News & Media

Making Tax Vanish – How the practices of consumer goods MNC RB show that the international tax system is broken

July 13, 2017

Big business is able to take advantage of loopholes in global tax laws and avoid tax on a massive scale.

This deprives governments around the world of the money they need to tackle poverty and inequality. It means there is less for them to invest in healthcare, education and jobs.

This report examines the failings of the global tax system that facilitate mass tax avoidance. It looks at one example of a multinational company (MNC) that Oxfam thinks is not paying its fair share and gives an overview of its practices in New Zealand.. It calls on the New Zealand government and business to implement the reforms that are needed to stop MNCs from avoiding paying their fair share of tax in the future.

Download file:

Oxfam NZ Report – Making Tax Vanish in New Zealand.pdf

Oxfam GB Report – Making Tax Vanish – July 2017.pdf

City of Mosul retaken from ISIS

July 10, 2017

Responding to an announcement by the Iraqi Security Forces on 9th July 2017 that they have retaken the city of Mosul from ISIS, Oxfam’s Country Director in Iraq, Andres Gonzalez said:

‘The retaking of Mosul will no doubt inspire hope among many Iraqis: hope that they can return home, rebuild their lives, and heal the divisions within their society. But these hopes will not be realised quickly or easily. Mosul residents continue to face severe risks from revenge attacks and explosives, and a lack of clean water, healthcare, and other basic services.

‘The people of Mosul have already suffered enough and now families may try to return home before it is safe to do so. Those men, women and children returning to Mosul must be supported with adequate information, guarantees of security, aid from humanitarian agencies, and access to social services.

‘As Mosul rebuilds, all its residents must enjoy the same rights and opportunities – whatever their gender, religion, or ethnic or tribal affiliation. In particular, Mosul residents must not face discrimination or punishment because of family links to ISIS fighters.

‘As the military offensives to retake the cities of Hawija and Tal Afar continue in the coming months, we expect to see even more civilians forced from their homes. The government of Iraq and the international community must not forget these families, who will also need life-saving aid and protection.’

The poor an afterthought at the Hamburg G20

July 10, 2017

Reacting to the outcome of the G20 summit in Hamburg, Steve Price-Thomas, Oxfam International’s director of advocacy and campaigns, said:

“When looking at the outcomes of the Hamburg summit, we have to ask: ‘what did the G20 do to help the world’s poorest people?’

“Sadly, the answer is ‘not much.’ The needs of the poorest were an afterthought. Despite the anger of many on the streets at the growing divide between the rich and poor, the G20 could only muster a tepid set of policies to tackle poverty and inequality.

“For example- for the G20 to support a ‘blacklist’ of tax havens that lists just one country is breathtaking, and shows just how low the bar is for them to claim success. Corporate tax dodging siphons billions from government coffers and leaves health and education budgets dry.

“Famine is the most brutal expression of poverty. While we’re pleased the United States has joined the Netherlands, the United Kingdom, and Germany in having made substantial commitments towards emergency relief for the ‘Four Famines,’ there’s still a massive humanitarian funding gap left to fill. Furthermore, the conflicts at the root of some of the crises haven’t even been discussed in earnest by this group.”

“Instead, leaders discussed the ‘Compact with Africa,’ an initiative which rests on the dangerously naive assumption that boosting private investment will automatically help the poorest in the continent. If left unchecked, the Compact might simply line the pockets of wealthy foreign investors.

“With the other 19 members firmly defending the Paris Agreement as ‘irreversible,’ President Trump’s stubborn insistence on propping up the fossil fuel industry leaves him isolated and stuck in the past.”

What do an onion dryer, a honey hotline, a mobile banking service and a newsletter have in common?

July 9, 2017

They’re all improving lives in Papua New Guinea!

Papua New Guinea (PNG) is the largest country in the Pacific, with a population of 7.5 million people. 80% of the population live in rural areas – most of which rely on farming their land for food with little opportunity to sell what they reap in order to pay for things like improved housing, school fees, and making investments into their farming businesses.

Oxfam’s HARVEST project kicked off in PNG last March with the goal of assisting 2000 families to improve their food security and livelihoods.

There have been many successes and many challenges, but thanks to your support, we were able to roll out four very innovative ideas during year one.

Kelly Inae, owner of Mountain Honey, helps provide support for beekeepers alongside Oxfam. Photo: David Shields/Oxfam NZ

An onion dryer.
Bulb onions are a huge source of income for many families, but they need to be dried in order for them to last long enough to sell at lucrative markets in the cities. Farmers in PNG began using wood fires to do this, but after a while decided to trial an all-solar dryer in order to reduce the amount of trees they were chopping down. The all-solar dryer wasn’t completely successful either, as there were too many cloudy days to dry the onions sufficiently. To compromise, Oxfam and partners have rolled out a trial of a hybrid dryer that utilises solar power where possible, but is backed up by a wood burner on overcast days. To offset the continued use of wood, Oxfam are working with partners on natural resource management and reforestation, with a focus on re-planting native trees. Should the results of the hybrid dryer trial be successful, learnings will be passed around onion farmers all over PNG.

A hotline for beekeepers.
Being so far out from the cities, rural farmers can often struggle to get advice on issues that affect their livelihoods. Thanks to your support, even the most remote beekeepers can access instant support with the ‘honey hotline’. Beekeepers can call the hotline right from their village and get advice from experts on everything from caring for bees and managing hives, to monitoring honey production and extracting it to sell. With support as effective as this, farmers can successfully maintain thriving beehives and thriving livelihoods.

A mobile banking service.
Banking in PNG can be incredibly difficult and sometimes dangerous, particularly for women. People may have to travel many kilometres on treacherous roads from rural areas to reach a bank, which can cost them valuable time. Not only are we supporting women to be involved in their family’s finances, but we’re supporting three local community groups to participate as rural mobile banking agents. This enables farmers, both women and men, to bank using their mobile phone right from their village – a much safer and more efficient option.

“Before, we never had bank accounts and had to hide our money or spend it. If we did have a bank account it took all day to travel to town to deposit or withdraw money. It would be expensive to travel and it was not safe. Being able to deposit and withdraw money in our village, people are able to comfortably and safely access their bank accounts. This means they will save more, and more money will be spent at trade stores in our community rather than in town. This will increase our village economy.” – Toppy Sundu.

Photo: John Paul Sundu.

A beekeeping newsletter.
PNG’s domestic honey demand is very high, making beekeeping a viable livelihoods option for people. It’s not as familiar to farmers as growing vegetables, but selling honey has potentially greater rewards. We’ve rolled out the ‘PNG Bee Buzz’ which is published every quarter. Much like a community newsletter, it includes stories and advice on how to deal with common beekeeping issues, where to ask for support and where to get equipment, as well as generating public awareness of beekeeping as a great way to make a living.

The HARVEST Project is supported by Oxfam New Zealand and the New Zealand Aid Programme.

Is this the year the G20 gets serious about inequality?

July 9, 2017

Is this the year the G20 gets serious about inequality?

July 7, 2017

The large protests and demonstrations expected to take place around the G20 summit in Germany are a reaction to the huge economic and social inequalities afflicting the world, warned Oxfam, while urging leaders to agree on a comprehensive plan to tackle inequality.

“The G20 leaders will offer more warm words about the need to tackle inequality. But year after year they’ve failed to act. Just eight men now own as much wealth as half the world. Popular frustration with our broken economic system has been simmering for a long time, and it’s dangerously close to boiling over,” said Steve Price-Thomas, Oxfam International’s Director for Advocacy and Campaigns.

“A country shouldn’t measure its economic health simply by how many jobs are created, without looking at the opportunities that these jobs really offer. We now see waged workers living below the poverty line while the super-rich stash their wealth in tax havens.This is money that should be spent on quality healthcare and education,” said Price-Thomas.

The G20 appears set to endorse the OECD’s “blacklist” of tax havens, which features just a single country. Oxfam urges the G20 to reject it and insisit the OECD start over.

Will the G20 defend the Paris Agreement and commit to renewable energy?

With the G20 representing around 80 percent of the world’s greenhouse gas emissions, thousands are taking to the streets of Hamburg to demand action on climate change.

“Climate change is real and it’s happening right now. In the aftermath of President Trump’s decision to quit the Paris Agreement, it’s up to the rest of the G20 countries to honor and implement the deal,” said Price-Thomas.

“Fossil fuels are not the future. While government subsidies for oil and coal only make the rich richer, the clean energy boom is creating opportunities for everyone. We’ve seen some of the poorest countries in the world commit to 100 percent clean and renewable energy by 2050; the G20 should follow their lead.”

Will leaders confront the unprecedented threat of four simultaneous famines?

The jaw-dropping disparity between the world’s richest and poorest is always on display at major summits like these. This year it’s even more appalling given the deadly hunger crises currently plaguing South Sudan, Yemen, Nigeria and Somalia. Oxfam is calling on the G20 to do their part in funding the UN’s $6.3 billion appeal. Currently, the only countries attending the summit that have paid their fair share are the United Kingdom, Germany and the Netherlands.

“We can’t stress this enough: political failure has led to this crisis, and political leadership is needed to resolve it,” said Price-Thomas. “The relief from emergency aid will be short-lived if the G20 fails to push for peaceful solutions to the violence and conflicts that have caused so much death and suffering.”

Can the “Compact with Africa” really deliver for the continent’s poorest?

Germany’s chancellor, Angela Merkel, has been active in promoting the “Compact with Africa” as a way for G20 to boost private investment in African countries to help reduce poverty. However, Oxfam remains cautious about the initiative’s focus on government and business elites, seemingly at the expense of people in poverty.

“Private investment doesn’t automatically help local communities or lead to sustainable growth,” said Price-Thomas. “The G20 should acknowledge that public finance is still sorely needed to help these countries meet the Sustainable Development Goals.”