Roy Heather: Debate on Prime Minister’s Statement 
Roy Heather: Debate on Prime Minister’s Statement 
[Advance Copy - Subject to minor change before inclusion in Bound Volume.] 
Hon HEATHER ROY (ACT) 
: 
 Welfare reform is something the ACT Party has spoken passionately about since its inception. I congratulate John Key on his focus in his speech yesterday on welfare reform. He said that a Government is judged by how it cares for the sick and vulnerable. That is too true. He said that 200000 children are trapped in welfare homes—that is 200000 children too many. He said that those who can work should work and he is right. But it is easy—very easy in fact—to stand up in this Chamber and say these things and much harder to do the real work and to act. 
I was very disappointed I have to say in the Hon Annette King’s address. She decided to spend 10 minutes whacking Mr Key around the chops for what he said yesterday yet whenever she is given the opportunity she talks about the wonderful policy work she is doing in the area of welfare reform. Well where was the talk of that in her speech? She had 10 minutes to positively put forward what she wants to do. The truth of the matter is that in 9 long years in Government Labour did not manage to get on top of the issue. Here is the situation: in 1970 we had 37 workers for every person on a benefit. In 2000 there were five workers for every person on a benefit. In December 2010 there were six workers for every person on a benefit. Under the current Government at least things have improved slightly but it is a shameful position to be in. We have 2.2 million people employed in this country but 353000 people are on welfare benefits—a ratio of 6:1. Welfare dependency amongst working-age New Zealanders is reaching unsustainable levels financially and it has done huge damage to this country socially. Far from reducing the number of people on welfare subsequent welfare policies from National and Labour Governments have taken the opposite path. They have increased the number. 
We are seeing at the moment an increase in the minimum wage; both National and Labour Governments are responsible for that. National has steadfastly refused to reinstate youth rates which pushes people out of work and on to welfare. This has been coupled with the entrenching of middle-class welfare by refusing to alter the Working for Families policies which make more people than ever dependent on the State. 
The Welfare Working Group has put forward some very sound proposals. There are a lot of them. Some of the proposals are excellent and are things that the ACT Party has proposed for a long time. Some are considered to be a tough love approach. That may well be the case but it is time that we got tough. It is time that we had the courage to do the things that will make a difference. This might mean lifting the age at which a young woman can get the domestic purposes benefit. It might mean having time limits for benefits. These things might be tough but they put the incentives in the right place and allow people to take ownership of their lives. These are the decisions that we have to make. 
When we talk about what is tough and again I congratulate the Prime Minister on focusing on this issue in his speech yesterday it is too tough to stomach the environment in which far too many of our precious young children live where they are abused and in some cases—too many—are killed. The Lillybings the James Whakarurus the Nia Glassies. Welfare dependency has created an environment where there are abusive relationships and children suffering and none of us in this House should be comfortable with that. 
ACT is the only party committed to true welfare reform and we will push the Government as far as we can to get the incentives right. There are many things we could do to send the right signals. We could be purchasing our own accident and unemployment insurance which would put the emphasis in the right place. We need to get the economy to be in a position to support the truly vulnerable where welfare functions as a safety net not a hammock that is so distended that we cannot tell the truly vulnerable from those who would like to climb out on their own. Michael Joseph Savage would turn in his grave. He was popular because he offered people hope. He said that we should let people govern themselves and when we think about welfare reform that should be foremost in our minds.