1 April 2008
Key’s review of benefit adjustments a surprise
John Key’s statement that National is reviewing annual adjustments to benefits is a worrying sign that he is either not
on top of policy detail, or is working on a more radical agenda than he has been publicly claiming, Finance Minister
Michael Cullen and Social Development and Employment Minister Ruth Dyson said today.
Benefits and superannuation payments have been adjusted today to take account of rising consumer costs over the past
year – a move that will require a $280 million investment over the next financial year. Benefits have been adjusted
every year since the late 1980s, except for a three year superannuation freeze under Ruth Richardson.
On television Sunday night, Mr Key was asked if he supported annual adjustments to benefits and said:
We're looking at those policies. I mean at the moment, ah, some of them have already have built in clauses, others
don't. Ah, we'll be reviewing those in due course.
“Mr Key is looking to cut spending to ‘out tax cut’ Labour, but I don’t think anyone saw a review of benefit and super
adjustments coming,” Dr Cullen said.
“Mr Key needs to clarify what exactly he meant with talk of ‘reviewing’ annual adjustments. He either has a very
worrying policy under development or he has been caught again making something up when he didn’t know the right answer
to a question.
“Either way, Mr Key has been leader for some time now and needs to get on top of policy detail or start telling people
what he actually believes.”
“Not adjusting benefits and super really means cutting support for older New Zealanders and vulnerable families,” Ruth
Dyson said. “The government has a legislative obligation to adjust superannuation levels for inflation – I suppose
that’s what Mr Key means by ‘built in clauses’.
“It is true that we are not required by law to adjust benefit payments, but I think most New Zealanders understand that
we have a moral obligation to do so. Both National and Labour governments have understood that for some time.”
ENDS