Stewart Barbara: Social Assistance (Debt Prevention and Minimisation) Amendment Bill — First Reading 
Stewart Barbara: Social Assistance (Debt Prevention and Minimisation) Amendment Bill — First Reading 
[Volume:641;Page:10858] 
BARBARA STEWART (NZ First) 
: 
 On behalf of New Zealand First I rise to support the Social Assistance (Debt Prevention and Minimisation) Amendment Bill. It will be a very interesting opportunity indeed at the Social Services Committee to hear from those people involved in the submissions. One would have thought that this measure was already in place so we are very pleased to see that at long last this is occurring because this legislation will achieve a sound social purpose. 
We in New Zealand First looked at the bill and thought that it was largely of a technical nature and that it should enable the Ministry of Social Development to prevent and recover debts and to detect with greater ease any fraudulent use of the benefit system. I was interested to read that $29.4 million was overpaid in 2005-06 to people in the benefit system. Every party in this House would definitely support the notion that people should receive their full and correct entitlements and they would also support attempts to assist with the recovery of any Crown debts in this area. 
All members in this House want action and they have said so at the select committee and during the business of the House. We all know that debts that are left to increase in this situation become unmanageable in a very very short time particularly when people are on a limited income. Of course overpayments always mean that a repayment is necessary. That in itself can be extremely stressful for the people who are involved and action does need to be taken. We do not want these people getting caught up with loan sharks. 
In New Zealand First we believe that the social benefits of this bill are very great. We do not want beneficiaries to have debts. It is difficult enough to make a benefit stretch for the basics that people need and for them to have to pay it back at $10 or $15 each time is an added stress in life. 
I was very pleased to read that section 103(1) of the Privacy Act requires agencies to send a notice of action to individuals before any adverse action is taken and that 10 days pass before payment ceases. This should give the affected people time to respond to the letter in the case of a mistaken identity because we do know that that can happen. It is absolutely essential that operational practices are put in place to minimise the occurrence of incorrect matches and to put mistakes right in an expedient and fair manner when an incorrect match occurs. When loopholes are identified in the current system they need to be fixed and they need to be fixed rapidly. 
Although these matching provisions are a major departure from the system that has been operating in the past New Zealand First believes that this bill is a very positive step forward. It is hoped that planning is under way for the resources that are required if this change is to be successful and we all want it to be successful. Although we are aware that the majority of the proposed changes extend the use of the information already transferred as part of the matches to enable it to be used for other purposes the resources must be in place and here we are looking at personal information and a very sound computer system. 
New Zealand First supports this bill. We look forward to the select committee report back and we want to eliminate the chances of this very vulnerable group having avoidable debt that has not been incurred through any fault of their own.