LINDSAY MITCHELL: National window-dressing on welfare

Last week Simon Bridges, CEO of the Auckland Business Chamber, could be heard waxing lyrical to Mike Hosking about the new partnering initiative, ChamberWorks, between his organisation and MSD (WINZ) to get recently unemployed people into jobs. These are people who have not long been on a benefit but have skills, and recent experience and attachment to the workforce.

MSD Minister Louise Upston says, "It makes sense for these two key groups to work together because MSD has the largest talent pipeline of workers in the country. They’re also able to support the recruitment process with access to training and online learning."

At first glance this seems like eminently sensible idea.

But I am ever the skeptic. For starters, these short-term unemployed skilled types are quite capable of finding their own way back into the workforce. They will not be wanting to stay on a benefit any longer than absolutely necessary. According to AI there are 1,227 private employment services operating in NZ including the likes of Randstad, Adecco, Hays, Robert Walters, and the Accordant Group. Then there is SEEK. Right now, there are over 8,500 Auckland jobs listed on SEEK.

Obviously, after it eventually emerged mid-week that the number of people on a benefit is at a 12 year high, National is keen to be seen to be actively and innovatively working on the problem. They set a goal of reducing Jobseeker numbers to 140,000 by 2030 and the quickest way to do this is be all over the low-hanging fruit. Meanwhile ...

Imagine, if you will, a plugged bathtub filling from both taps while someone ladles with a teacup. That's what National is doing. Ladling with the cup. Scooping out the most employable jobseekers while the tap hoses in illiterate, unskilled, youths and young parents, as well as people who can't work due to a health problem (mental or physical) that our utterly inadequate health system has wait-listed.

My last post showed how the time people spend on welfare is getting longer and longer, with future estimated years up 35 percent from 10.6 in 2016/17 to 14.3 years in 2024/25.

If those numbers were shockingly high, consider how much worse they are for young people coming into the system. Those who begin on a Youth or Young Parent Payment will remain dependent for 25 years on average. For sole parents, the average future estimated time on benefit (which doesn't include existing time spent) is 17.5 years:

MSD's resources need to be directed at turning down the tap pressure. Maybe instead of partnering with the Chamber of Commerce it should be partnering more actively with the local health districts. Or with Family Planning. Or with Plunket.* Or high schools. And legislation needs to support these collaborations.

For instance, make becoming a single parent no longer an automatic entry into the benefit system, and signal and support this widely through the aforementioned organisations.

Lift the eligibility age for welfare to 25 (and shove out super entitlement age while you are at it.)

Introduce some time limits.

Maybe these are radical ideas (I've laid out an achievable plan previously) but something has to give. At least give us some concrete policies we can vote for in November.

Not window-dressing.

* Yes, I realise all of these organisations now have Maori names but using them will not aid comprehension.)

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