4. Hon ANNETTE KING (Deputy Leader—Labour) Link to this
to the Minister for Social Development and Employment
What reports, if any, has she received on current and projected unemployment rates in New Zealand?
Hon PAULA BENNETT (Minister for Social Development and Employment) Link to this
I have received a number of reports on unemployment. The latest official figures show the unemployment rate at 4.6 percent, responding to the economic downturn. I have seen reports on how the unemployment rate will rise, with predictions ranging from 4.4 percent to an extreme of 14 percent, and many numbers in between. There is no doubt that the rate will continue to rise, due to the economic storm buffeting the world. This Government’s focus is to blunt the sharp edges.
Was the Minister invited to the hastily arranged Cabinet summit in mid-January to discuss jobs, knowing that the 170,000 people predicted by Treasury to be unemployed over the next 3 years will be her portfolio responsibility; if so, why did she not attend?
Hon PAULA BENNETT Link to this
Let me assure the member of Parliament that that was a small meeting of economic Ministers, and let me assure the member that I am meeting with my colleagues daily to talk about the impacts of this economy and the effect it is having on New Zealanders’ jobs, and how we will blunt those sharp edges.
Which statement is correct: the Minister’s comments on Radio New Zealand on 27 January, stating that a number of job initiatives are ready to go, or her quote in her sole press release on employment in the last 3 months, on 5 February, saying “the Job Summit … will investigate initiatives”; if the job initiatives are ready to go, when will the 105,000 unemployed people hear something other than platitudes and excuses at a talkfest in late February?
Hon PAULA BENNETT Link to this
There are, of course, so many initiatives happening with this Government that it is hard even to know where to start. Unfortunately, the last Government took a head in the sand sort of approach to preparing for the downturn. In fact, in March last year the unemployment rate was at 3.7 percent, but when this Government came in it was already well over 4 percent. So in just 3 months we have seen the Government kick off a major jobs and growth plan to help New Zealand navigate through these turbulent times. On Labour’s watch, the unemployment rate continued to rise for three consecutive terms—
Hon PAULA BENNETT Link to this
—three consecutive quarters—OK; shall we do this again? For three consecutive quarters the unemployment rate rose under that Labour Government, and we did not see a jobs and growth plan. In fact, New Zealanders will remember a promise of a mini-Budget that had no details attached to it, but they are seeing from National a clear plan forward for New Zealanders to keep their jobs.
Mr SPEAKERBefore I take the next honourable member’s question, I just remind Ministers that question time is not a time for speeches.
Jo GoodhewWhat is the Government doing to manage rising unemployment and to help ordinary New Zealanders who are struggling with the impact of the economy?
Hon PAULA BENNETT Link to this
This National Government has a firm jobs and growth plan in place to help ordinary Kiwis combat these tough times. We have been working with employers to squeeze the maximum jobs out of the labour market. We have been planning to keep people in work, even if that means some reduced hours. We will be making CPI adjustments for benefits and New Zealand superannuation. We have cranked up front-line services within my ministry to deal with the increased demand. The Prime Minister is holding a national jobs summit at the end of this month. We are holding regional jobs summits to come up with locally based options. We have already amended legislation to help employers and employees, with the 90-day legislation, which will be quite magnificent. Just yesterday we saw an increase in the minimum wage, under this National Government.
Can she confirm that rather than sitting on its hands, as she claimed, Labour in Government reduced the unemployment rate from 7.5 percent to 3.8 percent through active labour market policies that saw 140,000 fewer people on the unemployment benefit, and if the previous Government’s policies did nothing, which programmes has she cancelled since she became Minister?
Hon PAULA BENNETT Link to this
This Government is focused on accountability back to taxpayers for their money, and we are quite proudly standing up and saying that we are looking at all programmes that are being done. We are looking at best value for dollar, and we will be delivering back to families that really need it.
What advice did she give regarding the 50c an hour increase to the minimum wage and its impact on unemployment, and did her advice include a comparison between a Cabinet Minister’s tax cut of $120 a week from 1 April and the $20 a week gross a low-income earner will receive on the minimum wage from 1 April?
Hon PAULA BENNETT Link to this
This Government has an unrelenting focus on work, and we will be supporting New Zealanders to stay in their jobs, to keep their jobs, and to get back into jobs whenever possible.