Rich Katherine: Questions for Oral Answer — Questions to Ministers 
Rich Katherine: Questions for Oral Answer — Questions to Ministers 
[Volume:618;Page:14296] 
2.  
KATHERINE RICH (National) 
 to the  
Minister for Social Development and Employment 
: As of today how many New Zealanders are receiving the sickness and invalids benefits and what percentage change does that represent from the numbers receiving the same benefits in 1999? 
Hon STEVE MAHAREY (Minister for Social Development and Employment) 
: 
 Consistent with the long-term rising trend in the number of sickness and invalids beneficiaries as at the end of June 2004 44128 New Zealanders were receiving the sickness benefit—an increase of 34 percent on the 33022 receiving that benefit at the end of June 1999. The comparable figures for the invalids benefit are 72342 41 percent and 51173. This increase compares with increases of 69 percent in the number of sickness beneficiaries and 84 percent in the number of invalids beneficiaries between 1990 and 1999. 
Katherine Rich 
: Can the Minister tell the House how his Government’s policy changes have contributed to a 34 percent increase in sickness benefit numbers since December 1999 when in the 2 years prior to his Government coming to office the numbers were steadily in decline? 
Hon STEVE MAHAREY 
: As the member knows the underlying reasons for the rise in numbers of sickness and invalids beneficiaries are no different in this country from others—for example the ageing population. But this Government in April this year against the backdrop of the lowest unemployment rate for 20 years launched a sickness and invalids benefits strategy which will assist more people off those benefits and back into paid employment. 
Moana Mackey 
: What is the Government doing to support sick and disabled people working to the extent that they are able? 
Hon STEVE MAHAREY 
: As I said in April this year the Government launched its sickness and invalids benefits strategy to step up assistance to people who are sick or have a disability. It includes a pilot programme paying for health treatment where it will assist the return to work; enhanced case management by lowering the number of active cases for each case manager; specialist work brokers to support clients and employers; and allowing invalids beneficiaries to trial working 15 hours or more without losing their benefit. The Government wants to ensure that it harnesses the skills of these people because we have the lowest unemployment rate in around 20 years and they are needed in the workforce if they are able to be there. 
Sue Bradford 
: To what extent does the Government believe that people being forced off accident compensation and into the benefit system is adding to the numbers of people on the sickness and invalids benefits? 
Hon STEVE MAHAREY 
: I think from memory about 17000 over the last 5 years. 
Dr Muriel Newman 
: In light of the increase in sickness benefit numbers by over a third since he has been the Minister at an annual cost of almost $500 million a year can he explain why the proposal to address this surge in numbers that was prepared by his Ministry of Social Development has been withdrawn until 2006 in spite of strong advice from Treasury stating: “Due to the large fiscal growth in this area there is a pressing need for reform options before 2006.”? 
Hon STEVE MAHAREY 
: We agree with Treasury. That is why in April this year we launched a major new strategy that means we will do everything we possibly can to remove barriers between a person being on a benefit and going back to work. For example we are willing to go as far as buying an operation for a person if it will return that person to work. 
Judy Turner 
: Does the Minister stand by his claim on National Radio this morning that the increase in the number of sickness beneficiaries is a result of an ageing population when the number of people under 20 years on the sickness and invalids benefits has also jumped by a third since the year 2000? 
Hon STEVE MAHAREY 
: Yes of course I stand by that; it is one of the reasons that drive these benefits worldwide. But the member has raised another reason why we are seeing an increase in this area. There are a number of reasons why we are seeing more people on a sickness benefit or an invalids benefit. There are many reasons and they are complex. 
Katherine Rich 
: Why does the Minister continue to use an ageing population as an excuse for rising sickness benefit and invalids benefit numbers when a report from his own ministry in 2003 states: “Ageing populations played little role in benefit growth over the last 30 years.”? 
Hon STEVE MAHAREY 
: Perhaps it is because I am getting older myself—I do not know. But I would say that my department has consistently reported the ageing population in New Zealand—particularly amongst people of European origin—as one of the reasons that we are seeing more people on these benefits and that is for the very logical reason that age often goes with a condition that may mean that a person cannot go to work. 
Judy Turner 
: Can the Minister confirm that of the 60000 people who have transferred from the dole to the sickness benefit since 1999 stress and depression have been the second and third most popular reasons for transferring with both doubling in number in that time; and what possible explanation does he have for that pattern of behaviour? 
Hon STEVE MAHAREY 
: It is one of the features of systems around the world that we are seeing psychological conditions such as stress and depression being the reason for people seeking income support because they are unable to go to work. It is one of the reasons why that is a key feature of the sickness and invalids benefits strategy that I have been speaking about today. I will just correct the member: since 1999 to now about 73000 people have moved from the unemployment benefit to the sickness benefit and 42000 have moved from the sickness benefit back to the unemployment benefit. Therefore a net number of about 31000 people remain on the sickness benefit. 
Katherine Rich 
: When a 2003 report from his own ministry on the subject of the rising number of sickness benefits and invalids benefits confirms that by international standards the New Zealand sickness and invalids benefit systems are “passive” and that once beneficiaries are in the system “little is done to attempt to rehabilitate them into employment” why should the House believe that the Minister is on top of the problem of the rising number of invalids benefits and sickness benefits? 
Hon STEVE MAHAREY 
: Because of that report in April this year—and I stress that to the member—we launched the sickness and invalids benefits strategy which is a very active approach to ensuring that people are able to go to work against a backdrop of the lowest unemployment rate in 20 years and the fourth-lowest rate in the OECD. 
Judy Turner 
: Can the Minister confirm that sickness beneficiaries and invalids beneficiaries are not required to undertake treatment programmes as a requirement of their benefit; if so can he tell us why that should be the case? 
Hon STEVE MAHAREY 
: Of course a case manager is not a person with a medical qualification. For sickness and invalids beneficiaries we rely on the opinion of a qualified designated doctor a specialist or a general practitioner who will thereby prescribe treatment. 
Katherine Rich 
: As between 1993 and 1999 about 50 additional people joined the sickness benefit queue per month can the Minister explain why under Labour more than 250 extra people per month have joined the sickness benefit queue when variables other than Government policy have remained largely unchanged? 
Hon STEVE MAHAREY 
: As the member knows from the figures I read out before during the 1990s we saw an increase in the numbers of both those benefits of between 60 and 80-plus percent. The member therefore knows that the reasons that lie behind those benefit increases are consistent and she therefore should applaud the fact that finally a Government has decided that it will do something about this matter against a backdrop ofvery low unemployment. 
Dr Muriel Newman 
: I seek leave to table an official information briefing paper that states that the major reform proposal by the Ministry of Social Development has been withdrawn. 
Document by leave laid on the Table of the House.