Garner: In defence of Bennett’s welfare shakeup

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Thu, 01 Mar 2012 12:23p.m.

Paula Bennett

Paula Bennett

Opinion by Political Editor Duncan Garner

Who really thinks National's welfare reforms are that scary?

They're not.

Forcing people to be work-tested should be a basic contractual agreement between the Government and its "clients" when money changes hands.

Indeed much of that happens already - and has been occurring for years.

Paying the rent and power bills of teenagers directly before they spend their benefit money on booze and cigarettes is hardly radical.

No one will lose their benefits if they can't find a job. All the Government is asking is that they get work tested sooner and that they become more aggressive in their search for work. They will lose the right to turn down work - they must take a job if it's offered. If they continue to thumb their nose at work, they will start to lose their benefits.

The message is this: welfare should not become a lifestyle where you can keep having more babies, while other Kiwis work.

The statistics have become alarming: 13 percent of the country's working age population - 351,000 New Zealanders - are currently on a benefit and 220,000 children live in benefit-dependent households. John Key says it's holding us back.

Surely the architects of the welfare system didn't envisage a welfare state like this.

I think National's approach will go down well across middle New Zealand and especially amongst its core voters.

And Paula Bennett, the Minister, has started the sales job, by attacking the opponents of change with some knockout punches - of which I'll get to shortly.

But first the plan. Sure it's lacking a few details.

The Government needs to be telling DBP mums and dads what sort of incentives are on offer for childcare.

That will come in the May 24 Budget - and the Government needs to get this right. People need to feel like their work is valued and it's worth it. These changes won't work if people feel out of pocket for working. What's the point otherwise?

So the childcare subsidies will have be generous enough to entice - and that will cost the Government big money, which it has already acknowledged. It will be a test of the Government's approach on this actually.

If John Key and Paula Bennett are serious about generational change in welfare rather than just a short term punitive approach - then their approach on the childcare subsidies should be revealing.

And then there's the cry of "where are the jobs?"

It's a fair call from opposition parties. Currently there are about 15,000 jobs available in NZ on the Seek website.

That's a fair few.

But many jobs are low paid and part-time. The last Household Labourforce Survey showed there were 15,000 more part time jobs last quarter, but 13,000 fewer full time jobs. It's a concerning trend. Who wants 15 hours a week on crap money?

People need meaningful sustainable jobs. Flipping burgers is a job; it's a start, we've all done this sort of work.

But it's true for those entering the workforce for the first time in a long time that they need to start somewhere but they also need a pathway to show them the way out of those jobs too.

I often get accused by some who say I'm a media hack and what would I know about low-paid work?

Well I know something. I know I cleaned the Whitcoulls Queen Street store at 16 in my school holidays for youth rates - about $4.50 an hour at the time. I powder-coated curtain rails for $6.00 an hour in a Glenfield factory a year later. I put lids on toothpaste at the Avondale Redseal factory at the same time to help me pay for my first year at university.

My first job at TVNZ in 1995 was as an intern and I was paid $15,400 a year - about $250 a week from memory. A year later they put me on $21,000. By year three it was $30,000.

I worked like a slave for $250 a week. Try living on that in Auckland - it was impossible.

They were part-time crappy jobs (not the TVNZ one) - and they sure as hell encouraged me to take my studies seriously by year three!

Anyway, I digress.

The answer to all this of course is economic growth. A bigger economy will help get people off benefits, not just welfare reform in its own right.

Reforms will play a part, but they're not the sole answer.

The Government desperately needs the economy to grow faster. Labour reduced the numbers of people on benefits drastically in 2004/05 when the economy was going gangbusters.

It's the best answer to welfare reform and always has been.

But back to Bennett and her handling of these changes so far.

She's tough. She's been there. She's been a solo mum. She's had it hard. She's come out the other end. Labour hates her. And she hates them more. It's a perfect rematch of the Rumble in the Jungle - except these guys might be tougher. Labour regards her as a traitor in my opinion - and they're going after her. Problem is - nothing is sticking yet.

And Bennett loves a knuckle.

Her handling of the youth unemployment issue last year in my opinion was average - 83,000 young Kiwis are not in either education employment or training and it's a crisis not helped by the Government's underwhelming approach to it last year.

But Bennett has started the year with a spring in her step. She looks determined to front foot these welfare changes that she believes in.

Yesterday in response to questioning by Hone Harawira, I thought she nailed him by telling him to sort out his patch and his voters - who she claimed would rather smoke drugs than get jobs. Not every minister would try that one - but it silenced Harawira, which isn't easy.

Consider this: National made a pigs ear out of its mining reforms and dropped them.

Bill English and John Key have done a pretty average job at selling the asset sales programme.

But so far Bennett is winning the war on this battle. That could change, but right now she appears to be doing well. The public aren't marching in the street - indeed they're likely to be behind welfare reform.

Whether it works is another thing. And in two years' time the real test will be in whether people have got jobs and the numbers of people on welfare are down. It failed in the '90s, it could easily do so again if the economy doesn't pick up.

But Bennett is trying something, and she's loud and proud about it. The Prime Minister backs her - and as long as Hone Harawira and Sue Bradford are rallying against her then she's likely to have mainstream working NZ sewn up on this one.

Sure she has her detractors - but that's not new in politics.

If she can deliver this one - could she be on track for higher honours in the National Party?

Who else is there after Key?

Stephen Joyce and Hekia Parata?

Makes you wonder eh?

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Comments

19/06/2012 1:11:55 p.m.

Joronda wrote:

A high NZ dollar around 78-83 cents is never going to allow much growth in the NZ economy, because exporters are under siege.

I got a job at 16, stayed at home until 23 and saved 83% of my pay, did dozens of jobs to help my parents around the home (with a willing heart) - then put myself through 6 years at university without bursaries or Loans.

I did an O.E in Australia and arrived back in NZ with same money in the bank I left with, by taking what work was on offer.

The skill of being thrifty and helping others set me up for life.

A penny to save, a penny to spend and a penny to give away can change your thinking patterns - and it can open up doors you never knew existed.

Any job can be turned into fun. All jobs can have a silver lining if you look for it.

Just be a "good keen person" and you will be surprised where your life will take you.

There are infinite opportunities out there to have a fabulous life without having a truck load of cash before you start.

In Quantum Physics we say that a butterfly flapping it's wings on the back of a camel in Australia can affect the weather in China. When you understand how that can be possible, you will be able to manifest a life that will astonish you and your friends.

25/05/2012 7:10:08 p.m.

Tobin wrote:

As we all are tightening our belts Paula Bennett is widening hers. Just look at her a few years ago and now what a fat whale she has become lol! She was once on the benefit and had a much tighter wasteline - now she's creaming it and looks like a 150Kg Sumo wrestler :) Obviously some people are more equal to others!

26/03/2012 5:51:40 p.m.

brian wrote:

Duncan you try living on 195 dollars a week which is what i get on a sickness benefit. i have to buy food pay bills like rates insurance and still try to put money to one side in case i have unexpected stuff turn up that will test ya and WINZ sure as hell won't help if they can help it

21/03/2012 1:00:31 a.m.

paul wrote:

I don't no why your blowing Key's trumpet.You answered your own question your self.(Labour did OK 2004/5 when the economy was booming)Well now its on a downer work is whats needed now,real work with a good hourly rates.Not a big stick to bash people with. A politician told me once that they prefered 6 or7% unemployment as it made it easier for them to control the work force.YOU SHOULD NOW THAT.

16/03/2012 9:09:18 p.m.

fmacskasy.wordpress.com wrote:

Duncan, two things; 1. What is the point of a "bene card" for 16 and 17 year old unemployed youths, to sytop them buying booze and cigarettes, when it's already illegal for retailers to sell these items to kids>? 2. You state; "The message is this: welfare should not become a lifestyle where you can keep having more babies, while other Kiwis work." I know of no solo mums (and it's always solo-mums - never solo dads) who who are on the DPB bwecause it;s a "lifestyle". The ones I know; (a) hubby deserted his wife, leaving three kids to look after, so he could shack up with blonde co-worker. Youngest child; 18 months old. (b)two solo-mums who escaped violent relationships. (c) another solo mum whose hubby shot through for a new girlfriend. He got her pregnant, then he dumped her as well. And yet, it's solo-mums wh get the blame? Solo-mums, who fulfill their responsibilities to care for their children, whilst hubbies have scarpered? Yeah, ain't that logical?! Perhaps we should be teaching our sons to be more responsible in relationships, instead of getting women pregnant, then abandoning them.

15/03/2012 11:58:47 a.m.

Kevy wrote:

$350.00 net per week is what any lending institution requires if you need a loan, invalids benefit=$280 per week,& one lady is payed $5.00 per week for power/$7.00 per year for transport,all based on Winz missguided view.Winz uses the social welfare law to pass on sensitive business & personal info to invisable 3rd parties,this law superseeds the privacy law so now you have many spies working legally with the law & it seems a reporter agrees with that scenario.Proove me wrong.......dude

10/03/2012 4:57:01 p.m.

Ruz wrote:

I'm not sure how WINZ will manage the payment of rent and power bills etc, when young people tend to share accommodation and split the bills. Certainly it's going to require a new set of processes and more administration. And this would be at a time when the Government is trying to cut back on backroom operations. So Duncan I hope you keep an eye on the proposed changes to see if they work because somehow I suspect there are unlikely to be the gains that the Government is hoping for mainly because there may not be the jobs available to fit the skill levels of those most effected by the work test changes.

9/03/2012 5:06:01 a.m.

nik wrote:


I worked like a slave for $250 a week. Try living on that in Auckland - it was impossible.
In 1995?! I live on the sickness benefit and get $259 a week and it's now 2012. Try living on that!!!!!!!!!!!!!!!!!!



5/03/2012 7:58:36 p.m.

lol wrote:

I earned $13 when i started work,that was full time and i was just out of high school,lived at home,paid for bus as
well to get to work and home,15ks away,life was different then,family mattered,its all about big profits and keeping wages low now,that was 43yrs ago,different times,roll on to now everything is expensive in relation to the good ol' days.
As for jobs,you need a phd,mbe,etc,just to get an interview
i feel sorry for the young ones of today,they have to
fight to get work and most of them are depressed in some way.

5/03/2012 3:39:26 p.m.

timothy wrote:

i would not have thought it was your job to sell the government of the days policy or in this govts situation the lack of new ideas . but why is it the medias job to help the government like this Duncan just curious ? .key we wont ever vote for mr 1% again .0