Bennett Paula: Social Security (Youth Support and Work Focus) Amendment Bill — In Committee 
Text is incorporated into the Bound Volume 
Bennett Paula: Social Security (Youth Support and Work Focus) Amendment Bill — In Committee 
[Sitting date: 18 July 2012. Volume:681;Page:3670. Text is incorporated into the Bound Volume.] 
Hon PAULA BENNETT (Minister for Social Development) 
: 
 I stand to talk to the title commencement and amendment of the principal Act. I do say to the member who has just finished Jacinda Ardern that like her I look forward to bill No. 2 and the changes that are coming through. I hear constantly that she is ready for the massive substantial changes to the welfare system and I can assure her that that work has been done and that it is coming. This is the first stage. We certainly have heard what has been talked about as far as the title of this bill the Social Security (Youth Support and Work Focus) Amendment Bill and I can say that this is substantial but is by no means the biggest part of changes that are coming along.  
The member did raise questions around data systems and information sharing between the Ministry of Education and the Ministry of Social Development. I think they are quite valid questions. I can assure her that that has already been tested twice. It works; we are ready to go. I can assure her that the delay with taking the commencement to 20 August just makes sure that we are getting to those young people and we are giving them that little bit of extra time to adjust which I think is fair and reasonable. 
The CHAIRPERSON (Lindsay Tisch) 
: I am sorry to interrupt the honourable Minister the time has come for me to leave the Chair. 
Sitting suspended from 6 p.m. to 7.30 p.m. 
Hon PAULA BENNETT 
: Before the break we were talking about data information-sharing and the member Ms Ardern had raised as a concern how we were going to share that information with the Ministry of Education did we know what information did we have the systems in place—I think that was the kind of thrust of where she was at. What we have done is we have actually tested it now twice and the information works and we are getting the right information in the right time. I am quite pleased to say that it has been tested it does work. The reason we have changed to that commencement date is firstly around that testing. Also we have now got to go through the third reading and Order in Council and we wanted to make sure that those who were going to have those sorts of changes also had a reasonable amount of time and notice of being written to so that they could actually get them through.  
The title of this bill absolutely does sum up where it is. It is around youth support and it is around a work focus. I have heard some things in the debate—this evening in particular—around that work focus being punitive and that people can lose benefits if they do not find jobs and things like that. That is not true. All we are asking is that people are available for work and that there is a new work preparation. So around that title having that work focus is actually fair. It is already in place as we know. It is in place for those whose youngest child is 6 and we are moving it to the youngest child being 5 for part-time work.  
There have also been some questions around the length of time and the hours that someone can work. We have given more flexibility there. We have had cases where we could see that with that work focus it was quite ridiculous that someone who was working 10 or 11 or 12 hours perhaps doing two shifts was still being work tested and that was not counted as such by the department. They were kind of being hassled a little and I did not think that was right actually. If it was a few hours either side there should be that level of flexibility. For it to be economically viable I can tell you that at 10 hours you are getting more money. At the end of the day particularly for those on the DPB the abatement is at 30 percent. That means on top of Working for Families and accommodation supplements and others that they get they are financially better off. Also at 20 hours one can just about pretty much go off the benefit. By the time you add in accommodation supplements—and actually about 40 percent of those who get accommodation supplements are not on welfare they are those in work; fully in work and off the benefit completely. There is a little gap in there and there is a gap of about anything from 17 18 19 hours where you are not substantially better off so once you get to that 20 hours there are absolutely no two ways about it: you can see a real benefit. Having that work focus which of course is in the title makes real sense and puts that attention there.  
I cannot reiterate it enough that if you have not found a job you will not be punished. You know there is no punitive measure; there is no sanction. The requirement is to be work available and the requirement is to be in that position so that you are actually actively looking. The reality is if you are looking then you know you have got a much better chance of getting one.  
As far as the youth support network focus is concerned I just want to give an example as well of a 17-year-old whom I met quite recently who had left school early had been out of work for a year had not been doing anything and had not actually been on a benefit either but had got to a stage where she sort of said: “What am I going to do?”. She took the jewellery out of her nose and dressed herself up a bit got some advice from someone on how she would interview and went round the Henderson mall with her CV and knocked on doors. It is a true story that she came out with three jobs. She came out with three retail opportunities and of those opportunities that she came out with she was at the stage where she was to do work experience for all three so she did. She went in and worked for a few hours at each of them. At the end of that all three of them offered her a job and she chose one of them. That was about 3 or 4 months ago and she is still in work and she is doing OK.  
Now that is one example I give you but to say that there is no work available simply is not true. Let me give you an example as well. As members will know during the recession we saw I was actually very proud that we had a welfare system that was there to support those who needed it. I get some grief for numbers going up—well so they should actually: that is when people are walking through the door and they need help. We should be giving it to them as efficiently and as promptly and in as much of a respectful manner as we can—and we did. You know I heard horror stories overseas and I am still hearing them of queues outside doors and people having to wait absolutely weeks and even months to get appointments let alone get the help that they need. We were able to address those needs up front but now here we are. In January 2010 we had the unemployment benefit at over 68000 people and we now have it at 50000. I would like to see it at less than 50000 and that is what we are working towards but the reality is we have seen 18000 people come off that benefit in the last couple of years due to in part the lessening of the recession without a doubt—and actually more jobs are available and that is why they are getting there—but also that kind of focus. We are seeing that kind of balance there. You can throw up your hands and just say that there are not opportunities for people but really by putting the right support around them and also giving them the right kinds of incentives and putting obligations in there is absolutely no doubt—and all evidence points to it—that you will get better results for people and they will have better opportunities.  
 You are financially better off whether you are in part-time work or in full-time work but I end by also saying that part-time work is also quite a great confidence-builder. There are those who have been either out of work for ever or out of work for a short time and are actually getting a part-time job of one or two shifts a week and it might be in retail or something else—we just recently placed 63 people off the benefit and into a call centre in Auckland guys. That is 63 people off benefit and into a call centre in Auckland. For all of them it is all different shifts and everything else. Some will be part-time most of them are full-time but I tell you what I bet their confidence grows and when that next job comes along or that opportunity to get ahead in that job they will do that.  
When it comes to the commencement we have got some parts of the bill that are happening as I say on 20 August when it comes to the youth package and others are coming through in October which just makes sense to stage that through but bill No. 2 is on its way as well which will see fundamental changes and will get us towards our next change.