Sepuloni Carmel: Support for Children in Hardship Bill — In CommitteeText is incorporated into the Bound VolumeSepuloni Carmel: Support for Children in Hardship Bill — In Committee[Sitting date: 01 December 2015. Volume:710;Page:8416. Text is incorporated into the Bound Volume.]CARMEL SEPULONI (Labour—Kelston): I want to talk a little bit in relation to the submissions and their relevance to Part 3 of this bill. When we were talking about tax credits we actually had a number of submitters who pointed out issues with regard to tax credits. Some support was provided but also some concerns were raised so I want to touch on that. I think it is really important that these submitters have their concerns heard during the select committee process but I also think that when we have their support we should make that known.We had the Auckland Action Against Poverty group which said that the $20.11 average benefit increase per week per family was welcomed as was the $8 average in-work tax credit increase per week per family but it pointed out the fact that on their own those increases were insufficient to address hardship for New Zealand children. We had the Child Poverty Action Group discussing the increase to Working for Families tax credits. It stated that “The Bill increases the base rate of the in-work tax credit for low-income working families with children by $12.50 per week from 1 April 2016. CPAG says this reinforces the use of complex work-based measures to meet the needs of children. It would be much preferable to increase the rate of Family Tax Credit by $12.50 so all children benefit.” I wonder whether or not the Minister for Social Development took that into consideration because it was a point that was raised not just by the Child Poverty Action Group but I also think there were some concerns raised by the Children’s Commissioner as well along with individual submitters Graham Howell and Malcolm Croft.When I was looking through Part 3 I did notice the fact that in order to apply this it is the abatement rate that is being lifted slightly and I just wanted to point out that we are very supportive of lifting abatement rates. In fact we had a bill go through the House recently that we were hoping the Minister would support because it could have potentially meant almost $50 extra in the pockets of our poorest families rather than $25 which we accept is something but as we have said on a number of occasions it is not enough. So I would like to know whether or not the Minister took into consideration any of the concerns that were raised not just by the Child Poverty Action Group but also by Auckland Action Against Poverty and whether or not their preference which was to increase the rate of family tax credit by $12.50 so that all children benefit was ever taken into consideration by the Minister or by the National Government.Going to the Children’s Commissioner on this particular part of the bill the Children’s Commissioner pointed out that the gap between market and benefit incomes has steadily grown over the past three decades because benefit incomes are not indexed to the median wage. So I think someone in here pointed out that before benefits were slashed—so around 1991 I think—they were indexed to around 75 percent of the minimum wage but it is so far from that now. And I know that the National Government has touted this as some major offering—the fact that it is giving these families an additional $25 each week—and I know the National Government has tried to highlight the fact that this is the first time benefits have been raised but what the Government has not taken into consideration is that when Labour introduced Working for Families actually—The CHAIRPERSON (Lindsay Tisch): Come back to the bill. Come back to Part 3. Come back.CARMEL SEPULONI: With regard to how it affects these families when Labour did that it lifted something like 120000 children out of poverty. This measure does not lift that number of children out of poverty and I think that that has to be of concern to all of us. So yes I would like to know whether or not the Minister has taken into consideration the preferences raised by the Child Poverty Action Group and any of the concerns around in-work family tax credits and whether there has been any discussion on that.