul was retaken from ISIS, thousands of people are still unable to return home as parts of the city remain severely damaged and lack running water or electricity, Oxfam said today.

Thousands more don’t feel safe to return – including families whose houses have been completely destroyed in the fighting or are still to be cleared of unexploded bombs.

Across the country more than two million people have yet to return to their homes.

The densely-populated Old City of Mosul was extensively damaged in the last days of fighting and was left littered with unexploded bombs. More than 3,000 houses, schools and shops were destroyed and water networks damaged. Today, it remains one of the last areas in the city without running water.

Andres Gonzalez, Oxfam’s Country Director in Iraq said: “Parts of Mosul have been completely destroyed. Reconstruction has started but rebuilding Iraq’s second largest city will take time.

“We must not just rebuild what was there before – we have to do better than that. We need to prioritise the most vulnerable people who lost everything in the battle against ISIS, young people who missed out on years of education, and women and men whose freedom was severely curtailed.

“For there to be stability and peace in Iraq everyone must be allowed to return home or set up a new home, rejoin society and have a stake in the future of the country.”

Oxfam is working in the Old City fixing the damaged pipelines, repairing pumping stations, and providing water pipes and machinery to bring running water to the 130,000 people who have already returned.

Gonzalez said: “It is vital that people have access to clean drinking water, especially as it is now summer in Iraq with temperatures already reaching over 45 degrees Celsius.”

Abdulaziz Aljarba, Chief Executive of Oxfam’s partner Al Tahreer Association for Development said: “Alongside Iraqi authorities the international community should support projects that reduce poverty in Mosul and across Iraq. Communities must be consulted in the rebuilding process to ensure the poorest and most vulnerable families benefit.”

Oxfam has been working in Mosul since the first parts of the city were retaken from ISIS in 2016 – repairing damaged water pipelines, pumping stations and school bathrooms, bringing back clean drinking water to people returning home and ensuring children can go back to clean and safe schools.

Yemen: Hodeidah cannot be allowed to become a graveyard

July 8, 2018

Conditions for over half a million people in Yemen’s port city of Hodeidah are steadily deteriorating with food in short supply and seriously damaged water and sewage systems increasing the risk of cholera, Oxfam said today.

More than 80,000 people have fled their homes, despite a recent reduction in the intensity of the fighting, while preparations continue for a bloody onslaught. In the city troops are being deployed, trenches are being dug and barricades erected. From the air the city outskirts are being bombed and leaflets are being dropped calling for insurrection.

Oxfam is calling on the UN Security Council, which will discuss the crisis today, not to allow Hodeidah to become a graveyard and to exert maximum diplomatic pressure on the warring parties to agree an immediate ceasefire and return to peace talks.

Muhsin Siddiquey, Oxfam’s Country Director in Yemen said: “The fate of 600,000 people hangs in the balance. Slowly but surely the city is being squeezed and the real fear is that this is merely a precursor to an onslaught that will lead to widespread loss of life.

“Hodeidah cannot be allowed to become a graveyard. There is still time to stop this destruction.

“One of our biggest fears is an outbreak of cholera. Hodeidah was a cholera hot spot last year and a repeat would be devastating for the people there.

“The backers of this war – including those in Western capitals – need to stop fuelling the conflict and put maximum pressure on all sides of this war to agree an immediate ceasefire. Failure to act now will leave them culpable.”

The city’s streets are empty and many shops, bakeries and markets have closed, according to Oxfam contacts in the city. People have been panic buying, while food is scarce. Essential items such as flour – the main staple – vegetable oil and cooking gas are in short supply. Prices have increased with a sack of rice up 350 per cent, wheat up 50 per cent and cooking oil up by 40 per cent. At the same time, many families’ incomes have been hit by the closure of dozens of factories and businesses.

Hodeidah Governorate is one of the worst affected areas of Yemen with a quarter of children suffering from malnutrition. Last year it was just one step away from famine, with nearly 800,000 suffering from severe hunger and the situation remains desperate.

Water is in short supply. Parts of the city’s water supply and sewage system have been cut due to the digging of defensive positions. This raises the threat of cholera as people are forced to start using unprotected shallow wells or surface water. Hodeidah was hit hard by last year’s cholera outbreak which was the world’s largest since records began.

At least 35,000 people have been forced to flee their homes due to the fighting around the southern outskirts of Hodeidah. They have settled in parts of the city further away from the fighting and many have sheltered in schools. Getting aid into the city is already challenging and will be increasingly difficult if fighting intensifies.

Some 46,000 people have managed to flee the city but escape is perilous with the threat of bombing, fighting and landmines. The city’s poor cannot afford the high cost of leaving the city. It can cost 60,000 riyals (£115) to take a family out of the city to the relative safety of the capital Sana’a. Even if they could afford the travel costs they would then have to pay at least 200,000 riyals (£380) for rent and food a month.

Oxfam is helping 10,000 people who have fled north of the city but helping those outside the city is also proving difficult due to the ongoing conflict.

The port of Hodeidah is key to providing the bulk of all the food imported into the country and the majority of its medicines. If this vital life line is cut for a significant amount of time then the lives of more than 8 million people who are already on the verge of starvation will be further put in jeopardy.

Race against time for Rohingya refugees as monsoon rains, flooding and landslides continue

June 18, 2018

While 5000 Kiwis take part in Oxfam’s Ration Challenge in support of refugees this World Refugee Week, Rohingya refugees are facing life-threatening rains and disease as monsoon rains continue to lash the camps in Cox’s Bazar, Bangladesh.

There have been over 130 landslides, 3,300 damaged shelters and 28,000 Rohingya refugees affected as monsoon rains continue to fall, Oxfam said today.

A survey of Rohingya refugees in Bangladesh carried out by Oxfam before the start of the monsoon season found that more than half were almost completely unprepared for the floods, landslides and disease that accompany the monsoon weather, with women most at risk.

Gabriela Luz-Meillet, Oxfam’s Humanitarian Programme Coordinator in Bangladesh, said:

“The monsoon rains are causing flooding, landslides and disease outbreaks in the Rohingya refugee camps. Hundreds of thousands of people are living in temporary shelters, on hills of compacted mud which are completely shorn of protective trees and plants. Those hills could melt into the earth. There are refugees alive today who will not make it through to the end of the rainy season.

“Oxfam is working with the government of Bangladesh and the United Nations to relocate refugees to safer areas and to make the remaining areas as weather-proof as possible. It is a race against time. We are doing what we can but there aren’t enough safe areas for all the refugees who need to move, so it is vital those who remain in danger know what to do in an emergency.”

Luz-Meillet said refugees could anticipate and prepare for the severe impacts of a monsoon in their homes in Myanmar. However now they had fled to Bangladesh they were struggling to deal with the weather.

“Most of the refugees come from small villages where they know how to deal with extreme weather. But now they are living in a huge tent city, disorientated and scared, and they are telling us that they lack the knowledge and resources to survive in this strange new environment. Women are in greater danger than men. They are frequently confined to their homes and do not know how to find shelter or to get help.

“We need to ensure that refugees get the information and resources that they need so they can deal with the bad weather and its consequences. Everyone working on the response needs to consult refugees so they can feel in control of their own lives. Everyone working in the camps is doing their best but we need to make sure that this response meets both the needs of the Rohingya and international humanitarian standards. Work on the ground should be matched by diplomatic efforts by the governments of Bangladesh, Myanmar and others to find long-term solutions for the Rohingya people. We cannot allow these people to endure another monsoon in these dangerous conditions in the camp.”

Oxfam New Zealand’s executive director Rachael Le Mesurier said urgent help was needed to reach the most vulnerable people before the situation worsens. “It’s heart-breaking to see people who have already been through so much – fleeing terrible violence, losing their homes, seeing family members killed – now facing even further hardship as extreme weather threatens their lives, families and homes once again.

“There is a high chance that without urgent assistance, some of these vulnerable people will not survive the next few months.”

Oxfam surveyed residents of the refugee camps in Bangladesh and found that 59% of women and 53% of men do not know how to ensure the safety and security of their families during and after a disaster.

Only around a quarter of refugees surveyed know where the nearest shelter is in case of a cyclone warning, with two thirds of women unaware of its location. Amongst men, 38% of men do not know the whereabouts of a shelter and 34% say there is no shelter.

Oxfam also ran a series of focus groups. All the groups told researchers that their shelters will be unable to withstand the rains, were concerned they couldn’t stockpile food and firewood, and felt reliant on aid agencies. Many thought they would be cut off by the rains and unable to access help, and the female groups feared struggling to feed their families should this occur.

Since last August a camp the size of a small city has been created from scratch, and the scale of the crisis has meant that resources have been mostly focused on the day-to-day efforts needed to supply nearly a million people with food, water, shelter and other life-saving goods.

A total of 200,000 out of over 900,000 refugees are categorised as at risk from flooding and landslides, with around 24,000 of those considered at high risk. So far nearly 25,000 refugees have been relocated to freshly prepared, flattened ground that should be safe from landslides and flooding.

/ends

Notes to editors:

The figures for landslides, damaged shelters and refugees affected are correct as of 15 June 2018.

Oxfam surveyed 383 refugees and 482 households in in the two main refugee areas of Ukhia and Teknaf, giving a 5% margin of error. Oxfam ran a series of focus groups and key informant interviews in Unchiprang and Nayapara camps in April 2018, consulting 109 refugees, of which 46% were women.

Currently Oxfam has provided vital aid to at least 240,000 people and is planning to reach 300,000. It has helped people stay healthy by installing water points, toilets and showers, distributing soap, and talking about good hygiene. Oxfam has installed a sewage facility for 50,000 people, which will rise to 100,000. To help local communities cope with water shortages, it is providing an average of 300,000 litres of chlorinated water daily in the Teknaf area.

Oxfam has provided 23,000 households with vouchers that can be exchanged at local markets for nutritious vegetables and ingredients to supplement their basic rations – including spinach, eggs, dried fish and spices.

Oxfam has a team of 125 staff and more than 1000 community-based volunteers in Cox’s Bazar working hard to provide emergency aid in a $25 million response. This is currently Oxfam’s third biggest humanitarian program, after Yemen and Ethiopia.

The Ration Challenge is a fundraising challenge that shows refugees Kiwis are with them, not against them, by living off the same food rations as a refugee would in Syria for one week. Participants fundraise and the money goes towards supporting those very refugees in Syria as well as Oxfam’s work around the world. It is occurring for the first time in New Zealand this World Refugee Week and so far over 5300 participants have raised almost $500,000.

Donations to Oxfam’s Rohingya refugee crisis appeal can be made at www.oxfam.org.nz.

Photo: Zaheda*, a Rohingya woman living in a Cox’s Bazar refugee camp, attempts to secure her home as well as possible against the extreme weather. Credit: Oxfam New Zealand