‘Double standard in Govt benefit cuts’

Press, 23 August 1979, Page 4

‘Double standard in Govt benefit cuts’

PA Wellingtoni Parliament spent last evening haggling over individual clauses of the Social Welfare j Amendment Bill, finally completing the committee stages shortly before it rose at 10.30 p.m. The bill, which effectively reduces some benefits $8 a week from October, was evidence of the double standard adopted by the Government, said Mr M. K. Moore (Lab., Papanui). A constituent of his, with two dependent children, who was suffering from terminal cancer, would have his benefit cut $8 a week, he said. "I challenge any member of this House to say that they are prepared to accept $8 a week less. “Would the member for W aipa (Miss Marilyn Waring)?” Miss Waring: Yes. “The member for Waipa will fill in her return and get more by way of tax-deductible allowances than this man gets to live on with a couple of kids. And you talk about equity and justice,” Mr Moore said. The Minister of Social Wel-

I fare (Mr Gair) said that although some benefits would be reduced, the Government I was spreading the taxpayers’ I dollar around to those who most needed it. The legislation would mean that superannuitants, with no other income, who faced | house rental payments of more than $l6 a week, could apply for additional benefit. Mr Gair estimated this would include about 30,000 superannuitants, including 5000 who lived in old people’s homes. It would cost the Government an extra $5 million annually in such additional benefits, he said. Mr J. L. Hunt (Lab., New Lynn) accused the Government of breaking its promise not to impose a means test on superannuitants. In applying for the additional benefit pensioners would in effect be meanstested. The bill also affects measures announced in the Budget including bringing the National Superannuation rate down to 80 per cent of the average ordinary wage after tax, doubling the family benefit to $6,

and bringing the unemployment rate for married women in line with that for married men. - Mr Gair has assured superannuitants that with the new tax rates to come into effect in October, and the increase in the average ordinary wage, they will not suffer a cut in the benefit. The legislation will also mean that beneficiaries, including superannuitants who are away from New Zealand for more than three months, will have their benefit stopped and will be required to apply for reinstatement. Earlier, the Leader of the Opposition (Mr Rowling) accused the Government of discriminating against old people by stopping their superannuation payments if they went overseas for more than the three months. However, Mr Gair denied this. He said that when the economic position improved the three-month qualification would be reviewed, A total of $9.6M would be saved by stopping the benefits of those who were out of New Zealand for more than three months, Mr Gair said.