Benson-Pope David: New Zealand Superannuation and Veterans’ Pensions (Entitlements of Spouses and Partners of People in Long-term Residential Care and Remedial Matters) Bill — First Reading 
Benson-Pope David: New Zealand Superannuation and Veterans’ Pensions (Entitlements of Spouses and Partners of People in Long-term Residential Care and Remedial Matters) Bill — First Reading 
[Volume:629;Page:1630] 
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) 
: 
 I move  
That the New Zealand Superannuation and Veterans’ Pensions (Entitlements of Spouses and Partners of People in Long-term Residential Care and Remedial Matters) Bill be now read a first time. 
 At the appropriate time I intend to move that the bill be referred to the Social Services Committee for consideration and that the committee report the bill back to the House on or before 22 May 2006. 
The main aim of the bill is to extend the eligibility for the single rates of New Zealand superannuation or veterans pensions to all superannuitants and veterans pensioners who have spouses or partners in long-term residential care in a hospital or rest home. The single rates are higher than the rates payable to persons who are married or in a civil union. This amendment will apply from 1 July this year. It was recommended by the Social Services Committee in a report that the committee presented to Parliament in May last year. The committee report was prepared in response to concerns outlined in a public petition. The Government accepted the recommendation in the committee’s report. 
Currently a person with a spouse or partner in long-term residential care is eligible for the higher single rates in only two narrowly defined circumstances: firstly if the spouse or partner is receiving the residential care subsidy which is means-tested; or secondly if the spouse or partner is suffering the effects of a stroke or dementia and is thereby unable to recognise the spouse or partner and affirm marriage vows. There are two main issues with the current approach. First the current linking of access to the higher single rates to the residential care subsidy is inconsistent with the general non - means-tested approach to eligibility for New Zealand superannuation and veterans pensions. Second the exception that relates to a spouse or partner suffering a stroke or dementia has proved difficult to administer. In particular it requires officials to ask intrusive questions and make complex decisions regarding sensitive issues. 
This amendment will ensure fairer treatment for many superannuitants and veterans pensioners living in the community with spouses and partners in residential care. Approximately 2000 older New Zealanders in that situation will benefit from this change. I should like to take this opportunity to thank the petitioners who first brought this issue to the attention of the House particularly petitioner Mrs Barbara White who was supported by Lianne Dalziel. 
The bill also makes other changes to eligibility criteria for New Zealand superannuation and veterans pensions. From 1 July 2006 the bill will remove the sharing expenses rule which has prevented some superannuitants and veterans pensioners from receiving the living alone payment. The living alone payment represents the difference between the single sharing rate and the higher single living alone rate of New Zealand superannuation and veterans pensions. This difference is currently just under $20 a week net of tax. Current legislation limits eligibility for the living alone payment to superannuitants and veterans pensioners who are single living alone in their principal place of residence and not sharing their household expenses—including accommodation expenses—with any other person. 
The sharing expenses rule operates as a somewhat strict and arbitrary form of income testing for the living alone payment. It is strict in that any contribution to household expenses denies eligibility completely. It is arbitrary in that only a particular form of income—namely contributions to household or accommodation expenses—is counted. In some cases superannuitants and veterans pensioners have been denied eligibility for the living alone payment because they received modest contributions to their household expenses from others such as family members. The amendment will mean that eligibility for the living alone payment is based solely on actual living arrangements. It will therefore ensure fairer treatment for all superannuitants and veterans pensioners who are living alone. 
The third amendment contained in this bill will enable a person to be paid New Zealand superannuation or a veterans pension for up to 156 weeks if that person is overseas and undertaking voluntary work for a recognised aid agency such as Volunteer Service Abroad. Currently the maximum payment period is 52 weeks. However Volunteer Service Abroad’s standard assignment period is 2 years. The extension of the payment period to 156 weeks that is provided by this bill will allow for a typical 2-year assignment plus potential extension of the assignment for up to a further year. This will therefore remove the financial disincentives that inhibit older volunteers from making a longer contribution to Volunteer Service Abroad. 
The final amendment contained in the bill changes the War Pensions Act to enable all rates of veterans pensions to be increased by Order in Council. This change will align the legislative provisions for the adjustment of rates of veterans pensions with those of New Zealand superannuation under the Social Security Act. As required under section 73 of the New Zealand Superannuation and Retirement Income Act the Minister of Finance has provided a statement regarding the consultation process followed in the development of the amendments to that Act that are contained in the bill. The statement also covers the outcome of this consultation. The statement is included in the bill’s explanatory note and was also tabled in the House when the bill was introduced. 
The amendments contained in this bill address several anomalies in the current treatment of superannuitants and veterans pensioners. I am confident they will ensure fairer and more equitable treatment for many older New Zealanders. In summary the bill is further evidence of the commitment of this Government to ensure that superannuitants and veterans pensioners are able to live in dignity and participate fully in our society. I am pleased to commend this bill to the House.