Collins Judith: Social Assistance (Debt Prevention and Minimisation) Amendment Bill — Second Reading 
Collins Judith: Social Assistance (Debt Prevention and Minimisation) Amendment Bill — Second Reading 
[Volume:645;Page:14801] 
JUDITH COLLINS (National—Clevedon) 
: 
 It is very nice to follow the Minister the Hon Damien O’Connor who made a very worthy and workmanlike speech with no flourish or excitement as is appropriate. Frankly the Social Assistance (Debt Prevention and Minimisation) Amendment Bill has been a long time coming. There have been 9 long years of a Labour Government and in that time beneficiary debt—owed to Work and Income—has increased from about $320 million to $760 million now. That is three-quarters of a billion dollars owed by beneficiaries to Work and Income. 
This little bill which the National Party supports could have helped to reduce that debt and to stop it getting into that situation. Not all of the debt is from people defrauding the system. Quite often it is because there has been an overpayment by Work and Income or sometimes it is simply a matter of a beneficiary or a beneficiary’s family failing to report to Work and Income that the benefit is no longer required or that the person is no longer eligible for it. 
Just a matter of 2 weeks’ owing on a benefit can be a huge amount for a beneficiary because in most cases we are talking about people who have very very little and who effectively have to live week by week. To say to them “Well it doesn’t matter you can just pay it back.” or “We overpaid you.” is a pretty harsh call. Certainly I have had beneficiaries in my electorate office in Papakura who have said just how hard it is—and I can well believe it. 
Then of course the amount owing is reduced by payments of $10 a week and this goes on and on. Effectively people are getting further and further into poverty because when they had that extra cash they thought “Gosh I can go and spend it.” 
Unfortunately we have had the Government and Government agencies contributing to the situation—in fact encouraging many beneficiaries to get into debt by the very slack attitude that the Government and Government agencies have taken. 
I have welcomed in the select committee process the Government actually acknowledging that beneficiary debt is a problem. I know that the issue has come about because National members and other people in this Parliament have made it an issue. We do not think it is fair for beneficiaries to owe three-quarters of a billion dollars— 
Hon David Carter 
: Saddled with debt. 
JUDITH COLLINS 
: —and to be saddled with debt. These people have the least ability to repay it. They are saddled with that debt and suddenly find they cannot get out of it. And half of that money is actually owed by former beneficiaries so it is not even being deducted each week. About half of it in fact is owed by former beneficiaries so even once beneficiaries have gone back into work they have found it impossible to be able to pay back that interest-free money provided by the taxpayer. 
This is a terrible situation and clearly this Government has done very very little about it. It has obviously felt that it was a good thing to keep giving people interest-free loans from the taxpayer with no particular need to repay them at any stage other than by a $10-a-week payment. Of course the Government does not really worry about what happens to these people. The Government does not really worry about it; it thinks it will all sort itself out and that people might as well go and get that money because it is free. Well nothing is free. There is no such thing as a free lunch and anybody who pays his or her taxes knows that. 
All those many beneficiaries have been encouraged into debt by a Government that cares more about securing votes than it does about securing the benefit and well-being of beneficiaries and their families about helping them into homeownership and about helping them to get into the sort of work environment where they can get ahead. Half of that $760 million is still owed by former beneficiaries; people who are in work. It is owed right now to Work and Income. 
Frankly this is a bill that we have been pleased to see finally come through. It is a matter of a few pages. National has supported it all the way through. We have helped to alleviate some of the difficulties that could have occurred. We have made comments about the minimisation of hardship to families. We have made comments and supported comments made in the select committee regarding how families who find that a family member has been put in prison can in fact know about it can understand and can access the right benefit so they themselves do not end up getting further and further into debt. 
We have a Government agency Work and Income within the Ministry of Social Development that is huge. It is huge; it has 9000 employees and it spends $18 billion of taxpayer money a year. It is an agency that is much better able to look after its own money to stop overpaying people when they should not be paid which gets people into debt and to stop doing the awful thing of telling them about 6 months later they have to repay their debts after they have already spent the money. That is a very cruel thing to happen. 
So in essence and in conclusion National is pleased to support the bill. It has been an awfully long time coming when all the Government had to do was give us a call on the phone and we would have helped it out straight away—which of course we did as soon as we knew of it.