Beyer Georgina: Questions for Oral Answer — Questions to Ministers 
Beyer Georgina: Questions for Oral Answer — Questions to Ministers 
[Volume:626;Page:21243] 
1. GEORGINA BEYER (Labour—Wairarapa) 
 to the  
Minister for Social Development and Employment 
: What reports has he received on child poverty in New Zealand? 
Hon STEVE MAHAREY (Minister for Social Development and Employment) 
: 
 The latest findings on poverty levels in New Zealand show that poverty rates have declined in New Zealand since 2001 as a result of a rise in real incomes for low-income families. After tax and housing costs low-income families now have more money in their pockets each week than they did back in 2001 and income levels continue to improve across the board. This is evidence of a steady improvement in social well-being under a Labour-Progressive Government. 
Georgina Beyer 
: How does this compare with the trend in previous years? 
Hon STEVE MAHAREY 
: The proportion of children in families that earn below 60 percent of the median wage has declined significantly from 27 percent in 2001 to 21 percent in 2004. This compares with a peak of 34 percent in 1994 which shows the impact of benefit cuts market rent policies and the Employment Contracts Act at that time. The improvement over the last 3 years has been largely the result of more people in jobs as a result of the recent economic boom and income-related rents for State housing. The Working for Families package will have the effect of further dramatically reducing child poverty by up to 70 percent. 
Rod Donald 
: Has the Minister seen any reports of policies that could reduce expenditure on family support housing health care and education which could make child poverty worse than it already is? 
Hon STEVE MAHAREY 
: I have seen reports on an approach that would cut taxes so that the funding would not be available to adequately provide for childcare or for key policies like maintaining income-related rents. In particular I have seen reports that the National Party would cut short the Working for Families package with massive impacts on child poverty in order to fund tax cuts that can only make those who are well off even better off. 
Hon Peter Dunne 
: If it is correct that one of the focuses of the Government’s policy has been on the income of a household so as to benefit the children of that household what is the Minister’s reaction to the OECD’s findings about the difficulties faced by second-income earners in New Zealand households and is he prepared therefore to consider a policy of allowing people to split their incomes for tax purposes; if not why not? 
Hon STEVE MAHAREY 
: I am always willing to consider exciting new policies from United Future but having had a look at these policies I would say that my opinion at the present time is that the work we are doing on the marginal tax rates and the further work we are to do will be a better way to address that issue. 
Georgina Beyer 
: Can the Minister remind the House which policies are being put in place to put more money into the hands of low to modest income hard-working New Zealanders? 
Hon STEVE MAHAREY 
: Almost all families with incomes below $45000 will benefit from the Working for Families package along with a substantial number with incomes up to $70000. Families making $25000 to $45000 a year will be on average $100 a week better off. To achieve that via a tax cut would cost almost $9 billion.