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PM’s Presser - Welfare Working Group

Reporting by Virginie Ribadeau Dumas
Images by Rory MacKinnon

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Prime Minister John Key says his Government’s welfare reform is about breaking cycles of long-term dependency – despite new research suggesting the biggest barrier for many beneficiaries is a "severe and permanent incapacity" to work.

PM John Key started his conference by mentioning the release of the Welfare Working Group discussion paper. The Prime minister insisted on the issue of long-term dependency on welfare, which imprisons people in a life of low income and limited choices.

“We all want a welfare safety net that is going to support the most vulnerable.

“It must be a fair system, both for those who receive assistance and those who pay for that assistance.”

More than mentality, which was the reason why the Welfare Working Group was originally created in March, the government seems now to be more concerned about the system's sustainability. The number of unemployed is too large a number for a country like New Zealand, explained John Key.

“We have to make sure the settings are right, and that the right people,” he asserted, “that they don't encourage people to stay on welfare.”

Key pointed out the importance of breaking the cycle of welfare, where children raised in families relying on welfare have more chance than other to live on welfare later in their life.

Asked about the consequences of this study, the Prime minister refused to prejudge the legislation to come and repeated that he was waiting for recommendations that haven't been crafted yet.

The Group's final conclusions are due in December 2010.

The same idea of driving efficiency in the system was evoked concerning state housing, an area “which is moving but clearly not efficient”.

Cabinet also evoked the question of foreign investment and lands, insisting on the country's appeal for foreigners.

“Internationally, it is no question that New Zealand is a great place to produce food”, linking this appeal to the increasing demand for farming lands.

On the alcohol limit issue, Key says he is not afraid to move to a 0.05 limit but wishes to be sure of the public support. While insisting on the number of drunk drivers courted – 36,000 New Zealanders were convicted of drunk driving last year. He pointed out that most of the road victims due to drunk driving were below that 0.05 limit.

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