Donna Awatere Huata MP

Act spokesperson on employment
http://www.act.org.nz/

1. What are your employment policies? What employment initiatives will your government take?

Our current unemployment rate is too high. It is also unnecessary: we know how to keep unemployment as low as possible. Sadly, the government's disastrous policies of high taxation and greater regulation have resulted in fewer jobs being created.

ACT is the only party with a strategy of hope for the unemployed. ACT believes:

— That the key to low unemployment is to remove government-imposed barriers to work.

— That lower taxes help people to shift from welfare to work.

— That the unemployment benefit should be a short-term option only. It should not be a lifestyle choice, and there should be limits to how long on able-bodied person can remain on the benefit.

ACT believes that moving from Welfare to Work is a full time commitment. A fully-funded Welfare to Work scheme that involved community-based providers, together with ACT's proposals to create new jobs, could lower the number of people registered as unemployed by a third within three years. ACT believes that unemployment at levels of around 1-2% is achievable and sustainable. Its goal is to have the lowest unemployment rote in the OECD.

Greater freedom in the workplace is one of the keys to creating more jobs. ACT will liberalise labour relations by:

— Repealing the minimum wage, which has been demonstrated to cost jobs among low skilled workers.

— Creating a proper labour law framework that will encourage job growth, including amending the Employment Contracts Act and the Holidays Act.

Lower taxes are another way to help people shift from welfare to work. Higher take-home pay rewards a person for taking a job rather than remaining on a benefit, while reduced business taxes encourage an employer to take on new staff. ACT is the only party committed to major and ongoing tax reductions. It will introduce a flat rate of income tax, and a tax-free threshold for families.

Under ACT specific work and training programmes will be developed for the remaining unemployed. ACT wants to break the cycle of dependency, and believes that those who can work, should work. People will be assigned to activities aimed at providing them with the skills, confidence and work habits necessary for standing on their own feet.

ACT's direct assistance to the unemployed, along with economic policies that remove barriers to job creation, will provide all unemployed New Zealanders with a route to the workplace. In these circumstances it is reasonable to impose a time limit on the receipt of unemployment benefit.

ACT will:

— Tighten procedures whereby unemployment beneficiaries are tested as to whether they are actively searching for work.

— Introduce a limit of two years for receipt of welfare without working,

2. What is your party view on the future of work and income?

The rationalization of employment and welfare was a positive move, however there are some operational difficulties which need to be addressed.

3. What changes, if any, would you make to the new Winz department?

No comment provided.

4. What are your policies on the Community Wage?

ACT will press for the community wage to be retained and expanded. ACT believes that, bureaucratic as the scheme is, the community wage is a success. 30% of those on the community wage scheme have gone on to real jobs.

5. Will you make any changes or additions to the Winz employment subsidised work programmes?

ACT intends that through a fully-funded Welfare to Work scheme which involves community-based providers, together with ACT's proposals to create new jobs, to lower the number of registered unemployed by a third within three years. ACT also believes that there are excellent community-run programmes around the country that are achieving outstanding results. These programmes are focused on the needs of individual job-seekers and that is why they are succeeding.

6. What are your policies and initiatives on education and training for the unemployed?

ACT's major priority is to get people working, and to break the cycle of dependency.

7. How will you encourage local government to be active in solving unemployment?

By encouraging local government to support community-based welfare programmes, cut taxes, government red tape and bureaucracy. Government policy must assist those on welfare to overcome any barriers to work.

8. How will you encourage community groups working in this field?

By providing funding for community-based welfare programmes, ensure that assistance is tailored to meet the needs of individuals and move from the "one-size-fits-all" welfare state. Also, by making it easier for businesses to hire more staff, cutting taxes, government red tape and bureaucracy.