2. SUE BRADFORD (Green) Link to this
to the Minister for Social Development and Employment
What is the forecast for benefit spending, excluding New Zealand superannuation, over the next 4 years, and by how much does this exceed the Treasury forecast of December 2008?
Hon PAULA BENNETT (Minister for Social Development and Employment) Link to this
The forecast of total benefit expenditure, excluding New Zealand superannuation, over the next 4 years is $32.067 billion. That is $3.851 billion higher than the 2008 December economic and fiscal forecast.
How, then, will axing the $10.5 million a year Enterprising Communities job creation scheme assist in reducing these higher benefit costs?
Hon PAULA BENNETT Link to this
We are in times when we are making tough decisions on what we continue and what we do not. The Enterprising Communities scheme did some good work in times past and when the economic situation in New Zealand was very different. We are in different times now and we are making different decisions.
Jo GoodhewHon PAULA BENNETT Link to this
In addition to the increasing number of people coming on to the unemployment benefit, officials are forecasting increases in the invalids and sickness benefits, as well as increasing costs in supplementary assistance. Sickness benefits are forecast to increase 15 percent, costing $385 million. Invalids benefits are forecast to increase 2.5 percent, adding another $129 million.
Why, at a time of rising unemployment, is the Government cutting one of the last remaining programmes that helps particularly vulnerable unemployed people do socially and environmentally useful work in their communities?
Hon PAULA BENNETT Link to this
It would be fair to say that we are making some tough decisions at this time, and we need to focus on providing services to more people. We could, for example, spend $145,000 over 3 years funding an arts centre that resulted in one full-time job and six part-time jobs, or we could spend the same amount of money and get full-time, unsubsidised jobs for 32 people through programmes and industry partnerships.
Has the Minister considered re-establishing a community economic development unit or function within her department, as proposed in the Green New Deal stimulus package released a couple of weeks ago; if not, why not?
Hon PAULA BENNETT Link to this
I have seen that package and we have been looking at it. The officials are doing a bit of work around it at the moment, and I would be very pleased to talk to the member further about it if we think it will gets the sorts of results we are interested in seeing.
Will the Minister advocate to her colleagues in Government that it picks up the whole Green New Deal package, which contains proposals that would save nearly half a billion dollars a year in unemployment payments and create roughly 42,000 jobs?
Hon PAULA BENNETT Link to this
I am sure this Government is interested in continuing conversations with the Greens on some of their proposals. I look forward to seeing how they go.
Hon Annette KingHow many jobs that would reduce the need for benefits has the Government saved through initiatives from the Job Summit so far?
Hon PAULA BENNETT Link to this
I am reluctant to give the exact number on that, because I do not have it in front of me. But from memory it was about 223 jobs the last time I looked at it, and the number is growing daily. We had over 83 organisations of 100-plus employees there.