Pillay Lynne: Questions for Oral Answer — Questions to Ministers 
Pillay Lynne: Questions for Oral Answer — Questions to Ministers 
[Volume:648;Page:17458] 
7.  
LYNNE PILLAY (Labour—Waitakere) 
 to the  
Minister for Social Development and Employment 
: What recent reports if any has she received on the Working for Families package? 
Hon RUTH DYSON (Minister for Social Development and Employment) 
: 
 I have seen a transcript from last Sunday’s  
Agenda  
programme where the Leader of the Opposition said he would not change Working for Families. That statement completely contradicts previous statements from Mr Key that said National opposed the Labour-led Government’s Working for Families expansion “with every bone in our bodies”. He described the expansion as “communism by stealth”. 
Lynne Pillay 
: Has the Minister seen any other recent reports on the Working for Families package? 
Hon RUTH DYSON 
: Yes I have. Again in that same  
Agenda  
programme Mr Key when answering a question on how National could afford big tax cuts and Working for Families suggested “a slightly different abatement rate” for Working for Families such as National proposed in 2005. That proposal was to reduce the threshold for abatement by $5000. Yet again that proposal contradicts the supposed no-change position. 
Hon Tariana Turia 
: Tena koe Madam Speaker; tena tatou katoa. What actions have been taken to respond to the report produced in April 2007 by the Ministry of Social Development which revealed that many beneficiary families were falling below the very lowest poverty line despite Working for Families and were being hard hit by price increases in fuel and food with nothing in reserve? 
Hon RUTH DYSON 
: I have three points in response to the supplementary question from the Hon Tariana Turia. The first is that the report noted right at the very beginning that its data had not included the latest Working for Families extension so it is out of date. It was published prior to the extension of Working for Families. We have ensured that every year there has been an annual adjustment to benefits to reflect the consumer price index and most recently I have announced a doubling in both the special needs grant and the food grant entitlement. 
Lynne Pillay 
: What would be the effects of reducing the Working for Families threshold for abatement by $5000? 
Hon RUTH DYSON 
: An estimated 11000 families would no longer receive Working for Families tax credits and a further estimated 160000 families would see a reduced entitlement. The savings from such a move would be around $165 million—nowhere near enough to pay for the extra tax cuts Mr Key has promised or not promised depending on which audience he is speaking to. In fact under that proposal effective marginal tax rates would increase by 20 percent. 
Hon Tariana Turia 
: Does the Minister agree with the Child Poverty Action Group that our poorest children have been left behind in a callous disregard for their well-being and for the future societal and economic costs of our nation; and what will she be doing to support the children who fall into the category of the poorest of the poor? 
Hon RUTH DYSON 
: I am very proud of the fact that because of our Government policies 130000 fewer children are now living in poverty than were 9 years ago. That is an achievement we should all be proud of but we know there is more work to be done.