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Unemployment, Increase—Government Policies

Tuesday 21 July 2009 Hansard source (external site)

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

What steps is this Government taking to address the growing number of people who are now unemployed?

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

We are concentrating on providing a stable economy where employment growth can improve as the recession abates. My focus is on ensuring that those who are in genuine need get the assistance they need to get back into work.

KingHon Annette King Link to this

Why is the Minister refusing to provide weekly updates of the unemployment benefit figures that she receives? Is it because she does not want Kiwis to know that last week alone 1,342 people went on the dole? Why is she trying to hide that fact?

BennettHon PAULA BENNETT Link to this

There is no hiding of the figures; this Government has been presenting them sooner than the previous Government did. There is no doubt about that. In fact, that the figure of 1,342 is out there is evidence that figures are being reported on a weekly basis. Since we are talking figures, I add that last week alone 1,557 people went off the benefit and into work.

ShanksKatrina Shanks Link to this

Has the Minister seen any reports of responses to rising unemployment in previous years when the Budget has been tight?

MallardHon Trevor Mallard Link to this

I raise a point of order, Mr Speaker. I am sorry to raise it after the member’s question, but I have been thinking very carefully about the Minister’s reply and I want to take some care here. She said “the benefit”, referring to unemployment benefits. She could not possibly have been correct.

SmithMr SPEAKER Link to this

The member must not do that. He must not litigate answers like that in a point of order. The matter can be followed up with further supplementary questions, but certainly not by way of—[ Interruption] Members will not interject while I am on my feet.

ShanksKatrina Shanks Link to this

Has the Minister seen any reports of responses to rising unemployment in previous years—[ Interruption]

SmithMr SPEAKER Link to this

I ask members to show a little courtesy to the member asking a supplementary question. She is towards the back of the House, and the interjections are flying across the front. I cannot hear her.

ShanksKatrina Shanks Link to this

Has the Minister seen any reports of responses to rising unemployment in previous years when the Budget has been tight?

BennettHon PAULA BENNETT Link to this

Yes. In fact, I have seen a report that states: “In reality, there are no quick-fix solutions or easy answers. Unemployment has to be addressed at a number of levels.”, and also that benefits, in terms of jobs, are much longer coming—

KingHon Annette King Link to this

“A number of levels.” Very good!

BennettHon PAULA BENNETT Link to this

The member who interrupts, the Hon Annette King, was the author of that report.

KingHon Annette King Link to this

Is it a measure of the success of her unemployment policy that only 1,245 people have benefited from the much-hyped ReStart package, which is fewer than the number of people who went on to the dole in 1 week? Is the fact that so few people are getting this assistance an indication that this assistance is not much help at all?

BennettHon PAULA BENNETT Link to this

I am sorry, I did not hear the member’s number, but, just to be clear, I say that to date a total of 3,690 people have been granted ReStart assistance. Every single one of them is grateful for that assistance over 16 weeks, which helps them through a pretty tough time of redundancy. I am quite proud that we have been able to offer that assistance to those people.

BurnsBrendon Burns Link to this

What does the Minister say when, due to a lack of Government response to rising unemployment in Canterbury, which is now seeing 4,000 people on the unemployment benefit, a private initiative has today been launched in the Christchurch Press specifically to combat youth joblessness, which is soaring? Will her ministry support the Christchurch youth compact?

BennettHon PAULA BENNETT Link to this

Unlike the previous Government, we support private initiatives, the non-governmental organisation sector stepping up with initiatives, and Government initiatives. We are pretty keen to see people taking the initiative in terms of what works best in their communities, and we certainly back them to do that. I would be interested in hearing more.

HughesHon Darren Hughes Link to this

I raise a point of order, Mr Speaker. The Minister started her answer in quite a political way, but, putting that issue to one side, the member for Christchurch Central, Mr Burns, asked the Minister a very specific question about her department and about a specific programme. The answer canvassed all manner of things, but did not come back to the point that Mr Burns asked about, which was that programme in Christchurch.

BennettHon PAULA BENNETT Link to this

At the beginning he asked about a particular private enterprise that was running in Christchurch, and I addressed that.

SmithMr SPEAKER Link to this

I accept that the question asked by the member was a pretty straight question. The only dilemma is that, being a supplementary question, it is possible the Minister may not have specific information on that particular scheme. But because it was such a straight, non-political question, if the Minister has any information on the particular Christchurch proposal, I ask her to answer that part of the question.

BennettHon PAULA BENNETT Link to this

As I stated, I do not think that the Government alone has solutions to what is going on. We support private enterprises, and we support non-governmental organisations coming up with initiatives. I have not had a full briefing on that particular initiative, but I am certainly happy to listen.

ShanksKatrina Shanks Link to this

Has the Minister heard of any other sensible ideas to address unemployment?

BennettHon PAULA BENNETT Link to this

I have heard a number of reports this week, but no sensible ones from the Opposition—that is for sure. Labour’s big idea to put hundreds of thousands of middle-class people—

HughesHon Darren Hughes Link to this

I raise a point of order, Mr Speaker. I am sorry to interrupt the Minister, but she has no responsibility for what ideas she may have received from the parliamentary Opposition. She has an entire department that she is meant to be responsible for, and we have questioned her on those matters.

SmithMr SPEAKER Link to this

I accept the point the honourable member makes. The Minister does not have any responsibility for Opposition policies. I invite the Minister, bearing that in mind, to answer the question.

BennettHon PAULA BENNETT Link to this

I have been reading the paper and seeing reports that talk about hundreds of thousands of middle-class New Zealanders going on to welfare, which we believe is impractical, unaffordable, and unfair. But a headline today says that “Goff backtracks” because he is not sure whether that is a good policy. So it would be fair to say that I have seen no sensible ideas this week.

GoffHon Phil Goff Link to this

Will the Minister answer the question the Prime Minister did not answer, which is: does she believe that if a person is made redundant, that person should not be eligible for any financial assistance for job search or retraining if his or her spouse happens to still be earning just $26,000 a year?

BennettHon PAULA BENNETT Link to this

I think the Leader of the Opposition does not understand that although that person will not be eligible for a main benefit, he or she could be eligible for special grants, some training incentives, or child support payments—[ Interruption] Opposition members should calm down; they asked the question and I am just giving the answer. Such people could actually be eligible for other assistance, and I suggest they contact Work and Income because we would like to help them if we can.

GoffHon Phil Goff Link to this

You don’t believe it. You don’t believe they deserve any support, despite the fact you had it—

SmithMr SPEAKER Link to this

The Leader of the Opposition must not interject “you” did this and “you” did that, because the Speaker was not involved.

DavisKelvin Davis Link to this

What initiatives is the Minister implementing in Te Tai Tokerau to address the problem of the dozens of Māori becoming unemployed there each week?

BennettHon PAULA BENNETT Link to this

Unfortunately, unemployment numbers are going up throughout the country. There is no doubt about that. But we are still seeing a triage rate happen in those areas. A number of people who are walking into Work and Income offices and expecting to go on a benefit are actually walking out not on one, because they are able to secure jobs or further training opportunities through Work and Income. I am proud to say that there are more people on the front line working with the individuals who need it most.

RobertsonGrant Robertson Link to this

Does the Minister agree with Wanganui Work and Income regional commissioner Gloria Campbell that the number of young people going on to the unemployment benefit is of “great concern”; if so, what specific initiatives is she taking to get them and the rest of the 3,000 people in the Whanganui area on the unemployment benefit back to work?

BennettHon PAULA BENNETT Link to this

Yes. I am pleased to hear that the regional commissioner thinks that is of great concern. It is certainly of concern to this Government, as well. For the year ended 30 June we processed a total of 131,164 student allowance applications and 249,822 student loan applications. This is an increase of 28.6 percent and 14.64 percent respectively on the previous year. I think a number of youth are moving into those training incentives, which is where we are supporting them, as well.

KingHon Annette King Link to this

I seek leave to table a letter from the Minister to me, in which she refuses to provide the weekly unemployment benefit figures she receives.

SmithMr SPEAKER Link to this

Leave is sought to table that document. Is there any objection? There is none.

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

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