9. JUDITH COLLINS (National—Clevedon) Link to this
to the Minister for Social Development and Employment
Does he stand by his statement in the House on 22 May 2007 in relation to the single core benefit that “phase two will be introduced when Cabinet makes appropriate further decisions.”?
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) Link to this
Yes. It will be no surprise to the member that Cabinet needs to approve the detail of phase two before it is implemented. Phase one, I am pleased to tell the House, is progressing well, and, as I informed the member on 14 June, 13 June, 24 May, and 22 May, phase two is about further simplifying the benefit system so as to better align individual needs with support services. That phase is currently being worked on by officials, and final decisions about the detail of phase two will be made in 2008.
Hon DAVID BENSON-POPE Link to this
I know that an Official Information Act request released recently to the member makes it clear that the Cabinet decision was to split that policy development. I can provide her with the exact date in due course. I do not have it in front of me at this time.
Steve ChadwickCan the Minister advise what success Work and Income has had to date in supporting New Zealanders into work?
Hon DAVID BENSON-POPE Link to this
I am pleased to advise the House that in 1999 the total number of working-age clients receiving a benefit of any kind was 401,415. That number currently, as of June this year, is 261,009—for all benefits received—and is a 35 percent reduction. In respect of the total number of people receiving the unemployment benefit, the reduction is, however, 86 percent, from 161,000 to 23,000 last month. Māori figures show a reduction from 44,378 to just 7,873 in June, which is an 82 percent reduction. For Pacific Island recipients, the reduction is from 12,317 in December 1999 to 1,753 now, which is an 86 percent reduction. Probably the most pleasing statistic for members to hear is the reduction in the category of 18 and 19-year-olds receiving the unemployment benefit, from 17,514 under National to just 990 this month.
Will the Minister confirm that he, the Prime Minister, and Steve Maharey met on or about 15 August 2006 and decided to abandon the single core benefit, but, to save face and to avoid announcing that decision, they chose to rename it phase two, and will the Minister now admit that phase two will never happen, because the single core benefit has been abandoned?
Hon DAVID BENSON-POPE Link to this
I can confirm no such thing, but I would say that it must be obvious to the member that the Government would, understandably, focus on the success of phase one of that project. Not only have we seen the extraordinary achievements that I have just detailed, but some of the more lasting legacies of the National Government have already been significantly attacked. For example, the member will be interested to know that the number of people receiving an unemployment benefit for more than a year has reduced by 86 percent since these policies were introduced. The number of Māori long-term unemployed—for more than 1 year—has also seen massive drops, from 20,500 under National to just 2,916 under Labour. Similarly, those successes are mirrored by the results for Pacific Island recipients. In December 1999 over 5,600 Pacific Islanders had been receiving a benefit for longer than a year; in June this year that number was 711.
Is it not true that until that meeting between the Minister, the Prime Minister, and Steve Maharey, when the single core benefit was secretly shelved, the single core benefit was the key feature of Working New Zealand single core benefit reforms, and that what the Minister now calls phase one reforms were only ever designed to enable the implementation of the single core benefit, which was the policy Labour campaigned on in 2005?
Hon DAVID BENSON-POPE Link to this
I say to the member that she allows her fantasy to run away with her.
Madam SPEAKERWhy did the Minister rush ahead with legislation to implement phase one, even though those changes were designed to support the implementation of the now shelved single core benefit, when the benefit had already been abandoned, and when the repeated and strenuous advice from Treasury was that the phase one reforms do not offer value for money and that we can get better value for money in other ways?
Hon DAVID BENSON-POPE Link to this
I think the numbers speak for themselves. Frankly, I am not sure I would wish to tempt the patience of the House by repeating them. Clearly, the value to this community, to this economy, and to New Zealanders of making that huge inroad into the number of New Zealanders whom the National Government left on the scrap heap has been very good value for money indeed.
Does the Minister agree with the following statements from Treasury in relation to phase one of the Working New Zealand reforms: “There are major issues with parts of the proposals with respect to value for money.”, “The phase one proposals do not offer value for money.”, “The proposals do not offer value for money.”, and “Treasury has concerns about the value for money of this additional spending.”?
Hon DAVID BENSON-POPE Link to this
It is nothing new for that member to provide selective quotes out of documents she has received. What I would say is there is absolutely no doubt of the difference between the policy delivery of that party, which left 161,000 people receiving the unemployment benefit, and the policies of this party, including Working New Zealand, which saw that number at 23,000 last month.