2. DARIEN FENTON (Labour) Link to this
to the Minister for Social Development and Employment
How is the Government’s Working for Families package supporting hard-working Kiwi families?
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) Link to this
From this Saturday three out of every four New Zealand families with dependent children will be entitled to tax credits through Working for Families. From Saturday a family on the average family income with two children will be better off by $90 a week. That also means that, in total, they would be $116 better off since 1 April 2005. Labour is targeting tax credits where they are needed for hard-working Kiwi families with children.
Hon DAVID BENSON-POPE Link to this
The Working for Families package is designed to make work pay, and to achieve a social assistance system that supports people into work. From Saturday the main work incentive parts of the Working for Families package are being rolled out with the new in-work payment, changes to the abatement of tax credits, and an increase to the family tax credit threshold. The in-work payment replaces and pays more than the child tax credit. It pays up to $60 a week per family with three children, and up to $15 a week for each other child. Couples must normally work 30 hours a week between them, and sole parents must normally work 20 hours a week.
Tariana TuriaWhat advice has been sought from Associate Ministers Horomia and Okeroa about the implications of the Government’s Working for Families package not reaching the estimated 63,000 Māori families who are the poorest families with children and who get no benefit from this package?
Hon DAVID BENSON-POPE Link to this
I certainly do not accept the member’s proposition. Very extensive advertising has been put in place to ensure that people are aware of and are receiving their entitlements.
Heather RoyDoes the Minister believe that a back-bench MP with five children, like myself, should qualify for additional welfare payments; if so, why?
Hon DAVID BENSON-POPE Link to this
I do believe that the application of support of this kind should be done fairly. The unfairness of any other application is obvious. Across-the-board tax cuts, as suggested by the ACT party, for example, give no regard to circumstance, and deliver the biggest benefits to the people with the largest incomes.
I raise a point of order, Madam Speaker. The Minister made absolutely no attempt to answer my question, which was very specific.
Madam SPEAKERHon DAVID BENSON-POPE Link to this
I would simply add that if that member has an entitlement and has enough children, then she should quite properly receive those payments.
Hon Dr Michael Cullen Link to this
Will the Minister tell the member who asked that question that if she feels embarrassed about receiving those payments she does not have to apply for them?
Hon DAVID BENSON-POPE Link to this
It is certainly the case that people need to make application for those support payments. If that member were, indeed, not deserving of them, then I assume she would not apply for them.
Hon DAVID BENSON-POPE Link to this
Working for Families is a significant investment in the well-being of New Zealand families with children. The majority of the poverty alleviation measures in the Working for Families package were put in place in 2005, although the further increases in family support rates in 2007 will have a further impact on child poverty. Using an income poverty measure of 50 percent of median household income, I am advised that after the full implementation of Working for Families, child poverty in New Zealand will be reduced by 70 percent.
Craig FossIs it fair that a hard-working Kiwi with no dependants who earns $25,000 per year, or only $480 per week, has some of his or her tax redistributed as part of the Working for Families package to someone earning up to five times that amount; if so, why is it fair?
Hon DAVID BENSON-POPE Link to this
Yes, I think it is fair. I would like to share with the member this quotation: “I don’t think of Working for Families as a welfare programme. Many people in employment also receive money from Working for Families, so we have said clearly that what has been rolled out so far will be continued with, and we’re likely to roll out much of the rest of the programme as well.” Those are the words of former Reserve Bank governor and National Party leader Don Brash last year.