Mackey Moana: Questions for Oral Answer — Questions to Ministers 
Mackey Moana: Questions for Oral Answer — Questions to Ministers 
[Volume:627;Page:21961] 
6.  
MOANA MACKEY (Labour) 
 to the  
Minister for Social Development and Employment 
: What reports has he received on numbers of working-age New Zealanders receiving a benefit? 
Hon STEVE MAHAREY (Minister for Social Development and Employment) 
: 
 The latest quarterly benefit figures from Work and Income show that the number of working-age New Zealanders on benefits has fallen in every region in the country over the past year reaching a 17-year low. The number of New Zealanders on the unemployment benefit has reached a 19-year low falling 26 percent in the last year alone. Domestic purposes beneficiary numbers have also fallen in every region with the number of sole parents on the domestic purposes benefit now standing at an 11-year low. There are now 81000 fewer New Zealanders on benefits than in 1999—a 22 percent reduction. There are nearly 100000 fewer people on the unemployment benefit since 1999—a 66 percent reduction. 
Moana Mackey 
: What have been the key drivers of this fall in the number of people on benefits? 
Hon STEVE MAHAREY 
: There are a number of factors including a strong economy but also including the employment assistance policies of a Labour-led Government such as Jobs Jolt and WRK4U which the OECD last month confirmed has led to rapid falls in benefit numbers—more rapid—since 2003. The OECD now includes New Zealand in an elite group of countries it calls “job miracles” where Government policies have contributed to dramatic falls in unemployment. Under the Labour-led Government hundreds of thousands of opportunities have been created for New Zealanders with a quarter of a million new jobs added to the economy. We will keep developing policies that will lead once again to the OECD identifying this country as one of the leaders. 
Judith Collins 
: Can he confirm findings that in March 2005 60 percent of firms reported difficulties in finding skilled staff and 49 percent of firms reported difficulties in finding unskilled staff but that there are still almost 300000 working-age Kiwis on benefits; and can he also confirm Treasury’s projections that under Labour’s policies the total number on benefits would increase? 
Hon STEVE MAHAREY 
: I can confirm that firms have reported skill shortages and shortages of labour. It is lucky therefore that we have doubled the amount of money going into industry training introduced the Modern Apprenticeships programme and introduced job partnerships with industries right across the country. This problem would be even worse under National. In answer to the second question no I cannot confirm Treasury forecasts of what is going to happen. We have returned $3.3 billion already to Treasury because we have beaten the forecast year after year. 
Moana Mackey 
: Is the success in lowering the number of New Zealanders on benefits likely to continue? 
Hon STEVE MAHAREY 
: Yes it is. In the past year alone we have reduced growth in sickness and invalids benefit numbers by over 50 percent and have begun to provide the most significant reform of the benefit system in 70 years. Our policies will help more New Zealanders move off benefits into work. But yes this success is under threat. In the past week I have seen people advocating a return to the Work for the Dole scheme which clearly failed; compulsory immunisation of children; and adopting out the babies of people on the domestic purposes benefit as a way of getting those people back to work. 
Judy Turner 
: Can he confirm that of the 10406 people on the unemployment benefit at the end of January this year who were over the age of 60 10083 or 97 percent had work-test exemptions; if so why is he allowing significant numbers of people to spend their final working years on a benefit when they could be retrained and used to fill labour shortages? 
Hon STEVE MAHAREY 
: I certainly invite the United Future party to campaign on a work test for people who are 64 years of age. What we agreed to do was to introduce a work test for people between 55 and 60 but many people who are between 60 and 65 are moving through a transition period towards superannuation as their age moves up. We make available to all those people all assistance to move into a job if they would like to do so but we are not planning to work test people aged between 60 and 65. We would welcome the member doing that. I would welcome that debate on the hustings. 
Dr Muriel Newman 
: In light of the Minister’s own answers showing that almost 320000 working-age adults including spouses and partners depend on taxpayer-funded benefits why does he continue to mislead the public by claiming that the numbers dependent on benefits are significantly lower? 
Hon STEVE MAHAREY 
: As at 30 June the number of working-age beneficiaries in New Zealand was 290466. When Labour came into Government it was around 400000 from memory. That is a drop I think by my maths. 
Dr Muriel Newman 
: I seek leave to table figures from the Minister that show that almost 320000 working-age people are dependent on benefits. 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? There is.