Benson-Pope David: New Zealand Superannuation and Veterans’ Pensions (Entitlements of Spouses and Partners of People in Long-term Residential Care and Remedial Matters) Bill — Second Reading 
Benson-Pope David: New Zealand Superannuation and Veterans’ Pensions (Entitlements of Spouses and Partners of People in Long-term Residential Care and Remedial Matters) Bill — Second Reading 
[Volume:631;Page:3014] 
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) 
: 
 I move  
That the New Zealand Superannuation and Veterans’ Pensions (Entitlements of Spouses and Partners of People in Long-term Residential Care and Remedial Matters) Bill be now read a second time 
. The main aim of this bill is to extend eligibility for the higher single rates of New Zealand superannuation or veterans pensions to all superannuitants and veterans pensioners who have spouses or partners in long-term residential care. This Labour-led Government is delivering on its promise of fairer treatment for the partners of people in long-term residential care. 
The bill also makes three other changes that will benefit older New Zealanders. It removes the sharing household expenses rule which previously limited eligibility for entitlement for the living alone payment. It extends the period of time a person can continue to receive New Zealand superannuation or a veterans pension if that person is carrying out voluntary work overseas for a recognised aid agency. Finally the bill will enable all rates of veterans pensions to be increased by Order in Council. 
Four written submissions on the bill were received. Those submissions were supportive of the legislative amendments contained in the bill and I am pleased to report to the House that the Social Services Committee has recommended that the bill be passed and has reported it back to the House without amendment. I would like to thank that committee for its prompt consideration of the bill. I would also like to thank the organisations that made those submissions. 
The extension of the higher single rates of New Zealand superannuation and veterans pensions will ensure a fairer treatment for many superannuitants and veterans pensioners living in the community who have a spouse or partner in residential care. The change will remedy the current situation where spouses and partners of people in long-term care are currently eligible for higher single rates of New Zealand superannuation or veterans pensions only in limited circumstances. The main situation where that eligibility occurs is where the partner in care is receiving a residential care subsidy. However access to the residential care subsidy is limited by a means test. The current approach is seen as unfair to spouses and partners in the community. That issue was highlighted by the Barbara White petition which was presented to the House in late 2004. The extension of the higher single rates will apply from 1 July this year. It will mean up to $60.90 a week more net of tax for those affected. Approximately 2000 older New Zealanders will benefit from that change. I should like to take this opportunity again to convey my thanks to the petitioners who first brought this issue to the attention of the House and in particular to the lead petitioner Mrs Barbara White who was ably supported by my colleague Lianne Dalziel. 
As I have previously indicated the bill also makes other changes to eligibility criteria for New Zealand superannuation and veterans pensions. From 1 July this year the bill will remove the sharing expenses rule which currently prevents some superannuitants and veterans pensioners from receiving the living alone payment. That payment represents the difference between the single sharing rate and the higher single living alone rate of New Zealand superannuation and veterans pensions. That difference is currently just over $20 a week net of tax. The sharing expenses rule currently operates as a somewhat strict and arbitrary form of income testing for the living alone payment. In some cases in the past for example superannuitants have been denied eligibility for the living alone payment because they have been receiving modest contributions to their household expenses from say family members. The removal of that rule will mean that eligibility for the living alone payment will be based solely on the actual living arrangements of superannuitants and veterans pensioners and it will therefore ensure a fairer treatment for all of them who are living alone. 
The third amendment contained in the bill will enable a person to be paid New Zealand superannuation or a veterans pension for up to 156 weeks if that person is carrying out volunteer work overseas for a recognised aid agency such as Volunteer Service Abroad. Currently the maximum payment in those circumstances is for 52 weeks. However Volunteer Service Abroad for example has a standard assignment period of 2 years. The current rule therefore prevents a large number of older volunteers from making a longer contribution to service abroad. That issue was highlighted by the written submission on the bill that was made by Volunteer Service Abroad. The extension of the payment period to 156 weeks that is provided by this bill will allow for a typical 2-year assignment plus an extension of the assignment time for up to a further year if required. 
The final amendment contained in the bill changes the War Pensions Act to enable all rates of veterans pensions to be increased by Order in Council. That change will align the legislative provisions for making adjustments to the rates of veterans pensions with those for New Zealand superannuation under the Social Security Act. 
In summary the amendments contained in this bill address several anomalies in the current treatment of superannuitants and veterans pensioners. I am confident that those amendments will ensure fairer and more equitable treatment for many older New Zealanders. As I have previously indicated to the House the bill is further evidence of the commitment of this Government to ensuring that superannuitants and veterans pensioners are able to live in dignity and participate as fully as possible in society. I am pleased to commend the bill to the House.