Sepuloni CarmelSecond ReadingHon CARMEL SEPULONI (Minister for Social Development): I move That the Social Assistance Legislation (Budget 2019 Welfare Package) Amendment Bill be now read a second time. This bill gives effect to the Budget 2019 income support changes which will make a real difference to the lives of New Zealanders. The Budget 2019 income support changes will improve the lives of 339000 individuals and families. The income support changes build on the 2018 Families Package which took an important step towards addressing income adequacy. Together these changes will lift up to 74000 children out of poverty in the next two years.This bill repeals section 192 of the Social Security Act 2018. This will remove a sanction that reduces the benefits of sole parents if they do not name the other parent of their child and apply for child support. Repealing section 192 will make a real difference to around 12000 sole parent beneficiaries who will see an average gain of $34 a week. More than this it is another step towards a system that is not based on punitive measures and stigmatisation of some of the most vulnerable members of New Zealand society. Surely common sense has to prevail. If we continue to put the boot into people who are already struggling and down then how can we expect them to be able to get back up? The evidence that I have received with regards to this sanction is the same evidence that was given to the former Minister for Social Development Minister Tolley back in 2016. That evidence said very clearly that there was no proof that the sanction was actually encouraging the other parent to pay child support. In fact there was no evidence that it was achieving the intention that had been set out when it was first implemented.With regards to that evidence—which I received and the former Government received as well—it also stated very carefully that it had the adverse effect of throwing women and their children who were already living in hardship into further poverty. So can I just say that when National on that side of the House says that that sanction did work they are being disingenuous because they received the same advice that I received.When we get told from that side of the House that our objective with the welfare system of catching up with the times has no merit I need to remind that side of the House that it is 2019. I need to remind that side of the House that actually on this side of the House we do know the evidence behind what happens when people are experiencing hardship and how incredibly difficult it is for them to be able to take up opportunities like employment when they're struggling to put food on the table or they don't have a roof over their head.We want the welfare system to work for those who come into it and that is in the best interests of all New Zealand actually. Can I just state that the objective on this side of the House is not to see people in welfare if they don't need it; it is to support people into employment where they are able. But we don't think that we need to do that by treating people badly.Hon Gerry Brownlee: Put a full stop after don't think".ASSISTANT SPEAKER (Poto Williams): Order! That's not very nice.Hon CARMEL SEPULONI: The Budget 2019 income support changes do put more money in the pockets of some of the most vulnerable members of our society and it also improves some fundamental benefit settings. The Budget 2019 income support changes will mean that increases in main benefits are indexed to average weekly wages rather than the Consumers Price Index. The value of main benefits will keep up with wages and salaries over time. New Zealanders who need to access the welfare system will no longer see the value of their income eroded when compared to the average wage.Let's keep in mind that we know on this side of the House—but the other side seem to not know—that actually most people who access the support of the welfare system will come in and then go out. It is not about supporting people to maintain a lifestyle unless of course they have no other choice but to rely on the welfare system.With that in mind it is important to state—and this follows on from something that Marama Davidson said earlier—that something like 53 percent of those who are in our welfare system actually have a health condition or disability and we want to support them where they are able to get into employment. But we understand the challenges that they face as well and that perhaps they might need a little bit more assistance from the State than some others—[Interruption]—particularly those others that are sitting on that side of the House.ASSISTANT SPEAKER (Poto Williams): Order! Order! This is starting to become heckling again. Can we just settle down a little bit members.Hon Gerry Brownlee: Absolutely. We're being—it's provocative.ASSISTANT SPEAKER (Poto Williams): I will take that as compliance. Thank you Mr Brownlee.Hon CARMEL SEPULONI: The Budget 2019 income support changes also mean that beneficiaries can work the same number of hours before their benefits reduce as the minimum wage rises. These changes mean that New Zealanders who are on benefits won't see themselves left further behind as other New Zealanders prosper.What we've seen in the House today is very typical of what we've seen over decades in New Zealand but I'm very proud of the fact that actually currently the public discourse does not align with that side of the House. We are not seeing the discriminatory comments about beneficiaries coming from the public that continue to get thrown at us by that side of the House. It seems that New Zealand has moved ahead but they are still left behind.This Government is committed to a welfare system that ensures people have an adequate income and standard of living are treated with respect and can live in dignity and can participate meaningfully in and contribute to their communities. The Budget 2019 income support changes build on the 2018 Families Package towards that vision. To realise this vision though we need much more. For that reason the Government is developing the three- to five-year plan to overhaul the welfare system that we will be talking about more as a Government before the end of this year. I am privileged to be part of changes to the welfare system that will make a meaningful difference to the lives of New Zealanders; that will lift New Zealand children out of poverty and allow New Zealand families to live in dignity. That is why I commend this bill to the House."