9. JO GOODHEW (National—Rangitata) Link to this
to the Minister for Social Development and Employment
What reports has she received about traders acting fraudulently when presented with Work and Income vouchers?
Hon PAULA BENNETT (Minister for Social Development and Employment) Link to this
An undercover investigation has confirmed that some second-hand dealers are abusing Work and Income vouchers. Nine second-hand traders were visited in the May sting, and five of those traders illegally offered cash or other goods in exchange for the vouchers. Those traders have received warnings, and have been referred to the police. Following our investigations, one trader has shut down his shop. This trader relied heavily on the profits from this unethical activity.
Hon PAULA BENNETT Link to this
We are sending all traders a strong message. We will continue to carry out undercover checks. We will take action against those operating unethically. We will blacklist them and we will inform the police. This unethical behaviour does not only rip off the taxpayer; it also leaves beneficiaries significantly disadvantaged. These vouchers are loans, made as a benefit advance, and at the end of the day they have to be paid back. When an unethical dealer sets an item at a higher price, that cost is ultimately paid by the beneficiary.