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Child Support—Total Debt

Thursday 24 July 2008 Hansard source (external site)

Collins6. JUDITH COLLINS (National—Clevedon) Link to this
to the Minister of Revenue

What is the total current child support debt broken down by assessment and penalties?

DysonHon RUTH DYSON (Minister for Social Development and Employment) Link to this

As at 30 June 2008 the total child support debt owed by liable parents, payees, and child support employers was: in assessment debt, $501,889,098; in penalty debt, $833,937,558—totalling $1,335,826,657.

CollinsJudith Collins Link to this

Is it not true that the assessment debt has grown from $192 million in 2000 to more than $471 million today, and what is the explanation for this, given the $280 million increase in assessment debt?

DysonHon RUTH DYSON Link to this

In both the cash collections, which are now approximately $1 million per day—an increase of 4 percent—and the collections on Australia, which is now $20.6 million for the last financial year compared with $13.3 million the previous year, we have seen an increase. More can be done, but in both instances we have seen an increase.

CollinsJudith Collins Link to this

Is it not true that the number of Inland Revenue Department staff employed specifically to deal with unpaid child support has increased from 98 in June 2004, to 214 in June this year; and does the Minister have any idea what these staff are actually doing, because clearly they are not collecting the unpaid child support debt?

DysonHon RUTH DYSON Link to this

From the figures I gave to the member in the previous supplementary question: clearly they are. But they are now on notice that should that member ever be part of a Treasury front bench, their jobs will be on the line.

CollinsJudith Collins Link to this

How can he be satisfied with a child support system that enables 35 of the top 100 child support debtors to take off overseas, free to leave and enter New Zealand as they please, even though they owe between $300,000 and $600,000 each, and if these same people owed $5,000 for parking or speeding tickets they would be stopped at the airport; what is the difference?

DysonHon RUTH DYSON Link to this

Data match legislation was passed by this House enabling the Inland Revenue Department and the Customs Service to ensure that people leaving and entering New Zealand did have their child support liabilities checked. That member and her party voted against that legislation.

CollinsJudith Collins Link to this

How can he be satisfied with the child support system when just 35 people owe a staggering $14 million between them, yet they are free to enter and leave New Zealand as they please because this Government cares more about parking fines than it does about children?

DysonHon RUTH DYSON Link to this

No indication of total satisfaction has been given. That member should recall that her party voted against strengthening provisions that enabled the Inland Revenue Department and the Customs Service to data match in order to enable more child support debtors to repay that debt.

CollinsJudith Collins Link to this

What does it say about the values of this Government when it thinks that stopping child support debtors at the airport is Draconian, but when it comes to people with speeding or parking tickets, it has adopted the following approach: “If you are planning on going overseas this summer you might want to pay your fines, or you could end up staying in New Zealand.”, and “fine dodgers must pay the fine or pay the price.”?

DysonHon RUTH DYSON Link to this

As I have said in the answers to previous supplementary questions, the most recent of several provisions, either in legislation or in inter-Government agreements to strengthen the arm of the Inland Revenue Department to reduce child support debt, were opposed by that member and her party.

CollinsJudith Collins Link to this

I seek leave to table the leaflet Pay or Stay, Rick Barker’s getting tough on—

WilsonMadam SPEAKER Link to this

Leave is sought to table that document. Is there any objection? There is objection.

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