Lotu-Iiga Sam: Social Security (Benefit Categories and Work Focus) Amendment Bill — Second Reading 
Text is incorporated into the Bound Volume 
Lotu-Iiga Sam: Social Security (Benefit Categories and Work Focus) Amendment Bill — Second Reading 
[Sitting date: 20 March 2013. Volume:688;Page:8726. Text is incorporated into the Bound Volume.] 
Peseta SAM LOTU-IIGA (National—Maungakiekie) 
: 
Malo le soifua. It is a pleasure to take a call—as I said earlier during the point of order—on the second reading of the Social Security (Benefit Categories and Work Focus) Amendment Bill. As chairman of the Social Services Committee I just want to thank and acknowledge again the role that our Minister Paula Bennett has played in this bill and in the area of welfare because these reforms are necessary yet reasonable under the circumstances. I want to thank her for the leadership that she has shown in this welfare area. These reforms will have a lasting impact on this country because it is about investment in people it is about investment in services and it is about backing people to go out and find work where they are able to. 
I also want to thank the Government officials the clerks and the parliamentary counsel for assisting our committee to bring this bill back to the House with its report and commentary. We received and considered 683 submissions from interested groups and individuals on this bill. We heard 83 submissions from 35 organisations and 48 individuals at hearings both here in Wellington and in Auckland. I want to thank my fellow committee members including Miss Ardern despite her misguided approach to these reforms for the constructive way that we approached these deliberations and also the submitters for the time and the effort that they put into both the written and oral submissions to the select committee. 
Following on from the successful Future Focus reforms which the Minister has alluded to and the first welfare reform bill last year which all members of this House will be aware of this is the second part of a comprehensive package of welfare reform. The investment approach is about shifting the focus of the benefit system towards better use of resources. What it does is it puts money up front into services like parenting services and like budgeting services to reduce the overall cost to not only those people affected but also our economy and the Government. It will require a different approach to working with beneficiaries based on their individual circumstances which the Minister referred to. It is supported by the best available evidence. 
 The Government spends $21 billion on social development. It is the largest Government portfolio and it accounts for one-third of all Government expenditure across the country so we need to gear these support services towards the 21st century and actually achieve results for taxpayers which again the Minister referred to in her speech. This bill includes simplified benefit categories a greater work focus new expectations for partners of beneficiaries and work preparation activities. It will also require job seekers to be drug-free allow benefits to be stopped if there are outstanding arrest warrants and include social obligations to ensure that children access the appropriate education and health services. 
The main policy issues of significance raised by submitters were in relation to social obligations the medical assessments of disabled and mentally impaired people and sanctions as well as procurement but I will touch on only two of those. The most contentious issue was the obligation to have preschool children enrolled in and attending early childhood education centres. Arguments were made around the appropriateness of this to all children and some interesting and compelling evidence was produced to argue this. Parental choice was referred to and that this bill would restrict it. So in response to these concerns the select committee worked hard to amend the bill to allow approved programmes to be included in the social obligations with decisions on criteria to be set through ministerial direction. In doing so we have listened to the submissions of organisations that pointed to the positive and significant contribution of home-based programmes for preschoolers. 
The select committee also clarified the policy intent that the 15-hour target for early childhood education attendance is somewhat aspirational and that flexibility would be preserved through regulations. The issue of home-schooling was also prevalent in the submissions and in particular in the forceful submission of the Home Education Foundation. The select committee amended the bill to clarify that home-schooling meets school attendance requirements at the age of 5 if the parent meets other criteria for work obligations. This recognises that obviously school attendance is not legally required until the age of 6. 
One of the other issues that the select committee grappled with was around the drug testing of beneficiaries. This bill does not authorise drug testing but it focuses on whether a failed drug-test or a refusal to undertake a drug test is acting as a barrier or otherwise to suitable employment. In terms of sanctions the Ministry of Social Development will act under lawful drug-test results only in respect of the job being sought. Under sanctions generally the bill really gives beneficiaries maximum time to re-comply at the three stages of asking and there is a maximum of only a 50 percent financial sanction as a last resort. 
I want to finally mention the issue of advice from the Regulations Review Committee that subsequent changes to the primary legislation should be subject to parliamentary scrutiny which most members agreed with. So in response to its concerns we amended the bill so that the annual benefit expiry and reapplication processes apply to all beneficiaries with some exemptions and these will be done through regulations. 
In summary then we believe that being in paid work is the best thing for people on welfare. It is plain and it is simple: if you can work you should work and you should be looking for work. This bill introduces the requirement for beneficiaries to be interviewed for and accept any offer of suitable employment. This bill introduces social obligations as we have stated and it really looks at those families with dependent children of which there are 220000 across this country. This bill as I said in opening will go a long way to making sure that these kids have the best start to life. It will have some of the most lasting positive impacts on families over time and that is why I support this bill.