Welfare Reform Group is a Gigantic Leap back to the Past

The Alliance Party says the Government's Welfare Reform Group headed by former Commerce Commission chairwoman, Paula Rebstock, is a "Trojan horse" aimed at downgrading and privatizing the social security system.

Alliance Economic Development spokesperson Quentin Findlay says the Government has declared war on beneficiaries and their new group was the next step in their attack on New Zealand's most vulnerable citizens.

Mr Findlay says that few would find credible Ms Rebstock’s comment that the group’s recommendations would not undermine the existing social security system.

“Obviously, it is nonsense.  Ms Rebock and Social Development Minister Paula Bennett have already said that they want to discuss individual unemployment insurance. What Ms Rebstock is asking people to accept is that two parallel systems, one individually funded and one by funded by tax, are going to sit alongside each other with no ill-effects.”

Mr Findlay says Unemployment Insurance is used in Canada and part of the United States where social security systems are not as developed as in New Zealand or Europe.

He says New Zealand's present welfare state was developed as a result of comprehensive debates and discussions around schemes like unemployment insurance which was not seen as either comprehensive or as offering people security between jobs.

“In words of Sir William Beveridge, the creator of the UK welfare state, social security was designed to slay the five giants of ‘Want, Ignorance, Disease, Squalor and Idleness’ which existed in capitalist society.”

In the UK, the comprehensive social security system developed by Sir William replaced the patchwork of individual unemployment insurance systems and poor law legislation that had been in place until that time and which had done nothing to alleviate the condition of the unemployed or the poor.

Mr Findlay says that a similar, although lesser situation had existed in New Zealand.

“Simply, Ms Bennett and Ms Rebstock would be better advised to study history.”

He says the National Government was stirring up prejudice against the unemployed to cover for the massive surge in unemployment that has occurred since they came to office.

"This Government is out to get the unemployed and other beneficiaries and it is willing to even ignore the Bill of Rights in order to do so.”

Mr Findlay says the Alliance rejected unemployment insurance and would instead solve the problem of unemployment by actively dealing with the real reasons that people became unemployed.

“This means pursuing policies which promote full employment, such as Government led investment, a redrafted Reserve Bank Act and the end of free market led economic policies."