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Unemployment—Minister’s Statement

Thursday 11 February 2010 Hansard source (external site)

Street10. Hon MARYAN STREET (Labour) Link to this
to the Minister for Social Development and Employment

Does she stand by her statement that “This Government has made unemployment our No. 1 priority during the course of this recession”?

StreetHon Maryan Street Link to this

Has the Minister seen today’s Sydney Morning Herald, which reports that unemployment figures in Australia have dropped to 5.3 percent, falling for the fourth consecutive month, and that 52,000 jobs were created there in January alone; if so, what comparable action is she taking to close the gap with Australia?

BennettHon PAULA BENNETT Link to this

No, I have not read the Sydney Morning Herald. I have been concentrating on New Zealand and being very busy in that job.

DavisKelvin Davis Link to this

What is she planning to do to help the 25,000 Māori who now find themselves unemployed, unable to find work, and facing increases in electricity and food prices?

BennettHon PAULA BENNETT Link to this

What we do have within the Ministry of Social Development is assistance for some people through hardship assistance. We have certainly seen an increase in people looking for that over the last year. We are certainly seeing more emphasis on Community Max in areas like that. Nearly 50 percent of take-up in Community Max has been for Māori. We are seeing $1.5 billion in infrastructure with broadband. We are seeing roading programmes that are creating jobs for those very New Zealanders.

DouglasHon Sir Roger Douglas Link to this

Has the Minister seen the analysis that shows that the doubling of youth unemployment since April 2008 is far greater than usual during a recession, with two out of five Māori youth now unemployed; if so, does she agree that the abolition of youth rates has been a major contributor to this unusually large increase?

BennettHon PAULA BENNETT Link to this

Yes, I have seen evidence that youth have been most affected by this recession. I actually put it down to the fact that for 9 years under Labour the education system left those people behind, so when they came out looking for jobs they did not have the education and skill level that would keep them in the market. That is why national standards are so important.

ParataHekia Parata Link to this

Tēnā koe e Te Mana Whakawā, huri noa i tō tātou Whare. Ngā mihi o te tau hou.

[Greetings to you, Mr Speaker, and throughout our House. Greetings of the New Year.]

Can the Minister give an example of how this Government has assisted—

HughesHon Darren Hughes Link to this

I raise a point of order, Mr Speaker. I apologise to the member; I thought she was raising a point of order. The point of order I want to raise is that Sir Roger Douglas’ question was about youth rates of pay in the employment market, and there was no attempt to address that whatsoever.

SmithMr SPEAKER Link to this

No, I do not need any further help. The Minister answered the first part of the question and then offered a different view in respect of the second part.

ParataHekia Parata Link to this

Can the Minister give an example of how this Government has assisted those struggling in a difficult employment market?

BennettHon PAULA BENNETT Link to this

As I referred to yesterday, it is a big list and one that takes quite some time. The $348 million that has gone into home insulation has provided 2,000 jobs. The $1.5 million this year for Healthy Homes has provided another 1,500 jobs. Job Ops and Community Max have provided another million dollars just for extra support for Student Job Search. Another million dollars is going to local councils for youth development partnerships, There were 1,600 summer scholarships for students. The list goes on.

DouglasHon Sir Roger Douglas Link to this

Does the Minister agree with the Hon Kate Wilkinson, who yesterday stated that the abolition of youth rates priced young people off the market; if so, will she support my member’s bill, being released this afternoon, to reintroduce a youth minimum wage?

BennettHon PAULA BENNETT Link to this

I have not seen any evidence, in both my role as Minister of Social Development and Minister of Employment through Vote Employment, that shows evidence that young people are losing their jobs because of the youth rates.

SepuloniCarmel Sepuloni Link to this

Given that even if the Minister combined all of the placements and Job Ops, Community Max, and the like, she will be assisting only a mere 5 percent of the 168,000 New Zealanders looking for work, what additional measures does she propose to help the high proportion of over 12,000 Pacific people who are now unemployed and will not gain places in these schemes?

BennettHon PAULA BENNETT Link to this

I think there is a key difference between us—and it is quite evident. We believe that growing business, helping businesses, will actually help them have the confidence to take people up on jobs. That is what this Government is doing. It is about growing the economy instead of dividing just that piece of pie differently. That is going to create jobs. That is going to give jobs for those very people.

MackeyMoana Mackey Link to this

What is she doing to address the nearly 10,000 people in the Gisborne - Hawke’s Bay region who are currently unemployed, especially the nearly 2,500 people who have lost their jobs in this region since National took office?

BennettHon PAULA BENNETT Link to this

It is true that that area has been particularly hard hit. But we are seeing seasonal work come on and the numbers there starting to move. The Work and Income office has had good reports of people turning in to work, as well. But we are certainly seeing that our rural areas are some of our hardest hit—there are no two ways about it. But that, unfortunately, is the effect of the global recession.

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