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Poverty Reduction—Government Actions

By Ant | Jul 3, 2008

Question time in the house:
10. H V ROSS ROBERTSON (Labour—Manukau East) to the Minister for Social Development and Employment: What reports has she received regarding the Government’s action to reduce poverty in New Zealand?

Hon RUTH DYSON (Minister for Social Development and Employment) : Today I welcomed the Ministry of Social Development’s household incomes report, which shows that, on every measure, child poverty has fallen since 2004. The report’s finding confirms that the Government’s policies, including the Working for Families package, are having a real and positive impact on low-income families. I expect to see further improvement in the household incomes report next year, which will include the impact of the April 2007 increases in family tax credits.

H V Ross Robertson: Can the Minister tell the House what the Government is doing to respond to families struggling as a result of food price increases?

Hon RUTH DYSON: In Budget 2008 the Government responded to rising prices by cutting taxes and bringing forward inflation adjustments to Working for Families tax credits. Today I have announced further action targeted at those most in need. Assistance available through special needs grants for food will be doubled, and the limit will be raised for other emergency special needs grants. I also outlined today the next steps towards a core benefit. The Government will remove the stereotyped language and bureaucracy so that people are treated as individuals rather than as categories. This Government’s focus on supporting those on benefits into paid work continues.

Judith Collins: Is she now saying that there will be a single core benefit for all beneficiaries, and is that the same single core benefit that was first promised by Michael Cullen in 1989 when he was the Minister of Social Welfare, and was re-promised by Steve Maharey in 2002 and again in 2005, and is it the same benefit that she is announcing yet again today, or is it just another desperate attempt to hide the massive increases in the numbers on the sickness benefit and the invalids benefit under her watch?

Hon RUTH DYSON: As the member knows, I did say that phase 2 of the core benefit work would be announced before the middle of the year. I apologise to her that I am 4 days late. What has been announced today is a range of service delivery improvements, including changes to the annual review process, which positively affect over 300,000 clients; a new job-matching tool; building integrated case management into service delivery; establishing additional community link centres, where not just several Government agencies work together but also non-governmental organisations; expansion of the health and rehabilitation services; and changes to the way that Work and Income communicates with its clients.

Te Ururoa Flavell: Kia ora anō tātou. What support will she offer to KidsCan to emphasise how significant the issue of child poverty has become, given that the All Blacks endorse this organisation, which, amongst other things, has handed out 240,000 meals a year to disadvantaged children and 17,000 Adidas raincoats to children in 68 low-decile schools around the country?

Hon RUTH DYSON: I understand the point the member is making. The announcements I have made today do two things. First of all, they show that our overall Government policies have, for the first time since the late 1980s, reversed the trend of the 1990s, which was literally when the rich got richer and the poor got poorer. The household income survey today reverses that trend for the first time since the 1980s, reducing that inequality. Secondly, it also acknowledges the very real need that a number of families are feeling at the moment with regard particularly to increased transport and food costs. That is why those additional supports are being released.

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