Lee Melissa: Social Security (Fraud Measures and Debt Recovery) Amendment Bill — Second ReadingText is incorporated into the Bound VolumeLee Melissa: Social Security (Fraud Measures and Debt Recovery) Amendment Bill — Second Reading[Sitting date: 18 March 2014. Volume:697;Page:16777. Text is incorporated into the Bound Volume.]MELISSA LEE (National):It is a great pleasure to rise in support of the second reading of the Social Security (Fraud Measures and Debt Recovery) Amendment Bill. The National Government promised to clamp down on benefit fraud and we are delivering on the promise with this Social Security (Fraud Measures and Debt Recovery) Amendment Bill. Welfare fraud is a crime often committed by people for their own benefit at taxpayers’ expense and there can be no excuse for it.Before I go on I would like to address some of the rhetoric from the member who spoke just before me Jacinda Ardern from the opposite side who tried to paint us on the Government benches as the nasty people who want to believe that all beneficiaries are committing benefit fraud. That is far from the truth and she knows it because it has always been clearly stated that the vast majority of beneficiaries are honest people who do the right thing. Often people end up in difficult situations where they have to rely on the State for support and we on this side of the House completely accept that and support that. We are not ogres who oppose welfare. What we are opposed to is the activity of people who purposely and knowingly commit a crime—in this case welfare fraud. Relationship fraud in 2013 cost this Government more than $26 million—cost taxpayers $26 million. Relationship fraud cases made up one-third of all welfare fraud prosecutions. In most of these cases one partner usually the woman is left carrying the debt that it actually took two people to create. We are fixing that so that it is not just the woman who carries the burden of the debt. I would have thought that all members in this House would agree that that was actually a fair way to deal with it.Miss Ardern also commented on how this Government was treating welfare fraudsters in a way that is more punitive than for tax fraudsters when there are more tax frauds being committed. I would like to respond by saying that no one in this House—no one—disputes that tax fraud is a bigger issue than welfare fraud. The Government’s priority reflects that. Over the last four Budgets this Government has invested more than $200 million in new funding for tackling tax fraud but no new money has gone into fighting welfare fraud. The Inland Revenue Department has an enforcement budget of $142 million whereas the Ministry of Social Development has only $30 million. This Government has a duty to ensure that taxpayer money is not being taken illegitimately and to suggest that we turn a blind eye to tax fraud or any other criminal activity is very irresponsible of that side of the House.This bill makes spouses and partners jointly liable for debt where they knowingly benefit or should have known they were benefiting from welfare fraud. If a person is in receipt of a single living alone benefit like sole parent support but living in a marriage-like arrangement with a partner or spouse it is common sense—it is clear to everyone even in this House—that they are clearly committing a crime and that it is in fact fraud. Now they can be fined up to $5000 or given a jail term of up to a year. Prosecuting partners who benefit from welfare fraud will ensure that both parties who profit from the crime are punished and will help taxpayers recover the lost money faster.During the select committee process there were some concerns raised in the Social Services Committee regarding women in violent relationships who may be inadvertently affected by this amendment bill. The law is very very clear that for welfare purposes a violent relationship is not treated as a relationship when assessing their entitlement for benefits. That is very important to all of us in this House as we do not want to remove from women in domestic violence situations financial support that might actually help them get out of the abusive relationship. Ministry of Social Development investigators are extensively trained to spot signs of a violent relationship and will respond appropriately. It is important that the public has confidence in the welfare system and these measures along with a range of smaller initiatives included in the package will give the ministry the tools it requires to achieve that outcome.We have formalised information sharing like links between ACC the Inland Revenue Department Housing New Zealand New Zealand Police and the ministry. Information sharing between the Inland Revenue Department and the ministry so far has identified and stopped more than 5300 illegitimate benefit payments. This bill brings in new tools to prevent and detect welfare fraud and brings the welfare system into the 21st century. I commend this bill.