Social Security (Entitlement Cards) Amendment Bill

Rt Hon WINSTON PETERS (Leader—NZ First) Link to this

I move, That the Social Security (Entitlement Cards) Amendment Bill be now read a first time. At the appropriate time I intend to move that the bill be considered by the Social Services Committee, that the committee report finally to the House—[]—it will be a long time, 64 years later, but that person will be entitled to it, too—on or before 5 April 2007, and that the committee have authority to meet at any time while the House is sitting, except during oral questions, during any evening on a day on which there has been a sitting of the House, and on a Friday in a week in which there has been a sitting of the House, despite Standing Orders 192 and 195(1)(b) and (c).

This bill is the next stepping stone in the process of making the Supergold card, launched last month, a reality. This card was a central feature of New Zealand First’s confidence and supply agreement with the Government, and the purpose of the bill is to enable the full potential effect of the card to occur. It would be churlish not to recognise the work and cooperation of the Government and, in particular, the Hon Ruth Dyson and her staff.

The Supergold card is a concession card for the nearly 540,000 New Zealand residents who are aged 65 or over, or who otherwise qualify for and receive New Zealand superannuation, including non-qualified spouses, or a veterans pension. The card will be available from August 2007, will provide negotiated commercial discounts from participating businesses, and will help facilitate seniors’ access to concessions on Government and local authority services.

Part 1 makes two amendments to section 132A of the Social Security Act 1964. That section of the Act enables regulations to be made for the issue of entitlement cards. The first amendment in Part 1 will allow a regulation to be made for cardholder photographs to be placed on entitlement cards. Of course, if that were to happen from an individual point of view, it would be on a voluntary basis. This will enable the Government to provide cardholders with the choice of having their photo on the Supergold card, which will be useful for those who do not have photo ID.

The second amendment in Part 1 will enable regulations to be made allowing a microchip to be embedded on entitlement cards that will contain the same information that is currently contained on a magnetic stripe. This will allow the future possibility of embedding a microchip in the Supergold card, for this will prove to be useful for cardholders. In essence, the provision future-proofs the capability and capacity of the Supergold card.

SANDRA GOUDIE (National—Coromandel) Link to this

At this point I would really like to pay considerable tribute to Grey Power. Grey Power has had the idea of a discount card for a number of years now, and I pay significant tribute to the fact that it has been able to raise awareness of the value of a discount card and has been able to educate other people as to how to take that to another level and provide the kind of support our senior citizens really need. On that basis, I pay exceptional tribute to Grey Power for the great work it has done and for how it has managed to take the whole idea of a discount card to a new level, albeit through Mr Peters.

What will this card actually do? Mr Peters has reiterated what this card will provide, which is what we hope will be some significant discount options to people. As Mr Peters rightfully pointed out, about 540,000 people are aged 65-plus, and another 15,000 people who are below that age will also be entitled to this card. I thought that was quite an interesting point. It is to be hoped that cardholders will receive some significant benefits from having this card.

Maybe those benefits will include a discount on electricity prices, since we are quite clearly seeing a substantial increase in electricity prices that the current Government cannot control. That increase will have a significant effect on senior citizens, who will be pulling the plug on heating just to save on their power bills. It is to be hoped that the Minister Winston Peters will seek some discounts for our senior citizens on increasing power costs. We look forward to that with interest. I know that Grey Power will celebrate any move in that regard, given its continuing concern over the cost of electricity and the number of our older citizens who have been subjected to considerable hardship in the winter months. The health of some of those people was compromised, resulting in their deaths. We need to bear that in mind and really consider the sorts of discounts that may be made available to our senior citizens.

In reading the bill I notice some quite interesting points. The commentary states: “The card will enable seniors to access discounts and concessions from participating businesses …”, which is great. Businesses can see a really great opportunity here. As members will appreciate, our ageing population is one of our largest demographics, so there will be quite strong interest in that. Those people will be interested to hear anything from the Minister on what the tendering process has revealed to date and on what level of interest has been expressed to date by businesses as a result of that tendering process. Other concessions will come from the Government. As I said before, we are looking to the Government to see what concessions it will provide to our senior citizens through the Supergold Card, particularly in relation to the increase in power charges.

The third group referred to in the commentary is local authority services. I will be interested to hear what the Minister thinks will be added to the Supergold Card in terms of reduced charges for our senior citizens, apart from the rates rebate. I am sure that local authorities will be very interested to see whether they can actually afford to provide any discounts, apart from the rates rebate scheme, to Supergold Card holders. I am mindful that the Minister’s policy statement refers to trying to get a review of lottery grant funding, so that funding for transport for older citizens can be considered through lottery grants.

GEORGINA BEYER (Labour) Link to this

What a pleasure and privilege it is to speak on the Social Security (Entitlement Cards) Amendment Bill. I acknowledge the fine oratory in the remarks of the Rt Hon Winston Peters as he introduced the bill for this first reading. This bill is a fine example—and may well the Opposition take note—of how modern-day Government works. Cooperation, and delivering on promises and arrangements made—in this instance, a confidence and supply arrangement with New Zealand First—leads to something of this kind: the golden age card for our elderly people. This card is obviously an acknowledgment of the fine contribution that elderly people have made to our nation, that they deserve, in many respects, to receive. It is a mark of respect.

Frankly, it does not matter precisely where the seed of the idea came from. Regarding our elderly well has always been something that we have tried to achieve in one form or another in New Zealand. Whether or not the idea is from Grey Power—all strength to them—the legislation has come through the vehicle of the New Zealand First Party and its leader Winston Peters. He has managed to bring the bill into this House by way of his arrangements with this Labour-led Government, which I am proud to be a part of.

I certainly hope that all parties in this House—as National has just remarked—will support this bill through an easy passage. It is not that long ago, and people will not have forgotten—in fact, I understand it is as recently as the publication of this Hollow Men book, which I have not actually had a chance to read—that there was apparently some natter amongst the National Party leadership of upping the age of entitlement to 68. Well, this rings true with a promise made to elderly people by Mr Bolger in a former National Party Government. So this nation needs to think about who will look after not only our young families but also our elderly.

Labour is on the path to looking after families young and old, and is building our economic capacity and ability in this country in order to deliver the services that we as a Labour-led Government care to support. The services provided for in this legislation are among those. This legislation will feed in very nicely to a suite of packages that this Government has been leading the way on, through this particular term and beforehand, in restoring faith for New Zealanders that we have a positive future to look forward to. The elderly who serve us overseas in emergency and other capacities will also be beneficiaries of this golden age card—as well as the 540,000 in our country—because they too deserve recognition; they put themselves out on a limb on this nation’s behalf. This is a way of acknowledging the fine contribution they make to our country.

This legislation will be easy for people to understand. As has been alluded to, there are contact phone numbers for people who are interested in what this will offer, what exactly the entitlements will be, and how they can access the discounts and benefits. Also, there is a number worth noting that is for businesses that are interested in becoming involved. I will read these numbers out before I conclude my speech. Of course, I think those people in New Zealand who really would like to get behind this particular initiative—and businesses will be important here—should come forward, get hold of us, and get hold of the information by ringing 0508 650 000. Interested businesses should please call that number, find out what this is about, and get into it. Senior citizens of our country are a large demographic and they will be constantly good customers—one hopes—if they can see they will benefit because businesses are involved in this golden age card by way of discounts.

Concessions on local government services—and central government services too—are some of the advantages we will be able to provide for the beneficiaries who are able to use this card. These beneficiaries are those whom we value: our mothers, our fathers, our grandparents, our kuia, our kaumātua—people such as those. All of these people are part of our whānau, and that is who we support here. So I am doing an advertorial, in a way, for people to please get involved, because it is people who are dear to us all that we support here through this golden age card.

The card has been proven to be very successful in countries like Australia, and I think many people in New Zealand who have friends over there will note that they skite about it quite often. Now we will bring it in over here. This is very worthy, and I look forward to other positive contributions to this first reading debate from other members in the House. There is much to be said, and much has been covered already.

I will just give, as I said I would, the number that Sandra Goudie alluded to for people who are interested. The number is 0800 254 565. This is a freephone number set up for seniors to make inquiries about what the golden age card provides. That number, again, is 0800 254 565. With that, I hope we can look forward to some other speeches in support of this bill so that it may be dispatched to the Social Services Committee, which I happily chair. I look forward to it coming to us in that committee, because this will be a very pleasant bill to assist the House with.

BARBARA STEWART (NZ First) Link to this

On behalf of New Zealand First, I rise to support the Social Security (Entitlement Cards) Amendment Bill. We are extremely pleased to see that this Supergold card, launched last month, will become a reality for the senior citizens and the veterans of New Zealand. It was very interesting to hear the National speaker finally acknowledge that she did welcome the implementation of the gold card and will actually support this legislation. Like many others in this House, I was waiting for her to state the freephone number as she had said she would. She did not, so I will give it on her behalf: 0800 254 565. We want to encourage our seniors to find out more about this extremely important card.

As previous speakers have said, the Supergold card was a critical part of New Zealand First’s supply and confidence agreement with the Government. Today we see the gold card move to the next stage in the process. It will finally be available from August 2007. We must acknowledge the Minister for Senior Citizens the Hon Ruth Dyson, for the work that she has done. The Supergold card really is an acknowledgement of the MMP environment and how MMP, the environment that we now operate in, actually works. The gold card is about keeping promises too to our senior citizens that we all made during the 2005 election. We did not promise the moon and deliver dust, like others have often done. We have followed through on this particular card and on this policy, and we will continue to do so on the other policies that are coming forward.

In New Zealand First we recognise the value that our senior citizens bring to their families and to the communities they live in, and we will always support that value in all policy that has an impact on them. We have heard today that senior citizens number well over half a million people—half a million New Zealanders. We maintain in New Zealand First that the treatment of our seniors sends a clear signal of our status as a developed nation. We believe that there is very little point in pursuing economic growth and other objectives if our seniors are not looked after adequately. It is imperative that the most vulnerable in our society are always looked after—the very young and the seniors. In this case, we are focusing on our seniors.

The Supergold card, as outlined earlier by the Rt Hon Winston Peters, will provide negotiated commercial discounts from participating businesses, and it will help seniors get access to concessions on Government and local authority services. The very fact that large businesses have already expressed a strong desire to be a part of the Supergold card bodes well for the future. We are only too aware that our seniors who visit Australia are very keen to have the same card here in New Zealand. They know the value of the card over in Australia, and when they return to our shores we often hear that a card such as that one should be available here. At last the card will be available, thanks to New Zealand First.

We have also talked to our seniors and found out that in Australia the discounts have built up steadily over a period of years as businesses have recognised the value of the card that they operate. Of course, the exact same thing will happen here in New Zealand. We expect the value of the discounts here to build up steadily over the coming years. The Supergold card will make a real difference to the lives of our senior citizens. We are very aware in New Zealand First that many of our seniors face challenges to make their pensions stretch a little bit further so that they can enjoy the very busy life that all of them lead after they retire. We have often heard it said that it is the busiest time of their lives. I myself have heard seniors say that they do not know how they had time to work in paid employment. Of course, we know too that many of our seniors continue to work in paid employment for a very long time. They also make valuable contributions in voluntary work and in the community, in so many ways, from the St John Ambulance Association and keeping in contact with seniors in various communities, to Meals on Wheels, to the very many other organisations that our seniors contribute to. Of course, many of our seniors are involved in the very successful running of those particular organisations.

We cannot fail to say that seniors make a very valuable contribution in a family situation. How many of us give our children to our parents when they are sick and cannot go to school, so that we can go to work? It happens every day in very many communities right throughout New Zealand and in every family. We know that seniors are a very vital part of each and every one of our lives. Any family would find it extremely difficult to function without their parents—without their seniors—there to assist.

This card is for seniors and veterans who have participated fully in our communities and in our families. It has the potential to make their lives easier. It is essential that we recognise the contribution that our seniors make and continue to make, in so many ways. So New Zealand First supports the Social Security (Entitlement Cards) Amendment Bill totally. We will support it going through all of its stages. We want to have a very positive future for our seniors and our veterans. We believe that they have earned it.

METIRIA TUREI (Green) Link to this

The Green Party has no problem with the Social Security (Entitlement Cards) Amendment Bill in so far as it provides for an entitlement card for superannuitants to access better support services. It is a perfectly fine thing to do for them, and to that extent the legislation is not really very much of a problem. We need to get a bit real about the fact that this is just a loyalty card, like any other loyalty card. In fact, one gets a huge number of loyalty cards from all sorts of places and businesses everywhere. It is an ID card not dissimilar to the Hospitality Association of New Zealand’s 18-plus card, which is quite funny when I think about it. To have special cards for veterans is all very nice, as well.

But, in effect, this is a loyalty card that can be provided to those people in order to provide them with extra support and discounts for both commercially and publicly provided services. It is a great thing to provide that, but to do so does not necessarily require regulation or legislation. I will talk about that point a little more, because we are quite puzzled as to why legislation is being introduced. If members actually look at the bill, they will find that it does not say anything about the gold card. It is a very, very small bill with very few provisions, which are extremely general and deal with other issues.

We are most concerned about the fact that the Government and New Zealand First are using the establishment of what is a very good thing—this gold card—to put in place regulation-making powers that will enable the compulsory use of photographs and microchips on ID cards. Clause 4 states exactly that—that the purpose is to enable any cards to have photographs and embedded microchips. We have always been very concerned about these kinds of sneaky attempts to introduce electronic mechanisms to increase the capacity for Government surveillance of the public and for information sharing between agencies, without conducting the proper public scrutiny and debate that those kinds of mechanisms need. I note that in Britain, for example, there has been a shift from the use of optional ID cards, like this card ought to be, towards a more stringent information-sharing system that makes photos or microchips compulsory.

I do not believe that older people in our community want their advantageous mechanism—their gold card—to be used to potentially breach their rights of privacy. The card could interfere with their rights of privacy in terms of the information-sharing capacity that it provides. The provision in the bill is so generally worded that it could apply to virtually any Government ID or entitlement card, and that includes things like the community services card. That is a very serious issue, because the community services card is designed to help provide support for low-income people and beneficiaries. There is no doubt that we have a history in this country of treating low-income people as though they are a problem and as though they are criminals. A form of information sharing, embedded microchips, and surveillance capacity through those cards could therefore prove to be a real problem for those people. So this bill has serious implications that have nothing to do with the gold card, because the bill is being used to introduce a mechanism for another purpose.

We are very worried that the inclusion of the embedded microchip mechanism in this bill concerning the gold card will make the important public and human rights scrutiny of these provisions much less likely than it would otherwise be, because few people will even begin to think that the bill about the gold card would include an information-sharing mechanism such as the embedded microchip. People will not know they should make submissions, raise issues, and talk to others about it, because they would not expect this legislation to include those provisions. The fact is, of course, that the legislation is not necessary for the introduction of the card but is being used specifically to provide these mechanisms. We are very concerned about that. We will support the first reading of the bill so that that debate can be held on the issue, but we offer no promises of support after that point, because of our concerns about it.

We are of the view that it has been a waste of New Zealand First’s efforts and priorities to have legislation developed for this card, when that is completely unnecessary and when other legislative changes need to be made in order to better support older people in our community. One of those changes is an issue that New Zealand First feels as strongly about as we do, and that is the repeal of section 70 of the Social Security Act. The fact is that superannuation is supposed to be free of income tests; in fact, that is not the case. If a person receives a superannuation benefit from another country, then a deduction is made from the New Zealand pension. So those people are subject to income testing of their superannuation.

Frankly, the fact is that as long as the income source is legal, where that income comes from should be irrelevant. The principle is that superannuation is not to be income tested. That is a good principle to have, because superannuitants are people who have made a significant contribution to our community, and many of them rely solely on the pension for their income and live in dire low-income circumstances. It is not right that superannuation should be income tested, but for those few people it is happening. It is true that a comparatively small number of people suffer from that income test, but that is not a reason to keep such an anomaly in the law. If the principle is that superannuation should not be income tested, then it should not be income tested. As I said, New Zealand First completely agrees with that principle and has advocated for it before. Yet instead of making an effort to get the Government to change the law in that way, which would have had a real, beneficial impact on specific people, it has instead put out legislation that is largely irrelevant and performs an entirely different function from the one that has been stated. This bill is not about the gold card at all; it is all about the potential for information to be shared between Government agencies and for an increase in public surveillance.

We are very disappointed that New Zealand First has not prioritised its resources better. We do think the gold card is a great thing, and we will support this bill going through its first reading. But we will be taking a very serious interest in what happens on the issue of embedded microchipping in terms of this bill. Thank you.

HONE HARAWIRA (Māori Party—Te Tai Tokerau) Link to this

Kia ora, Mr Deputy Speaker. Kia ora tātou te Whare. The relationship between tangata whenua and gold anything took on a very interesting spin earlier this year when the Waitangi Tribunal found that the tribes of Hauraki were owed generous redress for goldfield revenues they should have received from mining on the Coromandel Peninsula, particularly in light of the fact that in the 1800s regulation of goldmining on Māori land was far heavier than on non-Māori land. Evidence before the High Court estimates gold reserves of up to $30 billion may still exist in Coromandel. The Treaty claims manager for Hauraki, John McEnteer, is rightfully asking whether continued Crown ownership of gold is a Treaty breach. The Hauraki inquiry, headed by Dame Augusta Wallace, said that the 12 iwi were due substantive restitution as a result of being marginalised by the transfer of land and resources to others.

It makes an interesting parallel to run alongside the Social Security (Entitlement Cards) Amendment Bill, because it raises the same questions about whether Māori will be as unfairly treated under this bill as they were in their own goldfields. I ask this question because the gold card kicks in at 65. Pākehā die at 78, but Māori die at 71. So we get to pay for it like everybody else—we just do not get so much of it back. When we look at the living standards of older Māori, ngā āhuatanga noho o te hunga pakeke Māori, [ways that elderly Māori live] we find that older Māori are much poorer than non-Māori, with lower income levels, a greater reliance on superannuation for income, lower levels of savings and assets, and lower homeownership than non-Māori. Into that context again—drum roll, of course—comes the Supergold Card.

Let me say from the start that the Māori Party supports any initiative that recognises the unique contribution of our kaumātua and kuia to Aotearoa. I refer here to the excellent work done by Professor Mason Durie, who detailed some of the busy working life that many older Māori take up in their so-called twilight years. Not for these older Māori the leisurely days of sitting in a rocking chair and watching the world go by; instead, the opposite is the case. Durie remarks: “The roles of kaumātua include resolving disputes and conflict between families and between iwi, carrying the culture, recognising and encouraging the potential of younger members, cultural guidance and advice, maintenance of protocol, reception and care of visitors, protection and nurturing of younger adults and children, performance of ceremonial duties, spiritual leadership, and attendance and control of tangihanga.”

Clearly the diverse needs of kaumātua and kuia present a major challenge to planners, policymakers, providers, and politicians. How does the Supergold Card fare in meeting those needs? A card, even a Supergold one, cannot hope to meet the health needs of pakeke. That takes dedicated and specialist services. But we are happy that the card will give old people some discounts and concessions from agencies and other services, and we are keen to see whether that might also apply to local body services, phone, or power. Will it be better for those living in the town or the country, for homeowners or those who rent? The Māori Party has long supported keeping our kaumātua and kuia actively involved in community life. We want to make sure that superannuation provides for an equitable standard of living, as well.

We come back again to the issue of a cut-off date based on age. Because of their lower life expectancy, Māori and Pasifika to a large degree will simply miss out. If we are truly committed to reducing the gap between Māori and other New Zealanders, then Māori should be able to get the Supergold Card at 60 rather than 65. The difference in life expectancy between Māori and Pākehā is a major issue that can be addressed only through long-term initiatives to improve Māori health. But until we get to that point, adjusting the age of entitlement to recognise that difference would be only fair and progressive. Indeed, as Living Standards of Older Māori states, the older Māori population will remain at risk of relatively depressed living standards for as long as inequities exist between Māori and non-Māori in the area of economic well-being and health. If we are serious about addressing poverty and inequity, then we have to be prepared to do things differently.

The Māori Party congratulates New Zealand First on its commitment to ensuring the standard of living for senior citizens can be improved through the card. We are impressed that unlike the Government stalling over providing for the needs of our Viet Nam veterans, this bill includes recognition of war service. We cannot help but compare this generosity with Labour’s mean-spirited refusal to honour the Allies’ most decorated servicewoman of World War II and the Gestapo’s most-wanted person, Nancy Wake. Nancy Wake was a true New Zealand - born warrior and hero who helped recruit for the French Resistance, yet here in her own country, in the Year of the Veteran, Labour chooses to snub one of our greatest living war heroes for the simple reason that she does not live here.

This devaluing of whakapapa has been a rather hot topic lately with the bizarre situation of the Kiwis being docked their victory points for playing somebody whose great-grandmother, rather than his grandmother, came from Aotearoa; and, of course, with the former National leader suggesting Māori were no longer Māori because of intermarriage. But to deny Nancy Wake’s whakapapa because of her address is not only morally indefensible, it is insulting to her whānau, it is insulting to her iwi, and indeed it is insulting to all citizens of this land.

So against this background of such bitter and pointless dispute it is nice to hear about a bill with a positive purpose of honouring our elderly and recognising our war heroes, of ensuring practical, tangible help to our kaumātua and kuia in their final years.

The icing on the cake for the Māori Party will be if our suggestion to respond to the reduced life expectancy of Māori and Pasifika is taken up seriously and amendments made accordingly. We are happy to support this bill but we will be working hard to ensure that equity becomes as important a part of the legislation as the recognition of the true value of our nation’s senior citizens. Kia ora, Mr Deputy Speaker.

JUDY TURNER (Deputy Leader—United Future) Link to this

I rise on behalf of United Future to speak on the first reading of the Social Security (Entitlement Cards) Amendment Bill and I will say straight up that United Future supports the first reading.

When this bill was first tabled I thought back to the last parliamentary term when the Health Committee set about having an inquiry into the Agent Orange issue. As part of that inquiry we compared the full range of support available for veterans within New Zealand and Australia. Certainly there was a feeling by submitters to that inquiry that New Zealand veterans felt short-changed in comparison to their Anzac brothers and sisters. However, when we looked closely at the pensions and entitlements we saw that the differences were minimal. But what seemed to stick in the minds of veterans was the famous gold card that Australian veterans enjoy. It seemed to me at the time that it was a very simple thing for a Government to choose to deliver a gold card for veterans, and I think it is very good that New Zealand First has taken the initiative and pushed it out beyond just veterans to all seniors. We say well done to New Zealand First and we will certainly support the first reading.

What is good about this card is the fact that it gives ordinary members of the community in businesses and social service groups the opportunity to provide discounts or additional benefits to people who are holders of a gold card. It is a way that a community can honour senior citizens and I think it is an extremely good thing.

However I want to signal that, like the Green Party, I too have some concerns. They are not enough for me to oppose the first reading but I would be interested to see what the select committee comes up with and certainly, I would be interested to hear what submitters say about these things. These concerns are about whether there is the need for this to be done legislatively. The student ID is a very good example of an opportunity—just through sheer policy and some resourcing—to provide a card with a photo on that allows a person a certain status. I understand that this bill takes it a step further, and my criticism is that the opportunity for photographs raises a little bit of concern.

I was over in the United Kingdom in January of this year. Just as a tourist, I went and sat in the House of Lords and watched a debate about identity cards, including microchipping issues and things like that. The House of Lords was, I think, rejecting the proposal for about the third time. The reason for that was that, as they dug into it, they discovered this was an incredibly expensive undertaking and almost prohibitively expensive.

I ask the question, and it would be interesting to see what comes out in the select committee, about whether we need to be unleashing this potential on New Zealanders for an expensive way of developing ID cards when I think a policy and a bit of resourcing would achieve very much the same thing. I would be very interested to hear comments on that matter. I am concerned about the expense and, as I think Metiria Turei mentioned, whether we need this to be a legislative mechanism. I stand to be corrected on this, but I do not believe we have needed legislation for things like the community services card, yet it works pretty effectively.

I agree also with the comment made by the Green member when she talked about the fact that if we were going to be spending time—taking up a select committee’s time—making a difference for elderly people, the portability of overseas pensions is something that I think is actually a far more pressing need. Certainly United Future encourages the Government to make that a matter of urgency, and when we come back after the Christmas break I would like to believe work is being done on that. There are some really unfair things happening for a number of our superannuitants that certainly seem to be outside the terms of reference and intention of our superannuation scheme. [Interruption] Mr Donnelly assures me help is on its way and that is good.

United Future will be supporting this legislation. We are very happy to support it. We think it has some huge merit and we will interested to hear the answers to the questions I have posed today in this first reading speech.

Hon LUAMANUVAO WINNIE LABAN (Minister for the Community and Voluntary Sector) Link to this

I move, That the Social Security (Entitlement Cards) Amendment Bill be considered by the Social Services Committee referred to Social Services Committee