Benson-Pope David: Social Security Amendment Bill — First Reading 
Benson-Pope David: Social Security Amendment Bill — First Reading 
[Volume:639;Page:8970] 
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) 
: 
 I am pleased to rise in support of the Social Security Amendment Bill. As members are aware the bill signals the commitment the Government has to work with people to assist them to move into work appropriate for their circumstances. We believe that delivering the services that get people working is a key priority. Work changes people’s lives; it is very simple. 
Getting New Zealanders into work—real work for real wages—is pivotal to Labour’s economic transformation agenda. This Labour-led Government has had huge success in reducing unemployment numbers. Since first taking office in 1999 Labour has reduced unemployment numbers from around 161000 then to a 27-year low a month ago of 28845. That is a dramatic decrease in numbers on the unemployment benefit of over 132000 New Zealanders. 
Long-term unemployment has continued to drop with an 83 percent reduction since 1999. In December 1999 there were 70438 people on the unemployment benefit for over a year and in March this year that number was just over 12000—as I say 83 percent fewer. Of course the decline in the number of people on the unemployment benefit means that it is very timely to take action to build on the progress that has been made by ensuring that all people have the right work-focused services right from the start. 
The bill introduces a number of additional requirements for people on the unemployment benefit that will ensure that these fantastic trends continue. These requirements build on the success of the Job Search Service to date. The Job Search Service is Work and Income’s new 13-week job search support programme for unemployment benefit clients and for any people who are receiving other benefits who choose to take part. Providing Work and Income with the ability to require people on the unemployment benefit to include a particular activity in their job seeker agreement will mean that people can be directed towards skills training that will be beneficial for their search for work their placement in work and the quality of the work they do. 
The introduction of a pre-benefit activity requirement will also encourage those people for whom an unemployment benefit is the appropriate benefit to engage upfront with Work and Income—a very positive step to have taken. Work and Income intends to make pre-benefit activities available quickly; usually within 3 working days. The member’s proposed amendments to the bill to require any pre-benefit activity to be specified in writing first would inevitably result in delays in providing those opportunities which I am sure is something that she would not wish for either. Removing activity in the community from the activities that people on the unemployment benefit can do in order to meet their work test requirements is also in my view a very positive step in this legislation. 
We all know what good shape the economy is in. There are plenty of real sustainable jobs out there so why should we tie people on the unemployment benefit who are available for work now into a 26-week programme that has not demonstrated its effectiveness? Work-tested clients will still be able to access other programmes that have been shown to have positive employment outcomes—like work experience wage subsidies and training programmes. 
This bill also introduces an activity test for 16 and 17-year-olds on the independent youth benefit. This is I believe much more appropriate than the work test they currently face. I am sure we all agree that young people should actively be encouraged to participate in education and training. Staying within the education system will have a far more positive long-term outcome for them than their leaving school and attempting to find work. Having our young people engaged in an agreed activity of some description for a set number of hours per week sends the right message to them. 
Many people who are not able to work because of an impairment are able to do so with appropriate support. The bill encourages this and provides for people to plan to move towards work in the future. Planning is the start of a dialogue about the services and support that can be offered to assist people to move towards work as their personal circumstances allow. 
Working New Zealand makes available to all the support that was previously available only to those on the unemployment benefit and it makes it available at an enhanced level. We are saying that people’s aspirations will be recognised and that support will be based on individual needs and circumstances—not on benefit categories. 
The bill also introduces a number of new provisions. To give one example the ministry has not previously had a mechanism to correct the situation where a person has not completed an application for a benefit because of an error on the part of the ministry. The introduction of the new correction power addresses this lack. The bill also introduces a number of highly beneficial changes. For example people will no longer face an income stand-down of up to 10 weeks; people will have to wait for a maximum of 2 weeks only. Carers for people who would need to be in residential care of some kind without that care will now be able to receive a benefit—previously this applied to hospital care only. Someone who is applying for an invalids benefit will no longer have to have been a New Zealand resident for 10 years; a reduction to 2 years’ qualification is a significant change. 
A further Government-proposed amendment would extend the current discretion for Work and Income to continue to pay a benefit to people in receipt of the invalids benefit due to blindness when they are undertaking vocational or guide dog training overseas. The extension to the profoundly deaf community on the invalids benefit has some merit but I consider that the amendment will discriminate against other disabled people. Therefore we have prepared an amendment—which will be tabled this afternoon—to extend the provision to anyone who is eligible for and receiving the invalids benefit. I thank my colleague Lynne Pillay for her role in strongly advocating this amendment and bringing it so assiduously to the attention of Cabinet. 
 In addition for the first time the bill introduces purpose and principles provisions into the Social Security Act. Some of these statements are new others are based on existing case law. They are intended to make the law easier to understand and much more accessible. Certainly there is no intent to undermine the purposes set out in the long title of the 1938 Act. Nor is there any intention to undervalue the caring roles that people have or to devalue the importance of parenting and the care of children. Paid work is key in people’s lives but people for whom work is not appropriate will continue to be supported—certainly while this Government is on the Treasury benches. 
The approach that this bill takes towards investing in people underpins the social policies at the heart of this Labour-led Government. Nowhere has that investment shown greater value than in the results of our policy for the Maori and Pacific Island community. The number of Maori on the unemployment benefit in 1999 was 44378. That number is now 9902. The number of Maori aged 18 and 19 on the unemployment benefit in 1999 was 6276. That number is now an extraordinary 605. Maori who had been long-term unemployed for more than 1 year in 1999 numbered 20598. That number is now 3711. 
As for the Pacific Island community well in 1999 12317 Pacific Islanders were receiving the unemployment benefit. That number is now 2568—a 79 percent reduction. In 1999 when National was last in Government the number of Pacific Islanders in the category of 18 and 19-year-old unemployment was 1544. That number is now a commendable 194. 
The most powerful figure is the final one I will share with the House—that is the total number of 18 and 19-year-old recipients of the unemployment benefit. In 1999 that number stood at 15855. After nearly 8 years of this Government that number is now 1566—a 90 percent reduction in youth unemployment. That is the most powerful message that this Government could give to any community. 
Finally may I commend the highly professional and diligent work of Sue Mackwell and her team in the ministry. I am delighted that they are able to be with us today. I commend this bill to the House.