Fast Fire on inequality: How would you solve it?

Growing job opportunities versus the use of direct Government assistance are the main differences between the right and the left when it comes to the best way to deal with the gap between the rich and the poor.

Inequality has been a politically spicy issue and the subject of many attacks on the Government, who claim that inequality has not been getting worse.

Right-leaning parties argue that job-growth is the most effective way to bridge that gap, but Labour and the Greens say taxing the rich to put more resources towards the poor is the best solution, through mechanisms including welfare or targeted assistance.

MORE FAST FIRE
- Legalising cannabis
- Taxpayer and the America's Cup
- Who's their hero?

"Get people into work," said National leader John Key in the Herald's Fast Fire series of questions.

"Fundamentally if you look at children who are in poverty-based households in New Zealand, not all of them but a lot of them are in welfare-based homes."

Conservative leader Colin Craig said it was about upskilling people through education, rather than welfare: "Handing out money never has, and never will, solve inequality."

Labour leader David Cunliffe and the Green's Metiria Turei both said more resources needed to go to those at the bottom. Both parties want to introduce higher taxes on a higher incomes to help fund social policies.

A Government report on Household Incomes released this year showed that income inequality was slightly higher than the OECD average, and had not changed much in the past 20 years.

But it also showed evidence of a growing divide after housing costs were factored in: a growing proportion of poor households in the past few years have had to put at least 30 per cent of their income towards rising housing costs.

There was also a growing divide between those on welfare, and the rest.

"Over the past seven years, benefit levels declined in real terms, while median household incomes and superannuation rose by 5 and 12 per cent respectively," the report said.

United Future's Peter Dunne said the solution lay in stronger families. He is an ardent supporter of the Families Commission, which was set up as part of the support deal between Labour and United Future after the 2002 election.

Curiously, Maori Party leader Te Ururoa Flavell said the best cure for inequality was to have his party in Government.

"At the point in time, you have the ability to shape policy, to implement policy, and implement changes at the highest level, right through to the basics of amounts of money in people's pockets."

New Zealand First leader Winston Peters did not take part in the Fast Fire series.

IN THE HOT SEAT

John Key, National

David Cunliffe, Labour

Russel Norman and Metiria Turei, Greens

Hone Harawira and Laila Harre, Internet-Mana

Colin Craig, Conservatives

Jamie Whyte, Act

Peter Dunne, United Future

Te Ururoa Flavell, Maori Party