Andersen GinnyHon GINNY ANDERSEN (Labour): Thank you very much Madam Speaker. I'd just like to take the opportunity to clear up a few points to make sure we are keeping this debate on track. With the changes proposed in this legislation officials do expect that indexing main benefits to inflation will result in benefit rates potentially being increased marginally in the short term—so the 1 April 2024 adjustment—than if they remained indexed to the net average wage growth. However and this point is incredibly important to those members opposite main benefit rates will be lower in the long term with smaller increases expected from 1 April 2025 and adjusting onwards. So long term beneficiaries will be worse off and the estimated savings of that is $670 million. That is where this Government's programme comes in place because we know there's a significant shortfall. The gambling overseas tax has fallen through they're struggling with the smoking stuff because no one in New Zealand likes that. So there's not enough money in the pot to pay for the tax cuts that they have promised middle New Zealand. So this is where they're finding these savings by making those people in New Zealand who are struggling the most have even less to look after themselves and their children. So since this Government has come into power they've scrapped free prescriptions. They've also scrapped free early childhood education for two-year-olds and under; they've given a tiny 2 percent increase to the minimum wage; and now with three waters legislation out the door we're going to watch our rates go up and up and up across the country. So for a Government that so strongly campaigned on addressing the cost of living crisis that Kiwis are having to deal with all I see is measure after measure after measure to make life tougher for those people struggling to pay their bills every single day. This bill is just another one on the pile to make life even more difficult for those New Zealanders. So to go back to that point I was making in terms of how the long term for beneficiaries will be worse. For example the rate for the job seeker over 25 years old is expected to increase an additional $2.60 a week under this change under this legislation for the 1 April 2024 adjustment under the Consumers Price Index (CPI). However by the end of the forecast period in 2028 the rate is expected to be $18.15 less per week than if it was indexed to net average wage growth. So in the face of a cost of living crisis you are going to make it different to the point that there will be $18.15 less per week than if it was indexed to net average growth. That $18 a week is significant for a family who want to buy bread and milk and put lunches in the school kids' bags and make sure that kids are looked after. That makes a significant difference to families who are already struggling to make rent or to pay mortgage repayments. The forecast indicates that from 1 April 2025 onwards the average wage growth will be higher than the CPI therefore indexation to wage growth would have seen beneficiaries having more money in the longer term. We agree with those members opposite that people should have opportunities to get off benefit and into work and that is exactly why this Government put a whole lot of investment into great programmes like Mana in Mahi. That's why we have more people in work; whether they're part time or full time what we did was to pay that employer the equivalent of the unemployment benefit and provide support to both the worker and the employer to make sure those people who were in long-term unemployment got off that benefit. Another key area that is very important is making sure that young people have their driver's licence. One of the key inhibiting factors for a young person being able to be employable is to make sure we are providing that right support and that's exactly what this Government did. So instead of beneficiary bashing instead of trying to score some quick points by saying that people are not helping they should be focusing on those mechanisms that get people into work and show them the benefits of bringing home a higher wage and a higher minimum wage so that New Zealanders are better off. Sadly this Government is more fixed on tax cuts.