The NZ government sees economic as well as social benefits in breaking cycles of poverty and imprisonment. Although the policy has its critics, it’s worth watching, writes Tim Colebatch.

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Imagine a country in which a government of the centre-right decided to make it a top priority to tackle inherited disadvantage. Where much of its limited new spending is devoted to “social investment” to reduce deprivation and increase workforce participation. And where it’s chalking up impressive results.

You don’t have to go far to find it – just across the Tasman. Taking on disadvantage is rarely a priority for conservative governments, but it has become an increasingly important theme of the second and third terms of the National Party government under prime minister John Key.

Last week finance minister Bill English took it further, bringing down a budget in which generally tight control of government spending contrasted sharply with increased welfare payments aimed at reducing the number of children growing up in hardship, especially among the least well-off New Zealanders (largely Maori), who are dependent on welfare, and often in and out of jail.