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Recession—Advice or Assistance for Affected Workers

Tuesday 17 February 2009 Hansard source (external site)

King3. Hon ANNETTE KING (Deputy Leader—Labour) Link to this
to the Minister for Social Development and Employment

What advice or assistance, if any, is available to workers who have recently lost their jobs, had their hours reduced, or been sent on sabbaticals, as a result of the economic downturn?

BennettHon PAULA BENNETT (Minister for Social Development and Employment) Link to this

Work and Income has a range of support and financial assistance that could help workers facing cut-backs and redundancies. I encourage any people finding themselves in this position to contact their local Work and Income office.

KingHon Annette King Link to this

Is this part of the assistance her Government is providing to the unemployed: a letter sent out by her department advising a client to go to a loan shark, and to pawn the cellphone and the kids’ toys to increase the client’s income before getting assistance; if so, is this appropriate advice to give to unemployed New Zealanders?

BennettHon PAULA BENNETT Link to this

I have not seen that letter. I look forward to seeing it so that, if that is the sort of information that is going out, we can hold someone to account.

KingHon Annette King Link to this

Is she aware that the chief executive of Budgeting and Family Support Services, Mangere said the letter sent out by her department was offensive to the client, and the whole point of providing support to vulnerable clients is so that they do not go out to borrow more money from loan sharks at exorbitant interest rates; and if she thinks it is appropriate for her ministry to be encouraging clients to be more indebted, why?

BennettHon PAULA BENNETT Link to this

I do not think it is appropriate. I did not expect to stand up and agree with the member so early in my term as a Minister, but I do not think that is appropriate. I would love to see the letter. I hope she tables it at the end of this question and we can do something about it.

KingHon Annette King Link to this

Will she give a guarantee that funding to budget advisory services will not be reduced, in light of the increased numbers of people who are now flowing through the doors of such agencies?

BennettHon PAULA BENNETT Link to this

This Government is looking at all areas of money and where it is being spent. We will continue to do that. I am looking at a line by line review and at value for money, and we will be supporting front-line services.

GoodhewJo Goodhew Link to this

What has the Government done as part of its focus on jobs and growth in the 3 months since the election?

BennettHon PAULA BENNETT Link to this

Our focus has been on a jobs and growth plan. We have raised the minimum wage to $12.50 an hour, we have CPI-indexed the increases, we are looking at the 90-day trial period bill, which will make a huge difference for New Zealanders to get into employment, and we will be supporting front-line services that directly help New Zealanders in their jobs.

KingHon Annette King Link to this

I seek leave to table the letter from a case manager from Work and Income requiring a person to take out a loan, and to pawn the cellphone and the children’s PlayStation, etc.

SmithMr SPEAKER Link to this

Leave is sought to table that letter. Is there any objection? There is no objection.

Document, by leave, laid on the Table of the House.

KingHon Annette King Link to this

I seek leave to table a letter from Budgeting and Family Support Services, Mangere saying how offensive that letter is—that the department should be requiring people to take out loans—

SmithMr SPEAKER Link to this

Is there any objection to that letter being tabled? There is no objection.

Document, by leave, laid on the Table of the House.

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