Okeroa Mahara: Social Security Amendment Bill — Second Reading 
Okeroa Mahara: Social Security Amendment Bill — Second Reading 
[Volume:638;Page:8939] 
Hon MAHARA OKEROA (Associate Minister for Social Development and Employment) 
 on behalf of the 
 Minister for Social Development and Employment 
: I move  
That the Social Security Amendment Bill be now read a second time 
. This bill is an important part of the Working New Zealand initiatives. The object of these initiatives is to provide the right services and support for people to retain find or move towards employment. The work focus within the social support system is a positive objective. It does not undermine the purpose of the Social Security Act in relation to providing social and financial support to people for whom work is not appropriate or who for some reason are not able to work for a period of time. 
 This Government recognises that work is the cornerstone of people’s independence and social and economic well-being. Over the coming months the services offered by Work and Income will be enhanced so that intensive work-focused support will be provided to every New Zealander who is receiving a benefit and able to work. 
So how does this bill support working New Zealanders? It does so by introducing a number of amendments that support the development of the enhanced services that I have just mentioned. I would like to outline the most important of those amendments. The bill extends planning requirements to all non-work-tested benefits but I would like to emphasise that that does not include all people. Individual circumstances will still be an important consideration. People who are clearly unable to plan will not be required to do so. This Government is aware that many people on sickness and invalids benefits have indicated that they wish to work or to develop skills that will enable them to work at a later date. The development of services designed to enable this is an integral part of the reforms. 
The changes to the requirements for people receiving sickness or invalids benefits that this bill introduces will support the greater focus on working more actively with people with ill health and disabilities. They will be provided with the right services and support to participate in the labour market to the extent that their circumstances allow. People for whom the unemployment benefit is the most suitable benefit will be required to undertake an activity or activities in the period between their first contacting Work and Income for assistance and the benefit commencing. People will also be required to look for and accept any offer of suitable work during that time. 
Hone Harawira 
: Labour’s Work for the Dole. 
Hon MAHARA OKEROA 
: I thank the honourable member for his contribution. This proposal will strengthen Work and Income’s work-focused service for people on the unemployment benefit as it will now mean that Work and Income will be able to direct a person to a work-related activity immediately and not have to wait until after the benefit has commenced. The ability to work with a person and direct him or her to a specific activity right from the time of the first contact results in the person finding work quickly and can remove the need for that person to go on to the benefit. 
The Labour-led Government believes that it is quite reasonable to expect people who are available and able to work and who have no caring responsibilities or health or disability issues to look for suitable employment in the time between requesting financial assistance from Work and Income and commencing being on the benefit. Additional activity requirements for people receiving the unemployment benefit will also be introduced. The changes proposed are designed to provide Work and Income with the flexibility to tailor the service to best meet the needs of the individual. In the current environment many jobs are no longer based on a Monday to Friday working week. To reflect changes in workforce participation some aspects of the work test may where appropriate be applied over a 7-day week. 
The bill also introduces a new activity requirement which replaces the current work test for young people on the independent youth benefit. This is a positive move because we know that it is preferable for young people to be engaged in education and training. Separation from the opportunities that education and training offer has a negative impact on young people’s future ability to obtain or hold sustainable employment. 
Hone Harawira 
: Youth Work for the Dole. 
Hon MAHARA OKEROA 
: I tell Hone Harawira that working more actively with young people and requiring them to engage in activities will further their current or future opportunities to work. 
The Social Services Committee in its consideration of the bill recommended a number of changes. These changes have improved the clarity and intent of the policy underpinning the legislation. On behalf of the Minister for Social Development and Employment I thank the committee for the work that it did. There are two areas where the committee has recommended changes which I would like to address. They are the new application process for benefits and the fact that non-participation in an “activity in the community” does not attract a sanction. The application process that the bill proposed was a cause for concern in some of the submissions and the committee has recommended a number of changes to clarify the policy intent. The application process for a benefit has not previously been set out in legislation and that has resulted in a lack of clarity and transparency in an area that is quite complex. 
We have relied on case law to assist with the interpretation of the policy. It was thought desirable therefore to have the process spelt out quite specifically. The requirements that an application should be in writing and that both it and the evidence to support it should be completed in 20 working days in my view are quite reasonable requirements. They make it very clear that an application consists of a robust transfer of information that meets certain requirements and can be verified. However the way that the provision was initially drafted did not make it clear that important case law principles were being upheld by the change. The recommendations that have been made by the select committee make it very clear that the policy that has underpinned the application process for many years has not substantially changed. If a person applies for financial assistance then that application is taken as an application for any form of assistance under the Act. The benefit will be paid from the date the person first contacts Work and Income with either an oral or written request for assistance. 
 The committee has also recommended the insertion of a provision to allow the chief executive to extend the time frame for providing the supporting evidence if the application is good and there is sufficient reason for doing so to within 20 days. This is a very positive move and allows for those unforeseen circumstances when for reasons beyond a person’s control he or she cannot complete an application in time. 
It has not always been possible when a person applies for assistance for that person to be able to produce the necessary verification to be able to establish entitlement particularly when the benefit in question is an invalids benefit. When this is the case a person may be granted a sickness benefit until such time as the establishment of the invalids benefit is verified. At the moment there is no legislative support for this operational practice. I am delighted that the committee has addressed the situation by recommending that the bill be amended to provide for the retrospective substitution of a more appropriate benefit where further time has been required to establish entitlement as part of the investigation of a person’s application. 
The Social Services Committee has made a range of very significant changes on which the chairman of that committee will further elaborate. I commend this bill to the House and also reiterate my thanks to the select committee for the work it has done. Kia ora tatou.