Cunliffe David: Child Support Amendment Bill (No 4) — Third Reading 
Cunliffe David: Child Support Amendment Bill (No 4) — Third Reading 
[Volume:634;Page:5391] 
Hon DAVID CUNLIFFE (Minister of Immigration) 
: 
 Kia ora tatou Mr Speaker. It is a pleasure to take a short call in support of the third reading of the Child Support Amendment Bill (No 4). It has been a long road to this point but I believe a worthwhile one. This bill will assist children in need and that is the bottom line. As we have heard from many speakers too many children in New Zealand are deprived of adequate support by the unwillingness or inability of parents to meet their obligations under the Child Support Act. By amending that Act this bill will allow incentives to be put in place that will encourage the repayment of debt and ensure that more resources get to the children who need them. 
During the various stages of this bill and at the Social Services Committee there has been discussion about whether the bill would set up an inappropriate “get out of jail free” card for delinquent dads. On balance I do not believe that that will be the case and this is why. In the first instance the bill does not allow for the underlying debt to be forgiven. In the second instance no penalties are remitted unless and until a liable parent maintains his or her agreement to repay the base debt as per the undertakings he or she has given to the Inland Revenue Department. In the third instance the initial penalties cannot be remitted under any circumstances and the remission of other penalties is on a pro rata basis. Why do I go into that technical detail? I think it proves that this bill maintains discipline on liable parents throughout the process. It also provides some positive incentives for them to meet their obligations—and that is important. 
I commend the work of the select committee for the attention it has paid to the bill. I know that members from right across the House have taken a close interest in it because it concerns a subject that touches the hearts of many New Zealanders. In that context it is also appropriate for us to acknowledge the difficulty of legislating in this area whatever strategy is adopted because the law is interacting with New Zealand families at a time when by definition those families are in crisis—at a time when a separation has occurred often very recently and with all the emotional trauma and dislocation that that brings. 
Since it was first enacted the law has sought to balance the rights and obligations of custodial and liable parents. It contains a repayment formula that is objective and fair and it quite rightly provides for the imposition of penalties when debt accumulates. The other reason why this bill is before us today is that it is common ground in this House that the debt mountain has become too large. 
Dr Paul Hutchison 
: Under Labour. 
Hon DAVID CUNLIFFE 
: I think under both parties. It is important not to make this issue a partisan football; we must try to solve the problem in the interests of New Zealand children. That is what the majority of parties in this House are seeking to do. 
We will get that debt mountain down by acknowledging that some people have got so far behind and out of the system that it is quite impossible for them to get back. I am reminded of a constituent I mentioned in an earlier stage of this debate who had accumulated several hundred thousand dollars’ worth of debt mostly in penalties on an income of around $30000 before tax. Without this bill there is no financial way back for someone who gets to that point. And what does that mean? The human cost of that is that the father is on the run there is no contact with the children and beyond the cost being a financial deficit for the family it is a human and emotional deficit as well. 
None of that means we are being soft on delinquent dads or liable parents. As I said earlier on that note there will always be penalties payable as well as all of the base debt payable. This bill seeks to balance the need for repayment of debt the need to provide an incentive and the need to maintain some sanctions. I commend the bill to the House.