Sepuloni CarmelBUDGET DEBATEDebate resumed from 27 May on the Appropriation (2020/21 Estimates) Bill.Hon CARMEL SEPULONI (Minister for Social Development): This year's Budget comes during an unprecedented time—and I know we have heard that word over and over again over the last few months—with a global health crisis that clearly has economic implications globally as well. Fortunately we have built up our nation's resilience by getting the books into surplus achieving the lowest unemployment rate in a decade and investing in our public services and our people's wellbeing over the past three years. We are now seeing the benefit of careful fiscal planning and management. We are winning the battle with our health response to COVID-19 but the war's not over. Now we're focusing on our economic response and keeping jobs new jobs and training for jobs is very much our focus. Our response has given us the chance to get our economy moving faster than many other countries. Budget 2020 also continues the Government's careful and balanced approach to running the books with a focus on the economy yes but also the wellbeing of New Zealanders. I have the privilege of being the Minister for Social Development and can I say that our Budget is a response to COVID-19 but actions were put in place before the Budget was introduced. Those actions really sit as a backdrop to what was to follow with respect to the Budget in 2020. We did at the Budget see the introduction of an income relief payment to provide a cushion for people experiencing job loss due to the impacts of COVID-19. It is not the first time that we have had job loss cover of this nature. As referenced many times in this House during last week's debate following the Canterbury earthquakes there was also a very similar scheme of job loss cover put in place and following the global financial crisis we also saw a restart package. With respect to our COVID income relief payment obviously the point of difference is that it is nationwide and it is at a much larger scale.This will come into effect as many companies will be easing out of the wage subsidy or finishing up with the wage subsidy—apart from those who are able to get an extension to the wage subsidy. The wage subsidy was put in place to try and keep people connected to their place of employment to support businesses with what is one of their biggest overheads—that being staff wages—and to support with saving jobs and providing people with a livelihood during that very uncertain period. And it has worked but it was never going to protect us entirely from job losses which is why we have put the COVID-19 income relief payment into place.Not only did we see the wage subsidy put in place followed by the COVID-19 income relief payment but what we saw as an initial action right at the beginning of our experience when COVID-19 really started to hit us was measures put in place to support the most vulnerable—those experiencing hardship in New Zealand already. That came in the form of benefit increases of $25 per week and also the doubling of the winter energy payment. The feedback that I have received from those out and about particularly superannuitants on the impact that the doubling of the winter energy payment will make for them this year is that it is massive.Can I say too that alongside the income support measures that we've put in place we've never shied away from the fact that we also need to be putting a focus on the expansion of employment services and our support for New Zealanders who lose work at this time. In fact we saw at the Budget an additional investment of $150 million to support with employment contracted services so that we can assist New Zealanders to redeploy where they are able into employment. Alongside that in other portfolios we saw an investment in training opportunities and can I make particular reference to the $1.6 billion that is being invested into apprenticeships.I get asked often about the Welfare Expert Advisory Group's report and our response to it. Quite often people's perception of what is recommended in that report is limited only to benefit increases and although we absolutely understand the importance of income adequacy—and that was part of the terms of reference—I can hand on heart say that we have increased benefits but that there is more to it. In fact the expansion of employment services and ensuring that we are providing employment services that serve a broader group of New Zealanders—potentially not just those that have found themselves on benefit but those that may be at risk of being displaced from their work and those who may be looking for other options—was also part of the recommendation of the Welfare Expert Advisory Group.There has been some criticism over the temporary income relief payment and we as a Government have been very clear that it is temporary. However we've also signalled that we will be exploring a redundancy payment or social insurance of that type and in fact that was something that was asked of us by not only Business New Zealand but the Council of Trade Unions. In fact referring back to the Welfare Expert Advisory Group's report that was actually what was in recommendation 37: that we as a country should be exploring a redundancy payment of that nature. What became very clear alongside income support and also support for employment and upskilling and training was the absolute essential nature of our social services during this period. That is why during the COVID period prior to the Budget we did invest an additional $27 million to support Ministry of Social Development social services or contracted social services to be able to meet the demand during this time. It doesn't end there. For many of these organisations that are contracted by the Ministry of Social Development often who also have contracts with other Government agencies they have not seen an increase in funding for a number of years despite in many instances the demand on their services going up. So we saw a significant increase in funding for our social services at our 2020 Budget. Can I say that I think that that was long overdue. If I just cite one of the contracts or nationwide services that benefited from that increase in funding that would be the Building Financial Capability services—so our budgeting services. There are around 131 budgeting services across the country. They are local people serving their local communities. What we saw at the Budget was not only a baseline increase of 20 percent—which saw an increase of $9.7 million off the top of my head—but also a recognition of the fact that during this period when New Zealanders are more likely to be experiencing either job loss or reduction in income there may be more New Zealanders seeking the support of their local budgeting services. So on top of the 20 percent increase we also increased funding to reflect the COVID-19 demand with an additional $25 million over the next two years to support those budgeting services to be able to deliver their very very crucial services at this time. That was just one example of where social services had increases in funding. We also saw it again with our family violence and sexual violence services. Can I say one of the things that I'm proudest of on this side of the House is that we have seen increases to that sector year on year since we have been in Government. The sector was underfunded for too long and it was a reflection of the fact that the previous Government did not take it seriously enough and did not invest in areas that should be a priority for any Government.I'm very proud of what is in this Budget. It all is a very different Budget and a very different Budget process from previous years. But collectively as Ministers and as a Government across the three parties we were able to determine what were priorities for us as a country. Getting the economy back on the road but with a focus of course still on our health is our absolute priority and that is why not only with the Ministry of Social Development but with a range of other ministries there is a focus on jobs upskilling training and further educational opportunities.