Benson-Pope David: General Debate 
Benson-Pope David: General Debate 
[Volume:638;Page:8841] 
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) 
: 
 It is a pleasure to have the opportunity to rise in this discussion today because it has been an instructive couple of days in politics not just with the achievement that my colleague Mr Goff mentioned earlier on in this debate but also in that we have seen the return of some of the really bad old days of what National did in cutting and burning the social support that was available and remains available to the community—the sorts of things that have been reinstated by this Government. To top it all off after Mr Key’s revelations yesterday about his intention for the future of the Working for Families package today we had the sad spectacle of Judith Collins rolling about in laughter in this House at the misfortune of those people who are supported by sickness and invalids benefits. I have to say that that was one of the more despicable displays I have seen from National members in this House in recent times. 
I remind members of the public and members of the House that it was none other than Bill English who actually chaired the select committee of this Parliament that gave the community benefit cuts in 1990 and 1991. That was at a time when there were a quarter of a million jobless people in this country. So to see National’s performance today in criticising this Government for providing the necessary support for people who are sick in this country was just astonishing. But it was instructive and it is exactly what the country needs to see. It is exactly the sort of thing that voters out there in New Zealand need to be reminded of because the National Party whose members sit on those benches opposite has not changed one iota in the last 10 or 15 years. 
The sort of policies—and the sort of damage—National inflicted on New Zealanders who most needed support—not criticism and not sanction—in those days is exactly what is in the minds of National members right now. The suggestion is that $500 million will be ripped out of the Working for Families package just as it gets to its operating total of $1.6 billion per annum ongoing. Actually no it will be more than that because it is indexed—unlike the sorts of things the National Government did—but at least $1.6 billion per year will immediately be reduced by a third. 
To top it all off we had from Mr Key yesterday the statement “Oh there are going to be no losers.” Well I am sorry to say to Mr Key that it does not work like that. He cannot take $500 million out of a package that is operating to support people—mostly through tax credits—in this country and provide the same with a tax cut. As Dr Cullen made clear to the House at question time earlier today the size of that tax cut would have to be enormous and even then it would produce only $5. So if one takes $50 off a Working for Families family—and I will give the House some examples in a moment—and gives that family $5 back one cannot say there will be no losers. 
But do not National members hate Working for Families! Actually they hate working families; they cannot stand low or middle-income people. Let us cast our minds back to the election. Let us remember the fundamental choice between Labour with its Working for Families policy and National with an across-the-board tax cut. The community now knows only too well what the real meaning of those policies is. Working for Families targets money into families with middle and lower incomes. How does it work? Well if one earns less one gets more support. That seems logical which is always a preference of this Government but not a preference of members on that side of the House. Across-the-board tax cuts are what they like. Under their preferred system New Zealanders who earn a low or middle income would get $10—or was it an extraordinary $20 under some calculations—each while people like the National members who sit in this Chamber would get upwards of $150 or in some cases $200 a week—is that fair? Well the Government does not think so. 
What would be the effects of the policy revelations we heard from National yesterday? Of the targeted 360000 families receiving tax credit support through the Working for Families package about 160000 New Zealand families would lose on average $50 a week—that is every family getting tax credits with a household income of over $27500. Gee I say to Mr Key they are big earners are they not? What would yesterday’s revelations mean? They would mean that around 60000 families would lose entitlements to tax credits altogether and it is estimated that around 50000 of those families currently earn only between $27500 and $45000.