N.Z., Aust. agree on dole law

Press, 26 July 1986, Page 8

N.Z., Aust. agree on dole law

By OLIVER RIDDELL in Wellington Unemployed New Zealanders in Australia and unemployed Australians in New Zealand will have to wait six months before qualifying for the unemployment benefit.

The Minister of Social Welfare, Mrs Hercus, said the decision was in line with discussions she had had with the Australian Minister of Social Security, Mr Brian Howe.

Australia has now announced it will not pay the unemployment benefit during the first six months of a New Zealander’s stay there. The benefit would be payable only during

the second six months if some substantial evidence of settlement in Australia was produced, such as a period of employment or the purchase of a home.

Mrs Hercus said she and Mr Howe had agreed to this approach when they had met in Wellington during May. Mr Howe had now obtained the agreement of the Australian Cabinet to the proposals. The proposals were designed to reduce the level of abuse of the Australian social security system by New Zealanders, particularly young and unmarried ones.

It was clear that some of these people were arriving in Australia with no savings or job prospects, claiming that they intended to stay in Australia permanently, and expecting to be supported by the unemployment benefit for the whole time they were there, she said.

New Zealanders had free access to Australia and about 12,000 of them were receiving the Australian unemployment benefit, at a total cost to the Australian taxpayer of about sAust7 million a year.

Surveys had shown that about 40 per cent of them had been in Australia for

less than 12 months when the benefit had been granted, Mrs Hercus said.

It was hoped that the proposed changes would encourage young New Zealanders thinking of going to Australia without any savings or job prospects to think again.

The proposals involved legislative changes being made to the reciprocal agreement New Zealand had with Australia, she said.

Australian officials would be in Wellington next week to finalise the proposed changes with New Zealand officials.

After that each country would have to pass legislation before the changes could come into effect That would be done as soon as possible..

Mrs Hercus said that when completed these unemployment benefit proposals would bring the Australian unemployment benefit more into line with the New Zealand un- ■ employment benefit which had a basic qualification of 12 months of continuous residence here.

There was no such qualification attached to the Australian unemployment benefit which could be paid from the date of arrival there.