By Ally Mullord
The Prime Minister says the return of youth wages is being considered, but wouldn’t be the only tactic used to combat youth unemployment.
John Key joined Firstline this morning to discuss issues arising from National’s conference on the weekend – including the possibility of a youth wage and the payment card scheme for young people on the benefit.
Mr Key says reintroducing the youth wage “is being considered” as one method to lower New Zealand’s youth unemployment rate, but the Government will look at “all the factors that might work”.
“We will consider it – I wouldn’t say we’d necessarily carry that out,” he says.
“I wouldn’t want someone to think it’s the only factor… if that’s the only reason someone’s getting employed, we’re probably getting off on the wrong track.”
He says the introduction of a youth rate would likely be as part of an overall package rather than “front and centre stage”.
Introducing a payment card – which can’t be used to buy alcohol or cigarettes – for young beneficiaries is also part of a wider strategy aimed at improving youth outcomes, Mr Key says.
“The purpose isn’t necessarily to save the country millions, the purpose is to make sure that there’s some order and some help for these young people.”
The plan also includes ensuring training places are available for young people and the development of an “intensive case management” service designed to help youth with various aspects of their life.
“The most critical bit of [the plan] is outsourcing… a wraparound service to sit with, walk with, and help the young person in all elements of their life,” he says.
Mr Key says further welfare reforms can be expected before the election, and “there will be other areas that [Government] is looking at”, but changes are likely to be subtle.
“There will be reform of the welfare system probably right across the board,” he says, “but you take that bite by bite… this is a system that affects over half a million New Zealanders.”
Mr Key says the lack of dramatic change to the welfare system isn’t a political move, but a reflection on how “thoughtfully and carefully” reforms needs to be made.
“In the end all you can do in an election is go to the people of New Zealand and say, ‘This is our ideas, this is what we think is the right direction for the country… and in the end you as New Zealanders have to decide.’”
Watch the video for the full interview
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