Beneficiaries who don't get jobs because they refuse to take a drug test, or fail one, are going to have their welfare payments cut.
The Government is preparing to implement its election campaign policy and Social Development Minister Paula Bennett says legislation will be introduced later this year.
Under current law there are no penalties for beneficiaries who miss out on jobs because they won't take a drug test, or if they take one and fail.
Finance Minister Bill English says when people are meant to be available for work they should be able to pass a drug test.
"In my electorate a lot of jobs are available to younger people in forestry and meat processing, I'm told they often can't employ locals because they can't pass a drug test," he said on TV One at the weekend.
"Back in the election campaign we made a commitment to have a policy where people who are meant to be available for work should be in the position where they can pass a drug test."
Labour's social development spokeswoman, Jacinda Ardern, says it's the wrong approach.
"What we need to do is make sure we're working with drug and alcohol programmes to ensure that person is able to be employed," she said.
NZN