Government in retreat over race-based funding

Don Brash

The Government will change more than a third of its ethnically targeted programmes and well over half of the rest could be altered or axed once further reviews are done.

The announcement by Race Relations Minister Trevor Mallard yesterday is a turnaround for a Government which marked its first Budget with a set of policies targeted at Maori and Pacific people.

Of the 57 policies and programmes now reviewed, 21 will be changed and further work has been called for on another 16.

Most of the changes will be in education and health, including removing the $57 million-a-year ethnicity component in the Public Health Organisations (PHO) funding distribution formula.

It contrasts with Health Minister Annette King's previously avid defence of the formula, and Cabinet papers released reveal the change is being made despite the objection of the Ministry of Health.

Mr Mallard said that in most cases the changes would result in wider eligibility "so other groups in need are also targeted".

He was asked to review the programmes following National leader Don Brash's "race-based" attacks in his landmark Orewa speech.

Yesterday, Dr Brash claimed victory, saying Labour called him a racist but now agreed with him.

But he nevertheless doubted the Government would adopt a fundamental change in direction, accusing it of "constantly finding new ways of disguising its double standards on race-based funding".

Maori Party co-leader Tariana Turia said that "hot on the heels of Maori success in golf, rugby, rugby sevens, women's rugby, netball and business, we have the Government moving to undermine Maori by using race as the basis for decision-making".

Ethnicity had always been an important aspect to determining need, she said.

Mr Mallard said the reviews were to assure ministers and the public that programmes were based on need, not race, and the changes were being made where targeting was failing to deliver desired results.

But while the Government is signalling a change in mindset, hoping it will kneecap National on the issue, in at least some cases the actual effects may be minimal.

Adding a further twist is the fact that in at least some cases National may not disagree with what may be little more than repackaging.

The PHO funding may be a case in point. Mr Mallard said he wanted health officials to substitute ethnicity funding - one of five determinants - for funding based on mortality and morbidity.

But because Maori and Pacific people have higher mortality rates than other groups, he said it was likely similar amounts of money would end up with the same PHOs.

National Party deputy leader Gerry Brownlee supported the move to morbidity and mortality evaluations "because that is going to take in all groups".

Asked what the fuss was about if there would be no real funding reallocations, Mr Brownlee said Mr Mallard did not have the data to assert that.

Funding backtrack

Race-based funding goes or changes for 37 programmes. Those cut include:

* $57m race component for cheap doctors' visits.
* $9m to tertiary providers to enrol Maori and Pacific students.
* Ethnically targeted public service scholarships.
* Pacific Island Affairs secondary school scholarships.