Paula Bennett Future Focus First Reading Speech 30 March 2010

In the context of this legislation, my focus is on the future...the future of New Zealand, the future of the welfare system, the future of individuals, families and children... the future of our society.

Do we want a society that values work and the ability to provide for ourselves and our families? Do we want a society that says we will look after those who are most vulnerable, most in need? Do we want a society that teaches its children by example that the path to a better, more prosperous and fulfilling life is through work not welfare?

I believe the answer is yes and I believe that vision for the future, is shared by most new Zealanders. Surely we all aspire to a better future for our children.

When this Government took office eighteen months ago, it inherited a welfare state that showed no sign of diminishing despite having enjoyed a decade of favourable economic conditions and strong employment.

So through the best of times, Labour failed to do anything about long term welfare dependancy, Labour squandered that opportunity because it dared not challenge the status quo.

That status quo, which Labour has been so wedded to, embodies an attitude towards welfare that is quite frankly dangerous. An entitlement mentality has become entrenched to the point where for some, welfare is no longer viewed as a last resort reserved for the most vulnerable, but as a right of all citizens.

National recognised that attitude as an unhealthy, unsustainable burden on those who work hard to support the system. It is those hard working New Zealanders who gave National the mandate to bring this legislation before the House today.

National's manifesto commitment of fairness, an unrelenting focus on work; on what people can do, not what they can't, is what New Zealanders voted for at the last election. It is this promise that we deliver today.

It is ironic that after enjoying such sunny economic climes, Labour left office and slunk off into the sunset, while behind it the storm clouds of a major economic recession were already breaking. New Zealanders were left to struggle through an economic storm that washed away the remnants of a strong labour market, leaving many high and dry with fewer jobs to cling to.

Those hard working New Zealanders struggling to pay the bills, who battled on, supporting themselves and their families, watched their tax dollars flowing out each week, supporting a growing number of people on welfare and asked themselves the question, is this fair? Are the people we're supporting really those in greatest need?

And fairness is a vital part of this legislation. It is a sense of fairness that calls us to re-balance the incentives and the obligations that will ensure only those who need help get it.

We have a responsibility to taxpayers to ensure we are spending their welfare dollars carefully because every dollar we spend on welfare has been earned by a hard-working New Zealander.

We have a responsibility to get this right because this is a system that has for too long, been left to its own devices

We have a responsibility to those who are on welfare and have the ability to do more, to actually follow through and give them the support they need so they aren't consigned to a lifetime of limited choices and limited potential.

So why are we making these changes? We want to ensure fairness in the system with the right balance of obligations and incentives to address an unreasonable sense of entitlement and introduce a set of expectations of our own.

Yes, we do expect those on an Unemployment Benefit to be making every effort to find work. Yes, we do expect those on a Domestic Purposes benefit, whose youngest child has turned six, to be working towards work, or taking part-time work. Yes, we do expect those on a Sickness benefit to be getting well so they can return to work. These are fair and reasonable expectations.

We have changed the process around sanctions so that when obligations are not met a first time, a fifty percent cut in the benefit kicks in. That means those who don't turn up for a scheduled job interview for example, will lose half their benefit unless they have a very good reason for failing to meet their obligations. If they don't turn up the next time, their benefit will be cut completely. Except for those with dependant children, who will lose a maximum of half their benefit, with no change to add-ons like accommodation supplement - so their children are not penalised unfairly.

But let's be clear; all we're asking here is for people to meet their obligations - to make an effort to get off welfare and into work. If the work isn't there, their benefit will remain. The safety net is not being hauled in completely; it's just being trimmed to catch only those who need it.

And we are providing greater incentives for those on benefits to transition into work by raising the abatement levels so those who do work a few hours a week, keep more pay in their pocket. I'm thrilled that we went a step further from our manifesto and increased the upper abatement level from 180 to 200 dollars. That is a fair incentive.

But there is a higher purpose to this. It comes back to the question about what kind of society we want to live in. Are we happy to leave thousands children of beneficiaries to languish in households living a hand to mouth existence, leading limited lives? Are we happy to do nothing about the 82,000 who have claimed a benefit for five years or more? Labour was content to ignore this problem, but this Government is not. National has greater aspirations for New Zealanders; a brighter future for many - a future in work not on welfare.

We know it's vital we implement supports for those reliant on welfare to provide pathways into work, which is why we're investing 223 million dollars a year on employment related training. We are investing in industry partnerships, wage subsidies, Straight to Work programmes, TOPs courses and providing help with writing CVs, boosting literacy and numeracy skills and placing people in work.

We know that a country of four point three million people cannot continue to support 345,000 beneficiaries. It isn't healthy for our economy, it isn't healthy for individuals and it isn't healthy for society. We know hard working New Zealanders agree - they told us so when we campaigned on this, as they struggled through a recession and after we announced the Future focus package last week.

So this is a conservative start, one that sees us tightening up the system to provide only for those who genuinely need it, while sending a clear message that those who can work should.

We must get this right, this is a crucial opportunity to effect a major shift in thinking, a shift in attitude and a shift in aspiration that lifts people's sights up beyond a simple existence on welfare to a meaningful, rewarding life as a working member of society, participating and giving back.

We are effecting a change in the way society views the welfare system, this policy makes it clear welfare is a stop gap not a solution.

The introduction of clear obligations and expectations will change the way people use the system, by discouraging long-term dependency.

National is taking this opportunity to have the first real, honest discussion this country has had about welfare. We are quite simply, calling a spade a spade. Labour preferred to obfuscate by talking about ‘clients' getting ‘supports' and ‘help'. ...It is called welfare and beneficiaries are paid benefits. Let's be honest.

Labour failed to see the bigger picture here; a future New Zealand that doesn't have twelve percent of its working age population on welfare, a New Zealand that values work and self responsibility.

And here's the rub, if we shut our eyes to the bigger picture as Labour did, we would be blind to what's staring us in the face. The fact is; if we don't do something right now, our children will be mortgaged for years to come by an irresponsible reliance on a welfare system that supports an ever growing population of beneficiaries.

That is frankly an unsustainable future. We cannot expect to continue at this rate.

Working New Zealanders cannot support an ageing population as well as an increasing number of people on welfare.

Society has arrived at a crucial junction. We can continue on, as we have been, without ambition and without direction or we can take a new path, one that leads to self responsibility and a brighter future for New Zealand, a future in work not on welfare.