20 July 2009 Media Statement

New policies needed to get NZ working again

Labour Leader Phil Goff and Social Development Spokesperson Annette King today announced that Labour intends making changes to the party’s policies to get unemployed workers off the dole, into training, and back into work.

“The deepest world recession in decades has seen unemployment in New Zealand increasing at record levels, with no end in sight. Every week around 1200 people, through no fault of their own, are being forced onto the dole,” Phil Goff said.

“Significant changes are needed to better protect New Zealanders from the downturn and ensure that we have a highly-skilled workforce ready to go when the recession comes to an end,” Phil Goff said.

“Labour’s current policy in this area has two parts:
• A 13-week Job Search Allowance assistance package for redundant workers who have been in the workforce for five years or more. Unlike the unemployment benefit there is no spousal income test.
• A 52-week Retraining Allowance, again with no spousal income test, for redundant workers. It is be available, on the same basis as a student allowance, for enrolment for up to a year in a recognised full time course.

“Our recession response package, which will be detailed shortly, represents insurance against the recession for hardworking New Zealand families.

“Labour intends extending the time the Job Search Allowance will be available to redundant workers during the recession to help ease the financial burden while they are job hunting in an increasingly difficult job market. The five-year threshold is also likely to be significantly reduced.

“There are many two-income families who would struggle to pay the mortgage and food bills if one income earner lost their job in the recession. It is fair that these people are supported during this difficult time.

“Labour also intends making the Job Training Allowance available to many more workers by significantly reducing the amount of time people have to have been in the workforce before qualifying. Extending the Job Training Allowance will help us make the best use of the recession by training our workforce now so people are ready when the economy recovers,” Phil Goff said.

“The changes, which will be in place for the length of the recession, represent a sensible long-term investment in our future – particularly when put alongside the cost of National’s do-nothing approach,” Annette King said.

“John Key’s approach has been to sit by and wait for the recession to blow over. That is not good enough – the financial and social cost to our communities is too great. It is time the Government was jolted into action. I urge National to put ideology aside and look at what these policies can deliver for New Zealand.

ENDS

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