5. Question No. 5—Social Development and EmploymentRICARDO MENÉNDEZ MARCH (Green) to the Minister for Social Development and EmploymentQuestion No. 5—Social Development and Employment5. RICARDO MENÉNDEZ MARCH (Green) to the Minister for Social Development and Employment: Does she support disabled people being paid as low as $2 per hour due to minimum wage exemptions; if not why did she discontinue the wage supplement that would replace exemptions while protecting existing jobs?Hon LOUISE UPSTON (Minister for Social Development and Employment): Yes the minimum wage exemption scheme supports disabled people to gain the rewards and social connections that come from work that they may not otherwise have the opportunity to obtain. The majority of disabled people covered by the exemption scheme receive the supported living payment so this income is on top of their benefit payment. This means for a single person on the supported living payment $403 a week plus up to the $180 a week from their supplementary work. I disagree with the assertion that the wage supplement would have protected jobs. Many enterprises dedicated to enhancing the employment prospects of severely disabled people said the wage supplement would put pressure on their operating model reducing their ability to provide to disabled New Zealanders a job.Ricardo Menéndez March: Does she acknowledge that around 96 percent of these workers work for business enterprises and is she comfortable with massive corporations such as Air New Zealand benefiting from the labour of workers who earn just $2.30 an hour for doing work they can do without? Hon LOUISE UPSTON: Yes the disability enterprises across New Zealand are all charitable organisations and their main purpose is supporting people with disabilities to be in employment and they are free to choose to work there or not.Ricardo Menéndez March: How exactly can a wage supplement which would act as a top-up for employers and designed to protect existing jobs result in job losses for disabled people?Hon LOUISE UPSTON: The disability enterprises have been really clear about their concerns about what was proposed by the previous Government and actually our party had campaigned very clearly on retaining the status quo because we want to see those enterprises that are a significant part of our communities do well and continue to employ disabled people and give them opportunities they otherwise wouldn't have.Ricardo Menéndez March: Does she stand by her statement in defence of cutting the waste supplement that A group of New Zealanders who have significant challenges and would clearly produce less than someone else may well be shut out of employment." and if so how would the wage supplement have resulted in job losses when it is a top-up to the employer's contributions? Hon LOUISE UPSTON: As I said the disability enterprises themselves raised concerns. And just so that the House is aware of how the minimum wage exemption works there is a labour inspectorate who assesses the person's ability and their productivity in terms of the role that's proposed. They set a wage in that instance of which the person has the opportunity to accept or not. I stand by my statement. For me it is incredibly important that we focus on what New Zealanders can do and what they can't and I want to ensure that more New Zealanders have the opportunity to be in work. For a very small number—I'm talking nine—there is a top-up to what they are receiving in terms of their supported living payment.Ricardo Menéndez March: Did she seek or receive any advice on how many job losses would have resulted as a result of implementing the wage supplement; and if so how many job losses would have resulted as a result of implementing the wage supplement? Hon LOUISE UPSTON: I stand by my comments. The disability enterprises are a significant part of our communities. They are charitable organisations that without their existence we would not be able to provide those employment opportunities. While that member may not appreciate it is a small number of people I value each and every single one of those disabled people and want to ensure they have the opportunities to be in work.Ricardo Menéndez March: Why does she keep insisting that the wage supplement would have resulted in job losses when it is a top-up for employers and she is not able to substantiate how many job losses that wage supplement would have resulted in?Hon LOUISE UPSTON: Because—as I said in my primary answer if the member had listened—many enterprises who are dedicated to enhancing the employment prospects of severely disabled people said the wage supplement would put pressure on their operating model reducing their ability to provide disabled New Zealanders a job. The member doesn't seem to understand that with the wage supplement there is more costs involved in employing somebody. And this is not about a saving this is about protecting disability enterprises. They are an important part of our community who provide very important opportunities that disabled people can choose to participate and work there."