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Parliamentary debates: Saturday, 24 May 2025

Contents

Continued from the sitting of Thursday, 22 May 2025

Bills

Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill

Part 2 Amendments to other legislation

Barbara Kuriger

Chairperson

The question is that the Hon Carmel Sepuloni’s tabled amendments to clause 25, new section 118A(3)(a) and (b), replacing “must” with “may” be agreed to.

Party vote

A party vote was called for on the question, That the amendments be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendments not agreed to.

Teanau Tuiono

Chairperson

I’m just going to pause for a second. [Pause in proceedings] The question is that the Hon Carmel Sepuloni’s tabled amendment to delete clause 26 be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that the Hon Carmel Sepuloni’s tabled amendment to delete clause 27 be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that the Hon Carmel Sepuloni’s tabled amendment to delete clause 28 be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that the Hon Priyanca Radhakrishnan’s tabled amendment to clause 23(1) to, after the words “household income”, insert “and replace it with ‘family income’ ” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that the Hon Priyanca Radhakrishnan’s tabled amendment to clause 23(1) to, after the words “household income”, insert “and replace it with ‘whānau income’ ” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The amendment in the name of the Hon Priyanca Radhakrishnan—the tabled amendment to clause 23(1)—is inconsistent with a previous decision that has already been taken, so is out of scope.

The next amendment—“The question is, That the Hon Priyanca Radhakrishnan’s tabled amendment to clause 23(1)”—is also inconsistent with a previous decision, so is also ruled out of scope.

The question “That the Hon Priyanca Radhakrishnan’s tabled amendment to clause 23(1) to, after the words ‘household income’, insert ‘and replace it with “household stipend” ’ ” is also inconsistent with a previous decision and is out of scope.

The question “That the Hon Priyanca Radhakrishnan’s tabled amendment to clause 23(1) to, after the words ‘household income’, insert ‘and replace it with “household earnings” ’ ” is also inconsistent with a previous decision and is ruled out of scope.

Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “10 working days” is out of order as being the same in substance as a previous amendment by Helen White.

The question is that Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “12 working days” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘3 working days’…” is inconsistent with a previous decision and ruled out of scope.

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘5 calendar days’ be agreed to.” is inconsistent with a previous decision and is ruled out of scope.

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘1 month’…” is also inconsistent with a previous decision and is ruled out of scope.

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘2 months’…” is also inconsistent with a previous decision and is ruled out of scope.

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘9 weeks’…” is also inconsistent with a previous decision and is ruled out of scope.

The question is that Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “a sensible time period” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘a time to be agreed with the boarder’…” is inconsistent with a previous decision and is ruled out of scope.

The question is that Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “a time to be determined by Order in Council on or before 1 January 2026” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘60 hours’…” is inconsistent with a previous decision and is ruled out of scope.

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘48 hours’…” is inconsistent with a previous decision and is ruled out of scope.

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘6 calendar days’…” is inconsistent with a previous decision and is ruled out of scope.

The question—for those of you who have fallen asleep—“That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘1 working week’…” is inconsistent with a previous decision and is ruled out of scope.

The question is that Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “6 days or 12 days at the election of the agency” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘17 days’…” is inconsistent with a previous decision and is ruled out of scope.

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘3,264 minutes’…” is inconsistent with a previous decision and is ruled out of scope.

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘6,478 minutes’…” is ruled as inconsistent with a previous decision and is ruled out of scope.

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘3 Mondays in a row’…” is ruled inconsistent with a previous decision and is ruled out of scope.

The question “That Arena Williams’ tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘14 calendar days’…” is ruled inconsistent with a previous decision and is ruled out of scope.

The Hon Willie Jackson’s tabled amendment to clause 20, section 73(4), “after the word ‘rent’, inserting ‘that appropriate consideration is given to the principles of Te Tiriti o Waitangi’ ” is out of order as not being in the correct form of legislation.

The Hon Kieran McAnulty’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “1 day of work” is out of order as not being in the proper form of legislation.

The Hon Kieran McAnulty’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “1 day outside the weekend” is out of order as not being in the proper form of legislation.

The Hon Kieran McAnulty’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “2 days of employment” is out of order as not being in the proper form of legislation.

The Hon Kieran McAnulty’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “2 days of paid activity” is out of order as not being in the proper form of legislation.

The Hon Kieran McAnulty’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “1 day of paid activity” is out of order as not being in the proper form of legislation.

The Hon Jan Tinetti’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “20 days of paid activity” is out of order as not being in the proper form of legislation.

The Hon Jan Tinetti’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “30 working days” is out of order as being the same in substance as another amendment.

The Hon Jan Tinetti’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “30 days of paid activity” is out of order as not being in the proper form of legislation.

The Hon Jan Tinetti’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “30 days of paid activity” is out of order as not being in the proper form of legislation.

The question is that Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “145 calendar days” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “3 Mondays in a row or consecutively” is out of order as not being in the proper form of legislation.

The question “That Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing ‘1 working day’ with ‘2 working days’…” is ruled as inconsistent with a previous a decision and is out of scope. There will be a brief pause while we wait for more amendments. [Pause in proceedings]

Greg O'Connor

Chairperson

The question is that Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “3,264 hours” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Rachel Boyack

Labour Party · Nelson

Point of order.

Greg O'Connor

Chairperson

Did I hear a point of order?

Member

Rachel’s being unruly.

Greg O'Connor

Chairperson

Look, the evening is, at the moment, unique. It’s not going to be assisted by any calls from the floor. Thank you, members.

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “21 days” is ruled out of order as being inconsistent with a previous decision.

The question is that Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “6 days or 12 days at the election of the agency or its delegated authority” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “2 working weeks” is ruled out of order as being inconsistent with a previous decision of the committee.

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “7 calendar days” is ruled out of order as being inconsistent with a previous decision of the committee.

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “48.5 hours” is ruled out of order as being inconsistent with a previous decision of the committee.

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “48 hours” is ruled out of order as being inconsistent with a previous decision of the committee.

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “a time to be determined by Order in Council no later than 1 January 2026” is ruled out of order as being inconsistent with a previous decision of the committee.

Ingrid Leary’s six tabled amendments to Dr Lawrence Xu-Nan’s amendments amending clause 23, new section 107, are ruled out of order as being inconsistent with a previous decision of the committee.

The question is that the Hon Priyanca Radhakrishnan’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “8 working days” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The Hon Priyanca Radhakrishnan’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “11 working days” is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Priyanca Radhakrishnan’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “1 working work” is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Priyanca Radhakrishnan’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “2 working days” is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Priyanca Radhakrishnan’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “7 working days” is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Priyanca Radhakrishnan’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “15 working days” is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Priyanca Radhakrishnan’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “20 working days” is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Priyanca Radhakrishnan’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “10 working days” is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Priyanca Radhakrishnan’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “12 working days” is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Priyanca Radhakrishnan’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “14 working days” is ruled out of order as being inconsistent with a previous decision of the committee.

The question is that Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “1 week” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), replacing “1 working day” with “3 months” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), to replace “1 working day” with “1 week” is ruled out of order as being inconsistent with a previous decision of the committee.

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), to replace “1 working day” with “4 calendar days” is ruled out of order as being inconsistent with a previous decision of the committee.

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), to replace “1 working day” with “13 working days” is ruled out of order as being inconsistent with a previous decision of the committee.

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), to replace “1 working day” with “11 working days” is ruled out of order as being inconsistent with a previous decision of the committee.

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), to replace “1 working day” with “11 working days” is ruled out of order as being inconsistent with a previous decision of the committee.

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), to replace “1 working day” with “a reasonable period of time” is ruled out of order as being inconsistent with a previous decision of the committee.

Reuben Davidson’s tabled amendment to clause 25, new section 118A(1)(c), to replace “1 working day” with “a time to be agreed with the boarders and their aunt or uncle” is ruled out of order as being inconsistent with a previous decision of the committee.

The question is that Ingrid Leary’s tabled amendment to clause 25, new section 118A(3), to replace “10 working days” with “a reasonable time given all the circumstances of A and B” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that the Hon Carmel Sepuloni’s tabled amendment to clause 25, new section 118A(1), to delete subparagraph (i) of paragraph (a) be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The Hon Carmel Sepuloni’s tabled amendment to clause 25, new section 118A(1), to deleted subparagraph (ii) of paragraph (a) is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Carmel Sepuloni’s tabled amendment to clause 25, new section 118A(1), to delete subparagraph (i) of paragraph (b) is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Carmel Sepuloni’s tabled amendment to clause 25, new section 118A(1), to delete subparagraph (ii) of paragraph (b) is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Carmel Sepuloni’s tabled amendment to clause 25, new section 118A(1), to delete subparagraph (i) of paragraph (c) is ruled out of order as being inconsistent with a previous decision of the committee.

The Hon Carmel Sepuloni’s tabled amendment to clause 25, new section 118A(1), to delete subparagraph (ii) of paragraph (c) is ruled out of order as being inconsistent with a previous decision of the committee.

The question is that the Hon Carmel Sepuloni’s tabled amendment to clause 25, new section 118A(1), in subparagraph (i) of paragraph (c), to replace “agency” with “Crown” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that the Hon Carmel Sepuloni’s tabled amendment to clause 25, new section 118A(2), to replace “reasonable” with “is considered fairly in the circumstances and” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that the Hon Carmel Sepuloni’s tabled amendment to clause 25, new section 118A(3), to replace “first working day” with “next practical opportunity” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that the Hon Carmel Sepuloni’s tabled amendment to clause 25, subsection (3) of new section 118A, to replace “registered community housing provider” with “housing agency whether public or community” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that the Hon Carmel Sepuloni’s tabled amendment to clause 25, new section 118A paragraph (b) of subsection (3), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that the Hon Carmel Sepuloni’s tabled amendment to clause 25, subsection (4) of new section 118A, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that Glen Bennett’s tabled amendment to clause 25, new section 118A(1)(a), inserting new subparagraph (iii) be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Party vote

A party vote was called for on the question, That Part 2 be agreed to.

Ayes 74

Noes 49

PartyCount
Ayes74
New Zealand National49
ACT New Zealand11
New Zealand First8
Te Pāti Māori6
Noes49
New Zealand Labour34
Green Party of Aotearoa New Zealand15

Part 2 agreed to.

Schedule 1

Greg O'Connor

Chairperson

We come now to Schedule 1. The question is that Ricardo Menéndez March’s tabled amendment to Schedule 1 replacing references to “March 2026” with “March 2027” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendments to Schedule 1, new clauses 104 and 105, replacing “2 March 2026” with “1 January 2027” be agreed to.

Party vote

A party vote was called for on the question, That the amendments be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendments not agreed to.

Greg O'Connor

Chairperson

Kahurangi Carter’s tabled amendments to Schedule 1, new clauses 104 and 105, replacing “2 March 2026” with “1 January 2027” are ruled out of order as being inconsistent with a previous decision of the committee.

Ricardo Menéndez March’s tabled amendments to Schedule 1, new clauses 104 and 105, replacing “2 March 2026” with “1 January 2028” are ruled out of order as being inconsistent with a previous decision of the committee.

Party vote

A party vote was called for on the question, That Schedule 1 be agreed to.

Ayes 68

Noes 55

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Schedule 1 agreed to.

Schedule 2

Greg O'Connor

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to Schedule 2 replacing references to “March 2026” with “March 2027” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendments to Schedule 2, new clauses 25 to 27, replacing “2 March 2026” with “1 February 2027” be agreed to.

Party vote

A party vote was called for on the question, That the amendments be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendments not agreed to.

Greg O'Connor

Chairperson

Kahurangi Carter’s tabled amendments to Schedule 2, new clauses 25 to 27, replacing “2 March 2026” with “1 August 2027” are ruled out of order as being inconsistent with a previous decision of the committee.

Ricardo Menéndez March’s tabled amendments to Schedule 2, new clauses 25 to 27, replacing “2 March 2026” with “1 February 2028” are ruled out of order as being inconsistent with a previous decision of the committee.

Party vote

A party vote was called for on the question, That Schedule 2 be agreed to.

Ayes 68

Noes 55

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Schedule 2 agreed to.

Schedule 3

Greg O'Connor

Chairperson

We now come to Schedule 3. The question is that Ricardo Menéndez March’s tabled amendment to Schedule 3 replacing references to “March 2026” with “March 2027” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendments to Schedule 3, new clauses 6 to 8, replacing “2 March 2026” with “1 March 2027” be agreed to.

Party vote

A party vote was called for on the question, That the amendments be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendments not agreed to.

Greg O'Connor

Chairperson

Kahurangi Carter’s tabled amendments to Schedule 3, new clauses 6 to 8, replacing “2 March 2026” with “1 September 2027” are ruled out of order as being inconsistent with a previous decision of the committee.

Ricardo Menéndez March’s tabled amendments to Schedule 3, new clauses 6 to 8, replacing “2 March 2026” with “1 March 2028” are ruled out of order as being inconsistent with a previous decision of the committee.

Party vote

A party vote was called for on the question, That Schedule 3 be agreed to.

Ayes 68

Noes 55

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Schedule 3 agreed to.

Greg O'Connor

Chairperson

Members, before I leave the Chair, I’d just like to thank the committee for its forbearance tonight, but especially to the Clerk’s team. [Applause] It’s been an absolute sterling effort behind the scenes and is very much appreciated, and I think that applause will be appreciated. The time has come for me to leave the Chair. The committee will resume at 9 a.m. tomorrow.

Sitting suspended from 1.01 a.m. to 9 a.m. (Saturday)

Clauses 1 and 2

Greg O'Connor

Chairperson

Members, when we were debating the Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill, we completed the debate on Part 2. We come now to our final debate. This is the debate on clauses 1 and 2, “Title” and “Commencement”.

Helen White

Labour Party · Mt Albert

Thank you, Mr Chair. I want to take some time to ask you about the commencement date, because this is actually a really important issue, and to ask you whether you are prepared to look at a much later commencement date for this piece of legislation. What we’ve heard about this bill—as we’ve discovered what it will do in urgency—is it will take money from people that have previously, by policy decision in law, been allowed to take in boarders. That actually sustained a lot of families in New Zealand. These are our poorest families by the nature of the fact that the Government recognises what is going on and gives them a subsidy. It gives them a subsidy for accommodation, even though they might be working, because they’re earning so little that they cannot make ends meet. It gives them a subsidy if they’re not working because rents are so high in this country.

These are the reasons why we support these people. What happened in the 1990s was there was a plunge in the benefits and the support that we gave people, at the same time as wages in this country fell in real terms and house prices skyrocketed. That’s the economy we now live in and it’s a result of those times. But even in the 1990s, they saw the benefit. This legislature saw the benefit of at least letting people try by bringing in boarders into their accommodation situation. They saw that as a win because it had the benefit of allowing people to make ends meet a little bit by having boarders. So it was a way of them taking control of their situation, like I would if I was suddenly out of here and I had to pay the mortgage and I hadn’t re-established myself as a lawyer, I would take boarders in—that’s what I’d do, because I could.

Greg O'Connor

Chairperson

Ms White, this is not a general debate speech; this is a very tight part of the bill.

Helen White

Labour Party · Mt Albert

It does absolutely relate to the timing of it because I’m talking about a time in history where there’s a cost of living crisis and, actually, these are the very people we need to extend out. So I’m asking the Minister for Social Development and Employment: would she consider extending this out to a time, maybe two years out, when the Government promises at the present time that it’s going to restore the balance here? It’s going to restore the situation in terms of cost of living, because so far what we’ve seen is we’ve seen cost of living crises for the very people who we are taking $100 on average a week off. Will the Minister consider a movement and an absolute change in the words so that we have this 2 March much later? I suggest we do it two years from then, and that’ll give things time to settle down.

That’s what I’d like to ask the Minister: is she prepared to recognise the cost of living crisis for this group and allow that time to be much later—two years later? Thank you, Minister. I’d really like an answer to that question.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I did explain, yesterday, that this was a measure that was in Budget 2024, so it’s been signalled for quite some time. It does not prevent anyone at all from having boarders; all it means is that if you do have a boarder, the income from that boarder is taken into account in terms of your accommodation supplement assistance, which is funded by other taxpayers. So, no, we will not be changing the commencement date. There are technical requirements and IT changes so that this piece of legislation comes into effect on 2 March 2026, and it was first raised in Budget 2024, which is a whole 12 months ago.

Ricardo Menéndez March

Green Party · List MP

Thank you. The Minister for Social Development and Employment just talked about clause 2, the commencement on 2 March 2026. She just mentioned the IT changes that she thinks will be required in order to make this possible. I did want to ask the Minister—because this, again, would have been the kind of stuff we could have been evaluating at the select committee stage. I notice this is coming in just before the changes to benefit indexations that happen in April, and it did seem like an arbitrary date to create. There’s not much analysis given to us as to why that specific change was given.

I wanted to ask about the fiscal implications of the number of staff that will be working on these IT changes and the costs to, for example, change anything on different platforms—for instance, whether it’s MyMSD, whether it’s to develop new training guidelines. These members might be thinking it’s funny, but I do think there are genuine fiscal implications to the choice of 2 March 2026. If the members think this is too broad, they are just out of their depth, because the reality is that the Ministry of Social Development is really busy.

I did want to ask: what are the measures the Government is taking between now and 2 March 2026 to ensure that those IT changes are adequately resourced? And how many staff—how many fulltime-equivalents (FTEs) will be working on those changes? I think the people deserve some transparency around this, particularly the thousands of families who will be left without the accommodation supplement after these changes. So I want to ask: how many FTEs, what’s the fiscal implication around the IT changes, and whether she will need to be developing any new platforms as a result of this, and particularly in relationship to the community housing providers that will now be left with discretionary options around how they change trends in relationship to this? I am seeking genuine engagement around the date, and so I hope the Minister gets this done.

Helen White

Labour Party · Mt Albert

Thank you, Mr Chair. I’d like to talk about the title of this bill and I’d like to suggest that we change the title to something more reflective of what this is. I would like to change this title to the “Contribution of Those on Accommodation Supplement and Income-related Rent to the Tax Cuts for Landlords”. I think that’s a pretty good title for this bill, because what has happened here is that the Government has decided to take $150 million off the very people who are hurting the most, because they need to make ends meet. This is a Budget measure. That is what it’s been assessed as—saving the Government—and it was done as a measure to make money which needed to go back into the kitty because it had been spent.

One of those items that it had been spent on was tax cuts for landlords. We had a measure in place where landlords would actually have to pay for—they wouldn’t get the same interest deduction. It was something that was controversial. It was something that National went in and said it was going to give back to landlords, and it did that at enormous cost—enormous cost; I think it was $2.9 billion. This is a drop in the bucket that is being taken out of the pockets of our poorest people, recognised to be our poorest people because they are on the accommodation supplement, because they are in income-related rents. That’s who is going to pay for this.

So I think that is a lot more accurate title. If the Minister for Social Development and Employment does not agree that that is the most accurate title, then I would like to know why she doesn’t, given that it’s a measure that is there to make money. There were other ways that the legislation could go, because it says so in the documents that we have, but they didn’t make as much money for the Government. There were other ways that this could have been done, but it’s been done with an automated decision-making system bringing everybody into the office—which we’ll talk about in the next bill—specifically because the cash grab has to happen by the date in this legislation. That’s when it kicks in. So it’s been built in.

The reason that there is a need for a cash grab is because of the Government’s books and because of the money and the choices it’s made, and it made that choice to give money to the very people who have got the rental properties in this country that are too expensive for people to live in, so we have to give them the accommodation supplement.

Now, interestingly, the accommodation supplement is criticised as hiking up those rents because it actually goes into the pockets of the landlords. Again, surprise, surprise. The one subsidy we haven’t talked about—we’ve talked about double-dipping, but we haven’t talked about the huge subsidy that we give landlords by a mechanism that could have been addressed; there could have been some brave work done, but no brave work was done.

I want to talk about the title reflecting the reality, because New Zealanders in this country need to understand that the reality of this is they are paying for the decisions made by this Government. So I’d ask: could you please address that issue? Why are we not reflecting it in our title? Because this title that we’ve got here, which says the Act is the Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Act 2025, it really doesn’t tell people anything, does it? It sounds innocuous. It sounds like a small technical change. And, at the same time, we’re helping people up. Well, we’re not helping people up, are we? Let’s call it what it is, because our job as legislators is to be actually really clear about what we’re doing and reflect what we’re doing. Please, can I know why we’re calling it something which nobody would look twice at, wouldn’t know anything, wouldn’t know what it really did. Why are we doing that when we could be honest? Because if the National Party believes in this stuff, they better say it. Why don’t we tell them the way it is? Thank you. I’d love an answer to that question.

Greg O'Connor

Chairperson

Just before I take another call, I’m hearing some reasonably disrespectful commentary coming from my right. So I just wonder whether members might reflect on whether that’s really adding not only to the order of the House but to the dignity of the House. I’ll just ask them to reflect on that, without pointing out anyone in particular.

Kieran McAnulty

Labour Party · List MP

Thank you very much, Mr Chair. I intend to move an amendment to the title of this bill. I think it’s incredibly important in any time when the House is considering a bill at committee stage, but particularly under urgency when the public of New Zealand in the first instance has not had an opportunity to have their say at the select committee stage, but by virtue of this being urgency after a Budget and this being on Saturday morning, the likelihood of this bill getting media coverage is far less than it would do if it were going through a full parliamentary process. On that point, it is especially important that the title reflects the contents of the bill accurately.

Now, my concern about the title of this bill, the Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill, any reasonable person that hasn’t been following this debate or isn’t aware of the contents of the bill could make a reasonable assumption that this bill increases the accommodation supplement and income-related rent. Why wouldn’t they? It’s called “social assistance”. If you were looking at this title, you would assume that this actually increases the assistance provided by the State, but we know that it doesn’t. My amendment would be to change the title of this bill to the “Social Assistance (Reducing Accommodation Supplement in Certain Circumstances) Amendment Bill”.

Now, there are rules around proposals for the change of a title in the bill. We all know that—not all of us follow it, but we all know it—and a proposal for a change in the title cannot be a commentary on the content of the bill. My proposal is not that; it is a very clear description of what is in the bill. There is no suggestion in that as to whether that is a wrong thing or a right thing. It’s not providing commentary on the proposals; it is simply describing the proposals: “(Reducing Accommodation Supplement in Certain Circumstances) Amendment Bill”.

Now, I would wonder why the Government wouldn’t support this, because it is an accurate and objective reflection of what this bill proposes to do. Under certain circumstances, this bill will reduce the accommodation supplement paid to some people. That is a fact. It’s indisputable. It is quite clear in the information that was provided to this bill—which is not full amount of information that would have been provided if it had gone through a full select committee process, but nevertheless it is quite clear—that roughly 7,000 people will have their accommodation supplement reduced on average by $100.

Now, the points have been made about whether that is a good thing or not and the Government have made their views. I’m not doing that in this contribution; I’m simply saying that that is what the bill does. Now, if we look at what the bill does—that 7,000 people will have their accommodation supplement reduced depending on their circumstances—and you look at this title of the bill, Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill, I think there is a mismatch. That’s why my amendment will propose that this title accurately reflects what this bill does.

It reduces the accommodation supplement in certain circumstances. And I don’t think any Government member will take a call to counter that point, because it does. In fact, all of their contributions have been to justify that fact—no one’s disputing it; it is a fact. The Government views that it is justifiable in certain circumstances that people who rely on accommodation supplement should have that supplement reduced. So it is our very clear proposal to the committee that the title should simply reflect that.

It would be interesting to hear the Minister for Social Development and Employment’s response to that. Regardless of whether she likes the idea of changing the title, it is a legitimate question to pose: does she believe that the title should accurately reflect the contents of the bill? Does she believe that it is incorrect to state that this bill reduces accommodation supplement in certain circumstances, and, if not, why won’t she support a title change?

Willie Jackson

Labour Party · List MP

Thank you, Mr Chair. Well, I couldn’t say too much after that last contribution, but I will because the Hon Kieran McAnulty couldn’t have been more on the mark—he was right on the mark. All the way through this argument in terms of this kaupapa, we have been talking about the pressures on whānau and the pressures on communities, so I’m just adding to and complementing what my colleagues have said. I think there’s no doubt that this is about a reduction.

If the Minister for Social Development and Employment could grasp that, we might all be able to go home a bit earlier—we just change the title and on we go. I also suggest that we change the title to the “Accommodation Assistance and Income-related Rent Reduction Act”. Why? For the very people who need it most—for the very, very people who need it most—we’ve got a cost of living crisis. Many people are taking on boarders to help with the crisis, not to get rich. No one gets rich doing this sort of stuff.

I heard my colleague Helen White talking about how tough it is in terms of Auckland in particular. You’ve got rentals with a minimum of two bedrooms at $600 to $700 a week. Young couples go in—I know; I have had my own family members going out and renting. You don’t get much for two bedrooms. You don’t get much—[Interruption]—and it’s not rubbish. You can come to Auckland if you don’t believe me. If you’re lucky you get a $600 place, but there are young couples around Helen White’s area, around Mount Eden and so on, who see places at $800 a week for a basic, three-room place—not a flash set-up, just an average place. So what do they do? They get a flatmate in just to help with that rent—and we’re taking away that opportunity. We’re looking at people losing an average of $100 a week; $143 for two boarders.

We’re calculating the impact on up to around 20,000 people—[Interruption] Yeah, the numbers may well be better. Do we want to do this to good Kiwis? I have to ask that question of the Government today. Why do you want to take away that opportunity? These are not the big landlords that the National Government is interested in. A lot of these are aunties and uncles and mums and dads and young couples who are just trying to get by, and it’s a travesty that we’re going down this track.

We’re talking about a reduction. in terms of what’s happening here. So I have to ask the Minister why she would consider going down that track, given the cost of living is such a high priority—so we hear from this Government. It just seems mean-spirited when you consider these changes and what’s happening that the Government would not consider a title change. It would help so many people along the way. We’ve got people in fear at the coalface now, in fear of whether they can pay their rent, in fear now that they’re going to lose that opportunity to look after their whānau, look after their home, and look after their kids.

Does the National Government want to be aligned with that? They’ve had the worst headlines of any Government in history that’s just put out a Budget.

Members

Oh! Ha, ha!

Willie Jackson

Labour Party · List MP

I’m not sure if they read the media, but I have to say I enjoyed watching the news and watching them squirming over the last couple of days—and I might be going off track a little bit, Mr Chair. I wouldn’t want to upset you, of course, Mr Chair. This title is an incredibly important title because it reflects the pain and suffering that our people are going through, and we just have to be upfront that the Government wants to reduce and continue to penalise good Kiwis at the coalface. The title “Accommodation Assistance and Income-related Rent Reduction Act” better reflects what’s in the legislation.

Joseph Mooney

National Party · Southland

I move, That debate on this question now close.

Greg O'Connor

Chairperson

I’ll indicate—we’ve had some pretty good contextual contributions and policy contributions; we’re now looking for very targeted contributions speaking to amendments.

Kahurangi Carter

Green Party · List MP

Thank you, Mr Chair. It’s amazing—we’re back already. It hasn’t been so long overnight. I am seeking to get engagement, particularly in the supplementary analysis report. We know that we didn’t get some other reports because this is being rushed through under urgency, so we’re really using this analysis here to scrutinise the bill, which would have been done through a select committee process. I want to talk to section three—

Greg O'Connor

Chairperson

No. We’re not scrutinising the bill. We’re on the title and commencement.

Kahurangi Carter

Green Party · List MP

Yes—scrutinising the title, thank you.

Ricardo Menéndez March

Green Party · List MP

I raise a point of order, Mr Chairperson.

Greg O'Connor

Chairperson

This better be a serious point of order and not—

Ricardo Menéndez March

Green Party · List MP

It is a serious point of order.

Greg O'Connor

Chairperson

Well—point of order, Ricardo Menéndez March.

Ricardo Menéndez March

Green Party · List MP

I totally hear you, Mr Chair. I also want to understand where in the debate in a bill that’s rushed under urgency, do we, for example, adequately scrutinise and get engagement from the Minister—because we haven’t gotten engagement on this—on, for example, the cost, the fiscal implications, of the choice of a commencement date.

There’s genuinely no other part of the debate to get engagement from the Minister on the genuine fiscal and staffing implications of this. So if it’s not on the commencement, where? Where would the Chair want us to actually ask about the real money implications of the choice of the commencement date?

Greg O'Connor

Chairperson

Well, it’s not in the title and commencement.

Kahurangi Carter

Green Party · List MP

Thank you, Mr Chair. [Interruption]

Greg O'Connor

Chairperson

I’ll just say that if it relates to title and commencement and it’s contextual—however, it will be very clearly related to that.

Kahurangi Carter

Green Party · List MP

Thank you. My contribution, my questions, are directly related to the commencement of this bill, particularly phase two, which is in this analysis, saying that from 2 March 2026—and I want to point to it. This is “Section 3: Delivering an option” “How will the new [amendments] be implemented.” This is looking at how, with this commencement date that is coming, we will actually implement this for people who will be affected.

I’m looking at the increased front-line capacity section, bullet point two: “MSD will increase its front-line resource to update boarder information prior to the beginning of phase two. Some additional resource will also be required on an ongoing basis for the administration policy.” This is from the supplementary analysis report, talking about commencement.

I’m seeking engagement on how this particularly will impact rural communities, and I’m talking about rural communities who do not have a Ministry of Social Development (MSD) office there. What is the Minister for Social Development and Employment doing to increase that capacity for rural communities?

Member

For the commencement date.

Kahurangi Carter

Green Party · List MP

For the commencement date. We’re talking about 2 March 2026. It’s coming quickly. We know MSD is already overwrought and having unmanageable caseloads, so we really want to understand what is being done on this commencement date of 2 March 2026. I would suggest that we could move this to 2027, 2028, or 2029.

When those areas, these rural areas, do not have an office: what is being done to ensure that geographical distance, that other factors—last night we heard about how this is going to impact disabled people disproportionately; they’re already struggling to get services. So I think that rural communities deserve servicing. And we know that the nature of boarding means that household circumstances can change frequently, so I’m really seeking clarification on this commencement date.

Just going back to Speakers’ rulings, where it says that we can expect engagement on our questions from the Minister. That goes hand in hand with the members here acting in a way that makes this House proud of us. We’re really earnestly trying to scrutinise this bill and to see how it affects the people of Aotearoa. It’s really important that we talk about this, and I’m seeking that engagement on the commencement, which is 2 March—[Time expired]

Greg O'Connor

Chairperson

I’m sorry.

Helen White

Labour Party · Mt Albert

I’ve got a very genuine question about commencement for the Minister for Social Development and Employment. We haven’t actually had any engagement from the Minister on this part. The question I have is: why is the commencement date what it is? Because I have put some propositions to you, but I’ve put them as this is how I think it is. So I just want to make sure that you get—and I would like an answer from you as to why you’ve picked that particular date. Now, I have suggested to you that—

Greg O'Connor

Chairperson

To the Minister.

Helen White

Labour Party · Mt Albert

Yes, sorry. I’ve suggested to the Minister that the reason for doing this is because there needs to be savings by a particular time. And obviously we have an election next year. But I’ve also seen in what I’ve read that there’s an issue over actually knowing who it is who is out there who have boarders, because we don’t have that information.

What we will be going on to in the next bill is something that is complementary to this. We have to drag every person who’s getting a benefit or an accommodation supplement—

Louise Upston

National Party · Taupō

It’s not this bill.

Helen White

Labour Party · Mt Albert

—all those working people, we’re dragging them in for review.

Louise Upston

National Party · Taupō

It’s not this bill.

Helen White

Labour Party · Mt Albert

I’m talking—

Louise Upston

National Party · Taupō

It’s not this bill.

Helen White

Labour Party · Mt Albert

Sorry?

Louise Upston

National Party · Taupō

It’s not this bill.

Helen White

Labour Party · Mt Albert

I’m absolutely talking about this bill, because I’m asking about the commencement and why it is. And what there seems to be—and I’m putting a proposition to you. You can tell me if it’s wrong, but I’d like you to stand up and tell the whole world. So I want to know: am I right that what you are doing is you’re bringing in the next law that we’ll look at and that will bring in automated—

Joseph Mooney

National Party · Southland

Point of order. I’ve just been trying to make the point by interjections, but I don’t think the member’s picked it up, but “you” is it means the Chair.

Greg O'Connor

Chairperson

Yeah, if you’d been listening, you’d see I have been correcting her.

Helen White

Labour Party · Mt Albert

Absolutely. I apologise. I’ve just recognised that and I definitely will attempt to not do that again.

The Minister is bringing in a bill that comes with this one—it’s complementary—and it means that everybody gets dragged into the Ministry of Social Development for a review. And because that would be huge, they can’t do that, so it has to have time. So we are having an automated system—so a much more faceless system—do that. People will come in and then they will be advised on this date next year that their benefits or their accommodation supplement is going to be reduced in that way. Is that why we’ve got this particular date—because that’s the first date the Government can actually get organised enough to make a money grab?

When we are hearing that this is all about equity; that’s not really correct, is it? Because the date itself tells the story. This isn’t about equity; this is about getting ducks in a row in time to be able to calculate how much money the Minister and the Government can take off the people who are getting accommodation supplement because they don’t currently have information about who has boarders, because up until now, it’s been OK to have a boarder. We’ve all seen the point.

Am I right in that? I would really like an answer, because, so far, the Minister has not answered a single question in these parts. These are important parts, because they go to the purpose and they go to the actual implementation and effect on people. So I would like the Minister to answer those questions, not from her seat—not from her seat in a way that nobody can hear—but for the record, on Hansard. Tell us why this commencement date is actually where it is and please justify that fact.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

Let me repeat it, because the member Helen White clearly didn’t listen when I took my opening address on the title and commencement. I said it was a Budget 2024 measure. This is a 22-month lead time between Budget 2024 and 2 March 2026, so 22 months is a significant period of time for people to understand this.

The other point that I would make, in terms of the title of this bill, which is the Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill: taxpayers fund all housing support. This bill doesn’t mean you can’t take boarders—I said that before; I’ll repeat it again. The member doesn’t seem to understand that. People can have boarders, but the income from those boarders must be taken into account for the housing support. That’s what hard-working New Zealanders, when they pay tax, would expect. They would also expect that two people are not claiming housing assistance for the same house.

I’m not changing the title of the bill; it is very clear. I’m not changing the commencement date; there’s a 22-month lead-in time and the chief executive of the Ministry of Social Development is very clear about what is required to operationalise this decision. There’s 22 months to do it.

Barbara Edmonds

Labour Party · Mana

Thank you, Mr Chair. My questions do relate to the commencement date. I want to—

Members

Welcome back, Barbara. Mōrena!

Barbara Edmonds

Labour Party · Mana

Whatever, everybody. It’s really great to see everybody this morning. I heard you had a very long voting capacity last night. Going back to the actual bill—

Greg O'Connor

Chairperson

Members, I know those first early morning coffees are starting to hit home, but can we just keep the noise down? It’s very difficult to hear down here, in what’s becoming a mosh pit.

Barbara Edmonds

Labour Party · Mana

Thank you, Mr Chair. I’m always grateful to be welcomed into the committee. I just actually want to ask some questions based off the response that was given by the Minister for Social Development and Employment, because she did say that this was a Budget 2024 initiative; I acknowledge that. I also acknowledge that the Minister said that the advice that she received from the Ministry of Social Development (MSD) needed a 22-month lead-in time in order to get to that 2 March 2026 policy effect date.

The question I have, really, in relation to the commencement date, because it is an odd date, you know—it’s not a year end, it’s not a financial date like 31 March or 1 April or any other time frame in relation to other particular dates that you can find within legislation—2 March 2026. The question I had is in response to the Minister’s comments, when she said it was a Budget 2024 initiative, when I’m looking at the supplementary analysis report, because there was no regulatory impact statement that was put in for this. Officials said that tight time frames also constrained the development of policy advice, including consultation, so “the decision to fully implement”—I’m quoting from that supplementary analysis report—“policy changes by early 2026 has meant that advice on the detailed policy design has been subject to tight time constraints. As a result, there has been limited time for the analysis of existing and potential new settings, international comparisons, as well as analysis of operational impacts.”

I acknowledge, again, the Minister did spend a lot of time in the chair yesterday—or at least there were many questions from different members of the committee on different parts, as to around that consultation aspect. But the question—which relates back to Helen White’s contribution a little bit earlier—about why this particular date, I’m just trying to understand the different phases which officials also set out in that supplementary paper. Members, it’s on page 34. There’s quite a big table in there, and it talks about the different phasing that is needed through that particular implementation, which is why, again, I don’t quite understand the 2 March date. Yes, it is from Budget 2024. There was a limited consultation. There have been various time constraints, which officials have set out in their supplementary analysis report.

Officials, at least in this report, in the absence of a regulatory impact statement, did set up those operational implementation dates: phase one, 22 May 2025. From mid-2025, it goes through all the different policy changes: sending correspondence out to clients, sending out general communications to raise awareness of the changes, enabling clients to declare their board payments through our online and paper channels, link those receiving board with those paying board with the same household in the system to prevent double subsidisation. I do want to acknowledge MSD for their work on that, because they’ve tried to—in the time constraints that they’ve been given, even though this was a decision made in 2024—think about how do they communicate this to affected clients in order for their operational changes to their text system to be ready from 2 March.

Minister, I do want to ask the question again, and I know you’ve said it’s to allow for that 22-month lead-in time, but why 2 March? It is a very, very odd date. Is that the first date that MSD has said to you that they believe that that is when this could be implemented fully, or had they suggested another date, perhaps even of 1 April 2026? I mean, I totally respect the fact that officials have had time constraints, even though this was a Budget decision made last year. There is a 22-month lead-in time, but my concern is just that misalignment with other key sort of dates for a lot of people, particularly when it comes to financial years. Why 2 March, which is quite odd? Then when you go to the way officials set it out in the supplementary analysis report, about that phase two from 2 March, it says they’ll begin the IRR reviews—income-related rents reviews—of social housing tenants. That begins to include the housing contributions for boarders from 2 March 2026.

It then goes on: “If a social housing tenant has boarders, their IRR will change at the time of their annual review.” Is it the annual review which is why it’s 2 March? It doesn’t really matter that it’s an odd date. Is that why, because the annual review could be at any date within a calendar year? Then: “The implementation ensures IRR clients do not receive multiple rent increases in 12 months and other changes are implemented as soon as possible.” So my understanding through the supplementary analysis report—and, again, I know the Minister has acknowledged around consultation; we are in urgency, which is the really sad thing about it, because it’s quite clear there are little elements of this bill which would have actually possibly helped having some public consultation, which is why members on this side of the Chamber are going through it step by step.

Just wanting to understand, again: is 2 March—it’s because of all the reasons that Minister has talked about? It is an odd date. Is that because the annual reviews for these clients can be any particular date of the year? This is the start date in which, after all the letters and the communications, which I acknowledge MSD will be trying to do from mid-2025—why 2 March? Because it is, again, a very odd date.

Greg O'Connor

Chairperson

Grant McCallum—

Miles Anderson

National Party · Waitaki

Miles Anderson.

Greg O'Connor

Chairperson

Oh, sorry. Miles Anderson.

Miles Anderson

National Party · Waitaki

I move, That debate on this question now close.

Greg O'Connor

Chairperson

Members, we’re going to be speaking directly to amendments. We’re going to be speaking to the title and commencement and the third part of that, obviously, is ministerial involvement.

Lawrence Xu-Nan

Green Party · List MP

Thank you, Mr Chair. Just also noting that the previous speaker, the Hon Barbara Edmonds, asked some really good questions on the commencement date of 2 March from the perspective of what is in the document. But on the commencement date, one of my amendments is around changing the commencement date. It’s to adjust the commencement date to push it back a little bit, because, yes, I do hear from the Minister for Social Development and Employment that this is something from Budget 2024, but we have seen some of the things that’ve been implemented in Budget 2024 not having had the intended expectation, from an agency perspective, throughout the year. So I guess, for this particular date, whether the Minister didn’t have other confidence that 2 March 2026 is doable.

One of the things we do notice—particularly from a personnel and from an application perspective when we’re looking at new assessment and assessment of changing circumstances—is the way that the transitional elements are going to work when applicants make those kinds of adjustments from here and to 2 March and what goes beyond from 2 March 2026. So my question to the Minister is: if the Minister has confidence in the fact that the Ministry of Social Development is able to do this, what sort of staffing expectations and restructuring and reallocation of resources would be expected as a result of this particular date, and, if those are not feasible, whether the Minister would consider our amendments around moving the date back. I think I myself have an amendment which moves the date to 2 March 2027 just to give it a little more time, and I know my colleagues Kahurangi Carter and Ricardo Menéndez March also have amendments to a similar effect of adjusting the time.

Now, in terms of the title of this, I do wonder whether the Minister, in the bracketed title “Accommodation Supplement and Income-related Rent”—whether that accurately captures, because a lot of the context of what they’re talking about here is boarders, yet boarders are not a part of the title. So I wondered if the Minister would consider some of the titles that we have proposed, alternative titles that specifically make references to boarders as part of that.

So my two questions around clause 2 and clause 1: from a clause 2 perspective, in terms of 2 March, we’re still waiting to hear the Minister’s response to the previous speaker, the Hon Barbara Edmonds. But my question was around the staffing, more in terms of the transitional measures from now until 2 March when we are looking at assessment of new applications and how that’s going to work, and whether, despite the fact it’s a Budget 2024 initiative, this is going to be something that is viable and the Minister has confidence in that—if not, will the Minister consider my amendment, and, alternatively, in terms of the title, whether the Minister would consider including the word “boarder” in that to capture the bill more accurately?

One last small request is that if the Minister were to respond to any of these questions, if the Minister wouldn’t mind looking at the people who are asking those questions as well to make a little bit of eye contact. Thank you so much.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

As I said in answer to my previous question, the chief executive is the one responsible for operationalising this policy. Part of that is taking into account their other workload and other significant Ministry of Social Development activities. One of the other members has mentioned the annual general adjustment, which is of course why March has been chosen, not April. One of the other members read through the whole timeline for the implementation to allow clients plenty of time to understand.

Vanessa Weenink

National Party · Banks Peninsula

I move, That debate on this question now close.

Party vote

A party vote was called for on the question, That debate on this question now close.

Ayes 68

Noes 55

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Motion agreed to.

Greg O'Connor

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Adjustments to Boarders’ Contributions)” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Joseph Mooney

National Party · Southland

Point of order. Thank you, Mr Chair. I’ve had a look at these tabled amendments, and just before we go through any more voting on them, can I just point to Speakers’ ruling 130/2 on page 130, which says, “An amendment to the title of a bill must be a serious or objective description of the bill rather than an attempt to criticise its contents.” I’ve looked through at least 12 of those in the tabled amendments lodged by the Green Party. And the second point—

Greg O'Connor

Chairperson

Well, if I may, Mr Mooney—if you could wait, you’ll see just how they will be ruled on. It may well be that you might be surprised to find there may be some agreement with your observations on some of them.

Dr Lawrence Xu-Nan’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Prevention of Double Subsidisation)” is ruled out of order as being contrary to a previous decision of the committee.

Dr Lawrence Xu-Nan’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(National Loves Cars So Much That They Want More People to Live in Them)” is out of order as being merely an attempt to criticise the bill.

Dr Lawrence Xu-Nan’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Accommodation Adjustments and Additional Acclimitisations)” is ruled out of order as being contrary to a previous decision of the committee.

The question is that Ricardo Menéndez March’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Changes to Eligibility of Accommodation Supplement and Income Related Rent Subsidies)” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

Ricardo Menéndez March’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Reduction in Accommodation Supplement and Other Matters)” is ruled out of order as not being an objective description of the bill.

The question is that Ricardo Menéndez March’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Inclusion of All Boarders’ Contributions and Other Matters)” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

Ricardo Menéndez March’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Punishing Boarders in Order to Pay for Landlord Tax Cuts)” is out of order as not being a serious amendment.

Ricardo Menéndez March’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Automated Decision Making for the Purposes of Accommodation Supplement Eligibility and Other Matters)” is out of order as not being an objective description of the bill.

The question is that Ricardo Menéndez March’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Adjustments to the Administration of Accommodation Supplement and Income Related Rent Subsidies and Other Matters)” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

Ricardo Menéndez March’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Pushing People who Board into More Precarious Housing)” is out of order as not being a serious amendment.

The question is that Ricardo Menéndez March’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Higher Threshold to Receive Accommodation Supplement and Income Related Rent Subsidies and Other Matters)” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

Ricardo Menéndez March’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(More People in Hardship)” is out of order as not being a serious amendment.

Kahurangi Carter’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Make Life Harder for Disabled People)” is out of order as not being a serious amendment.

Kahurangi Carter’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Disabled People Can’t Live with Their Support Workers)” is out of order as not being a serious amendment.

Kahurangi Carter’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Solo Mums Get Left in the Cold)” is out of order as not being a serious amendment.

Kahurangi Carter’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Isolate Disabled People)” is out of order as not being a serious amendment.

Kahurangi Carter’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Lonely Kaumātua)” is out of order as being merely an attempt to criticise the bill.

The question is that Francisco Hernandez’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Social Security Act, Public and Community Housing Management Act, Public and Community Housing Regulations 2018)” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

Francisco Hernandez’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(We Hate Beneficiaries)” is out of order as not being a serious amendment.

Francisco Hernandez’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Boarder Restriction)” is out of order as not being a serious amendment.

The question is that Francisco Hernandez’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Subsidisation Limitation)” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

Scott Willis’ tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Except for Our Most at Risk)” is out of order as not being a serious amendment.

Rachel Boyack’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Reduced Household Moolah)” is out of order as not being a serious amendment.

The question is that the Hon Kieran McAnulty’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Reducing the Accommodation Supplement in Certain Circumstances)” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

Helen White’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Let Them Eat Cake)” is out of order as not being a serious amendment.

The Hon Priyanca Radhakrishnan’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Loss of Accommodation Supplement for No Good Reason)” is out of order as not being a serious amendment.

The question is that the Hon Rachel Brooking’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Reducing Accommodation Supplement As Soon As There Is A Boarder)” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

Helen White’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Kick Them When They Try To Get Ahead)” is out of order as not being a serious amendment.

Rachel Boyack’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Reduced Whānau Income)” is out of order as not being a serious amendment.

Shanan Halbert’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Removing Pūtea from the Vulnerable)” is out of order as not being a serious amendment.

Rachel Boyack’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Banning Boarders)” is out of order as not being a serious amendment.

The Hon Willie Jackson’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Kick the Maoris in the Guts)” is out of order as not being a serious amendment.

The Hon Priyanca Radhakrishnan’s tabled amendment to clause 1 replacing “(Accommodation Supplement and Income-related Rent)” with “(Penalising People for Taking on Boarders)” is out of order as not being a serious amendment.

Party vote

A party vote was called for on the question, That clause 1 be agreed to.

Ayes 68

Noes 55

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Clause 1 agreed to.

Greg O'Connor

Chairperson

The question is that Helen White’s tabled amendment to clause 2 to replace “2026” with “2028” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 2 to replace “2026” with “2027” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Greg O'Connor

Chairperson

The Hon Willie Jackson’s tabled amendment to clause 2 is out of order being the same in substance as a previous amendment.

The question is that Dr Lawrence Xu-Nan’s tabled amendment to clause 2 replacing “2 March 2026” with “1 January 2027” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 55

Noes 68

PartyCount
Ayes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Party vote

A party vote was called for on the question, That clause 2 be agreed to.

Ayes 68

Noes 55

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Clause 2 agreed to.

Amendment not agreed to.

Bill to be reported without amendment.

House resumed.

Greg O'Connor

Chairperson

Mr Speaker, the committee has considered the Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill and reports it without amendment. I move, That the report be adopted.

Motion agreed to.

Report adopted.

Teanau Tuiono

Assistant Speaker

This bill is set down for third reading immediately.

Points of Order

Recall of the Speaker—Closure Motions and Party Votes

Kieran McAnulty

Labour Party · List MP

Point of order. I apologise to the Minister; however, this is the first opportunity we’ve had to raise this point of order, given that we’ve just come out of committee. We would have had the opportunity to raise this if our motion to recall the Speaker was approved by the committee. It was not, which is regrettable. Nevertheless, this is the appropriate opportunity to do so.

There are two matters that I wish to raise. One is regarding closure motions and the other is regarding calling for party votes. Specifically, I’m referring to Standing Order 137(1). Now, in that Standing Order, it specifically prescribes what is required when a question is being put around—or should be considered around—the closure motion. And in Standing Orders, it quotes what is required.

Now, last evening, the presiding officer at the time indicated that it doesn’t need to be exactly accurate as outlined in Standing Orders, but it just needs to be there or thereabouts in so far as the presiding officer understands the intent of the motion and therefore can proceed. Now, that is a significant departure from what is outlined in Standing Orders. Now, sir, I’m not asking for you to rule on that now, but what I am asking for is a commitment to report back to the House to provide absolute clarity. In the absence of that, it is possible that a new Speaker’s ruling would be created that is counter to Standing Orders, which I don’t think is in the interest of anyone in this House.

The second point is in regard to calling for party votes when there is a motion to recall the Speaker. It’s not my intention to dispute the decision that was made around the Speaker. I think there’s a fair bit of reflection being made around the House at the moment. There was one instance in the previous Parliament where that was voted against; that was wrong, it should not have happened. There was one in the previous Parliament; there’s now been one in this Parliament. I’m hoping that the House can decide that, “OK, we’ll call it even. We’ll go back to the convention in regard to motions to recall the Speaker.”

However, what is of concern is the decision that was made in committee that a party vote would not be put. The motion was made to recall the Speaker, the Government members voted No, a party vote was called, and the presiding officer did not allow that to happen. Now, that is actually also counter to Standing Orders. The process for dealing with a motion to recall the Speaker—Standing Order 179 doesn’t indicate that there isn’t to be a party vote. In the absence of any specified information about that, the only option that we’ve got is to go back to Standing Orders 142(1), which quite clearly outlines the process for a party vote to be considered when it is called for. There is nothing else in Standing Orders around that—that is the only thing that we can go for. All I’m asking for is a commitment for both of those points to be reflected on by the Speaker’s office alongside the Clerk’s Office, and a report back so that the House is very clear around the process on both those things.

Joseph Mooney

National Party · Southland

Speaking to the point of order. Thank you, Mr Speaker. All of the points that were just made are actually irrelevant because the Clerk—

Teanau Tuiono

Assistant Speaker

I’ll decide if they’re relevant.

Joseph Mooney

National Party · Southland

Certainly. Well, I just sort of wanted to make the point—I accept absolutely it’s your decision, Mr Speaker, but the point of order was raised by the Opposition after the Chair had decided to commence voting. Voting had commenced and the Opposition disrupted that not once but twice. They disrupted it first when they were of the view that the question hadn’t been completely put. It had been mostly put, but not completely. There were two words, from recollection, that were missing. The Chair then put the vote again, accepted a full closure motion with full wording, and then the Opposition disrupted that again with a point of order. They disrupted the vote twice, so everything that followed, I would suggest, is irrelevant.

Teanau Tuiono

Assistant Speaker

I actually agree with that description of events. I’ve got three points here and the rest of the points we can go back and reflect on. Just to the points from the Hon Kieran McAnulty: he is correct, but in the heat of the moment the exact words might not have been gotten right. But nothing has changed: the exact words of Standing Order 137 should be used. And just to acknowledge that there is a longstanding custom of the committee agreeing to recall the Speaker—Speaker’s ruling 81/2; it is not an absolute right, but it would be unfortunate if it was opposed and would likely slow down committee stages. So just to note that as well.

There should also be no need for a party vote because the recall should be agreed to. Where it’s not, a party vote is the way to decide it. And, also, to note that the presiding officer who was here in the Chair is at the moment having discussions with parties as well. In terms of the points that I have talked about just before, that has taken care of some of the issues. If there are other prevailing issues outside of that, we will get back to you. I now call the Hon Louise Upston.

Lawrence Xu-Nan

Green Party · List MP

Speaking to the point of order. Thank you, Mr Speaker. I just want to clarify one particular point that the previous person, Joseph Mooney, has mentioned in terms of the voting process. I wanted to get clarification from you, Mr Speaker, that in the context of that, when a vote is called but prior to the vote being called a point of order was raised but then because the mic wasn’t on and the presiding officer couldn’t hear it, in those circumstances would a point of order that was raised be considered before or after a vote has been triggered? Because I don’t think it’s entirely accurate to say that—if we go back and look at the video from last night, when that was done we deliberately and explicitly mentioned to the presiding officer at the time that the point of order was raised prior to the vote being called. But the presiding officer couldn’t hear properly because there was a lot of other noise around the presiding officer at the time. I just want to get clarification from you, Mr Speaker: in that particular context, when the point of order is raised, would that be considered prior to a vote or do we assume it’s after a vote has commenced?

Teanau Tuiono

Assistant Speaker

I’ll just take some advice on that.

Joseph Mooney

National Party · Southland

Speaking to the point of order.

Teanau Tuiono

Assistant Speaker

Sit down. Look, just to note for the House that these issues are done. I have made a ruling. There are extra things that may be addressed, but that can happen outside of this Chamber. If you do have extra points that need to be revisited, we can do that, but it’s not enough to actually hold up the business of the House.

Bills

Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill

Third Reading

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I move, That the Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill be now read a third time.

Our Government is working hard to ensure our welfare system is sustainable so it can continue to provide assistance to those in need. This bill will recognise payments from all boarders when assessing a person’s entitlement to housing subsidies and other forms of income and assistance. This will help to ensure that taxpayers are not subsidising the same accommodation costs twice.

Currently, payments from the first and second boarder are disregarded when assessing housing subsidies and other forms of income-tested assistance under the Social Security Act 2018 and when calculating a social housing tenant’s income-related rent. Currently, only payments from the third and subsequent boarders impact a person’s income for the purpose of calculating entitlements to assistance under the Social Security Act 2018, unless the contributions received are the person’s main source of income. For social housing tenants, only contributions received from the third and subsequent additional residents count towards their assessable income when calculating the rate of income-related rent, unless the contributions received are a person’s main source of income. This bill seeks to amend the Social Security Act 2018 and the Public and Community Housing Management Act 1992 and associated regulations to ensure all board payments are treated in a similar way to all other forms of income.

I want to quickly outline the key proposals. There are two key policy changes. The first is recognising that housing contributions received 62 percent of payments from all boarders when assessing their entitlement to housing subsidies. And the second to treat housing contributions from boarders that exceed the total allowable accommodation costs, or the market rent applicable for the social housing property as income for any other income-tested assistance that uses the Social Security Act 2018 definition of income.

The bill also includes other amendments aimed to improve the implementation of the policy proposals. These include defining boarders in the Social Security Act 2018 for the purposes of accommodation supplement, and if a person is not identified as a boarder, they will be treated as a renter; enabling a new disputes process for when the information provided by a person paying board or rent and the person receiving the board or rent doesn’t match; making the accommodation supplement no longer a discretionary payment; and specifying that the portion of a property that a person lives in that is used for their business will be excluded for accommodation costs.

This bill implements changes that are based on common sense and fairness. As this bill goes through its third reading, I want to reassure members of the House that the changes proposed in this bill will only affect those who receive board payments. It will impact those people who are currently at an unfair advantage compared to others who receive another form of income, and these changes will address that inconsistency. Most people who receive housing subsidies will not be impacted at all.

I do want to thank the officials who have worked on this very important piece of legislation, which is part of this Government’s commitment to ensuring our welfare system is sustainable and focuses its effort on assisting those in need. The changes in this bill should be seen in the context of how other forms of income are treated when calculating housing and income assistance, and all income from every boarder and every renter from now on will be considered, which is only fair and reasonable. I commend this bill to the House.

Willie Jackson

Labour Party · List MP

Thank you, Mr Speaker. Well, another shocking piece of legislation from this Government. You would have thought that after the rotten week that they’ve had, they might have had something nice for New Zealanders, but they just keep piling it on, piling it on, piling it on. As I said earlier, look at the news; look everywhere. Even their most ardent supporters are putting the boot in, because it’s an uncaring, insensitive, punitive Government that is going to get its comeuppance in about 16 months—might only be in about three or four months, the way they’re going—because New Zealanders have had enough.

This appalling amendment attacks the infrastructure of renters who have a boarder with them to cover costs, and will only serve to take money from the poorest renters. The amendment will attack solo parents. It’ll take from the disabled. It’ll negatively impact Māori, Pasifika, and working people the hardest. The exemption of the first two boarders was to encourage better utilisation of State housing and encourage beneficiary households, particularly sole parent beneficiaries living in larger State houses, to take on a boarder or boarders to just offset some of the costs. So, you know, there was some thinking behind the previous policy, unlike this policy that penalises people and is going to, again, affect our community terribly.

What this Government now wants to do is bash that infrastructure and take money directly out of the pockets of beneficiaries and sole parents at the same time as this Government announces more punitive welfare sanctions. Where’s the regulatory impact statement on this legislation? There wasn’t one, because this Government doesn’t care. It will hurt the poorest renters hardest.

I’m worried, and I think our team in the Opposition here—Greens, Te Pāti Māori, ourselves—has been worried right through this process here, by the lack of voices here to speak to what the amendment will be like in practice, because they have not been given that opportunity. We talk about democracy, but the people who are being hurt don’t get the chance—don’t get the opportunity—to vent their views to this Government. For many, they’re just keeping their heads above water. Forcing them to include the first and second boarder for the purpose of their housing allowance will push many of them under.

It’s not just the lack of voices or a regulatory impact statement that concerns me, though. It’s not just that we’re robbing the poorest renters to balance the Minister of Finance’s Budget. That needs to be clear. She has been very clear that she will throw New Zealand women under the bus in terms of getting her Budget out. She doesn’t care. She doesn’t care about New Zealand women. She doesn’t care about New Zealand workers, Māori, disabled, whatever—anything to get their Budget out. And it’s about priorities for the Government. And we—when I say “we”: our communities, Māori, Pasifika, disabled, people at the coalface—are not a priority with this Government.

In terms of this amendment, it’s the Draconian nature of this amendment that I find most offensive. They sit there over there. They think, “Oh, it’s so simple. We just balance the books of both—it’s the numbers.” But the Ministry of Social Development (MSD), as has been particularly pointed out by our Green MP over here, who’s certainly got a lot of background in this area, he identified, and I agree, a discrepancy that will give the boarder and head tenant a day to explain—a day to explain. And if MSD is still not happy, they’ll suspend the boarder’s housing allowance and the head tenant after just 10 days. MSD then allows for eight weeks of suspension, followed by cancellation of all housing allowances if they’re still not happy. Oh, that’s a great way to treat our community. It’s an incredibly punitive approach to a system that’s been in place since 1992.

Rachel Boyack

Labour Party · Nelson

Oh, who was in charge then?

Willie Jackson

Labour Party · List MP

Yes, that’s right: Jim Bolger. They cut his throat, too, didn’t they? Poor old Jim. Came on our side in the end, didn’t he? Yeah—1992. So just another attack. This is another attack on renters, and the Government just can’t pretend that it isn’t.

My fear is that this has been designed to catch as many out in as short a period of time, so that MSD can disqualify them from the housing allowance to make their numbers look good again. It’s always about the numbers. It’s never about the people. Kieran McAnulty knows this. Here’s the thing with this side of the House: while they’re ticking their boxes, and Tama Potaka and Chris Bishop are going, “Oh, we’re doing really great in the emergency housing.”, Kieran McAnulty is looking for the people. Where are the people? They’re out on the street. We’ve got homelessness at its worst in decades, all because of these punitive, disgraceful policies from this Government. Oh, we’ve got “Bish” stands up—Chris Bishop—“Oh, yes, the social housing emergency.” It’s all a load of rubbish—lies. Kieran McAnulty’s on to it.

We’re going up to Rotorua on Monday. We’re going up there; we’ll talk with the people up there, talk about the lies coming from this Government in terms of social housing, emergency housing. They’re ticking numbers and they’re putting people out on the street—putting people out on the street. It’s just a stunt. We’ve seen that emergency housing is a stunt. Pay parity is a stunt. Well, it’s not a stunt; it’s real, but it’s part of their stunt—it’s part of their stunt. Their stunt is “We’ve got to pay for our rich mates. We’ve got to look after our mates—we’ve got to look after our mates.” That’s what it’s all about: change the rules, catch as many people out to disqualify them, and then claim the problem is getting better because there are fewer people receiving the benefit. We know the strategy.

This isn’t social policy; it’s punishment—it’s punishment—for needing help in the first place. They’re taking from the poorest renters. They’re taking from the poorest renters while creating a punishment regime that will automatically suspend payments within 10 days of notification. This will lead to tenants unable to pay their rent, and we’ll see them pushed out and homeless, which will be even more problematic, because the Government has just slashed the emergency housing budget as well. It’s just the flow-on. Why such Draconian measures? Why does the Government keep punishing good Kiwis—Kiwis at the coalface, working-class New Zealanders, Māori, Pasifika, disabled? It’s like, “We can save it. Let’s just cut that lot off.” Some of these MPs over here should be ashamed of themselves. The member over there from Takanini, you should be ashamed of yourself. Takanini should throw you out—throw you out. You’ve forgotten your people at the coalface. You’re a disgrace.

Rima Nakhle

National Party · Takanini

You should be ashamed of how you treated the Māori wardens.

Willie Jackson

Labour Party · List MP

Ha, ha! The Māori wardens. They give the Māori wardens a few peanuts—they give them a few peanuts—and then they take $1 billion out of the Māori budget. But here’s the thing: David Seymour says there’s no such thing as Māoris. “I don’t believe in Māori budgets.” And the other side of it, this lot, can’t stand up and say, “You’re wrong, David.” They say, “Yes, please, David. No, David. Keep kicking us in the guts, David.” And he rolls out his stupid latest Regulatory Standards Bill. It’s a disgrace and they’re a disgrace.

Just back to the bill—I need to get back to this bill. As I said, the MP for Takanini, she should stand down. She should stand down. She’s feeling so guilty at the moment. Anyway, I want to just wrap up and say our community deserves support. What is clear from this legislation is that as far as this Government is concerned, disabled, Māori, Pasifika, and working-class renters requiring housing allowances are not part of a community they want to support. Labour speaks against this amendment because it won’t help the poorest renters. It will cost them. It will punish them. And it’s going to come back on this Government over the next 16 months. Kia ora anō tātou.

Ricardo Menéndez March

Green Party · List MP

There’s only one way to explain the intent of this bill and this is because Minister Louise Upston’s, heart is rotten to the core. How else can you explain a Government—[Interruption]. Yeah, go ahead, take offence.

Joseph Mooney

National Party · Southland

Point of order, Mr Speaker. It’s been a very longstanding principle for this place that members should not make statements that reflect poorly on other members of the House, and that certainly did. He should withdraw and apologise.

Teanau Tuiono

Assistant Speaker

I’ll just take some advice on that because there have been a lot of statements that have been thrown around the House just this morning. So this is how I’m going to deal with this. It is a line call about whether that is a poor reflection, but I would invite all members from now on to really think about their comments. The further note that I would have as well is that interjections should be rare and reasonable. We don’t want an ongoing barrage of commentary, despite some members clearly enjoying that—that is certainly not the experience of all members, though. Is that a point of order?

Ricardo Menéndez March

Green Party · List MP

No, I just want to continue. I meant what I said when I said that the Government’s heart is rotten to the core, and this includes the Minister for Social Development and Employment’s, because how else can you explain 14,000-plus people being left worse off as a result of a bill that will strip many low-income people from the accommodation supplement and the income-related rent subsidies? All for what? To pay for tax cuts for the wealthy few and the fossil fuel industry. Shame on this Government.

The Minister thinks that voters are stupid because she completely omitted details of the bill that will increase hardship for people, that will leave people needing emergency housing, hardship grants, and other forms of temporary assistance. She did not mention this once. All the while we’ve been trying to raise this issue to the Government members, they’ve been laughing away because poverty is a laughing matter for members of the Government. Shame on the Government members who, through urgency, as part of this legislation, have decided to throw thousands of families deeper into poverty to pay for tax cuts for the wealthy few. We deserve much better. The people in public housing who were and are living on the streets and in emergency housing deserve better.

We need a Government that is committed to taxing the wealthy few fairly so that we can have thriving public services, not a Government that is slashing and burning our public services, making the lowest-income workers pay for the tax cuts, including some of our lowest-paid women in some of the most undervalued professions. If you don’t believe me about the impacts of this bill, you’ve just got to look at the analysis made by the Government ministry that talks about the disproportionate impacts that this bill will have, about how Māori, disabled, the old will be paying a disproportionate price in this bill. They will be left reeling because, on average, people will be paying over $100 more each week as a result of this bill.

This shows that this Government is deeply unserious about addressing the cost of living crisis, because none of them—none of them—have dared, in their contributions, to face up to the fact that this bill, as explained by the Government’s own analysis, will leave accommodation supplement receivers paying $100 on average extra each week. All the while, people in social housing affected by this bill will be, on average, paying an extra $132 a week. That is the difference between people being able to put food on the table and pay their bills.

But they seem to be completely out of touch. For all the performative outrage from people like Joseph Mooney, who talks about having left poverty, clearly he decided to turn his back on the very same people he claimed to represent and belong to. So easy to do when you spend hours and hours in the Koru lounge, talking to people who simply are not reflected on the bill that is literally criminalising people in poverty. The advice on this bill has told us that this bill will literally criminalise people because it will encourage people to have to lie about who they have as boarders in their house. That in and of itself could lead to fraud investigations and people literally being burdened with tens of thousands of dollars in debt or literally facing prison time. Shame on this Government for pushing through a bill that does nothing—nothing—but increase poverty; nothing but increase inequality; nothing but disproportionately affect Māori, the disabled, Pasifika, and the working poor.

This Government has completely described this bill factually incorrectly, either by choice or because they chose to not read the bill. I haven’t seen any of them honour the communities that will be disproportionately impacted by this—none of them. Those members talked about fairness. Fairness to them seems to be giving more money to the wealthy CEOs, and then leaving over 14,000 people way worse off. Being $100 less each week may not mean much for them, the privileged members on the other side, but it is literally—literally—a lifeline that is lost for families in public housing.

But this is all part of the plan of the Government members to drive people away from public housing and on to the streets, to undermine our public housing stock. We’ve seen how the Government, as well, is building less public housing. We’ve seen how the Government is investing less in the very few supports that still exist for homeless people and yet is completely happy to drive people away from their homes and on to the streets without them creating a lifeline.

It would have been fair if the Government had said, “We’re making changes to how people who have boarders can access the accommodation supplement and the income-related subsidy.”, if they had introduced an alternative, but there is none. That means that on average this Government is leaving those families paying an extra $100 to $130-plus, on average, each week. In fact, if you have three boarders, the difference now will be over $200.

We’ve got to remember the history of why we had a bit of reprieve for people who had at least two boarders in their home. That is because historically, over 30 years ago, it was acknowledged that because of the neoliberal reforms of the 1980s that meant that public housing tenants could be left paying market rent, that we needed to support people like sole parents who often were living in public housing without other people with them, therefore paying additional costs and without the support systems. This is why we had that reprieve for people with one to two boarders. It was to support them. The rug has been pulled out from under them.

All for what? To give more money to the tobacco industry, to the fossil fuel industry, to the mining industry. Shame on this Government for pushing through these changes and for the complete inability to address the harms that this bill will create. Not a single one of them has talked about the communities who this bill will be affecting. They’ve been so busy posting on Instagram about their performative work because for many of them—particularly the list MPs from the Government side—their one job is to heckle. Their one job is to create speeches made by ChatGPT instead of engaging with the communities that they are harming. I think our communities deserve far better than this.

This bill—as I’ve spoken to—will create negative material impacts on people and the front line. They don’t even seem to care about the Ministry of Social Development (MSD) staffers who will now be in charge of administering this bill. They don’t seem to care about the MSD staffers, because the advice from MSD themselves talked about how this bill will increase friction at the MSD offices. It could literally put MSD staffers at risk because of that increased friction. They do all this performative outrage when there’s a lockdown at the MSD offices about how much they care for the safety of MSD staffers, but then they’re quite happy to rush through pieces of legislation that literally increase friction at the MSD offices.

I wish all the outrage and heckles on the other side would be about the poverty that this bill is creating, but it is an outrage driven by the fact that they seem to be offended by the fact that this bill is increasing poverty. I wish they were outraged about poverty. I wish they were outraged about inequality. I wish they were outraged about the cost of living crisis. Instead, all we get is performative outrage. When it comes to the communities that they’re harming, they’ve turned their faces back away from the streets and on to this echo chamber and instead they would rather create imaginary characters in their head like beneficiaries—as Nicola Willis has described—playing PlayStation all day when she has not taken her time to, for example, meet the people on the benefit who have been negatively affected by this Government’s actions, including the bill in front of us.

We could have heard from boarders, from people who have boarders, from low-income public housing tenants in the select committee stage period, but instead they decided to introduce this bill under urgency, even though they knew that they were going to do this more than a year ago. They decided to do this more than a year ago, and yet they didn’t honour the democratic process of actually putting this bill through adequate scrutiny, which shows that this Government doesn’t want to face the truth of thousands of people in public housing and unaffordable rentals telling them to their faces about how they will be left worse off.

They are literally scared of facing the communities that they’re harming. They’re scared of being told that they’re leaving people homeless. They’re scared of being told that they’re leaving people in debt. They’re scared of being told that they’re increasing hardship. They’re scared of telling the single people on the supported living payment that they are going to be facing additional barriers to simply keep a roof over their heads. They’re scared of the scrutiny they could have faced on this bill, so they would rather push it under urgency because this is a Government scared of owning up to the voters that they have chosen to harm, that they have chosen to literally push to the streets. All for what? For their wealthy mates.

We deserve a Government that taxes the wealthy few and funds adequate public services so that we can have public housing for all, free early childhood education, free dental, and the things that our communities need to thrive. We will make sure this is a one-term Government so that they can’t continue with this harm.

PARMJEET PARMAR

ACT New Zealand

Thank you, Mr Speaker. The member Ricardo Menéndez March, in his concluding remarks, said that we will be leaving people in debt. But if you listen to that, they will be piling debt on the whole nation—each and every individual, not some people that he thinks we will be leaving in debt, because this bill is not leaving anybody in debt. This bill is not leaving anybody in debt, and we want to see that our nation is not piling more and more debt for each and every individual. That’s why we are responsible towards each and every dollar that we spend.

I want to make it very, very clear that there was opportunity available to members of the Opposition in the committee of the whole House, but it was quite unfortunate to see that so much House time was taken and so many of their amendments were deemed out of order. There was that opportunity for them to put amendments through if they wanted to, but they didn’t know what they wanted to change in this legislation. That was very clear last night in the committee of the whole House.

Now, we know that this bill is to fix the double subsidy issue that has been spotted, and we want to see that everybody gets a fair deal. We also know that not everybody in a State house can have a boarder because it depends on the size of the house; it depends on their own needs. So this bill is also going to bring fairness to everybody in the State houses as well.

To stand up and justify that it’s OK for people to receive a subsidy twice for the same accommodation? I don’t know how they justify that, because these people—those who are in State houses, those who are receiving the accommodation supplement or receiving a benefit—I’m sure that they are in that state only for a little while because they are working hard as well to get out of that state, to get back into employment, to earn enough so that they are independent. Because they have been through those phases, they realise the importance of each and every dollar that the Government spends. I’m sure these people also will appreciate this legislation going through, making sure that each and every boarder’s money that comes to the State house is taken into consideration. It’s going to be a very fair deal because it is going to take into consideration each and every boarder at the same level.

Another thing which this bill does is it clarifies the difference between boarder and renter. It’s a very thought through legislation. The ACT Party supports this legislation. Thank you.

Jenny Marcroft

NZ First · List MP

Thank you, Mr Speaker. It’s a pleasure to stand on behalf of New Zealand First in support of the Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill. I’d just like to acknowledge the Hon Louise Upston, the Minister for Social Development and Employment, who has brought this piece of legislation to the House because she wants to achieve a sustainable welfare system to enable us to continue assisting those in need. This piece of legislation ensures there is fairness across the whole housing allowance space, ensuring greater fairness in regards to those accessing housing support. Duplication of housing allowance—well, this will eliminate that; two people in the same house claiming the accommodation supplement. We need to ensure there’s fairness. Taxpayers fund all housing support. So this will ensure some fairness through that.

Just noting the Green member Ricardo Menéndez March, who just resumed his seat, accused the Government of performative outrage. Well, I think that he needs to look in the mirror—faux outrage, absolutely. I commend this bill to House.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Mōrena e te Pīka. Mōrena e te katoa. I te tuatahi, e mihi atu ki tō tātou nei whānau kei Tūrangawaewae Marae.

[Good morning, Mr Speaker. Good morning to everyone. In the first instance, I acknowledge our family that are on Tūrangawaewae Marae.]

Today, 30 years ago, there was a signing at Tūrangawaewae. There’s a beautiful photo of Te Atairangikaahu, Mr Bolger, and others celebrating. He kaupapa nui tēnā [That’s an important endeavour].

I start my contribution today with that in mind, because here we are, today, fighting about—or listening to the Government’s stand to maintain poverty, and in fact, let’s put more belts and braces around it so we keep it exactly the comfortable way in which we want it.

I recognised last night in some of the speeches, and even again today, not a single piece of real intelligence, understanding, and appreciation of how this affects Māori children, Māori hapū and iwi—not sincerely, and not really. When the Minister for Social Development and Employment talked about this “agnostic”—well, she didn’t talk about the concept; she used the word. The danger about such words is, first of all, this then imposes that religious thinking, and I’m not quite sure. She didn’t explain what she meant in the context, except when you say those sorts of things, what you’re saying is that if you are agnostic, anything goes; the opposite is true, then anything goes, and if “anything goes” is based on very a fundamental, racist way of thinking, living, and being comfortable, then this is the kind of rubbish that you end up with.

But I do want to congratulate the Government for their persistence in showing complete disregard and disinterest—and this word, “disdain”. Because if you don’t ask whānau—well, I mean, what are you scared of? Are you scared that you might have to change your mind, that you might be convinced that whānau, hapū, iwi communities know, understand, and have their reality and are able to share it? Why wouldn’t you open this process up and do that?

The only thing I’m left with, really, is that you care not. Though you might write and talk about it as if you do, but it is a complete fake—it is a complete fake. But here’s the other, probably, perverse, but good thing: everybody can see you. Everybody can feel you. So keep going, because, in the next round, you will be gone and we will be here—yeah, get yourself ready for that. [Interruption] OK, bark up, boys. Bark up, boys—keep going, we’re used to it.

I did hear also last night this whole thing about double-dipping. Again, it’s such an old and false perspective because double-dipping was used 20, 30, 40 years ago today still assumes that there’s enough—“There’s enough, so don’t you dare double-dip, you and your family of seven kids. You’re just getting through, so how dare you double-dip?” You can’t double-dip, actually, if you’ve got sweet not-a-lot to work on.

So what you then end up doing is having to work and, at times, absolutely manipulate so you get even the crumbs. So what I hear often and disappointingly—but not surprisingly—is a huge ignorance and misunderstanding. But when you have an already always listening about brown people, when you have an already always listening about “lazy Māori brown people that just can’t get up and get off the couch”, you are fed a terrible, terrible lie. And when you are comfortable in that kind of understanding, you will end up with this kind of rubbish that has got—and let me tell you: there are many a Māori, iwi, marae, hapū that have got their plans, they’ve got their strategy, they’ve got their Whānau Ora plans. But what do you think? You think you know better.

Well, shame on you. You don’t know better today and you won’t know, and I suggest that Māori mā, Māori mā, go back to your marae. Hoki koe ki tō marae, me whakarongo ki ō koutou whānau i ia marae, ia hapū. [You should listen to your families on each marae, each hapū.]

Mēnā—if—you were to do that, you would be better off. Just in the first instance, you would be better off—you would be informed. Don’t depend on the Māori sitting next to you to think that’s enough. Do your own work. Kia ora tātou.

Kahurangi Carter

Green Party · List MP

Thank you, Mr Speaker. I rise on behalf of the Green Party in opposition to this bill. This bill is about greed. This bill is about stealing from children, from disabled people, and from our elderly—tax-paying New Zealanders. While the changes proposed were described by the Minister for Social Development and Employment as narrow, and they may appear minor or technical, the consequences are serious. What’s being packaged here as an adjustment to housing support policy is a targeted cut to people on the lowest incomes, people already struggling to stay housed and fed in Aotearoa.

This legislation reverses a longstanding and sensible approach taken by the Ministry of Social Development (MSD). For over 30 years, MSD has excluded income from one or two boarders when determining eligibility for the accommodation supplement or income-related rent. That approach has helped countless households make ends meet. It has encouraged people to share their homes, ease the living costs, and even reduce the pressure on public housing. But now this bill proposes to treat those boarder contributions as income, resulting in reduced support for those who host even just one or two boarders. The outcome? Less housing assistance for people who are simply trying to manage in an economy where the cost of living is skyrocketing.

Let’s not forget who we are talking about. These people are doing everything they can to stay afloat. It is hard being poor: people with no safety margin, rent, power, groceries—these costs are going up, and this bill chooses to take even more away from those already falling behind. This is not about preventing abuse of the system; it’s about penalising those who open up spare rooms, build community, make ends meet, and support each other. It’s about clawing back entitlements from people living below the poverty line.

In the evidence which we got, the advice we got from MSD, it showed us the people who are going to be the most disproportionately impacted: Māori, Pacific people, our kaumātua, disabled people, young people. It was really telling, the engagement from the Government members, when they got engaged, when they only felt personally offended. Well, I feel offended for the disabled people, for the young people, for Pacific people, for Māori people, and for our kaumātua—people who we should be helping to have everything that they need to live a thriving life. That’s something that we can have in this country. We have enough wealth. We are a country of abundance. But this Government is choosing to choose greed and cruelty over the country that we could be, one that cares for people, one that cares for our environment.

In the Green Party, we believe in supporting people, not punishing them. We believe in a welfare system that enables people to live with dignity, not one that punishes them for finding ways to manage within a broken system. If this Government is genuinely interested in fairness and efficient housing policy, it should begin by lifting support levels that reflect real living costs, not by cutting assistance to the very people this support is meant to help, like children. I hope that the Government members have read their own child poverty report because it is grim, and this is going to affect children. It is going to push more children into poverty and it is just not OK.

We cannot support this bill. It punishes people for sharing their homes. We urge all members of this House to reject this harmful and short-sighted bill.

Joseph Mooney

National Party · Southland

Thank you very much, Mr Speaker. I rise to speak on this. We’ve heard a lot of hyperbole and, frankly, nonsense from those champagne socialists on the other side of the House. What is this bill about? It’s actually about the Government paying twice for one room in a house. That’s, effectively, what it’s about. And that’s for boarders. It doesn’t do the same for renters. This Government takes taxpayers’ money seriously. We take the responsibility to spend that money wisely. We want to help people in difficult circumstances. We want to give them a hand up; we don’t want to give them a handout. We don’t want people stuck in a cycle of poverty for their entire lives, so we want to help those people. We are not going to triple the debt like the last Government did. We’re going to spend it wisely. I commend this bill to the House.

Helen White

Labour Party · Mt Albert

Thank you, Mr Speaker. When I was going to law school, I’d come back from overseas and I went to live in Hamilton because I was at Waikato law school and I lived in a garage of a woman who was a solo mother. She had two kids, she was working, and I don’t know whether she actually had an accommodation supplement, but if she had had one, under the law as it was then, she would’ve been able to have me there as a boarder and not declare it and it would have given her a little bit more money. I got something out of it: I lived in the garage. [Interruption] And, actually, for Joseph Mooney on the other side, that woman today wouldn’t need anyone to be double-dipping to miss out on what she got back then, if that was the case.

The woman who does that now, she’s a caregiver; and she’s earning minimum wage. This Government decided not to give her the raise it should have given her, which would have kept pace with inflation this year. That was the priority of this Government: it didn’t give her the minimum wage. It also took away her pay equity claim—that’s what it did this year. In addition to that, it said, “Oh, you’re getting an accommodation supplement. You’re working. You’re not able to make ends meet because the wages are so low, but we’re going to take that off you to the extent of $98 a week this year when things are this bad, when cheese costs this much, when butter costs $7, $8, sometimes $11 in the shops for butter.”

Carl Bates

National Party · Whanganui

Cut to Costco!

Helen White

Labour Party · Mt Albert

And I’m told by the other side, who apparently are connected with human beings, “Costco”. That’s what they scream out: “Costco”—that’s what they scream out. I would like the Government to take this seriously. It is not a case of some glib comment across the room.

Today, we have a debate about taking $98 off someone like the woman I’ve described. There will be thousands of women I’ve described across this country who are in this situation and it is time to take this seriously. It is not a case of screaming out “Costco”, because that is the kind of judgment that has been going on underneath the surface of this Government for a long time. It is always the person’s fault who’s in that situation. I have described to you today a woman who was very real to me. She was a lovely woman. She had instant coffee, she had a microwave, she had a beautiful little puppy dog. All those things are the actual hallmarks of working-class New Zealand—good, solid working-class New Zealand.

Today, we decided that we were going to take off good, solid working New Zealand solo mothers what even in the 1990s they didn’t do. They decided that was a bridge too far, but it isn’t for this Government. Because what’s happened in between is the gap between rich and poor is so extreme that many people on the other side of this House want to talk about tall poppies. They don’t want to talk about battling New Zealand, who are getting on with it and what do they get? A kick in the guts from this Government today.

I hope all the controversy about dragging this bill out and trying to get the most we can out of this situation, the fight that the Opposition put up, I hope it’s seen for what it is. It’s a fight for the working class of this country, who have had a really rough time. This Government promised it was going to help them in a cost of living crisis; instead, it takes $98 off women like that. It takes it off them every week. It makes it harder for them to live and then it blames them and tells them they can go to Costco. That’s what this Government said to people today. And their sniggering continues on the other side.

We are here for those people—we are here. We are not going to say that it is wrong to have a boarder in your house—we wouldn’t do it to ourselves and we’re not going to do it to the rest of New Zealand. That is not the way forward to a decent New Zealand. It is time that we start to see how alienating it is for people. We have people whom a report into this bill calls marginalised. We have people who are really harmed here by this legislation, and we need to take it seriously and we needed to hear from them. Frankly, we needed to hear from those very people because it is our obligation to listen to them before we make stupid laws, and this is a very stupid law.

This law is not going to achieve anything but further pain for people, because, as the report points out, what most people will do in that situation is they’ll just stop having boarders. They won’t be able to afford to have a boarder. Think about the discussion we had in the committee of the whole House stage about the 62 percent that is going to be taken off every boarder situation. When it was suggested by me that some people—bless their cotton socks—might have somebody live with them for other reasons than money and they might say, “Look, you can live here for $50 a week.”, they still lose 62 percent of that because, apparently, the Minister for Social Development and Employment says she’s agnostic, which apparently means heartless, unthinking, and, basically, stupid. It’s not a very good piece of law. It’s a stupid law.

Sam Uffindell

National Party · Tauranga

Point of order, Madam Speaker. Thank you, Madam Speaker. I refer you to Speaker’s ruling 45/2, which says, “Members should address each other in a courteous way, and references to the mental prowess, or lack thereof, of a particular member are inappropriate”.

Helen White

Labour Party · Mt Albert

Point taken—point taken, Madam Speaker. And it’s not taken—

Sam Uffindell

National Party · Tauranga

Speaking to the point of order. She should withdraw and apologise.

Maureen Pugh

Assistant Speaker

I understand—

Helen White

Labour Party · Mt Albert

I withdraw.

Maureen Pugh

Assistant Speaker

I understand. It is actually OK to call a policy stupid.

Helen White

Labour Party · Mt Albert

And that’s what I was trying to do.

Sam Uffindell

National Party · Tauranga

Speaking to the point of order, that was in reference to a member.

Helen White

Labour Party · Mt Albert

I want to make sure that I am clear: I think that this is a stupid policy. I think the mentality that says, when asked a question that is a very valid question—

Todd Stephenson

ACT Party · List MP

Point of order. Sorry, Madam Speaker. The member should withdraw and apologise for her reference to the Minister, which was very clear. Then she can criticise the policy.

Maureen Pugh

Assistant Speaker

OK.

Helen White

Labour Party · Mt Albert

Madam Speaker, I’ll make it absolutely clear: I am talking about the policy and I’m talking about the thinking that gets to the policy and the lack of debate. Let’s just extrapolate. The thinking isn’t just of the Minister; the thinking is of the Government—let’s just be very clear. Now, I think people on the other side of the House know that I do not tend to attack people personally and I’m not doing that here.

Joseph Mooney

National Party · Southland

You were.

Helen White

Labour Party · Mt Albert

I do not. And what I am talking about—pardon? Sorry, Madam Speaker.

Rachel Boyack

Labour Party · Nelson

Keep going—keep going.

Helen White

Labour Party · Mt Albert

Thank you. What I am talking about is a way of thinking which the Government is guilty of. Because, when I put a question about—[Interruption] I am getting a lot of heckling, Madam Speaker, and I’m finding it really hard to give my speech because there is a constant barrage.

Kieran McAnulty

Labour Party · List MP

Point of order, Madam Speaker. I apologise to the member; however, this is getting out of hand.

Maureen Pugh

Assistant Speaker

It is getting out of hand. I’ve only just resumed the Chair and I can see that.

Kieran McAnulty

Labour Party · List MP

I know. This is in no way your fault, Madam Speaker, but this has been building for quite some time. Presiding officers throughout the morning have warned both sides to keep it down a notch and, frankly, some of the comments that have been labelled towards Helen White during that contribution are very much out of order, and it’s building both sides up. I think, given that we’re likely to be here until midnight tonight, some clear expectations set out to the House would be useful.

Maureen Pugh

Assistant Speaker

Excellent. Point noted, thank you.

Helen White

Labour Party · Mt Albert

Thank you, Madam Speaker. I want to come back to the injustice of not bothering to think about the people who will be caught up in this situation and hurt by it. I have given an example to the House: somebody is charging somebody $50 to live in their house—they’re charging them $50. Under this law that we passed today, 62 percent of it goes straight out the door—it goes straight out the door, and yet it’s probably costing them double that in terms of food and electricity, etc. When I have put that matter to the Minister, I was met with complete disinterest. I was told that the policy is agnostic. Well, our job is not to be agnostic. Yes, we have systems to run. Yes, there are hard calls to make. But our job is to listen to our communities and to reflect that in decent, humane policy.

So when a Minister refuses to listen to those things and change them, when we are adopting policies that do not work for ordinary New Zealanders and, in fact, depress them, take them down, make it harder for them to move through into a place of independence—when we do that, we do real harm, and we are responsible for that harm. Today, we put something through which hurts a lot of people that could’ve been made better. It could’ve been made better by a bit of time in a select committee, listening to the people who are impacted; listening to all voices. We could have got it right. But, instead, we’re putting through a law that probably won’t work, because people will simply no longer have boarders because they cannot afford the risk and it is not worth it to them—when who were they hurting?

I absolutely, categorically, totally reject the idea that this is double-dipping. Anyone who gets a subsidy from the Government gets it because they need it. The fact that two subsidies end up in the same household, that is not double-dipping. Double-dipping—as has been pointed out earlier—is when you do something like make sure that landlords have interest deductibility, but don’t tax them when it comes to the profit that they make out of a rental property. That’s double-dipping because you’re giving them two bites at it. You’re letting them have their cake and eat it too. In this situation, there’s no double-dipping. We just have two people who deserve our support who are getting it. But not today. It’s over for them. Shame on this House.

Paulo Garcia

National Party · New Lynn

The bill is very straightforward. It addresses the situation where a person who receives boarder payments themselves apply for the accommodation supplement. They are to be assessed for their eligibility and for the rate of accommodation supplement they are to receive. What this bill doesn’t do is mislead the public, and what this bill doesn’t do is encourage and further entrench dependency. I commend this bill to the House.

Priyanca Radhakrishnan

Labour Party · List MP

Thank you, Madam Speaker. This is a mean-spirited bill. The Paulo Garcia, member opposite, says it doesn’t entrench—something. What it does entrench is poverty and inequity. It is mean-spirited because it penalises people who are already doing it tough for taking on boarders.

Some members opposite in their contributions have said this is about fairness and about fixing an anomaly in the legislation. It’s not. This policy of disregarding contributions received from one or two boarders when calculating someone’s entitlement for housing subsidies and assistance has been in place since 1992 for a reason. It was designed to be an incentive for people to take in boarders, so it’s not something that people were doing incorrectly or wrongly. It was actually designed to support people to take on boarders to ensure that other people had a home and that the money they were paid would then offset the increase in costs to the person who was taking on those boarders. So let’s not dress this up as something that is fair, which is what members opposite are doing. It is unfair. It is penalising people for doing something that ultimately is good—because there is a difference between renters and boarders, and that is actually acknowledged by other Government agencies, so perhaps members opposite should look at that.

The income that comes from someone who rents is treated very differently already under the law from people who contribute as boarders because that is not just about renting a space; it’s about offsetting the increased costs that the person who rents out or shares their space will incur from that. So this is not an anomaly that needs to be fixed.

This will lead to an increase in homelessness. Let’s not pretend about that. Not one member opposite has mentioned the fact that this will make things harder for a number of groups of people. That is not an opinion; that is in the official analysis of this bill. Disabled people, for example, have limited choice when it comes to accessible housing. Many disabled people have limited choice because their caregivers live with them as boarders. These are the very people that this bill and this Government are punching down on further, so let’s be very clear about that. That is in the politically neutral analysis of this bill.

What is this, ultimately? There’s a line in that analysis that says this policy change was a Budget 2024 cost-saving initiative. That’s ultimately what it is. So it’s clawing back $150 million from people who can least afford it because of the decisions that this Government has made in successive Budgets. That’s what this bill is about. It’s in keeping with what they’ve done so far, which is taking money away from underpaid women to balance their Budget, to make up for their decisions to subsidise landlords and tobacco companies, to pay for their tax cuts that they promised on their campaign when they were campaigning to reduce the cost of living—which they have failed to do. It is to subsidise offshore oil and gas giants, as we’ve seen through Budget 2025.

This is a Government that has failed on their promises that they campaigned for. What are they doing instead? They are clawing back money from the people who can least afford it, whether that’s underpaid women or, in this case, all of the groups: Māori, Pacific, young people, old people, disabled people, those who are already struggling, those who are being given an incentive to take on boarders to make ends meet. Those are the people who will be impacted negatively as a result of this bill, and all we’ve heard from the other side is arrogance, frankly, and it’s been pretty disgusting. We’ve seen the smirks; we’ve heard the laughs coming across the House from those members. They don’t seem to care. Not one person has acknowledged how much harder this bill is going to make life for those who are already struggling with the cost of living.

But keep going because there’s a pattern and everyone can see what this Government is ultimately doing: fail on your promises and then take it from those who are already doing it tough. For all of those reasons, and the reasons that this side of the House has clearly laid out, as this bill has been rushed through all stages under urgency, we do not commend this bill to the House.

Hamish Campbell

National Party · Ilam

I rise in support of this bill. It’s a necessary change. Its purpose is to ensure fairness and to prevent the double-subsidisation of housing costs.

We have heard about penalising renters; let’s talk about that. Under the last Government, there was an increase on average of $180 a week in rent. If we look across the country, that is $5.3 billion that they took out of the pockets of renters. That is a fact. Under this Government, we’ve seen an increase in 40 percent for listings of rental properties, according to TradeMe data. We have seen the highest level as a percentage of first-home buyers for decades. That is what this Government is doing: getting the finances of this country under control.

We don’t suggest titles of bills with “moolah” in them; we take this seriously. We don’t trifle with the House like the Opposition does. Therefore, I commend this bill to the House.

Rachel Boyack

Labour Party · Nelson

Thank you, Madam Speaker. It’s the first opportunity I’ve had to take a call on this bill and I want to talk to some of the impacts it’s going to have on my community.

The first comment I want to make is that this bill is a mean-spirited little bill that’s been snuck through the House under the cover of darkness during urgency. It hasn’t had the opportunity to go to select committee, which means that people who are actually affected by this bill haven’t had an opportunity to come to the Parliament to put their views to MPs to ensure that a bill like this actually is fair. Because it’s not fair—it’s not a fair bill.

When I was doing my reading of the bill prior to putting my notes together, I did take a look at the explanatory note. I think it’s worth noting to the members over the other side of the House that this policy was actually introduced in 1992. Who was in Government in 1992? The National Party. And here in the bill, it even reads—I’m just going to read it out—“It was intended to encourage better utilisation of State housing (ie, occupation of empty rooms) and encourage beneficiary [houses], particularly sole parent beneficiaries living in larger State houses, to take on a boarder, or boarders, to offset some of their costs.”

In the context of the nation’s housing crisis, it’s important that we actually look at what will be the unintended consequences of a bill like this. What it will lead to is higher costs for those who have a boarder or people not taking a boarder on in the first place.

Hamish Campbell

National Party · Ilam

Unintended consequences—cumulative effect of 25 percent inflation under your Government.

Rachel Boyack

Labour Party · Nelson

At the moment, the situation we’re facing—I mean, I just want to note, Mr Campbell, you did have an opportunity to take a 10-minute call; it was less than a minute.

Hamish Campbell

National Party · Ilam

No, I didn’t.

Rachel Boyack

Labour Party · Nelson

Yes, you did. You had an opportunity to speak for 10 minutes. [Interruption] You’ve obviously got something to say—

Maureen Pugh

Assistant Speaker

Order! We don’t want conversation across the House.

Rachel Boyack

Labour Party · Nelson

I know, but he’s heckling me, so I’m just responding. But he’s obviously got something to say. It is within the rules to respond to a heckler. He took about a minute; he had nine minutes where he could have said all this, that he’s, you know—so—

Hamish Campbell

National Party · Ilam

It was a split call.

Rachel Boyack

Labour Party · Nelson

Oh, it was a five-minute call. OK, it was a split call. So you took one minute of your five minutes—

Joseph Mooney

National Party · Southland

Point of order.

Rachel Boyack

Labour Party · Nelson

I withdraw and apologise for getting my timings wrong.

Maureen Pugh

Assistant Speaker

Point of order, Joseph Mooney.

Joseph Mooney

National Party · Southland

No, she just addressed it. She got her timings wrong. It was five minutes; not 10.

Rachel Boyack

Labour Party · Nelson

Basically what I was saying was that he had four minutes that he didn’t use, but instead he’s decided he’s just going to shout at me. If that’s just how you want to behave in the House, it’s up to you.

Member

Tell us about the Nelson Hospital.

Rachel Boyack

Labour Party · Nelson

Just coming back to the bill—oh, I will tell you about Nelson Hospital.

Member

Oh, great announcement!

Rachel Boyack

Labour Party · Nelson

Fewer beds. Fewer beds. Fewer beds. We’ll run out of beds in about five or six years and we’re going to have to come back and build the last building. You cancelled the last building that Nelson needs. It’s a disgrace. So don’t believe the spin that your Ministers have given you, because they’re wrong. It’s a disgrace.

Matt Doocey

National Party · Waimakariri

Whoever the mayor is, he’s happy.

Rachel Boyack

Labour Party · Nelson

Oh, look, the mayor had 30 years to get their hospital built and he didn’t.

Anyway, I’ll come back to this bill, which is really important for Nelson because we have a policy in Nelson set up by the wonderful people at Nelson Women’s Centre called HomeShare for Her, which runs across the Nelson-Tasman region. HomeShare for Her. What it does is it matches a woman—normally an older woman who is living in their own home or renting a home and often it’s a larger property—and to take on a boarder. One of the things that we find in Nelson is we do have a growing and ageing population, which is why we need more beds than what National have promised. One of the things is that women are often living in their own homes that might have an extra two or three bedrooms. They want to stay living in their own homes for safety, to help reduce costs, for companionship. What HomeShare for Her has done is it allows a matching process between those women, and then women who are single, who might be working, studying, or not able to afford their own home. So it allows—you know, coming back to the purpose of the original policy—greater utilisation of that home. It’s a great scheme and it’s allowed matching between these women.

What this policy will do for any of those women who are receiving the accommodation supplement because they might still be paying their mortgage and be on superannuation or be living in a rental, that’s going to increase the cost for those women. So it actually has an unintended consequence and has a poor impact—

Steve Abel

Green Party · List MP

I think it’s intended.

Rachel Boyack

Labour Party · Nelson

—on those. What was that, sorry?

Steve Abel

Green Party · List MP

I think it’s intended.

Rachel Boyack

Labour Party · Nelson

Yeah, I think it’s intentional too. And—

Maureen Pugh

Assistant Speaker

I’ll just remind the member again not to engage across the House.

Rachel Boyack

Labour Party · Nelson

Madam Speaker, I understood under the Standing Orders that you can respond to heckles. I think that was all right.

But one of the issues in Nelson as well as we have seen an increase in our homelessness and we’ve seen through the ending of some of our emergency accommodation provision, a growing number of people living on the streets. We’ve also seen, as part of that, unfortunately, a growing number of women living on the streets. One of the things around how women present through homelessness is it’s often a bit different to how men present. Often, women will end up sleeping rough on someone’s couch, in a garage, potentially with children. They’re not necessarily sleeping on the street, but the homelessness is still there and present.

That’s one of the things I love about this HomeShare for Her policy that was set up by this group of women was: that it both served the older women who were wanting to get greater utilisation of their home, and then it also supported those women who were on a low income, unable to find a home. What this bill is going to do is add costs to those people. It’s going to add costs to those women and it’s potentially going to disincentivise the number of people living in those homes.

The other thing that we face in Nelson which is really specific to this bill is we do have a lot of State houses that do have three to four bedrooms, where we have a really high need for one- and two-bedroom properties in Nelson—and that’s shown on the Housing Register. We had begun building those one- and two-bedroom properties. We had got quite a few built, including the one recently finished on Waimea Road which has 29 one-bedroom units in it, which is fantastic

But some of those future properties have been cancelled—those builds. There was one in the inner city that was going to build another 30 or so one-bedroom homes that would have served particularly our older population, our disabled population, very, very well. That build has been cancelled under this Government and so we’re seeing the latest release of information from the Nelson Tasman Housing Trust saw the highest ever housing need from people who are in that space where they might not qualify to go on to the Housing Register, but they do have a housing need in terms of being on a low income. So they’ve seen a real spike in numbers, unfortunately.

When you have a place like Nelson, which is one of the most unaffordable regions in the country after Queenstown, when you compare income against rent and a real squeeze on housing—because we do have a growing number of people choosing to retire into Nelson—what we see is a real lack of access to housing. It is a real issue in Nelson, it has been for some time. The option to have people boarding is a really, really good solution, and it happens a lot in my community. So my biggest concern here is that we’re going to be penalising people on low incomes who have looked to say, “I’m going to take on a boarder.”

The other area where it can impact is those who are taking on students—they may have a student come to study at Nelson Marlborough Institute of Technology, for example—take on a boarder because they might be an elderly person who’s looking to supplement the income on their rental property. Making those kinds of decisions is going to become less attractive to those people, and so it’s going to limit the amount of housing supply we have, because in a place like Nelson, we need to look at every single opportunity.

There is going to be, if you look at social housing, around 6,200 households across the country have boarders. Those people will have to find around $132 more each week towards their income-related rent. That’s a significant amount of money for people at a time when, alongside the housing crisis, you actually have a cost of living crisis. The 8,200 households who receive the accommodation supplement are going to be affected, and 7,000 of those people will have a reduction in support from the Ministry of Social Development.

This bill should have gone to select committee. To pass it like this when it had actually been put in place during the Budget in 2024 just shows a Government couldn’t actually line its ducks up properly to have actually got a bill into the House at some point last year and put it through to select committee for those people who are affected, so that the Government members, who have been shouting at everyone but not taking lengthy calls—so they’re choosing to shout instead of listen—could actually hear the real impact of this bill. I do not commend it to the House.

Greg Fleming

National Party · Maungakiekie

Nōku te maringa nui ki te tū hei tautoko i tēnei pire ki te Whare. Kei te mutunga o tēnei kōrero poto ka pōti tātou i tēnei pire, ā, nā tōku whakapono i te whakaaro nui o te nuinga o ngā mema o tēnei Whare, ka whakamanatia tēnei pire.

[It is my great fortune to stand in support of this bill in the House. Upon the conclusion of this short speech, we will vote on this bill, and as I have faith in the wisdom of the majority of the members of this House, this bill will be enacted.]

Member

Nā te aha?

[Because of what?]

Greg Fleming

National Party · Maungakiekie

He pire pai, he pire whakaaro nui, he pire atawhai. Nā reira kaua e roa ake tāku whakatātari o tēnei kōrero, o tēnei pōti. Ka tūtohu atu au i tēnei pire ki te Whare.

[It is a good bill, it is a wise bill, it is a caring bill. Therefore, I will not prolong my analysis of this debate and of this vote. I commend this bill to the House.]

Party vote

A party vote was called for on the question, That the Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill be now read a third time.

Ayes 68

Noes 55

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Motion agreed to.

Bill read a third time.

Social Security (Mandatory Reviews) Amendment Bill

First Reading

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I present a legislative statement on the Social Security (Mandatory Reviews) Amendment Bill.

Maureen Pugh

Assistant Speaker

That legislative statement is published under the authority of the House and can be found on Parliament’s website.

Louise Upston

National Party · Taupō

I move, That the Social Security (Mandatory Reviews) Amendment Bill be now read a first time.

Maureen Pugh

Assistant Speaker

The question is that—sorry. After you.

Louise Upston

National Party · Taupō

The Social Security (Mandatory Reviews) Amendment Bill amends the Social Security Act 2018 to introduce regular reviews of specified benefits, including the accommodation supplement. The Ministry of Social Development (MSD) does not always have the most up-to-date information about clients and they therefore may not be receiving the correct assistance. To efficiently implement the boarders’ contribution initiative in the legislation we’ve just passed, MSD must have up-to-date information on how much clients are getting from boarders, particularly to ensure correct entitlement for the accommodation supplement.

The mandatory reviews that will be introduced through this bill provide an efficient mechanism to regularly gather information about contributions from boarders and other client circumstances. MSD will be required to review specified benefits at least once a year. These reviews will confirm that clients are receiving the correct rate and are still eligible for the benefit. The specified benefits this requirement will apply to, in addition to the accommodation supplement, are the supported living payment and the disability allowance. The changes will also apply to the emergency benefit when the expiry date is beyond 52 weeks, or if there is no expiry date at all. Finally, the changes will also apply to people receiving New Zealand superannuation with a non-qualified partner. This is a grandparented assistance that will not affect the vast majority of people who receive superannuation.

These changes will mean that more clients will have to engage with the MSD regularly to keep their circumstances up to date, including information about board payments. The bill does not introduce an onerous process for clients and they will be able to choose how they respond to the review. These changes will lead to more clients being paid the right rate of benefit. This will reflect their correct entitlement and will reduce the accumulation of debt over time, which is an issue that I know members on the other side have been concerned about. Similar to the changes that I have recently introduced through the 26-week reapplications, when a client has already confirmed their circumstances are correct through another engagement, MSD will not be required to review their circumstances for the 52 weeks.

This bill will also enable MSD staff to prioritise supporting clients into work. Some aspects of the process to confirm a client’s circumstances will use automated decision-making. I want to speak about the limited use of the automated decision-making. They are: firstly, notifying the client that they do need to confirm their circumstances, then continuing their benefit if a client confirms the information MSD holds is correct, or stopping the benefit if a client doesn’t respond to the review before the deadline. Automated decision-making will only be used for review-related decisions that do not require the use of discretion or human judgment.

There are several final points I want to emphasise to the House. Firstly, these reviews are different from the reapplication process for jobseeker support or sole parent support. Clients will not be required to submit full reapplications for their assistance; they will simply need to confirm that the information MSD holds about them is correct.

Secondly—for the avoidance of doubt—medical reviews are not tied to these reviews. Clients will be confirming aspects of their life, such as contributions from boarders, income, living arrangements, and whether they have a partner or children in their care—not their disability or health condition. They will not be required to seek additional medical certificates as a result of this bill.

Finally, I want to emphasise that this bill does not change any rules regarding eligibility for these payments. It simply creates a more efficient mechanism to apply existing rules. Many New Zealanders would be surprised that this review is not already in place, and it is critical to the successful implementation of the boarders’ contribution changes. It will also contribute to a more proactive, efficient, and accurate welfare system. I commend this bill to the House.

Maureen Pugh

Assistant Speaker

The question is that the motion be agreed to.

Willie Jackson

Labour Party · List MP

Kia ora, Madam Speaker. Sorry about that. Again, here we have yet another attack from this Government on the poorest and most vulnerable Kiwis. It’s déjà vu. As I said earlier, it’s been a terrible week for the Government and, now, here we are on Saturday. They’re hoping that most New Zealanders are not watching this, but people are aware of what’s happening in terms of this kaupapa. We don’t believe the cruel sanction process alongside this bill will help the welfare of any—

Joseph Mooney

National Party · Southland

Speak to the bill, Willie!

Willie Jackson

Labour Party · List MP

I’ll do it again just for you, Mr Mooney. We don’t believe the sanction process alongside this bill will help the welfare of anyone impacted by it, all right? So it’s about—you can’t sort of—

Joseph Mooney

National Party · Southland

It’s not alongside this bill; it’s separate—a separate issue.

Willie Jackson

Labour Party · List MP

Oh, no, no, it’s all connected, Mr Mooney. It’s all connected. You just think, “Oh, there are just sanctions here, and nothing’s connected.” Everything’s connected. And we’ve got incredible misgivings over the sanctions process.

What this mandatory review amendment does is speed up—just for you, Mr Mooney—how many times people on welfare face those harsh sanctions. See? That’s the connection—just for you, just for you. Look, I know it’s hard for the other side to understand, but research cited in the regulatory impact statement highlights that these sanctions may increase mental and physical health problems, including substance abuse and poverty. So speeding up how many times people face those sanctions will exacerbate those social stresses—something I think that this Government’s incapable of comprehending.

Because of constant Public Service cutbacks, the Ministry of Social Development (MSD) doesn’t have enough staff to process these claims. We’ve constantly cited this, every six months, which will require artificial intelligence automation of eligibility, which the Privacy Commission has concerns about—concerns no one is listening to.

In terms of our policy, we’ve seen example after example of Government policy that is bureaucratically obtuse and creates confusion and punishment. And that’s, again, the problem with this. There is confusion amongst people at the coalface. They don’t know where to go to. They know that MSD are concerned, but MSD don’t have the capability. For example, by halving the review time for job seekers and their partners, this Government will continue along the way of threatening and bullying people and then immediately sanctioning them. This isn’t welfare policy. The Government are actively making the process—and here’s the point: they’re actively making the process of getting welfare as difficult as possible. We want a simple process, and the reality is it’s difficult as possible as unemployment continues to grow.

Where are all the jobs for those who are being thrown off welfare? That’s what we’re asking. They’re setting up job seekers to fail because they don’t want to help them, I think. I think that’s the problem. They don’t want to help them in the first place. In terms of getting beneficiaries into work, of course we all want that, and I appreciate the Minister wants that, too. To achieve that, we must have simple policies, simple ways for our people to access their needs and to access support. That’s not the case here. Benefit and jobseeker numbers have risen significantly under this Government as a result, obviously, of worsening economic conditions, and the Government has to take responsibility for the consequences of those actions.

In terms of this mandatory reviews amendment bill, we obviously oppose it because it doesn’t help job seekers; it just punishes them. It’s the continuation of the punitive style and process of this Government—something that we will turn around when we get that opportunity back in Government. We will bring in a more embracing style, and I’ll go on the record again, today, as saying that Labour totally opposes this bill. Thank you, Madam Speaker.

Ricardo Menéndez March

Green Party · List MP

Make no mistake, if the Minister was actually serious about improving the accuracy of the Ministry of Social Development entitlement assessments, she would be investing in the front line and supporting them adequately, rather than continuing to undermine them and pushing through more and more decisions to a computer system, where there will be less accountability should it not adequately calculate benefits. This is part of a plan to cut the lifeline for countless people so that the Government can meet their target of 50,000 less people receiving income support, not about people getting, basically, more support or getting into employment.

Joseph Mooney

National Party · Southland

This guy doesn’t understand what he’s talking about.

Ricardo Menéndez March

Green Party · List MP

Joseph Mooney says that I don’t know what I’m talking about, but I’d really invite him—because he didn’t in the previous debate—to actually tell us about the substance of this bill and who this is affecting the most. Last debate, he didn’t talk about how the previous bill would affect people in hardship, so I welcome him to do the same. I say this because, as the Minister said—and she’s basically opened up for us to link those two together—this bill was integral for her to meet the intent of the previous bill, which does what? Leave 14,000 people worse off, between, on average, $100 each week, to, potentially, $200 worse each week.

These so-called mandatory reviews, they are also an excuse to, basically, punish people and strip them of their benefit, particularly for those on the supported living payment, who then will be left off, again, in hardship, because we know that disabled people are more likely than many other groups to be living in poverty. The child poverty reports tell us exactly that: that being disabled is actually one of, unfortunately—and it shouldn’t be that way—the largest reasons why somebody could find themselves in poverty, not because of the disability but because of political decisions being made to strip away support for disabled people, to scapegoat them, undermine them, discriminate them, instead of allowing everyone to have the life that they need.

This bill introduces mandatory reviews for things like the supported living payment, the emergency benefit with an expiry date beyond 52 weeks or no expiry date at all, the accommodation supplement—and this is where the Minister tied in the intent of tying this bill with the one that we just passed—the disability allowance, and New Zealand superannuation with a non-qualified partner or grandparent. The thing is, should this review happen—I think particularly for the supported living payment it makes very little sense, since they already face a 52-week review anyway, so it just kind of feels like duplicating things—and people find themselves receiving less, the reality is that that just means that they will be pushed deeper into poverty. People on the supported living payment, for example, they’re not living a life of luxury, unless, you know, the Minister somehow thinks so.

If those mandatory reviews find disabled people earning less each week, I don’t see anywhere in this bill any provisions that take into account, for example, people’s hardship, wellbeing, the likelihood of them becoming homeless before, for example, the machine—the computer—puts them in a disadvantaged position, because we know, right now, due to the inaccuracy of benefit entitlements, some people are getting more than what the system may prescribe. And you know what? For those people, I welcome that. They should be getting roses and bread and far more because, you know, the so-called overpayments they’re receiving are not making these disabled people live a life of luxury. They may be allowing them to adequately be able to afford their rent or food and pay their—

Kahurangi Carter

Green Party · List MP

Feed their kids.

Ricardo Menéndez March

Green Party · List MP

Yeah—and keep a roof over their heads. I’m really concerned that the broadening of the automated decision-making, and I think it’s also really intellectually not transparent for the Minister to not have told us that this was her intent, when in the Social Security (Mandatory Reviews) Amendment Bill, which allowed for the broadening of the use of automated decision-making, this is what she was planning to do and to use automated decision-making for.

I think this reeks of a Government that is hoping no one will be paying attention to the bills that they’re pushing through with urgency. Why? Because they haven’t told us about the real negative impacts on families as a result of the Social Security (Mandatory Reviews) Amendment Bill and the Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill. We look forward to scrutinising this bill and putting forward amendments that mitigate the harm that the Government is planning to inflict on our communities. Shame on the Minister and this rotten-to-the-core Government for pushing through legislation that harms our most vulnerable.

PARMJEET PARMAR

ACT New Zealand

Thank you, Madam Speaker. I’m taking this call to support the Social Security (Mandatory Reviews) Amendment Bill on behalf of the ACT Party. We support this bill because this is actually bringing a proactive approach in our social welfare system. This approach is to improve the accuracy of information that the Ministry of Social Development (MSD) holds about different people on different kinds of benefits, those who receive assistance from the State. There is nothing wrong with making sure that the information that is held by MSD is updated from time to time to ensure that it is accurate and to ensure that those who are getting assistance from the State are getting the right kind of support.

I do not understand why somebody would oppose our State—the Ministry of Social Development—holding correct information about people, because this bill is not about people getting more or less assistance; this bill is about ensuring that people are getting the correct level of assistance. There are cases where people sometimes forget to update their circumstances. It could be that because of the change of their circumstances, they will need more support, and it is quite possible that because of the change in their circumstances, they will receive less support. But that needs to be reflected in the information that MSD holds about each and every client.

So this bill is about ensuring that, and it brings a proactive approach from MSD that the information will be reviewed every 52 weeks. It also allows, because human lives are complex—we all know that—for exceptions. It allows for exemptions; it also allows for extension of the review date. So it’s a good bill. We support this bill. Thank you.

TANYA UNKOVICH

NZ First

Thank you, Madam Speaker. I stand on behalf of New Zealand First in support of the Social Security (Mandatory Reviews) Amendment Bill. Now, what this Government does is when we identify that there is a problem or an issue, we go ahead and find a solution for it, and then we implement it. We do it efficiently and we do it quickly because we want to run an efficient system for everyone.

What this amendment bill does is it amends the Social Security Act. There have been areas that have been identified that can be tightened. It’s important that you continue to review controls and systems to ensure that everything runs smoothly, efficiently, and effectively.

That is what this Government does. We do everything efficiently, even when delivering our speeches in the House. I commend this bill.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Matarau

Mōrena, Madam Speaker. Tēnā koe. So how might I start this? Hmm. A society will be measured by the way it treats its women, as it should be. A society must be measured by the way it treats families that are in genuine need and at risk of further harm. I dread that not only this but the package of these bills all come to, I think, a really dead end, sadly, a dead end for the most vulnerable. So I dread that it’s doomsday. When this next layer—anā, I can hear some sort of like moaning to the left of me. But if you just pause a second, what I’m expressing is that when you package all of these ideas up, they are fundamentally about prejudice plus power, which can only equal racism, which is at the core of the way in which the thinking goes, and, therefore, bills that look like this.

Homelessness is soaring in Tāmaki—53 percent increase in the last quarter. How does this help? Not a single way.

Surveillance and control is another part of what I’m hearing and reading with this particular bill, and I just heard the term “efficiency”—right?—as if this is the space where efficiency is the most necessary and required. Efficiency when there is suffering; families are suffering genuinely and they’re vulnerable and they get the least of the big pie—and that’s where you want to surveil? And that’s where you want to control? And then you pretend that it’s called “efficiency”. What a lot of nonsense. But those are the drivers, in my view.

The other part that I think is a slippery slope is this automated decision-making idea. I agree with just one of the previous speakers: human lives are complex. It’s very true, and they are dynamic. So why on earth do you think that an automated system is going to appreciate those very special things about being human after all? But it is a very slippery slope.

So here’s the thing. If you have to use an automated system, why would you do that? Let’s just get some people into jobs so they can make those decisions. Why would you use a blinking machine? What is wrong with the Government? Why don’t you just, like—automated? Why would you do that? Do we not have enough people that need jobs? I mean, let’s just think about that.

So here we go. I do want to impress particularly on the people to my left, if they were just to, you know, shush up—to say that the traffic lights system, also the sanctions and that idea, is straight out of Squid Game. It’s straight out of Squid Game. So too bad if you’re on the red light; too bad about that.

So I do want to make these points. They are serious, they are real, and they matter. They matter in the places and in the spaces in which I live and work in and know and love and respect. And all of this, when you package it all up: it is bad to be brown and there is no way we support this. In fact, I would condemn it, and I wish I could just stand up and rip it up right now. Kia ora tātou.

Joseph Mooney

National Party · Southland

Thank you very much, Madam Speaker. I rise to speak on the Social Security (Mandatory Reviews) Amendment Bill. This is very simple. It introduces a requirement that the Ministry of Social Development must review a client’s eligibility and rate of a specified benefit at least once every 52 weeks. That is to make sure that they are getting the right amount of assistance that they are entitled to.

It’s a very simple bill. It’s quite amazing to hear the lack of quality of contributions from the Opposition. This also introduces a little bit of automated decision making, and, honestly, if that’s the quality of debate we get from the Opposition, maybe there should be some more automated decision-making from the other side of the House as well. I commend the bill to the House.

Helen White

Labour Party · Mt Albert

Thank you. I think that’s a really interesting reflection on what’s going on in the Government that a person complains about the quality of your speech while speaking for—I think it was about 30 seconds. They’re actually the lead on the Social Services and Community Committee that would have dealt with this. So the amount of actual knowledge that is being accumulated by that kind of superficial approach worries me.

What I want to talk about is this bill itself, and I dispute what the member Joseph Mooney just said the bill does, because this is the problem definition in the regulatory impact statement: “To implement the Budget of 2024 cost savings initiatives to recognise housing contributions from all boarders in the assessment of housing subsidies, the Ministry of Social Development must be able to confirm the client’s circumstances to determine whether contributions from boarders should affect the client’s rate of housing subsidies.” Except it goes on. Basically, it says the only way that we can find out if the people have boarders is by bringing them in once a year and checking that with them. That’s what we’re doing today.

It is not about equity. It is not about making sure they’re all right. It’s not making sure they get all the right things or fairness. This is about making sure that everybody who receives any kind of subsidy from the Government is hauled in and has to disclose that information so that the Government can capture the information of our boarders. That’s what’s going on here.

It was such a big task. We’re talking about a whole huge range of New Zealanders now, because everybody who has an accommodation supplement, all these other groups—and we’ll talk about them in the committee stage—are going to be covered. All these people who, really, they’re on benefits for life for reasons like disabilities or accidents, etc., all of those people, they’re all going in the door once a year. All those working New Zealanders who are working as our caregivers, because they are on minimum wage and can’t make ends meet and get an accommodation supplement, they’re going in there as well. That’s all happening so we can capture the information about boarders, so we can take $150 million off them in a three-year period.

Make no bones, that’s what this piece of legislation is about. It’s very much connected with the last piece of legislation we saw. We wouldn’t be doing it without that happening. So I just simply dispute the reasons given on the other side, and I would ask people to think very clearly about what the purpose of this legislation is, because that’s why you’re going to see a tough fight today from the Opposition. The reason we’re going to fight hard for ordinary New Zealanders is that this touches the lives of so many people that we didn’t impact in this way. We didn’t put them into a situation where every year they were going back because it seemed inhumane or unnecessary. We tried to have a light touch. But, actually, now, we’re going to grab them and tell them they have to come in to see someone every year because we want the information about how much money we can claw back from them. That’s what’s going on. Let’s not forget it.

The people who will be affected are people who are listed in the legislation itself, and they include people on supported living payments, people on emergency benefits, people on accommodation supplements, disability allowances, New Zealand superannuants with a non-qualified partner. Those people will all be hauled out into the office once a year.

We’ll talk about automation in the committee stage, but right now I just want to set the scene. This is a five-minute speech and it’s really important New Zealand understands what it’s about. It’s about taking money away from people in a cost of living crisis, the very people who can least afford it. It is as important as the bill, because it’s the mechanism to do it. So expect a bit of a fight today because we’re going to be giving you one as Opposition. We’re standing up for ordinary New Zealanders who are doing it tough. This Government promised them it would help them. It has done nothing but harm them, and this bill does that too.

Paulo Garcia

National Party · New Lynn

The Social Security (Mandatory Reviews) Amendment Bill is exactly that: mandatory reviews every 52 weeks for beneficiaries to confirm that their circumstances have remained the same, that they remain eligible, and that their eligibility gives them the right assistance. I commend this bill to the House.

Priyanca Radhakrishnan

Labour Party · List MP

Thank you, Madam Speaker. We’re here now to consider this Social Security (Mandatory Reviews) Amendment Bill, which basically amends the Social Security Act 2018 in order to allow the Ministry of Social Development (MSD) to use an automated decision-making system to review the specific benefits that people receive and to be able to take action once every 52 weeks—once every year. So that’s a couple of things that this bill does. Really, what it aims to do that for is to then ensure that MSD can put in place and make decisions on the previous bill that we’ve been debating in this House, the Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill, which is to ensure that those who take on boarders then have to have the money that they get from it considered as income and then taken into consideration when their assistance and benefits are then considered.

So this bill gives effect to that previous one, and one of the things that I wanted to raise about this bill is the fact that when I get correspondence, largely, from disabled people—and they will be impacted by this bill—one of the things that’s often raised with me is just how onerous it is to constantly justify the benefit that you need. This is a bill that will impact those on a supported living payment and a disability allowance, as well.

I do, however, want to just take a minute to clarify what will be within scope of the mandatory reviews, because I know that there’s angst out there. This is, again, going through all stages under urgency, which means that members of the public will not be able to submit in the way that they otherwise would have through the select committee process. One of the main issues is when disabled people have to constantly justify that they still have their disability through medical checks. I do want to just point out that this bill doesn’t require them to do that, because I know that there is anxiety out there. I see in the RIS—in the regulatory impact statement—that it says, “All mandatory reviews for … clients will not include a review of their health condition or disability.” That is a good thing.

However, there is a huge amount of stress that people, particularly disabled people, go through when they have to constantly go through the motions of justifying the benefit that they need, and this bill will contribute to that. So I will just point that out: that I don’t support it from that point of view, as well, because it’s just more onerous for people who are on a supported living payment or a disability allowance. The RIS states that this would include reviewing approximately 100,000 people on supported living payments and 125,000 clients who get the disability allowance. So we are talking about a large number of people, just those who get those two specific benefits, and it will require them to confirm that the information that MSD currently holds about them is true and accurate, and that will impact their benefit eligibility and their rates. So it will add to the anxiety that people are already facing.

The other point that I just wanted to make that is laid out in the RIS is the assumptions around both the accuracy and MSD’s social licence to be able to use the automated decision-making system (ADM). It says here that there are assumptions that this automated decision-making system “will create more positive outcomes for clients. In general ADM is intended to ensure [that] people receive all the assistance [that] they are entitled to by removing the human element including inconsistent eligibility information and any unconscious bias.” However, it also removes the human ability for discretion, as well. It says here, “However, depending on the design of the algorithms used, it is possible for the use of ADM to entrench existing inequities in the welfare system as these can be built into … data collection.” That is worrying.

The RIS also goes on to say that “There is an assumption that MSD has the social licence for machines to make decisions. It is assumed that the widespread use of ADM outside of MSD may mean the public would expect and even support [it to use it] within the welfare system.” However, this has not been tested, and it goes on to say that there’s been no public consultation on this. As I said at the start, there is no ability for members of the public to submit because there is no select committee process, either. For all of those reasons, I don’t commend this bill to the House.

TIM COSTLEY

National Party · Ōtaki

This is a fantastic Budget, with more than ever before for healthcare, more doctors, more nurses, an after-hours in Levin, and health shuttles for Kāpiti. There is more for education with teacher-aides and learning support. There is funding for defence, there is support for seniors, and there are better savings in KiwiSaver.

Maureen Pugh

Assistant Speaker

Mr Costley, this is not a Budget speech.

TIM COSTLEY

This bill delivers more support. It makes sure people are getting the right amount that they should be, and I commend it to the House.

Party vote

A party vote was called for on the question, That the Social Security (Mandatory Reviews) Amendment Bill be now read a first time.

Ayes 68

Noes 55

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Motion agreed to.

Bill read a first time.

Maureen Pugh

Assistant Speaker

This bill is set down for second reading immediately.

Second Reading

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I move, That the Social Security (Mandatory Reviews) Amendment Bill be now read a second time.

This bill seeks to amend the Social Security Act to enable regular reviews of some benefits. The bill will ensure more clients are paid the correct entitlement by introducing a requirement that the Ministry of Social Development (MSD) must review some specified benefits annually. The specified benefits are notable because they do not expire. Without the requirement to reapply, some people receive these benefits for many years, without the need to contact MSD. In this speech, I want to touch more on the nature of the reviews and how they will operate. The only reason a client’s payments would change as a result of this bill is if something has changed that affects their entitlement—like their income, for example—since they last confirmed their details to MSD.

As a result of these changes, it is possible that some clients will see their payments increase. For example, they may have additional costs relating to their disability that is not reflected in their disability allowance because they hadn’t informed MSD. It is also possible that some people may have a reduction in their payment rate, or lose entitlement if they are no longer eligible.

The process is very different to a reapplication, which is required for people seeking the jobseeker support and sole parent support. Clients will be given at least 20 working days’ notice of the review. MSD will present the information it holds about clients to them, and all they have to do is say whether or not that information is still correct. If the information is correct, their payments will automatically continue; if the information is incorrect, a staff member will work with a client to update their information and confirm their new entitlement, if any. Clients will be able to complete their review through various channels and they can request support from MSD if it’s needed. If a client doesn’t respond to the review within the given time frame, MSD will stop their benefit. They will have further time to respond; if they do not, their benefit will be cancelled and they will need to reapply. I commend this bill to the House.

Barbara Kuriger

Deputy Speaker

The question is that the motion be agreed to.

Willie Jackson

Labour Party · List MP

Thank you, Madam Speaker. Now, quite obviously, we don’t agree with the motion, and it’s another kick in the guts for people at ground level. It just continues, this afternoon—a continuation of that.

I thought I’d read a couple of things that some of our very learned people out in the community are saying. The Salvation Army, for instance, regarding automation stated that automatic decision-making “cannot account for the complexities we often see in the individuals we support”, such as financial hardship, ejections, and mental health or unstable living conditions. I would always think that you would take into account the Salvation Army’s recommendations, given that they’re a pretty much apolitical organisation. They work with whoever the Government is to do some sterling work in our communities. So that’s a group that you should be listening to.

The Law Society say that “This raises significant concern about how the use of automated systems will apply where the sanctions provisions involve some sort of evaluative judgement, for example those relating to money management and community work.”

These types of views and recommendations have to be put into perspective. The Welfare Expert Advisory Group 2019 report made the recommendation to remove the requirement to reapply for a benefit every 52 weeks. “MSD is expected to provide full and correct entitlements through regular reviews (at least annually)”. So I want to commend the previous Minister, Carmel Sepuloni, because we were certainly on track in terms of some of that work.

The regulatory impact statement (RIS) alone shows that the Government should not have proceeded with these changes. The RIS for this bill highlights that one of the consequences may be that MSD will have to direct more resources towards compliance and therefore away from employment initiatives. The other side of it is, with respect to our MSD staff, some of them are so busy with the administrative work that they won’t be able to apply the time needed to actually roll out some of the changes that this Government wants. So the reality is they’ll have to literally put less resources into helping beneficiaries into work. Surely that’s where the time should be spent. That’s where the priority should be.

Research also cited in the RIS highlights that sanctions may increase again. I know the other side say, “Oh, this is not about sanctions.”; this is all about sanctions.

Joseph Mooney

National Party · Southland

This is nothing to do with sanctions.

Willie Jackson

Labour Party · List MP

Oh, here we go again! I’m going to have to have a cup of tea with Mr Mooney. Madam Speaker, me and Mr Mooney, we’re going to have to go and have a cup of coffee, because clearly he does not understand—

Barbara Kuriger

Deputy Speaker

Lunch time is coming. That sounds like an invitation.

Willie Jackson

Labour Party · List MP

Lunch time is coming! Yeah—he can buy me lunch, Madam Speaker. He can buy me lunch, because, you know—

Barbara Kuriger

Deputy Speaker

Now we’ll go back to the bill.

Willie Jackson

Labour Party · List MP

Going back to the bill. But, as I said, research cited in the RIS highlights that sanctions—again, and I keep saying it—may increase mental and physical health problems, including substance abuse and poverty. The RIS highlights that previous work on reapplication showed that cancellations of the benefit as part of the reapplication process often led to a new application, suggesting procedural denials rather than ineligibility. The RIS also highlighted that focusing on those close to a return to work, via case management, was almost certainly to the detriment of long-term beneficiaries.

I think damning job seekers and their partners with needless bureaucracy that will be managed by a faceless artificial intelligence (AI) programme, as if their disability has magically healed since you last asked them, is not the track or the way that they should go.

Apparently, Elon Musk, a great supporter of the National Party, is concerned about AI, but apparently MSD and this Government are not, despite concerns from the Privacy Commissioner, who has really come out on this. The Office of the Privacy Commissioner has requested the inclusion—and Mr Mooney will know that—of the following comment: “The Privacy Commissioner was not consulted during the policy development and non-financial section initiatives were not traversed as required by the Cabinet manual.” Automated decision-making can provide significant efficiencies, but we also know from overseas experience that it needs to be used judicially—judiciously, I should say—with care to avoid privacy—

Joseph Mooney

National Party · Southland

Say it again!

Willie Jackson

Labour Party · List MP

Judiciously—how does that sound? Is that a bit better? Do you want me to say it in Māori for you? Ha, ha! I won’t, because none of you understand Māori. You’re a disgrace to the country in that area. You already know that. Where’s your one Māori speaker? Oh, he’s gone. Oh, no—Greg. Where’s Greg? Oh, no, he’s gone too, so never mind.

Barbara Kuriger

Deputy Speaker

No. You can’t refer to who has gone.

Willie Jackson

Labour Party · List MP

My apologies, Madam Speaker. My apologies.

Barbara Kuriger

Deputy Speaker

Thank you.

Willie Jackson

Labour Party · List MP

The Government wants AI to find ways to sanction job seekers. It’s not going to be used to help them find jobs. That’s the problem here. The use of AI and technology, that’s all fine, but how are you using that? You’re using that against people at the coalface, people who should be supported. Penalising them with sanctions that remove their agency of spending money with the money management scheme—which makes it impossible, as we’ve highlighted through this process, for beneficiaries to pay for rent, for the power bill, and for kids’ school uniforms—is a terrible way of working.

This isn’t welfare reforms. What people are seeing from this Government, it’s like a campaign against the vulnerable. It’s like a campaign against the poor for having the temerity to ask for help from their Government, who’ve purposefully crashed the economy and pushed unemployment up higher. We know this to be the truth—we know this to be the truth—purposely crashing, and then blaming Labour for everything. That’s the strategy. “Oh, it’s Labour’s fault. Everything is Labour’s fault.”, that’s what they’re saying.

But we know that the tide has turned. And with the recent attacks on women in this country from this Government to subsidise their Budget—what an embarrassment that was the other day, that you had the Minister of Finance—

Member

Where’s Barbara?

Willie Jackson

Labour Party · List MP

—admitting that they had to throw women under the bus to get the Budget out. Twelve billion dollars taken off women just so they could get a Budget out.

Barbara Kuriger

Deputy Speaker

I’m sorry to interrupt, Mr Jackson, but I’m hearing calls from the other side of the House specifically asking where a person is by their first name, and it’s not appropriate. Please stop.

Willie Jackson

Labour Party · List MP

Oh, my apologies, again, Madam Speaker.

Barbara Kuriger

Deputy Speaker

No, not you.

Willie Jackson

Labour Party · List MP

Oh, not me?

Barbara Kuriger

Deputy Speaker

Not you—no.

Willie Jackson

Labour Party · List MP

OK. I knew it was them!

Barbara Kuriger

Deputy Speaker

You’re doing fine. You’ve got one minute, 23 seconds left if you wish to take it.

Willie Jackson

Labour Party · List MP

I knew it was them! It was probably Chris Bishop’s fault, Madam Speaker.

Barbara Kuriger

Deputy Speaker

No, no. We’re not blaming—

Willie Jackson

Labour Party · List MP

No, it wasn’t Chris Bishop’s fault? OK.

Barbara Kuriger

Deputy Speaker

Carry on, otherwise you won’t have one minute, 12 seconds left.

Willie Jackson

Labour Party · List MP

Oh, thank you very much, Madam Speaker.

This bill is another shameful bill, though, from Chris Bishop, who drives the ship, and it’s another punch down in terms of beneficiaries and our community. Why did you do this, Mr Bishop? Why did you sacrifice women? Why did you throw them under the bus for your Budget? Why did you let David Seymour embarrass you? I know he’s one of your best mates from way back, but you still shouldn’t have let him embarrass you like that. I was looking at a photo of you and David in the old days. You looked a bit younger then. But why did you—

Barbara Kuriger

Deputy Speaker

About the bill.

Willie Jackson

Labour Party · List MP

About the bill? I thought I was on the bill. Anyway, all I want to say is this is yet another bill that we oppose because we have got the right strategies for our people. We are sick and tired of the punitive, harsh, cold, ruthless strategy from Chris Bishop and his National Government. Thank you, Madam Speaker.

Ricardo Menéndez March

Green Party · List MP

Thank you, Madam Speaker. It’s really clear that the Government has decided to let beneficiaries eat coal, because the savings produced by this Budget are coming from some of our most vulnerable and poorest communities out there. The Government has chosen to target low-income renters and people on the benefit to save a substantive amount of money. If we look at this bill, what we do know is that the Government will be saving over $200 million in savings over the next five years due to the 225,000 claims being reviewed. What we also know is that, despite what the Minister may say and may claim, the regulatory impact statement has warned the Minister that, actually—and I will quote; this is about improving accuracy. She talked a lot in her first reading speech about how this will help improve accuracy, because, right now, almost half of benefit entitlements are incorrectly assessed. That is, in large part, due to the stresses that the front line is facing. The Minister is quite happy to offload this to an algorithm, and the regulatory impact statement told us, “However, depending on the design of the algorithms used, it is possible for the use of [automatic decision-making] to entrench existing inequities in the welfare system as these can be built into the data collection.”

What we do know is that there is the potential for harm in this piece of legislation. The Government, as usual, didn’t allow for adequate consultation to happen, because they’re so arrogant that they think that they can just ram this through, scared of facing up to the communities that this could be negatively affecting. I challenge the Minister to release the information to guarantee to this House and for us to have an adequate, robust debate at the committee of the whole House on the algorithm that the Ministry of Social Development will be using to assess and evaluate the benefit entitlements of some of our most vulnerable, most at risk of homelessness, most at risk of hardship, and most at risk of violence communities impacted by this bill.

I challenge the Minister to release the RIS—the regulatory impact statement, which is, basically, the only document that we’ve been given to see the analysis of the Ministry of Social Development in relation to this bill—unredacted. They’ve covered up a bunch of sections of the regulatory impact statement, which means that they’re preventing adequate scrutiny in relation to the legislation. They should give us the whole document, completely unredacted, so that they can be held to account for the decisions that they’re making, because it is the most vulnerable people who will be subjected to these 52-week reviews.

I know that the member before me, the Hon Willie Jackson, called these “benefit sanctions”. They are benefit sanctions by another name because it’s another tool for the Ministry of Social Development to deprive people of income support. If people do not comply with these reviews adequately, they will be stripped of their income support. That’s a benefit sanction by another name. It’s another tool for the Minister to meet her target of 50,000 less people on the benefit. It’s not about getting 50,000 people into work and out of poverty; it’s 50,000 people who are not receiving income support. This bill will help her meet her target of punching down on those who need support.

I think the Minister was afraid, once again, of being told by people on the benefit that their experiences with Work and Income have not been positive. In fact, not just under this Government but throughout decades, we have had the Welfare Expert Advisory Group tell us about the many challenges in relation to the culture at Work and Income and the challenges that people face. Under this Government, we have seen reports of an increase in decline of hardship grants. We have seen reports of an increase in declines in emergency housing grants, and now we have a bill, under urgency, that does not guarantee a material benefit for our communities doing it tough but, instead, offloads work from the front lines on to an algorithm without a guarantee of having positive impacts on our communities. This is all part of a plan to offload and under resource the front line at the Work and Income offices and pass things either to the phone line, to MyMSD, or to a faceless algorithm at a time when people are reporting they’re waiting, for example, hours to get to someone on the phone at MSD or waiting days—sometimes a week—to get a face-to-face appointment.

The Minister also hasn’t outlined what the so-called potential and safeguard mechanisms are for someone to challenge the findings of the algorithm and the automated decision-making in the analysis given to us. For example, there are supposed to be options that someone who’s receiving income support can state that the information presented to them by the automated decision-making systems is incorrect, and then they say, “Well, all we have is that a staff member processes the review and resets the review date or will stop the benefit if the client is ineligible.” It doesn’t talk about exactly how that will be communicated to them—for example, there’s no guarantees about the timelines where a staff member will actually get back to the person on the benefit. But what it will do is increase the stress that someone will be facing, because, for example, if the automatic decision-making system tells someone, “Hey, I have found that your benefit entitlements have been incorrectly assessed and you risk losing your entirety of your benefit.”, that person will now be wondering, “Am I about to become homeless?” That is the reality that people face. In the regulatory impact statement, due to a lack of a select committee process, we haven’t been given enough information about exactly how a staff member will process the review and reset the review date.

I also think the Minister was factually incorrect when she said that these automatic decision-making, 52-week reviews are triggered as a result of changes in circumstances. They happen automatically, right? So, again, the way in which people will be targeted will be hard for people to actually get certainty and understanding of when that will be happening and the impact that it will have. I think, as the regulatory impact statement found, let’s name the groups that, once again, the Government has decided to disproportionately target once more. It’s not those CEOs doing it really well and hoarding all the wealth; it’s Māori. We’ve had in the regulatory impact statement that Māori could be disproportionately negatively impacted, particularly by changes in their entitlements to benefit, and Pacific people and older people, as well as disabled people.

I think that this speaks to a Government that is quite happy, as part of their savings, to target some of the communities that are most disproportionately impacted by poverty, not because of their own decisions or their own circumstances but because of Government decisions throughout the decades.

Joseph Mooney

National Party · Southland

This is a ramble with no relevance to the bill.

Ricardo Menéndez March

Green Party · List MP

Once again, I find it pretty outrageous that Joseph Mooney, the chair of the committee that we could have evaluated this bill under, has decided to turn this whole debate into a laughing matter and simply just gives constant heckles when I think he should front up to the harms that this bill can cause. If he’s so confident that this bill doesn’t have the capacity to cause harm, then tell us. Tell us in your contribution.

Anyway, through the Speaker, what I do want to emphasise is that the Green Party, obviously, does not support this bill and we do have a completely different vision for an income support system that treats people with respect and dignity. In fact, having an income guarantee, instead of, for example, what we have right now, would take away the need for automatic decision-making for the purposes of assessing these many automated decision-making systems. It would actually probably save MSD far more money and time than having to do what the Government is doing right now. We have a fully costed plan to address this, and unlike punching down on those most vulnerable, as we have seen in the analysis presented to us in this bill, we’ll make the wealthy few pay anyway.

Joseph Mooney

National Party · Southland

What a complete load of nonsense, Ricardo.

Ricardo Menéndez March

Green Party · List MP

I just heard that this is a bunch of nonsense. What I do think is nonsense, what I do think is a lot of BS, despite the part where Nicola Willis says this is a “no BS Budget”, is having this kind of legislation being rushed through urgency. There was no reason to have this under urgency. There was no rush for this. There’s no rush for this bill. All the rush we have here is because the Government had to scramble to save money now, because they realised they can’t afford the tax cuts for the wealthy. There was no reason to have this under urgency. There’s nothing in this bill, or in the analysis that told us that the Government was under some form of time pressure to make sure we can have an algorithm to review people’s benefit entitlements—there’s no urgency for this. But the Government chose to push it through under urgency none the less, to target beneficiaries, to create savings for the initiatives that will benefit the fossil fuel industry, the mining CEOs, the wealthy landlords doing it well, and the people that they talk to at the Koru Lounge, instead of, for example, the Salvation Army officers who have come out and—rightfully so—criticised the extension of automatic decision-making.

We don’t support the disgrace of a bill, and we call on the Government to actually allow for a select committee process so that people that they’re scared off can adequately contribute to this debate.

Laura McClure

ACT Party · List MP

I’m more than happy to take this call and bring some common sense back to the House. It is not unreasonable to expect, if you’re receiving a benefit of some sort, to have a review once a year—a review. And if your information is all the same and it’s completely correct, nothing changes. How is that unreasonable? On this side of the House, we believe in common sense. We believe in treating taxpayers’ money with respect. So I commend this bill to the House.

TANYA UNKOVICH

NZ First

Thank you, Madam Speaker. I rise on behalf of New Zealand First to support the second reading of the Social Security (Mandatory Reviews) Amendment Bill. There’s been a lot of talk about the automated decision-making (ADM) system during these debates. I’m old enough to remember the days when we worked out the payroll by hand. We got a document from the IRD and we manually had to look line by line to see how much PAYE went out for every single employee. But here’s the thing: times have changed and everything is moving forward. Everything is getting more automated. It is something that we need to do. We cannot stay stagnant and not move ahead with the times.

This is one way we can do things more efficiently, and here’s the positive thing about having the ADM used: when more of that is used, then that will free up some of the time so that a human can speak to a human when they need one-on-one support. So there is a positive in using this.

New Zealand First and our coalition partners are all about efficiency—not wasting time and money, and taking care of the people, not giving speeches that are just a sound bite but giving facts. On that note, I commend this bill to the House.

Barbara Kuriger

Deputy Speaker

Just before I call the next member, I understand that Te Pāti Māori has handed their call to the Greens. So can I clarify: is this going to be a 10-minute speech from the Greens? [Interruption] OK. Thank you.

Kahurangi Carter

Green Party · List MP

Thank you, Madam Speaker. Tēnā koutou e te Whare. I rise on behalf of the Green Party in strong opposition to the Social Security (Mandatory Reviews) Amendment Bill. This is yet another example of the Government using bureaucracy as a blunt instrument against those already doing it tough—another example of a Government more interested in policing poverty than solving it. It is a bill that will deepen the stress and surveillance of our welfare system, a system that should be rooted in care, dignity, and trust. I’m proud to live in a country that supports people in need, and I am ashamed to know that this Government is making decisions on behalf of our country that are cruel, greedy, and push more people into hardship.

This bill mandates that every person receiving the supported living payment, disability allowance, and other supports must go through a mandatory review every 52 weeks. It means that every year, tens of thousands of people, including disabled people, older New Zealanders, and our most vulnerable whānau will be dragged through a process that’s invasive, stressful, and unnecessary, punishing poor people for being poor. And not only that, the bill enables automated decision-making kitted to conduct these reviews. No guarantee of human oversight, no space for context, for compassion, or for complexity; just a machine deciding whether or not a person gets to keep their basic means of survival.

What this bill does not do is improve outcomes for the people it targets. It will not reduce poverty, it will not support whānau, and it will not create a more just or compassionate welfare system. Instead, it adds another layer of stress for people already battling to make ends meet. It creates more work for front-line case managers, not less, and for disabled people—many who rely on the supported living payment and disability allowance—it sends a cruel message that no matter how long-term or permanent their condition is, it must be continually proven that they are still disabled.

This must be taken in context of the broader barriers that disabled people face. It is dehumanising, it is unnecessary, and it is wrong. And it is happening at the exact same time that this Government is making brutal cuts to the incomes and supports that whānau rely on. The Budget’s Child Poverty Report 2025, released just days ago, confirmed what we already feared. This Government’s policies are child poverty and increasing the number of children living in material hardship. Further, it stated that this Budget will have no meaningful impact on child poverty rates and does nothing to meet our child poverty reduction targets—nothing. The decision to means test the Best Start payment will remove vital support from 62,000 parents, 55,000 of whom will now get nothing in their baby’s first year.

I want to talk about the use of urgency for these bills that are being passed. Usually, the second reading comes after the select committee process, a process that gives experts and people affected by the upcoming bill a chance to have their say and tell us, the decision makers, about how the bill will affect their lives, their children’s lives, and their whānau’s lives. It’s a chance for them to scrutinise this bill. It’s democratic and it’s fair, but this Government has decided to lock out the public and subject experts from scrutinising the bill.

The regulatory impact statement says that no public consultation was sought, and because no one could submit on the select committee process, my usual process of being able to take quotes and uplift the voices of the communities that this bill most affects, like disabled people, like Māori, like Pacific people, like our kaumātua, and like our young people, means that I have gathered some of these quotes myself.

The Child Poverty Action Group (CPAG) says—and I quote—“The Government has put up a policy package knowing it will increase child poverty in Aotearoa. CPAG estimates the Budget will lock around an additional 20,000 children in poverty over the next three years.” I take a quote from Jacqui Southey, an advocacy director at Save the Children: “Recessions are a time when more resources should be extended to people who are struggling the most, not less.” She is worried that child poverty is going to be increasing because of the decisions that this Government is making.

A quote here from Bonnie Robinson from the Salvation Army, in their Social Policy and Parliamentary Unit: “Children in low-income households should not be the ones paying the highest price to meet Government goals of bringing the books back into order.” Bonnie is calling for immediate changes to the welfare system to lift children out of hardship. This bill and the previous bill are not what she meant by immediate changes.

As Alicia Sudden from the New Zealand Council of Christian Social Services put it: “this Budget will leave thousands of children in poverty.” This bill continues this trend and it will add new barriers to those already on the margins. It will deepen the stresses for families navigating disability, low incomes, and the rising cost of living. It is not care; this is about control and policing people in poverty.

I want to take the time to really appeal to the love that many of the members in this House have for Jesus—Jesus, who called his followers to care for the poor, not to burden them further. Jesus preferred the company of the poor, the marginalised, and the disabled. Jesus showed us that greed has no place in leadership. I ask the members on the other side: what would Jesus do? Jesus would choose compassion over greed and he would choose justice over profits for the greedy few.

The Green Party believes in a welfare system built on trust, not suspicion. That is the country that I am proud to live in, one that cares for our disabled people, that cares for our elderly, that cares for our children, and a system that lifts people up, not grinds them down. A system that recognises that people who need support the most should not have to fight the hardest to get it or to keep it.

Poverty is a political choice. Instead of bringing it to an end, the coalition has prioritised lining the pockets of the wealthy. We want a system where income support is simple, fair, and sufficient, where people aren’t forced to justify their existence to a faceless algorithm. The algorithm doesn’t have compassion. The algorithm can’t understand the complexities that are faced by people who need our support, where compassion, not compliance, is a guiding principle.

We will be voting against this bill, and we urge others in the House to do the same. I implore the other side of the House to reach into your compassion for our children, and I ask you: what would Jesus do?

Joseph Mooney

National Party · Southland

Thank you, Madam Speaker. This Government is going to bring in structured literacy, which will, hopefully, help people, like the Opposition, actually get some reading comprehension and actually read the bills and understand what they’re about, because they don’t.

This bill makes sure that the Ministry of Social Development will check that beneficiaries are getting the right rate of assistance once a year. It doesn’t change the rules around eligibility. These Luddites over here don’t understand what this automated decision-making will be. This will just trigger a review, process a review, and suspend or cancel a client’s benefit if they don’t respond within a specified time period. It keeps the human in the system to make sure people get the right amount that they need.

This is not a laughing matter; this is a serious matter, but we are laughing at the Opposition because they don’t even read policy. I commend this bill to the House.

Rachel Brooking

Labour Party · Dunedin

Oh, what a curious speech that I’m going to respond to a little bit. Some interesting words in there like “Luddite” and an accusation that the Opposition doesn’t read the bills or the policy.

Well, the member will be very happy to know that I spent considerable time reading this bill. I’ve even—[Interruption]—been looking at the—

Barbara Kuriger

Deputy Speaker

OK, we’ll just listen to one speaker at the moment. Interjections are fine but not arguments across the House from both sides.

Rachel Brooking

Labour Party · Dunedin

Thank you, Madam Speaker. I’ve spent some time this morning looking at the regulatory impact statement (RIS), and what a surprise. In an urgency debate from this Government, there is actually a RIS, so well done on that, and even a departmental disclosure document. And I will be referring to those.

Now, the member who just resumed his seat said this is just about reviews, and we’ve heard that from a number of members. If it is simply about reviews, why is it here in Budget urgency? Might that be because the RIS, on page 12, says that the cost of the IT for this will be $5.339 million and the fulltime-equivalent costs associated with that is $7.559 million. Is it also because in that RIS it talks about the expected $238.302 million in benefits or related expenses savings over five years? This is about money.

Now, if the Government wants to recoup money from reviews, then that is their choice. But do not come and tell the Opposition that it isn’t about money; it’s about simply doing a review. It is about money. We are in a Budget debate. It is that simple.

Now, a word that I’ve been using a little bit is “dystopian”, because this is dystopian and it’s not what I was expecting to be talking about on a Saturday morning. So what we know and what we’ve heard from the other speakers is that there is automated decision-making (ADM). I want to acknowledge that in the Social Security Act, and the change that appears to be made in 2023, there is already an ability for some automated decision-making. So that already exists. But what we have in this bill at clause 5 is, in addition to that—and I want Mr Mooney, the member for Southland, to note the use of the word “sanctions”, because this is a new word introduced into section 363A(3), Mr Mooney.

I mention that because we’ve heard from Government benches that this has nothing to do about sanctions. But here is the word in the bill that perhaps the Government members might want to read. Perhaps the Government members would have taken more time to consider this had they been through a select committee process.

So there we go. We have section 363A, which already existed, but the addition is—so there was already the specified provisions about sharing child support payment information. But then there is a new paragraph (b) about sanctions; and then there is also a paragraph (c), which is very pertinent to this piece of legislation, obviously, because it’s about mandatory reviews by the Ministry of Social Development (MSD) of specified benefits; there’s a new paragraph (d) as well. So it is interesting that there are those changes, and I think the members opposite should reflect on those.

We have this expansion of what the automated decision-making can do. And, of course, we on this side are worried, genuine concerns about scope creep of automated decision-making. So it doesn’t appear that there are any additional safeguards about that automated decision-making in this bill, despite the expansion of the use of that automated decision-making. That is a very important point.

Now, we can go to the RIS, which is, you know, good that we have a RIS. So, on page 3, there is mention of an assumption around the social licence. There is an assumption that MSD has a social licence for machines to make decisions. It is assumed that the widespread use of ADM outside of MSD may mean the public would expect and even support its use within the welfare system. However, the public sentiment on this matter has not been explicitly tested.

And how would you explicitly test that? Well, you’d have a select committee process. But we don’t have that. So we’ve heard from Government members, “Well, why don’t you refer to the ADM standard?” And if you look further in the—well, if you look to the original provision in the Social Security Act, section 363A, it does require that there be a standard and that this standard needs to be gazetted. That’s in subpart 5A of that piece of legislation. And we can see that in the Appendix 1 of the RIS.

But this goes against some of the things we’ve heard from speeches already. So the standard says that a decision may be discretionary or non-discretionary. Now, we heard, in her first reading speech, the Minister for Social Development and Employment saying that these decisions would only be made about non-discretionary decisions. But where is the safeguard about that? I cannot see it in the bill, and then when I look to this piece of secondary legislation that Government members are relying on, it does not provide the safeguards that I would expect. So this document has a lot of internal sort of requirements about it and says that there must be as much transparency as possible.

And it says under “Compliance and assurance”, “Compliance with this standard must be verified for all new uses … through the existing”—the existing—“Security, Privacy, Human Rights and Ethics Certification and Accreditation process.” I don’t know how they will change for this new use and if there is anything that will require this standard, that is very generalised, to be changed for the specific changes that we have now in front of us, which are about these annual reviews—annual reviews that this Government is anticipating to make a lot of money from.

Carl Bates

National Party · Whanganui

Make money, or just make sure people only get what they should get.

Rachel Brooking

Labour Party · Dunedin

So it is very important that when someone is going to have money cancelled—oh, someone’s saying it’s money—

Carl Bates

National Party · Whanganui

Just making sure they get what they should get.

Rachel Brooking

Labour Party · Dunedin

They’re making sure that it’s money that they should get. Well, if that member is so sure about that, then the Government members will want to talk about these algorithms, because we also have seen in the documents in front of us an acknowledgment that the algorithms that go into the sort of machine—these are automated decision-making—we know that they can have a bias, and that bias is the problem that we are concerned about, that there is a bias that may lead to the wrong decision being made. If the wrong decision is made, then somebody will lose their money, and it takes a long time to go through the review processes and get that money back.

This legislation is very complicated. I am particularly lucky to have in my electorate office wonderful staff, who do understand a lot about the supported living payment, the emergency benefit, the accommodation supplement, disability allowances, and New Zealand Superannuation with a non-qualified partner—all the things that this bill applies to. But it’s very complicated and a lot of people need help with it. So if a computer which has a biased algorithm decides to cancel their payment, that could lead to very real, terrible consequences, and this Government and those members who have been heckling throughout this should take some note on that and be prepared for a lot of questions on these issues in the committee stage.

But it should not be passed today. This needs proper consideration by a select committee about what those safeguards should be on this new technology. So I appeal to the Government members and the Leader of the House to do just that.

Paulo Garcia

National Party · New Lynn

The bill establishes a time-bound, structured approach to updating beneficiaries’ circumstances every 52 weeks. This ensures that the beneficiaries receive the support they genuinely need. I commend this bill to the House.

Barbara Kuriger

Deputy Speaker

This is a split call.

Ingrid Leary

Labour Party · Taieri

Thank you, Madam Speaker. I would just like to talk through what I think is a really problematic piece of lawmaking, for a number of reasons. I’ve caught the tail end of the contribution from my colleague the Hon Rachel Brooking and she has talked about some of the process issues and the impacts of the automation.

In fact, the whole bill is—and credit to the officials for working, obviously, under great speed, but it is like the opposite of a treasure hunt, trying to find the proper parts of the legislation in a clear way that lead us to understand what’s happening, and I have drawn the conclusion, having gone through it very carefully in the last few hours, that the accommodation supplement conversation and debate we had yesterday is a red herring. It’s a distraction because the real issue at stake here is that the Social Security (Mandatory Reviews) Amendment Bill is far broader, and the supplementary analysis report that was looked at yesterday does not really relate to this. In fact, there is only a tiny footnote that says that the changes to the boarding allowances are dealt with in that supplementary paper.

So I’d like this House to note that the actual regulatory impact statement (RIS) which responds to this legislation has not even really been interrogated, and we have a whole stack of questions. I’ll give you some examples of them. When it comes to the Ministry of Social Development (MSD), for example, the RIS has said that MSD is already using artificial intelligence for discretionary payments, but it also says, on page 3, that “it is possible for the use of ADM to entrench existing inequities in the welfare system as these can be built into the collection data.”

Then we have the fact that there are two options considered by MSD. The third one is redacted, and we don’t even see why. It’s under legal privilege, on page 8, using section 9(2)(h) of the Official Information Act, and then it just says, “For this reason, we have discounted this option.” Well, we’d really like to know what that’s about, because, presumably, if it’s legal advice, it’s about the rights and entitlements of people, and it probably has New Zealand Bill of Rights Act (BORA) implications. So I’m wondering if the other option that they did land on is right on the cusp, and whether there has been a BORA report done and what they’ve got to say about it.

Also, it just seems crazy that 332,000 reviews would be done each year, and the RIS says very openly, on page 12, that would cost—it adds up to about $13 million, and there’s no way they could make this happen with the current staff and that’s why they need the technology. Well, did they consider maybe keeping the current staff or employing some more people into the Public Service for this stupid rule, because it’s awfully inefficient. Instead, they are looking at bringing in this very dodgy technology which is dehumanising and which doesn’t have appeal rights. It’s only going to be reviewed—according to the RIS, on page 14—every three years, so in the first few months, at least, one would expect there would be some review of the technology. It could be going completely wrong, and they do not need to review it till then.

We see limitations and constraints on analysis, and we can go into that in the committee stage. They, basically, admit they “have not explored other possible wider policy changes or improvements due to operational and funding constraints.”

Then we have all these population groups under these much broader benefits—more than just the accommodation supplement—which are impacted. So we’ve got child disability allowance, orphan’s benefit, unsupported child’s benefit, youth payment, young parent payment, childcare assistance, New Zealand Superannuation, veteran’s pension, and childcare assistance programme payments. Now, that is finally explicit in new section 310C(6) in clause 4, but before that it is an absolute rabbit warren of trying to go through the legislation to determine whether things are being made by regulation or whether they’re actually being made in primary legislation—and we’ll be asking about that.

Then, when we look at the populations that have been impacted, very clearly around Māori, it says, on page 6, that it “may have a greater impact on Māori given they are overrepresented in the benefit population.” It has real issues about dealing with the Treaty clauses, which we’ll interrogate. It talks about Pacific peoples and says that the changes may have disproportionate impact. It talks about older people, and it says that “It may create confusion for these clients”. Disabled people: mandatory reviews will now include reviewing approximately 100,000 supported living payments and 125,000 people previously—so lots to interrogate.

Vanessa Weenink

National Party · Banks Peninsula

I commend the bill to the House.

Helen White

Labour Party · Mt Albert

Thank you, Madam Speaker. I don’t know what was going on out there, but I would like to pick up on the comments of my colleague Ingrid Leary, who’s just spoken.

If you have a look at the regulatory impact statement (RIS) in this bill, there are large parts blanked out. I haven’t seen before a problem definition with a part of the problem definition blanked out. So it’s actually very unsettling as to what the problem is that has been put to the people who have prepared this RIS. I can’t tell.

I can tell what part of the problem is and so I’d like to focus on the bits that I can tell you about. I can look at the problem definition as far as it relates to the boarder payments, but the Opposition will be asking questions and interrogating on the bits of this document that are blanked out. Particularly because there is a use in this legislation of automated decision-making, and some of the blanked-out pieces are in parts where that’s an issue. So, for example, there is a part on page 4 of the regulatory impact statement which talks about “What is the policy problem or opportunity?” We hear about the boarders’ initiative and getting money off people and finding out whether they have boarders. But then in paragraph 6, we have nothing. We have a blank out. And then we talk about the use of automated decision-making as necessary to collect information and review people’s specific benefits to implement the boarders’ contribution. So we’re allowed to know that; we’re just not allowed to know what else is in there.

I’d like to focus on the part I am concerned about, because I know about it at this point. This is a piece of legislation that is not as Paulo Garcia suggested it was. It is not for those purposes. What we know about the purpose is it’s to gather information, to take note of it, and to stop people being able to claim a benefit to a certain extent if they have a boarder.

So I go back to the example I used in the last bill where a woman, a solo mother in the 1990s, was able to claim for that boarder. Now that solo mother—who may be working, and I want to concentrate on someone who’s working because they’re one of the groups captured—if that person is working, if they’re a caregiver and they’re working now but their pay is so low that it is not possible for them to make ends meet, a decision we’ve taken is to allow people to take in a boarder. That’s being changed today. As a result, the Government wants to implement this and they’re bringing in this legislation to do that, to implement it. So they are bringing in a very wide net of people, including that woman I’m talking about. She wouldn’t have had to go in to see the Ministry of Social Development before. She now will have to go in every 12 months and she will have to disclose whether she has a boarder. And if she does, next year she will lose $98, if she’s got one boarder, from her payments every week; it will make that much of a difference to her. That’s what this is to do.

It was such a big amount of people that were covered, and the amount of people is—I was looking at the figures before. I’ll give them in the next speech, but I think it’s 87,000 people who are on accommodation supplements—just low-paid New Zealanders who are just getting that are 87,000 people. They will now have to do that. So because it was so hard, automated decision-making was seen as the most efficient tool. Now, that means it still costs money. It’s about $6 million to bring that in. It’s an expansion of a scheme that was supposed to be really just connected with parental child support, because there needed to be a connection between information. So that is what is going on.

What the RIS says about that—the regulatory impact statement—is that people are really suspicious of automated systems. There is a good reason for that. We’re going through a time of change, and it was interesting that the woman who’s against vaccines in the New Zealand First Party told us we have to move with the times and we shouldn’t be suspicious of these things. Actually, I agree; we shouldn’t be totally suspicious of these things. Where necessary, we should look at automation. But this automation is something where we need to bring the public with us. If we’d wanted to bring the public with us, we would have put this to a select committee so that it could be discussed, so people could bring their fears and concerns, and we have not heard from those people today. We don’t know. In a normal second reading speech, I would be giving that speech with the submissions of the people who came to the select committee. I can’t offer the views of many of those people that would come, including the ones who would have been concerned about an automated decision-making system.

Those processes that we have in this House are so valuable, because we’re one of the few democracies where people can actually touch and affect us in the way that is most appropriate. We have other democracies struggling because they’re so giant that people can never get near the actual impact in the Parliament. It doesn’t make any difference. But here, one of the things I’m absolutely proudest of is that we have select committees where if someone—if an 11-year-old or a solo mother or the people who are helping on the front line have a problem with the legislation, they come and they tell us. I have been there when we have listened to them and we’ve gone, “Yeah, fair enough point. You’ve got it right.” And it’s meant that people haven’t been cycling into conspiracy theories in the same way because they’re not disconnected. It’s really, really important.

So when we bring in things like automated decision-making and when the RIS itself talks about people not necessarily—“we are assuming social licence” is what it says. There’s an assumption of social licence. There has been no public consultation. That’s an alarm bell we should be listening to. We should be listening to the people who are impacted by this and who are worried about it, because we are expanding the net. We are saying that there are a whole lot more people we’re going to gather that information from, and then we’re going to automate our decisions in response—that we’re doing it because it saves money, because it’s more efficient. It’s easy to tell ourselves a fairytale about it being good for them. It’s really important we put that up to the test of what people think, of what we actually say our rationalisation is. It doesn’t mean we shouldn’t do these things, but we have to bring people with us or we get terribly reactive results.

So my suggestion is that this actually go before a select committee. That’s my suggestion. My suggestion is this is not the kind of thing that you put through urgency.

Stuart Smith

This is the second reading.

Helen White

Labour Party · Mt Albert

I want to finally talk—it is the second reading. I want to talk about some of the groups who would have made submissions at the select committee. We would have heard from people who are part of the elderly. The elderly in this situation: 125,000 people are on not only on the super but on disability or on accommodation supplements. They would have been able to tell us what they thought today, and we would’ve been able to reflect that back, but that’s been cut from our capacity. We would have heard from the disabled. We would have heard from a group of the 100,000 people who are on supported living. They are not people you need to review because they’re going to suddenly change their circumstances. They’re actually in a pretty stable situation. We’ve recognised they need support and it’s being given to them, but they’re going to be in there. We would have heard from them, but we don’t get to.

One of the groups that I have tried to emphasise in this debate is the low paid. We would have heard from the low paid, the ones who are paying taxes, who are on the minimum wages, who did the jobs that we needed done when we were locked down, when we were facing a pandemic. They did pretty scary jobs sometimes. Those are the people who we would have heard from because they are the people on accommodation supplements. They are the people who need that support because we have failed to provide high-paying work. That’s actually the reality.

Carl Bates

National Party · Whanganui

I commend the bill to the House.

Party vote

A party vote was called for on the question, That the Social Security (Mandatory Reviews) Amendment Bill be now read a second time.

Ayes 68

Noes 55

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Motion agreed to.

Bill read a second time.

Barbara Kuriger

Deputy Speaker

This bill is set down for committee stage immediately. As the time has come for me to leave the Chair, I declare that when House sitting resumes, the House will go into committee for consideration of the Social Security (Mandatory Reviews) Amendment Bill. The sitting is suspended until 2 p.m.

Sitting suspended from 1.03 p.m. to 2 p.m.

In Committee

Part 1 Amendments to principal Act

Teanau Tuiono

Chairperson

Members, the House is in committee on the Social Security (Mandatory Reviews) Amendment Bill, but before I take a call, I just want to plant a seed with members. We had a number of points of order about grouping and selection of amendments during consideration of the last bill, and we have a similar number of amendments for the current bill, so I just want to clarify the approach we are going to take for the committee.

Usually, all amendments that are in order are put to the committee to be voted on. The Standing Orders give the Chairperson the ability to put a single question to the committee on multiple related amendments—known as “grouping”—or to select the limited number of amendments from a group of amendments that are in the same substance to test the willingness of the committee to make amendments of that nature—known as “selecting”.

There is a high bar for use of either approach. Doing so deprives the committee of the opportunity to make a specific decision in respect of separate, in-order amendments. To meet this high bar, the Chairperson considers both the total number of related amendments and the extent to which they are related or the same in substance. The procedures were developed in the context of significantly large volumes of amendments. There is no magic number after which grouping or selecting is used, but we are some ways away from the high bar being met.

The intent of the grouping and selecting procedures was, in part, to incentivise the development of coherent alternative proposals by members and to support the effective consideration of bills in committee. The bar for grouping and selecting amendments on bills introduced and being passed through all stages under urgency is higher, given that urgency is generally less conducive to these aims.

I am not ruling that no amendments will be grouped or selected today, but I wish to remind the committee that, like relevance, the Chairperson is the sole judge of grouping or selecting amendments.

We come first to the debate on Part 1.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

Thank you, Mr Chair. I thought it would be useful for the committee just to give a bit of an outline in terms of this particular bill and just remind the committee and those who are watching this debate that many New Zealanders would think that it is already the norm that there is a review on an annual basis of entitlements. It’s not.

One of the challenges that those who receive support often experience—and it’s an issue that’s been raised across the House—is the fact that entitlements might not be paid correctly. They might be underpaid, or they might be overpaid. If they’re underpaid, that’s clearly a problem that this bill will address. Equally, if they’re overpaid, that creates a problem as well, because it then generates a debt for the beneficiary, which leads to considerable stress. If that overpayment is a mistake by the Ministry of Social Development, it is written off, but if it is a circumstance that hasn’t been declared and should have been declared by the person on benefit, then it creates a debt.

This mandatory review process just, basically, makes sure that there’s an annual process where it is support that doesn’t expire—the person receiving the benefit is able to check in. It’s not an onerous process. It can be done online, it can be over the phone, it can be done in person, the person receiving the benefit can fill in a form and exchange it by post—you name it. So it’s very straightforward, but we want to ensure that people are being paid accurately. They have the opportunity to check in once a year, and it’s pretty straightforward.

This also enables the boarders’ contribution legislation that we passed earlier. So, again, we have accurate circumstances and accurate entitlement to support.

Teanau Tuiono

Chairperson

Just a reminder that this is Part 1: this is the debate on clauses 4 and 5, “Amendments to principal Act”. The question is that Part 1 stand part.

Benjamin Doyle

Green Party · List MP

Thank you, Mr Chair. I’m pleased to be speaking to this bill, in Part 1—particularly I’m looking at clause 4. It’s really lovely that we did actually get a regulatory impact statement (RIS), because this bill is being taken through all stages under urgency, which means we don’t get the regular opportunity to review this in select committee where we would be able to air out and question elements of this policy and listen to members of our communities who have concerns and feedback, which is often actually very productive. So I’m going to attempt, as best as possible in the incredibly rushed process that this urgency is demanding, to reflect on and bring those voices here for the Minister for Social Development and Employment to consider.

I want to speak specifically to the introduction of annual reviews over a 52-week period, which is mandatory. We see in the regulatory impact statement, on page 6 specifically, that point 15 raises concerns around how Māori will be disproportionately affected. This is, of course, because Māori are disproportionately represented in the welfare system, and we know that there are also intersectional and concurrent benefit needs in this community which see Māori people needing to gain assistance through multiple avenues.

So if we are introducing a 52-week review period, I’m concerned that Māori will be having multiple benefits reviewed simultaneously, which will increase distress, it will increase unnecessary administrative demands, and it will put extra pressure on communities who are seeking multiple forms of assistance. This seems like an avoidable issue, so I wonder and would like to understand how that will be mitigated. What can the Minister assure will be done to mitigate this kind of compounding pressure that will contribute to mental distress?

We see in the RIS that there is mention of the fact that these compounding and intersectional needs will also affect Pasifika peoples. So I want to understand if there has been any advice also to the Minister from relevant ministries or Ministers—say, for example, Whānau Ora or the Ministry for Pacific Peoples. Where are we seeing those considerations taken into account in this bill? We know that Māori and Pasifika people will be impacted. In fact, we see that the Treaty of Waitangi implications are of concern here.

So I want to just understand from the Minister, and I’ll repeat my two main points: how will the Minister mitigate the potential impact on Māori who are seeking multiple-benefit supports—as is their right—which may impact negatively on their mental wellbeing? The second question, to repeat, was: what advice has the Minister received from relevant ministries in regards to those communities and the intersectional pressures upon them? Thank you very much.

Ingrid Leary

Labour Party · Taieri

Thank you, Mr Chair. This is a really complicated bill and, as has been said, we are in urgency and we have not had a select committee stage.

Carl Bates

National Party · Whanganui

It’s pretty simple, actually.

Ingrid Leary

Labour Party · Taieri

Members opposite may laugh, but, actually, when we are looking at how to get around the amendments it involves going through multiple pieces of earlier legislation and also multiple subsections within this bill, as well, and into regulations. Now, these are all things that we will be asking a lot of questions about, but I would like, first, to invite the committee to consider a framework where we can just look sort of globally at what’s happened here and then come down as myself and my colleagues will go step by step through the legislation.

What we have seen—for those who are watching at home and picking up on this—is really quite sinister, in my view, because things have been done back to front. Yesterday, we were told there was going to be a bill that would change some accommodation allowances because of what was called “double-dipping”, even though it was both a person with a tenancy or another boarder in their house claiming, so it wasn’t anyone individually double-dipping. But we were told, then, that this bill today was going to be the enabling legislation for that, and all the notes and things, including even the regulatory impact statement (RIS), purport to be really looking at just that enabling power of the bill that went through yesterday.

But, as we have gone through this bill in great detail today, what we’ve seen is something far more sinister, which is amendments to the Social Security Act which, crucially, not only require mandated 52-week reviews on a series of benefits that have not been specified—in fact, only the exemptions are specified, and it’s very, very difficult to ascertain what they are and whether regulatory powers apply both to the making of benefits or the changing of those benefits, which has questions—but also, crucially, in new section 310C(4), inserted by clause 4, there is a new phrase that says, “If the beneficiary fails to comply with a requirement under this section, MSD must suspend,” and then it goes on to say their benefit.

It’s really difficult to find what day applies because that relates to subsection (1) and subsection (4) of new section 310C, which talk about the end of the day before the relevant deadline, and we will be having questions about that because we would like to know, actually, if the Minister herself can apply the legislation in a meaningful way so that she has clarity. One of the tests in jurisprudence is that law must be fair and clear, and it’s pretty difficult to find your way around this one.

We’ve heard in the first readings from the Government members—and certainly the Government’s statement—that this is a facilitator to try to make sure that there is clarity and certainty about what entitlements people are getting. But, actually, when you look at the legislation in here, it’s a very punitive bill. We’ve seen additional words—and we will interrogate this again—where it not only talks about, say, in a subsection A, that this is about ensuring people get their entitlements but, in a subsection B, making sure they don’t get their entitlements if they’re not entitled to them. Now, the fact that the Government has bothered to articulate the bill in this way, I think, shows a clear intent that this is, in our view, beneficiary bashing. There’s probably a better legal word for it.

We have not had submissions. We have had commentary over the last 24 hours, because this is all being very rushed, from the Salvation Army and also from the Law Society. I’ll just quote from the Salvation Army, which says, “The bill will make things a lot worse for those we support, it will push a lot more people into poverty. It will create a lot more barriers and difficulties for those we support to be able to access the help … they need.”, and the Law Society says it “raises significant concern about how the use of automated systems will apply where the sanctions provisions involve some form of evaluative judgement, for example those relating to money management and community work.”

So there’s two clear parts to this. As I say, we do not want to filibuster today, but I do want to point out that the RIS that relates to this was not really referenced yesterday. Yesterday, we looked at the supplementary regulatory impact statement because that pertained to the accommodation supplement. The RIS on this actually says in a footnote, and I can allude to it later, that the accommodation supplement does not apply—I think it’s on page 4—because that will come at a later stage. So we have not even had a chance to ventilate the concerns that are in the primary RIS, which are really not about the accommodation supplement at all but much more about these other benefits which are difficult to find out what they are, which have very strong punitive elements to them and also have an automated element to them which is really concerning.

So what we would like to do as we go through is ask questions, particularly when we see that there are redacted parts of the RIS as well. So, for example, I can refer the Minister to the fact that MSD actually says it already uses artificial intelligence (AI) for discretionary payments, but it does also say in the RIS, on page 3, it’s possible for the use of AI “to entrench existing inequalities in the welfare system as these can be built into the data collection.” Now, the previous speaker, Benjamin Doyle, has spoken about Māori communities, very briefly, and Pasifika, but there is a lot more to be said about that and a lot more questions. It would be good to get the specific wording from the RIS about what it says, because it’s pretty damning, and we will go into that.

I won’t take up too much time. I want to be really clear with you, Mr Chair, that as we go through, we will be offering new material. But we do want to make sure that every single bit of this bill that we hold ourselves to as parliamentarians and are accountable for, that we get to query it. We do not want to see truncated debate. So you have our word we won’t filibuster, but if we can have the opportunity, on behalf of New Zealanders, who have not had a select committee phase, to interrogate this properly, I think we can get through this afternoon in a productive way.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I’m not going to repeat things that I’ve said in my speeches earlier today, but there’s some clear misunderstanding about what this bill does and what it doesn’t do.

What it doesn’t do is touch eligibility for things like the jobseeker benefit, the sole parent support. It doesn’t require additional medical certificates around eligibility. It was very clear, and I’m really pleased, actually, to see that one of the Labour members that spoke in an earlier reading clearly understood that. Anybody who receives a benefit in supplementary assistance is required at all times to advise the Ministry of Social Development (MSD) of a change of circumstances. Not everybody does that, so this is really just a catch-all in terms of the 52 weeks, to ensure that the circumstances that MSD have on record are accurate. The example that I did give in an earlier speech was, for example, someone who’s receiving the disability allowance. As part of that review, at 52 weeks it may well come to light that they have additional needs that are not being factored into the disability allowance that they’re getting.

I’m really pleased to hear that the Opposition don’t want to filibuster, because, in many cases, there will be those who receive benefits who will get an increase of support as a result of this review. I want to make the point very clearly—given the exclusion of jobseeker, for example—that I’m not going to go into the ins and outs of different population groups. I know parties will have some fascination around that, but, as members will know, unfortunately, in areas like the jobseeker benefit, population groups are significantly, disproportionately affected and that is a matter of fact—it’s not a matter of debate.

Teanau Tuiono

Chairperson

Before I take the next call, just to help to clarify: it would be helpful for the committee if members did refer to the clauses and the sections that they’re referring to—that is incredibly helpful. It helps us to track and helps us to move through the bill in a methodical way.

Ricardo Menéndez March

Green Party · List MP

Thank you so much, Mr Chair. I wanted to start off by referencing clause 4. This is quite a long clause. There’s quite a bit to unpack here. No matter how many times the Minister says that this is a simple bill—blah, blah, blah—the fact of the matter is if she thought it was so simple, she should have allowed for it to have scrutiny. So we’re here; we could have asked those questions in the select committee period.

I want to ask about new section 310C, “Information for mandatory reviews of specified benefits”, particularly subsection (3). This is on line 35 onwards of page 3. It talks about—and I quote—“If, in the case of a mandatory review of a specified benefit for the purpose set out in section 310B(2), the beneficiary contacts MSD before the specified deadline, MSD may extend the time allowed under subsection (1) by up to 20 working days if MSD”—and this is the part that I particularly want to scrutinise—“is satisfied with the beneficiary has”—and I quote—“good and sufficient reason for not being able to provide the information, or answer the questions,”.

I do have a few questions specifically to this provision as to whether the ministry has already started developing any guidelines as to what these so-called good and sufficient reasons would be. We do see that “good and sufficient reason” is used in other parts of the legislation for other types of obligations in relation to benefit sanctions, so I wonder whether they’re just going to be copy-pasting those into this for the purpose of staff being able to interpret what “good and sufficient reason” actually means.

I also was interested to ask, if those guidelines are not developed yet for staff, what assurances the Minister will give us in terms of who the Minister will consult with to develop these guidelines, particularly because we have the language in this provision that says also “answer the question, in the specified way by the specified deadline.”

Now, in terms of being able to answer questions that could, basically, result in you losing your benefit if not done adequately, there are additional barriers that specific groups would see. I know that she, in her previous answer—I thought quite dismissively and, in fact, quite arrogantly—said we have a fascination with certain population groups. We’re not sorry for caring about some of the most disproportionately impacted groups in this bill. I know we’re interested about the impacts of this bill on disabled people, but I did want to ask specifically in this provision how she might take into account disabled people’s different needs when it comes to determining whether somebody has answered the questions in a way that is to the satisfaction of the Ministry of Social Development (MSD).

So that’s one group. The other group that I’m interested in, in terms of seeking assurance from the Minister around how this provision will work in practice, is people with English as a second language, in terms of their engagement. If the Minister and the ministry haven’t already engaged with, for example, the Ministry for Ethnic Communities, what engagement, if any, can she commit that she will have to make sure that people with English as a second language are not disadvantaged and more at risk of not being able to comply with this and meet the “good and sufficient reason” by MSD?

Specific to this provision, I am also interested—and, again, this is the kind of stuff that we could have unpacked at the select committee stage—in relation to any potential fiscal implications on the need for interpreters that are used by MSD clients in relation to MSD obligations and requirements that may be needed as a result of adding this additional requirement. So, for example, we know that, in theory, people can access an interpreter in order to engage with MSD, but that has fiscal implications, staffing implication, and resources implications. Has MSD modelled the potential additional needs of interpreters in relation to this provision; if not, why not?

So just to recap: I’m interested in whether she’s developed the guidelines; if not, who she’s going to commit to consulting. Further to that, how will she ensure that disabled people and people with English as a second language are adequately considered in this, and the fiscal and resource implications of potential increased need for interpreters as a result of this very, very specific provision found in clause 4, in new section 310C? Thank you very much.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

Let me just talk through a few of those in Part 1, clause 4. I’ll also address clause 5, because it is relevant. The Ministry of Social Development’s (MSD’s) front-line staff interact with people with disabilities on a daily basis and with those who have English as a second language. As I outlined in my initial comments, in the way in which this annual review is undertaken, there are a raft of ways to be able to do this. That’s very much designed at being very client-centric, and so it is normal business and interaction for MSD staff to be flexible in the way that they work.

In terms of good and sufficient reasons, this is a well-traversed topic, again, that MSD are well used to, and I would point the member to new section 310E. The regulations will have very clear circumstances in which that is not a requirement. Some of those, for example, are if the client’s in residential disability care, if they’re in hospital for more than 13 weeks, and if they live in, or are present in, and cannot reasonably leave an area in respect of which there is an emergency in place. Those are some of the examples that will be set out in regulations, to make it clear.

The other thing I would say in terms of operationalising this policy through the use of automated decision-making, for example—and I was very clear about the three times in which that would be used. For example, it is the automated sending-out to clients or beneficiaries that their review is due. That actually removes staff time and it makes it more efficient, so it means that the front-line staff can actually have greater interactions where it counts. As I said before, whether it’s a disability allowance or other areas of support, it may well lead to an area where a client’s been underpaid, and I would have thought the Opposition would be celebrating the fact that we will have more accurate payments and people will get what they’re entitled to.

Helen White

Labour Party · Mt Albert

Well, I will be interested in clause 5. I note no questions have been asked about clause 5 yet, and we definitely want to get there, but we’re trying to do this in a methodical way where we go through clause 4 first. So I’m not going to ask the questions I’ve got about clause 5 yet, but I would like to take another call, because it is a very serious issue. So what I’d like the Minister for Social Development and Employment to focus on is clause 4 at the moment, and answering our questions with regard to that.

Now, if I have a look at the new subpart 3A, which is being put into clause 4, and go to the first section of that, we get an indication that the benefits that are being affected are benefits designated by regulation. If I go further through clause 4, I can see the kinds of benefits that are not—that’s at new section 310C(6) on page 4. I appreciate that things change and people want to give themselves flexibility, but what I don’t know from this is what benefits are within scope. It’s not like we’ve got a principle here we can follow. So I want to know: what’s different about the benefits that are excluded from everything else and what happens with the width of what is going on here?

So there is no attempt to give us a list of benefits that are within scope at the present time. I can see some commonality in some of the benefits that are excluded. Some of them are for children. So I presume that they don’t have boarders if they’re children. But some are not in that situation. As I’ve raised before, we have got people who have been on accommodation supplements in this situation, so they’re working people in our country who would normally do what they like with their property. And they have been included in this group, from what we can see. But where is the list and why did we not try and develop a principle that applied? The concern raised by my friend Ingrid Leary is that we’re really concerned there may be some other purposes to this bill and it might be a lot wider than just simply looking at the boarding situation. So the actual number of benefits that are included in this requirement seems to be at the whim of regulations. I’d like to know more about that.

I want to link that in with my concerns I’ve got over the redactions in the regulatory impact statement. The one that really most alarms me is a redaction that leads me to this kind of scrutiny and worry. That is the one at page 4 and it is paragraph 6, where the heading is: “What is the policy problem or opportunity?” We’ve been given two paragraphs, and then we have a redaction. I, for the life of me, can’t think what it would be that would need to be redacted, unless there was some other opportunity that wasn’t being laid out, and I don’t see that as being appropriately redacted. So I would like the assurance of the Minister that there isn’t some wider or other purpose that is disclosed in that redaction, because the same thing happens at page 1 of the regulatory impact statement in the problem definition.

I expressed my concern in my speech that to actually redact the purpose is a little bit unusual, and it’s a bit of a concern. I think one of the things that any reasonable Opposition needs to know is what is the purpose—the full purpose, not part of the purpose; the whole purpose. Otherwise we really are going to worry, and so should the public. Because, if there is an extreme purpose or there is a different purpose, I think that’s part of our job to know, and it certainly doesn’t fit with any kind of privilege that I understand would allow redaction. So can I understand that—particularly because I’m concerned about the width of the amount of benefits that might be subject to this process in the future. Thank you.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I would direct the member Helen White to the bill and the explanatory note, which clearly states the objectives of the bill, and on page 2 the list that is included in the mandatory reviews.

Kahurangi Carter

Green Party · List MP

Thank you, Mr Chair. I am going to be speaking to Part 1, clause 4, which is where the introductions to the mandatory reviews are. I am the spokesperson for disabled people for the Greens, and I take that role really seriously. I know that it is my job to uplift the voices of those people who were not able to participate in a select committee process because we are rushing this through under urgency. This morning, I have had emails from people in that disabled community, and they have asked me to ask specific questions, because they are really worried about this bill and what it means for them, and they really want to have clarity. Because they didn’t get to have a chance to have their say, to ask these questions, in the select committee process—I know the Minister for Social Development and Employment knows that one of the biggest things that they say is “Nothing about us without us.”

In the regulatory impact statement, there is a section here on page 7, which is about the population groups that it impacts, and there’s a whole section here for disabled people. One of the questions that we got emailed today was asking what advice the Minister sought about the effects this legislation will have on disabled people. In this page 7 of the regulatory impact statement, and paragraph 23, I’m really curious to know, here where it says, “To mitigate this, we are proposing the ability for MSD to allow appropriate exceptions, extensions and exemptions to clients who are not able to respond to these mandatory reviews due to their circumstances. This ability will ensure that clients are not negatively impacted due to no fault of their own.”—I would like to ask the Minister: what work has been done, what advice has been sought to ensure that those appropriate exceptions and extensions and exemptions to disabled clients have been taken into account in this piece of legislation?

When I’m looking at clause 4 here, new section 310D, “MSD must notify or advise beneficiaries”—if we move down to new subsection (2)(a)(iii), it is concerning here that it says “unless an exception, exemption, or extension applies, the beneficiary’s benefit will be suspended if the beneficiary fails to provide the information by the deadline specified in section 310C(1) or (2) or the date specified in an extension”.

So, just to recap there, I really would love the Minister to engage with these questions that are coming from the disabled community, because they didn’t get a chance to have their time in select committee, about what advice the Minister has sought and what has been put into this legislation that protects disabled people from being impacted negatively due to no fault of their own. Thank you.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I went through that—quite at length—in my answer to a previous question, and I don’t want members opposite me to misrepresent what I’ve said. I was very careful about explaining that the Ministry of Social Development are well used to working with people with disabilities, and the way the mandatory review has been set up with a range of ways that they can engage in that process. I’ve also already said about how the exemptions will be stated in regulations, so I am not going to repeat myself.

Willie Jackson

Labour Party · List MP

Thank you, Mr Chair. I just wanted to add to some of the kōrero that I’ve been putting through on this bill, particularly in terms of the punitive strategy that this Government has deployed, which has really upset many of our people out there.

So, given that position, I’ve put in an amendment that I think will help the Minister for Social Development and Employment in terms of giving people time to comply, which we think wouldn’t add too much of a problem. I’m looking at clause 4, inserting new subpart 3A, section 310C(4): “If the beneficiary fails to comply with a requirement under this section, MSD must suspend,”. What we’re wanting to do here is insert a 30-day time frame for the Minister to consider. Why wouldn’t she consider that? As per some of my previous contributions on the bill, it’s about providing a reasonable time frame, for clients to comply, and it ensures that we don’t have whānau on the streets. I mean, it’s pretty simple, really. Why wouldn’t you just give them a bit of space, given all the complexities that whānau are going through, particularly in our disabled community? And it’s already been mentioned—Māori communities and the disparities, and I will get onto that a little bit later on.

But I’d like the Minister to explain how not having a reasonable time frame will not lead to more families, solo mums, and job seekers on the streets. Also to the Minister: what assessment has she considered on the potential of a spike in homelessness, particularly in Auckland, and the impact on young people, on rangatahi?

I would have thought that this type of amendment would be something that the Government would look at. Because, again, it just gives the people at ground level the space and the time that is needed—so it’s a serious amendment—rather than just come in with a big hammer and take people out, and all of a sudden, we have whānau in stress. We don’t want to keep seeing families or people out on the street. So why would you not consider a time frame, a more comfortable time frame, so people can manage their lives, get their whānau together, and get the right paperwork in? It’s an amendment I’d like the Minister and Government to consider. Thank you, Mr Chair.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I think it would be useful just to remind the committee that in these areas of assistance, there is already a requirement for someone who’s receiving support to advise the Ministry of Social Development (MSD) of a change of circumstances. So as soon as there’s a change of circumstances, there is a requirement—and I’m sure the member knows that—to advise MSD of a change of circumstances.

I accept that not everybody does that when the circumstances change. So the mandatory review, if you like, is a fall-back, because what we don’t want to do is see people who haven’t advised a change of circumstances that affects their eligibility that then leads to an overpayment—an overpayment over many, many, many months is what currently occurs and leads people into significant levels of debt to MSD. When we talk about the things that cause stress to clients of MSD, that is one of the highest. So part of what this review process will do is catch those problems early and ensure that there are not difficulties.

Going back to the question of disabled people, I can quite proudly say that I’ve consulted extensively with the Minister for Disability Issues around this policy.

Priyanca Radhakrishnan

Labour Party · List MP

Thank you, Mr Chair. The Minister for Social Development and Employment, the Hon Louise Upston, has said repeatedly that this is a simple bill, and I’m assuming that’s why it’s being rushed through all stages under urgency, but it does have the ability to impact a number of people—I think, off the top of my head, from the regulatory impact statement (RIS), over 300,000 people—in a very punitive way, as well. I appreciate that the Minister wants to focus on the fact that people might be overpaid or they might have a change in their circumstances that mean that they get extra support—I take the Minister’s point there—but the flip side is equally true. In 20 working days, someone who doesn’t respond to this now compulsory review could have their benefit completely cut. That is the point that we would like to, I guess, scrutinise, because that is a massive impact on a large number of people, potentially.

Who are we talking about? If you just look at the supported living payment alone, these are people who are either permanently and severely restricted in their ability to work because of a health condition, injury, or disability, or totally blind. This means that they could have a condition that affects their capacity to work for more than two years, or a life expectancy of less than two years. And people who are on these benefits—on this and the disability allowance, for example—are dependent on this money to be able to meet their needs and their cost of living. So this is important, and that’s why we’re taking the time to scrutinise the impacts of this bill.

Looking at the RIS and the bill itself, I’m also speaking to clause 4, which inserts new subpart 3A of Part 6 into the principal Act, because there is quite a bit in this one particular clause. I would like the Minister to, I guess, give us a little bit more insight into that review process, because, while I take the Minister’s point that there is already a requirement for someone whose circumstances has changed to inform the Ministry of Social Development—I get that—presumably, the Minister has some information that this is not happening, and, therefore, it’s become a mandatory requirement. What is the information that’s being sought? The Minister was quite clear that, for example, for disabled people, they would not have to go through the onerous process of justifying that their disability hasn’t gone away. And that is good. That would have made this a lot worse had that requirement, or that bit, not been in there. But what information is MSD going to be proactively asking for through the process of this review? That’s my first question around the review.

I also want a little bit of clarification because between the bill and the RIS, my understanding is that the automated system sends out an email or whatever, informing the client there is a review. The client then has 20 working days to respond. According to the RIS, if the client doesn’t respond to their review, their assistance can be stopped on the review date. So within 20 working days, someone who perhaps hasn’t seen this automated requirement could actually have their benefit cut completely. Is that correct, Minister? I’d like some clarification around that. What information will be required as well?

I would like some clarification around the wording, between the RIS and the bill, around the 52-week provision or the mandatory review in 52 weeks. It is different because, in the RIS, it says, “at least once every 52 weeks.” Are there then circumstances that the Minister thinks might warrant a review conducted twice within a 52-week period? Is there a possibility that there will be more than one review within this 52-week period? I would like to know that because while the Minister has consulted extensively with herself on this bill as the Minister for Disability Issues, I’d like to know whether she’s actually consulted with those who will be impacted, potentially, by this, the disability communities. I’m sure she’s heard the motto, “nothing about us without us”. For quite a long time, that was not put in practice with disability communities. There’s a huge amount of anxiety from the community about that.

I’ve got a few more points that I’d like to get to, and I’d like to finish this as well. So I would like to know: what consultation, if any, has happened with disabled people, with people on the disability allowance and receiving the supported living payment, on the potential impact to them as a result of this legislative change?

I do also want to point out—I’ve made quick mention of it, but: has the Minister heard, from disabled people, the anxiety around even the current provision of a 52-week review? Now, I’ll draw the Minister’s attention to some of the submissions. I know CCS Disability Action, for example, put a submission in. It is to a different bill, the Social Security Amendment Bill, but that was when jobseeker reviews were going from 52 weeks to 26 weeks, and, overwhelmingly, the response or the submissions to that was that it was unfair but that even 52 weeks caused a huge amount of anxiety. So while we don’t have a select committee process to tease out the detail of this bill, that is a transferable submission. Has the Minister considered the submissions to that bill that are relevant to this provision, and how then does she justify increasing the anxiety for people who are already feeling a significant amount of stress at the status quo?

The other question that I have around the particular review is of the specified benefits. So it says, in this clause in the bill, that it only relates to specific benefits, and I would like some clarification from the Minister as to why these benefits are in and others aren’t. Is that because this is also related to the previous bill and the requirement is for those receiving these specified benefits to share information around their boarding situations? I see that that’s a significant part of this bill as well. Is there a correlation between that and the specified benefits that are captured in this legislation?

I do also want to get some clarity around the exceptions regime that is in this bill. I note that they are quite specific. It is good that a client in a residential disability care facility or a rest home is in the exceptions part of this bill and will not be subjected to a mandatory review, but it looks to me, from this list, that the bar is incredibly high. So only those in the residential disability care facilities or rest homes, only when there’s a state of local or national emergency where MSD then can’t do what they need to do to carry out this—but who decides the exemptions list? There is also a bit in the bill that says, “exemptions where MSD can exempt an individual”—so that’s proactive if someone contacts them proactively. Is there any flexibility in this, or does the automation remove that flexibility as well? What flexibility does MSD have to create an exception for someone from this mandatory review? I take it that these are examples in the bill, but are there any other circumstances where an exception can be considered by MSD?

Finally, and I’ll just end on this, the Minister mentioned that there are—I think she said—“a raft of ways to undertake the review and for MSD staff to be flexible when they’re dealing with, for example, disabled people or people for whom English may be a second language.” I would like the Minister to share what some of those ways are in terms of flexibility. Again, given the huge amount of correspondence that I’ve been getting—and I know she’s been getting, too, because we’re often copied into the same emails—around that anxiety that disabled people specifically have with MSD already—this compounds that, and I’d like to know what flexibility MSD staff have.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

It might be helpful to go through, again, some of what that mandatory review covers. But just a reminder: every client of the Ministry of Social Development (MSD) has a responsibility upon receipt of financial support from the taxpayers to advise MSD of any change of circumstances.

The first thing is that the automated decision-making step or process at the start is purely to notify a client by MyMSD or by post. It’s not a separate system; it’s using their existing systems. So MSD will send notification to the client asking them to confirm the information they hold on them. That information will be totally dependent on their circumstances, but will include things like their income, including their partner’s income, their relationship status, if they have dependent children in their care, boarder or renter information, disability-related costs, and accommodation costs. I’ve gone through the process on ways that they can provide that information so I’m not going to go over that again.

If a client says to MSD that they need more time to correct that information or provide that information, an extension may be granted. If the client doesn’t respond within the time frame, then MSD will suspend the benefit until they get the information they require, and of course then they’d restart the benefit based on those circumstances.

Francisco Hernandez

Green Party · List MP

Thank you, Mr Chair, for allowing me to take a call on this bill. I just wanted to ask questions about the regulatory impact statement, and I’m happy to relate it to a specific part of the legislation, which is new section 310A, in clause 4, which is sort of in the 52 weeks section. The regulatory impact statement, on page 11, says that “This cost could potentially be offset by an estimated $238.302 million in BoRE”—that is, benefits or related expenses—“savings over the next five years due to approximately an extra 225,000 clients being reviewed.”

Can the Minister for Social Development and Employment please provide a specific breakdown of that $238 million, because it just seems quite perverse that we’re looking to balance the Budget on the backs of some of the most vulnerable people in the country. This is almost a quarter of a billion dollars. So is that $238 million an upper range? Is that a middle range, or is that the lower range of the situation? We’d really like to see the modelling, including if there are specific breakdowns on the benefit group, and whether that’s the main benefit, the disability benefit, the accommodation supplement, or New Zealand Superannuation.

We have a right to this information because we would have been getting this information at the select committee. It is necessary for the process of good lawmaking for us to be getting this information. I’ll also give a second reason why the Minister should give this information. This information is out here. We can request it under the Official Information Act. The consequence of us doing that is that we will receive this information in 20, or 40, or however many working days. That will generate its own media story. It will probably be quite a bad one. If the Minister tries to redact the information we may have to go to the Ombudsman, so, in the end, it’s a story about hiding information—so it’s doubly compounded—whereas if the Minister released the information right here, tabled the information and included it in the list of information, that would probably not get that much coverage.

There’s been a lot of Budget legislation and if we’re lucky that will get two or three lines maybe in Newsroom or maybe on The Spinoff, whereas if the Minister tries to hide this information, this is going to lead to bigger and more damaging media stories for the Government. So it’s in the Minister’s political interests to actually release this information but it’s also in the public interest for us to have this information.

I also want to ask a specific question around that paragraph, paragraph 43 on page 11, in the regulatory impact statement. It mentions there that there are an extra 225,000 clients being reviewed. How does that relate to paragraph 40, which says that staff will be able to manually process approximately 332,000 reviews each year? Is that 225,000 additional to that 332,000, or is that a subset of those 332,000 reviews each year?

The next part of the questioning that I want to get into is: what is the current capacity for the department to be able to do this? I note that there’s been additional investment in the systems to do that, but what is the baseline that the Minister’s working from? How many reviews currently, not related to this, are they doing each year, and how much additional work will it create for the staff? Have there been any time and motion studies that measure the amount of time it takes for employees to actually process and review these applications? Are there different bespoke processes depending on which category of benefit group that they are reviewing?

There has been a lot of mention of the automated decision-making process. What is the ratio of decision making towards artificial intelligence (AI) and towards staff? What additional roles will be created in the Ministry of Social Development and Employment that actually relate to having AI expertise and being able to design and build and actually work with these models? I will have some more questioning when we get to that part. I’m really interested in exactly what sort of models the Minister will be using, but I’ll save those questions for when we get to that section. Thank you, Mr Chair.

Deborah Russell

Labour Party · List MP

Thank you, Mr Chair. This is not an area of my expertise around social security, but I think there are some obvious questions to be asked around new section 310B, inserted by clause 4, and this period of 52 weeks. It’s specified that the review has to be carried out within 52 weeks. What flexibility is available? There doesn’t seem to be any available, given that 52-week deadline, but what flexibility is available around holiday periods?

The obvious one for us is the Christmas and new year shutdown. New Zealand goes on holiday over Christmas and new year, and those of us who can go to the beach. Even if you’re not going to the beach, it is the Christmas break. There are a number of public holidays in that time. That’s typically the time when families are taking time off as well. It is the annual celebration.

Now, if I can just liken it to some stuff that comes through from the tax law, at that stage, tax returns are typically due by the 7th of the month, but in January the date is extended out to the 15th of the month. I’d have to go and look that up exactly, but I’m sure the Minister for Social Development and Employment gets the principle there that there is extra time allowed over holiday periods in order to just give people a little bit more time to comply with their obligations simply because of the way that holidays concatenate and build up. It’s not just the public holidays that are available at that time; it’s also our social practices that Christmas and new year is a time that people actually turn their mind to other obligations.

Now, it’s not just the people who are receiving benefits, of course, who are taking a break at that time of the year but it’s actually the people working in the Ministry of Social Development (MSD), so there are typically fewer staff available. I just want to know: is there a possibility to have some flexibility built in around, in particular, that Christmas and new year period, or is that 52 weeks an absolutely hard deadline? Is there some capacity within MSD to have policy that would enable there to be a little bit more time available over the Christmas and new year period? I can’t think of other particular holiday periods during the year—possibly around Easter, but of course Easter is a movable feast, and other public holidays don’t tend to build up in quite the same way that the Christmas and new year holidays do when there are four public holidays within a very short space of time.

So if the Minister could just give some assurance around flexibility, if there is any, or what might be done with internal MSD policy, even if it’s not quite exactly specified that way in the law, that would be very helpful.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I do want to just remind the committee that this was related to legislation that we passed earlier and is accounted for in the savings in Budget 2024. As I mentioned yesterday, some of the forecasts of the saving are difficult to estimate, and particularly in this one, because what we do recognise is that, actually, that prevention of people going into debt—how do you actually assess that? I think that’s a really important one.

In terms of information, that will be coming out as it usually does under normal release processes. I want to just come back to a comment, though, that Helen White raised about redactions. It is standard practice that when there is any legal advice, that is provided as redacted—and that is the same.

A former member asked about staff time, and I have said earlier—so I will repeat for his information, although I don’t like repeating—automated decision-making actually frees up staff time to have those important conversations with clients.

Benjamin Doyle

Green Party · List MP

Thank you, Mr Chair. Still looking at clause 4 here, inserting new subpart 3A of Part 6. Ingrid Leary, my colleague to my right, rightly said that we touched very briefly on the reference to Māori communities and the impact on Māori, in an earlier call. Thank you to the Minister for Social Development and Employment for mentioning Māori in her response—she did say she didn’t want to talk about it, so I want to expand a little bit further to a slightly different point that is about Te Tiriti o Waitangi in regards to that particular clause.

In the regulatory impact statement (RIS) released by the Ministry of Social Development (MSD)—which is fantastic because they turned that around incredibly fast, and it is actually the only thing that we can utilise in reference to this bill, given we don’t have a select committee opportunity to hear from the members of the communities who will be affected most by this bill. Māori, of course, are particularly affected, they are disproportionately affected.

Te Tiriti o Waitangi implications on page 7 of the regulatory impact statement—it is brief, unfortunately; it would be good if it was in more detail. But it describes in paragraph 24, “MSD’s Privacy, Human Rights and Ethics (PHRaE) framework incorporates guidance on aligning MSD’s processes to Te Tiriti o Waitangi / The Treaty of Waitangi. As part of [that] process, MSD will assess mandatory reviews against the ADM standard”—automated decision-making. My question for the Minister is how—we would really like to understand with some detail—this will happen. We would usually be able to tease out and understand these mechanisms in select committee and go through the details. Unfortunately, due to the nature of urgency, we need to do that here so that there is transparency and we can have fair and public debate about this issue. So how will the Minister ensure an alignment with this process to Te Tiriti o Waitangi?

I want to request that we are told in detail, not just that it will happen. The reason for this is because the public may start to question the assurances that are given, if they are not provided with detail as to how it is happening. Public perception of the Ministry of Social Development is crucial to the effectiveness of its purpose. The RIS directly speaks about the fact that there is a risk to public perception if there is a lack of transparency. I am requesting detail and clarity from the Minister around how the Ministry for Social Development will meet this requirement as it states in the regulatory impact statement. It states it as a fact, so I would like details and assurance from the Minister, please. Thank you, Mr Chair.

Rachel Boyack

Labour Party · Nelson

Thank you, Mr Chair. I appreciate the opportunity to take a call, and this is my first call on this bill. I do want to just reiterate what my colleague Benjamin Doyle from the Green Party has said, which is that we don’t have a select committee process and there is a lot of detail in here, which is why we are getting into detailed scrutiny of the bill. Because it’s important, for the Hansard as well—for example, if there are challenges through benefit reviews, those types of things—it’s important, actually, that the Hansard captures the intent of the Government, because that’s the kind of thing that you would rely on in that type of situation. So this is one of the reasons why we are digging in in terms of the questions.

So I want to come also to clause 4. I have some further questions related to this in clause 5, but I’ll wait till we get to clause 5 to ask specific questions around the automated process. I want to come back to some of the questions colleagues have asked about the disability community, but extend that out further, because there’s a specific piece in the regulatory impact statement, and I’ll try to keep my contribution short, because this is a question I just want to get to the heart of. If you look at page 7 of the regulatory impact statement, bullet point 23 under the heading, “Disabled people”, it says here in the regulatory impact statement, “We note that some disabled people (as well as people from other client cohorts) may find it hard to engage with MSD within the required review timeframes. To mitigate this, we are proposing the ability for MSD to allow appropriate exceptions, extensions and exemptions to clients who are not able to respond to these mandatory reviews due to their circumstances. This ability will ensure that clients are not negatively impacted due to no fault of their own.”

So I note in the regulatory impact statement crafted for the Government that it actually makes that point quite specifically about the extra challenges placed on disabled people. The Minister for Social Development and Employment has responded by saying she’s consulted with herself, the Minister, but, actually, that doesn’t get to the heart of what this item, bullet point number 23, says. If I note, looking at clause 4, new subpart 3A of Part 6, new section 310C(6) “The kinds of benefits referred to in subsection (4)(b)”, which are the ones that have an exemption is my reading of the bill. So, again, we don’t have the time in select committee to dig in with advisers, so I’d like some clarification if I’ve got this wrong. But it lists out the kinds of benefits that are referred to in subsection (4)(b), which is where there would be an exemption is my reading of the bill, and correct me if I’m wrong. It lists some benefits there, but what it doesn’t list is probably the one we’re most concerned around, which is the supported living payment.

So it appears that the regulatory impact statement has specifically noted the needs of the disabled community, that there do need to be appropriate exceptions, extensions, and exemptions, but then the bill itself doesn’t actually reflect what is in the regulatory impact statement (RIS). So my question to the Minister—it’s a specific question—is: if it’s not in the bill, will she consider amendments to include it in the bill, and, if not, what other operational mechanisms will she consider and include on the Hansard today so that if people are taking benefit reviews through the benefit review process, they have some clarification as to the Government’s intent? It’s unclear when you have a RIS and a bill that are not acting in accordance with each other. What other mechanisms will there be for exemptions for this particular community, who are most likely to have challenges engaging with the Ministry of Social Development?

Again, we’ve only just got this bill this week. One of the reasons why we have select committee is so we can ask detailed questions and if we’ve got some of how the clauses relate with each other wrong, that’s a type of clarification we need from the Minister. So thank you and I appreciate a response from the Minister.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I’m not going to traverse ground that I have covered before around disabled people and exemptions, other than to say that, actually, one of the Labour members who spoke in one of the earlier readings was quite clear about the supported living payment and the fact that it doesn’t include the medical reviews, which is an issue that comes up from disabled people on a regular basis.

In terms of the questions around automated decision-making, some of which I have already answered, it is publicly available. The standard was actually introduced by the previous Government in 2023, so I suggest, if you’ve got any problems with it, you should take it up with them.

Kahurangi Carter

Green Party · List MP

Thank you, Mr Chair. Now, I want to speak to new section 310B(1) in clause 4, and I want to talk to paragraphs (a) and (b). I want to talk about some new questions which haven’t been covered yet, and that is, did the Minister for Social Development and Employment consider, when deciding on the objective of this bill—and in the regulatory impact statement, at page 2, it says that “The objectives of this proposal are to: confirm that a client is still eligible and receiving the correct rate of assistance at least once every 52 weeks”.

My question to the Minister, on which I’m seeking engagement with, is: did she consider the advice and the recommendations from the Welfare Expert Advisory Group, which was established under the previous Government? It was chaired by Professor Cindy Kiro, who we in this House know has an amazing reputation. They had thousands of submissions from people with lived experience and years of robust analysis, and the recommendation told us clearly—and I quote here from section 11 of that report—“to remove the requirement to reapply for the benefit every 52 weeks”. The reasoning was simple for why they did this: this requirement adds unnecessary stress, and disproportionately harms disabled people, and creates more work for no good reason.

Did the Minister consider this advice from the Welfare Expert Advisory Group, because it might help us to understand the objective of this bill in a context of the people that it will affect the most, who are going to be the people who are already doing it tough: disabled people, older people, Māori, and Pacific people. So I’m really seeking engagement with the Minister about whether she considered the Welfare Expert Advisory Group’s advice when deciding on the objective of this bill, because if we do look at new section 310B(1)(a) and (b), it is clearly going directly against the advice that was given by that welfare advisory group.

This is a new question. It is asking about the objective of this bill. In this clause 4, I’m asking: has the Minister taken into consideration that Welfare Expert Advisory Group, particularly because they are representing the voices of people who would have wanted to have their say and to scrutinise this bill during a select committee process that the Government has decided to lock those people out of, and, actually, we, as Opposition members, would have been able to scrutinise and ask officials these questions. So, just to recap, could the Minister please explain to us how she came to the decision to put in that review every 52 weeks, which goes against the advice of the Welfare Expert Advisory Group?

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Tēnā koe, Mr Chair. Tēnā koe e te Minita. I want to go to clause 4, as it seems quite a few of us are, and I’ve got one, two, three, four, five, six questions that stem from new section 310A through to new section 310C. I register that the Minister for Social Development and Employment’s response is that “I’m repeating myself and it’s not the first time I’ve said it.” I am taking this process as a trust and verify process: I don’t accept it just because it’s said, and we are entitled in this particular process—because we don’t have another, it seems—to require the verification of the things that are said.

So, in that vein, can the Minister assure the committee that this list of specified benefits—and do you know that when I read the benefits, ka aroha ki ō tātou whānau [I feel sorry for our families] when it has words like “emergency” and “supplementary”, and all of those types of words which tell us—because they’re English words, right?—that things are not good, things are hard, and things are difficult for families. OK, in this Budget, let’s just have a good crack and see whether they are as hard and as difficult as you think they are, because if we’re OK, we just don’t see it.

So question: if this list of specified benefits will not be quietly expanded in future to include benefits that are primarily accessed by Māori, thereby disproportionately targeting Māori—new section 310B—how will the Minister ensure that these mandatory reviews do not add stress or instability for people in precarious or seasonal work arrangements? This is based on, obviously, my work in and around the Ministry of Social Development (MSD), particularly in the family harm situation and in suicide prevention. Rolling into an MSD office, even with some of my mates working there—it’s horrible. It’s hard. The expectations on you are—well, they roll in as if to say, “Look, we don’t expect you to tell the truth, so we’re going to test you and push you until you do.” That kind of environment, even with some well-intentioned people—it’s hard, it’s difficult, and does this help towards that? No. The assurance that there will not be further instability—because we know who’s under that boot, and they are Māori.

In new section 310C, what protections are in place to prevent benefit suspensions for those who face legitimate barriers to compliance? If you lived in Hokianga, in Te Kao, in Tairāwhiti, and in those areas, your phone and your connection is so off there, they just don’t work. If you think they’re going to go “Oh, yes.” on their phone, as if it’s that easy, it is not that easy. Some are—some of the digital natives, they’re great. But for some of the digital immigrants—which are those my age, by the way—and others, it ain’t going to happen. It is not that easy; so to assume that it is, is foolish and harmful.

What oversight exists? What oversight exists—I’ll repeat that, in case I was reading the face right—to ensure that MSD does not arbitrarily use the power? Agencies often use power because they like it and because it works for them, and they do it just quite naturally, unfortunately—power to demand information in a specified manner and time frame. I get the words—you know, it’s all very clinical and technical, and so there is the type of training and expertise that you’re going to need to run this kind of line, Minister. I have no confidence that it’s going to go well for many of our families, and I seek that you look closer, really, to what’s being imposed on our people, unfortunately. Thank you.

Ricardo Menéndez March

Green Party · List MP

Thank you, Mr Chair. I wanted to raise a new point on a new section being inserted into the Social Security Act. This is new section 310D, on page 5, just after line 5 to about—well, basically, it’s the whole page. This is in subparagraph (i), and this is around “MSD must notify or advise beneficiaries”.

Now, I wanted to ask, because there’s nothing here in the legislation—and we are thinking of potentially looking at amending this so that—

Teanau Tuiono

Chairperson

Which page is that, sorry?

Ricardo Menéndez March

Green Party · List MP

This is in clause 4, new section 310D, on page 5. This is new section 310D, “MSD must notify or advise beneficiaries”. Thanks for seeking clarification.

I wanted to understand if the Minister for Social Development and Employment had produced a list, or what level of accountability exists for the Ministry of Social Development (MSD), around the means that that communication needs to happen. For example, does MSD need to exhaust all types of communication before they potentially trigger the suspension of someone for not being able to comply? What are MSD’s responsibilities and obligations, because she talks a lot about the responsibilities of people on the benefit, but it seems like there doesn’t seem to be—the other side—anything around whether MSD must, for example, first attempt to communicate with someone via the phone, via mail, via text, or via message on the MyMSD portal, and whether all of those avenues need to be first exhausted.

I ask this, and this is really important, because, having worked as a welfare advocate prior to coming to Parliament, I did see a lot of people had really old phone models with cracked screens—second-hand phones, for example—because that’s all that they could get, and that means that accessing MyMSD can be difficult. People who have literacy issues could be missing out, and, as my colleague Mariameno Kapa-Kingi talked about, it can be people who are just not digital natives. So if, for example, some of these forms of communication are primarily happening through online correspondence, I can see that people could easily miss those.

I’m keen to get an assurance from the Minister around new section 310D around the safeguards around the means that MSD must use to communicate with people before, basically, taking someone’s benefit away, before we consider putting an amendment to add to these safeguards and ensure that MSD tries, basically, every possible option.

Tamatha Paul

Green Party · Wellington Central

And renters, as well.

Ricardo Menéndez March

Green Party · List MP

That’s right, yeah, and when it comes to correspondence, my colleague Tamatha Paul just made a great point that when it comes to physical correspondence, which is that the issue that we have with renters but also, actually, people in emergency housing, and people who may be boarding—which is one of the groups that she seems to want to target—people may have old addresses in the system. They may be living through toxic stress, which means they may not be able to access MyMSD to update their information. But, anyway, that’s my main question on new section 310D.

Then I wanted to talk about some of the unintended fiscal implications that, particularly, the provisions in clause 4 have but also, actually, throughout all of Part 1. This is because, as my colleague Francisco Hernandez has talked about, the Minister has refused to proactively—for the debate, so that we can scrutinise—release the breakdown of those savings. But I do wonder whether MSD considered the unintended fiscal consequences of having some of the people lose their benefit who then require other forms of assistance with other parts of the system. That’s a cost. It seems like the analysis in the regulatory impact statement (RIS) didn’t account for how, for example, people may end up requiring to access assistance from other parts of the system. I am worried that, therefore, the analysis—and the Minister, not intentionally but perhaps maybe just through a lack of information, is mischaracterising the savings that she is making as part of this bill.

I can see that if someone is left without a benefit, even if they get back on the benefit later down the line, they could end up requiring access to hardship grants, access to advances, and access to emergency accommodation, and those have costs for the Government. Those do not seem to be accounted for in the RIS. This is something we could have asked for from officials at the select committee stage, and not have to wait until the Minister chooses to proactively, maybe, perhaps release that information somewhere on her website.

Again, I do think it would be useful for the Minister to at least tell us if there was an analysis of potential unintended fiscal consequences as a result of these costs being passed on to other parts of the system, and—to recap on my previous point—would the Minister like to outline what means MSD must try to use to notify or advise beneficiaries before, potentially, taking someone’s benefit away? Is there a list, and, if not, would she be open to an amendment to expand that?

Ingrid Leary

Labour Party · Taieri

Thank you, Mr Chair. I’d like to start this contribution just by challenging the Minister for Social Development and Employment on her assumption that people are repeating themselves, because if she’s listened to the debate—which I have been, very carefully—there hasn’t been a repeat of the questions or the points. There have been themes, but very few of our questions are being answered adequately, and so I would just say that, from the Opposition’s perspective, we do not believe there has been any repetition. I would like to see more of an exchange—

Teanau Tuiono

Chairperson

Just to clarify for the member, I will judge whether there’s been repetition or irrelevancy.

Ingrid Leary

Labour Party · Taieri

Thank you, Mr Chair. To pick up on Ricardo Menéndez March’s previous comment, I too had concerns about the means of communication, and so I would suggest, if the Minister is able to consider it, that in new section 310C(1)(a), she could amend that paragraph to add the words “by email or letter”. It’s a very simple amendment. Most people these days are able to get email or a letter, and she could maybe even add “text”, if she would like to. But I think those two are easy to track and to evidence. Then, in paragraph (b), after the words “has notified”, the amendment would add “by email or letter” or, again, “text”, if she was minded to.

In subsection (2), my question is: when it says “information or answers in response to a notification described in subsection (1),” could the legislation be clarified? “MSD”—is that a person or is that AI? If it’s a person, maybe it should be “an MSD employee”, and if it’s AI, maybe it should be “an MSD algorithm determines”, and this will relate to some other points I’d like to make in another contribution around how the reviews are done. Still on that subsection, if we go down to paragraph (a) and amend it to in a way “that MSD and the person receiving the benefit agree on;”, rather than just in a way “that MSD specifies;”, that would fix up the issue that Ricardo Menéndez March has made comment on, and it’s the same in paragraph (b).

I’d also just like to make the point that the word “beneficiary” is actually very stigmatising. One of the things that would be possible—and I wonder if the Minister would consider it—is to just make an amendment that would actually amend this legislation and the primary legislation to change all references to “beneficiary” to “the person receiving the benefit”. It wouldn’t be difficult to do. We’ve seen that in select committee, where we’ve done it with mental health legislation. This would be an opportunity to sharpen up the bill.

But I want to turn now to this. We really still haven’t interrogated how this bill is supposed to work when it doesn’t specify which benefits are caught by it, and I’ll just talk the Minister through it because she says that it’s in the explanatory note. Well, if it’s in the explanatory note, why isn’t it in the legislation?

If we have a look at new section 310A, “Meaning of specified benefit”, in clause 4, it states, “under section 438A to be a specified benefit for the purposes of this subpart”, and then it’s got a whole sort of rabbit warren of places where you go in to the primary legislation and other things. You can get the exemptions if you go to the regulations, and you find out it’s the ACC and, I think, some emergency situations. But then it’s got three different definitions in the primary legislation for the “specified benefit”. There’s one in section 198(3), one in section 207(4), and one in section 330(1), and then the actual section—the specific empowering section—just refers to the exemptions, which the Māori Party speaker has referred to, but it doesn’t talk about which ones are caught.

So it’s really, really clunky. Is that just because it’s bad writing, or is it because there is a desire to extend that list, and, if so, is that list going to be extended by regulation? Because it does talk about regulations earlier in the Act. If that’s the case, then it does bring up the question of whether that should be happening, and, certainly, whether limiting people’s entitlements should be happening, given that that shouldn’t happen in secondary legislation, according to the legislative guidelines.

Those are the questions around that, and then also we had a copy of this bill sent to us yesterday and this part was written quite differently. It’s interesting, because the bill was not given a different name and it was not given a different version, but I had it sitting in front of me with both the screens of my computer, and it was written really differently and it had much more simple language.

So I’d like to know, and I can tell the Minister that previously it said under the old version of new section 310B that “MSD must review all specified benefits when undertaking a mandatory review … (a) if the client receives a main benefit that is a specified benefit,—(i) the date on which its main benefit commenced; or (ii) the date on which its main benefit was last reviewed.” Now, that is actually not bad writing, and I can follow that. Now, we have to go to subsection (1) to find the timing, and after lots of work and digging around, it seems to be that we come up with the 20 days that would happen once the review is due. Why was it not kept this simple? We haven’t had any time to understand this. If we’d been in select committee, that would have been a question, to be able to look at those two pages together.

The same is under new section 310B(3)(b). Again, it’s got “a specified benefit,—(i) the date on which the beneficiary’s last specified benefit … or … that [the] benefit was last reviewed.” Why make us have to go up and down through the legislation? It’s just so difficult.

Furthermore, we have talked about the 52 weeks, and I’m not going to repeat that. I’d just like to draw the committee’s attention to the amendment that has been tabled by my colleague Vanushi Walters to replace “52 weeks” with “78 weeks”, although, actually, there could be some debate about that, because I’ve heard from my colleague the Hon Priyanca Radhakrishnan that even longer periods of time can be really stressful.

I’d also just like to signal that my other colleague Dr Tracey McLellan will have a corresponding tabled amendment to Schedule 1, and that is to make sure that Schedule 1 aligns with the amendment that we would like to see around that. I’m not going to dwell on that any further, but I do want to, in my remaining time, still look at the exceptions—well, at some of the wording under new section 310B. The first one I referenced very obliquely and have just touched on, and I indicated I would speak to this. Under subsection (2)(b), why are there the words “or (b) was not entitled to receive the benefit, or the rate of benefit, that was paid to the beneficiary.”? Those words are absolutely redundant. What they do is signal, in my view, beneficiary bashing. They don’t add anything to paragraph (a). Paragraph (a) already captures what the provision is trying to do and, therefore, I would just ask the Minister if she could please strike that out. It’s not necessary, and it actually doesn’t send a very good message.

Secondly, if I look at the exceptions, one of the things we have heard about—and this is something that’s very dear to my heart—is that, currently, under emergency housing rules, the rules are being changed so that women and children who are escaping domestic violence situations are being deemed to have contributed to their own homelessness. I have seen that in my electorate, I’ve been talking in the media about it, and I was lucky to also help one constituent get into a home just before those rules changed. I’m pretty familiar with them, and we have had concerns yesterday from the Hon Carmel Sepuloni about this particular cohort. So is it possible, please, to change that and include another exemption that purely captures “people”—it doesn’t have to be women; often it can be men escaping domestic violence as well—who would be escaping from those situations?

Under new section 310B in clause 4, we’ve got some wording in subsection (5) which talks about a benefit a beneficiary has received “if the review determines”. Now, “if the review determines” is passive writing and it doesn’t say who’s doing the review. Is it going to be an MSD employee or is it going to be an algorithm, and if it is an algorithm, then why not state it in there—and if I have got that incorrect, then be clear so that we can understand what part of this legislation and implementation is being automated, and where somebody can expect to have a person doing the review. One of the amendments I would suggest is that we change “the review determines” either to “an MSD employee determines” or to “an artificial intelligence algorithm determines”, and I think that would be really important.

I have some more questions, going through from new section 310 and onwards. So, Madam Chair, when I get another chance I would like to keep going through these technical areas, which, I can assure you, will offer no repetition.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I’m not going to repeat things that I have put in the first reading and second reading speeches. I was very deliberate in terms of what I included in those speeches to make it clear around what automated decision-making would be used and when it wasn’t. I’m referring back to the notes of what I’ve already said in the committee of the whole House, and it was clear that notification for the review will be done by post or by the Ministry of Social Development (MSD). I can add for the committee’s clarification that if a client has been interacting with staff directly, a face-to-face interaction would also count.

I’m not sure how many more ways I can talk about that it’s by post or by MSD, which means it’s removing the technology barriers that may exist for some. I went through the process in a lot of detail, including the questions that were asked and the ways in which a client could participate by providing the information that they are required to provide anyway, all of the time, when there is a change of circumstances. It’s a very short bill and a simple bill, and I’m really hoping that members opposite now understand, because I’ve said it on multiple occasions and I’m not hearing anything new.

Maureen Pugh

Chairperson

I’m not going to take a closure motion just yet. I just want to see how much more new information is going to be forthcoming.

Willie Jackson

Labour Party · List MP

Thank you, Madam Chair. I appreciate it that the Minister for Social Development and Employment doesn’t want to repeat herself, but if she could just give us one answer with regards to the Māori obligations, we would probably be pleased about that. So just continuing in terms of clause 4, and off the back of Mariameno Kapa-Kingi and Benjamin Doyle’s kōrero, we do need to get some response from the Minister in terms of Māori and Treaty obligations. That hasn’t been traversed at all over last night or today, and I think the questions are more than reasonable. The regulatory impact statement (RIS) is very, very clear in terms of these regulatory reviews that they have greater impact on Māori, given Māori are overrepresented in the benefit population.

So I would like some answers from the Minister on this: was there a specific cost-benefit analysis on Māori, and is there something that she can present in that regard? Further to the number of other questions I’ve asked in this area: who are the consultation groups that the Minister met with? If the Minister could list some of the groups in this area, particularly given the huge concern from iwi who actively have engaged with—I know they engaged with us when we were in Government, and I presume they are engaging with this Government. They have a vested interest in this, given the disparities in terms of Māori at the moment, so can the Minister list what type of pre-work or work or continuing work is happening in that area?

It is an area of major concern for us, given we’ve had a Budget that has transferred over $1 billion of targeted Māori funding into the general funds. So if the funding has been transferred, as it—well, has been transferred, and there’s absolutely no doubt about that. But what does that mean in terms of priorities going forward, and is the Minister able to give us a kōrero with regards to the plan going forward? Has there been any work on the impact of pay equity—which has been right at the forefront of our debates over the last week—as it relates to the family income in those groups and whether the reviews can be justified, or thresholds should be changed for the—

Maureen Pugh

Chairperson

Can the member come back to this bill. You’ve strayed away from this bill.

Willie Jackson

Labour Party · List MP

I’m talking about clause 4, Madam Chair.

Maureen Pugh

Chairperson

You started by mentioning—

Willie Jackson

Labour Party · List MP

Yes, I’m talking about clause 4.

Maureen Pugh

Chairperson

Yes, you started by mentioning clause 4. This is not a Budget debate.

Willie Jackson

Labour Party · List MP

No, I know it’s not a Budget debate, and thanks for that reminder, Madam Chair. But it is particularly pertinent and relevant to clause 4 because the Ministry of Social Development has made it very clear, if you have a look at the RIS, that Māori are going to be, probably—along with Pasifika—the most impacted group here, and Māori women, too. We’ve already got the gender gap, but Māori women, as many in the committee would know today, are probably the most impacted group of all. So, given those facts, I don’t think it’s unfair to ask the Minister—as I have continually done since yesterday—what sort of work she has done. Does she think a Treaty strategy should be in place, is there any consultation going on with iwi, is there any consultation going on with NGOs, and how can she make Māori feel comfortable?

I talk about the Budget, Madam Chair, because $1 billion has been transferred out of Māori funding and into the general funds, and so that would make some sense that you’d talk about it. So how are Māori meant to be feeling comfortable when so much of the targeted funding—which the Minister will be aware of—has now been transferred out? Going forward, is she able to provide us with any—any—information in terms of Māori, or are Māori being seen as just another population group?

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I’m going back over my notes of what I’ve already said in answer to the question about Māori, and the automated decision-making standard, which was written and publicly available since 2023, when it was introduced through legislation by the last Government.

Sam Uffindell

National Party · Tauranga

I move, That debate on this question now close.

Maureen Pugh

Chairperson

I think we’re very close. This is a very small, tight bill, and so the contributions need to be relevant and not stray from the intent of the bill.

Ricardo Menéndez March

Green Party · List MP

Thank you, Madam Chair. I want to talk about clause 5, which hasn’t had a lot of pick-up, and I really want to challenge the Minister for Social Development and Employment around how this is narrow. It affects more than 100,000 people in this country and the impact is deep, so I think it’s not being in good faith to then start talking about how this is a narrow bill where it’s a huge group of the population who are affected.

Clause 5 is about the expansion of the use of automated electronic systems to make decisions, to exercise powers and comply with legislative obligations, and take related actions. One of the reasons why I’m interested in the Minister engaging in good faith around this—and this goes back to her lack of transparency in providing adequate information, because I don’t think it’s good enough that she says she’ll release that information later when we are debating the bill right now. The regulatory impact statement in relation to the provisions of clause 5, and I’m quoting from page 3 of the regulatory impact statement (RIS)—if I look at the paragraph that starts with “Assumptions around improved accuracy”, the RIS talks about how “it is possible for the use of [automated decision-making] to entrench existing inequities in the welfare system as these can be built into the data collection.”, and this is specifically around the design of the algorithms.

Clause 5 talks about the broadening of the use of automated decision-making. Has the Ministry of Social Development already designed the algorithm that it will use for the purposes of clause 5 in the expansion of automated decision-making? That’s a pretty simple question. So if we’re going to get patronised by the Minister about how this is simple bill, I expect engagement with a simple question: did she already receive information on the algorithm that is going to be used in the provisions in clause 5, and, if not, why not? And, if not, as well, I want to understand what steps are being taken to mitigate what the RIS identifies about the design of the algorithm could be entrenching existing inequities.

This is extremely important because we know that the design of algorithms in other parts of the system can indeed entrench, for example, the biases that exist. We see this in how biometric information is used and then how people are identified, and people could end up being racially profiled, etc. This is identified in the RIS, around the inequities that exist. For example, one of the inequities that other members have tried to raise in this debate is how Māori are disproportionately impacted by the welfare system. So is she concerned that the algorithm could entrench that?

I really want to understand whether the algorithm is out there. Would she be willing to table it right now for us to be able to analyse it and give it the scrutiny that it deserves? She also hasn’t engaged at all on any unintended fiscal implications in the provisions of clause 4 around the so-called savings being passed to other parts of the system—no engagement whatsoever there.

I think we deserve far better than this. We are trying to do our part to ask simple, straight-up questions relevant to the clauses, and then we are getting patronising, unrelated answers. I know we can’t force her to give us the answers that we want to hear, but I think that, at the very least, she could give us a straight-up answer around whether the algorithm is there and whether she’s done any analysis on unintended fiscal consequences on the costs being passed on to the other parts of the system.

To the last answer she gave in relation to a question I made around the forms of communication, she said, “Oh well, it’ll be the post or MSD.”, and that’s exactly what I was asking about. If it’s MSD, is it the phone or a text, or is it a face-to-face appointment, and if it is one of those three, can she please name the number of fulltime-equivalents (FTEs) that she thinks will be used by MSD to then be able to notify people? No information has been given around that. I mean, I think she’s insulting the voters and the listeners by saying, “Oh, MyMSD will do it.”—yeah, we know that. We’re asking about the level of resourcing, fiscal and FTE-wise—if it has been modelled—that will go into notifying people.

This is specifically in new section 310D, which is being added in clause 4, so we haven’t really unpacked anything in clause 5, at all. I’m keen to start off by going back to my initial question on clause 5, which was: is the algorithm out there, will she provide it to us, and, if not, what measures are being taken to not entrench inequities? I see that the officials have given her some notes. I hope that she can provide us a non-patronising, simple answer.

Ingrid Leary

Labour Party · Taieri

Thank you, Madam Chair. Look, I know that my colleague Rachel Boyack had some short, sharp questions to respond and seek further clarification about some of the entitlements and answers that she raised previously, which will be really important, but to pick up on where we now seem to be heading, which is around automation—and I’d like to say that this is only the second call on automation. We’ve been very deliberately trying to keep our comments to the previous clause.

So when I look at the regulatory impact statement (RIS) on automation, I do have some specific questions, and I’m really happy for the Minister to jump up and answer them and do a back and forth. But if she’s not interested, then I’ll carry on with my questions.

The first one is that in the RIS, it does say that there were three options: there was the status quo, then there was the ability to review the entitlements for benefits using automation and also without automation—so two was without; three was with—and then there was a redacted one, which we’ve heard was redacted for legal reasons. I want to ask the Minister if—I understand that legal advice is able to be redacted under the Official Information Act, but it would be really good if she could give us just a hint about what that was about. Was it to do with the human rights implications, and, if it wasn’t, even a no would be great, so I’ll wait for her answer, and then—OK, if she’s not going to answer, the second one would be: in terms of the 332,000 reviews, did she consider for the status quo just supplementing the Ministry of Social Development (MSD) staff so that instead of having front-line job cuts and not investing in the technology—the technology in the RIS was $5.33 million and fulltime-equivalent costs are $7.5 million. Did she consider just using human resource?

My third question, since she won’t answer that one, is around the safety and reliability, actually: what will happen if they get things wrong, can the system be gamed or hacked, and will she consider a review more than every three years? Currently, the legislation says that it is every three years. Could she perhaps, at least for the first year, do every three months, and then maybe do them yearly, because it would be terrible to find out in three years that mistakes had been made, and how are people going to know that? I’m wondering what the appeal process is, and I will leave my questions there so that colleagues can ask theirs.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I went through the three conditions that the automatic decision-making will be used in my earlier speech, so I’m not going to go through those conditions again. But I do want to assure the committee that, as I have said before, any decisions about entitlement are made by a front-line staffer.

Rachel Boyack

Labour Party · Nelson

Thank you, Madam Chair. I just want to note that I have tabled an amendment in the committee just now that I do wish to speak to. It’s specifically related to some of the questions that I’ve been asking the Minister for Social Development and Employment, and I have had an opportunity to review the Minister’s response to my earlier question in the Hansard and this is specifically related to the supported living payment. I’m not entirely satisfied with the Minister’s answer, and I do want to dig in a little bit further.

I understand my colleague Priyanca Radhakrishnan, who has some more expertise in this area, may have a further question specifically related to when benefit ends and the review there. It’s not an area of the law that I have specific expertise in, so I just want to note that my colleague Priyanca Radhakrishnan will have a question on that. So I hope that we can continue this committee stage because we do have live questions that haven’t been answered.

Maureen Pugh

Chairperson

What clause or what part are you—

Rachel Boyack

Labour Party · Nelson

I’m looking at clause 4, and I’ve already spoken to it a couple of times. It is clause 4, and it is new section 310C(4), (5), and (6). It’s in relation to the supported living payment, where the Minister’s response to me was that it didn’t include medical reviews, but my understanding is that it does include the disability-related costs, so I’d like some clarification on whether it does or does not include the disability-related costs. [Interruption] It does? I can’t hear the response, so I’ll just continue with the questions because it’s particular issues related to things like equipment, medical support, and transportation is a big one. I’d just like a response from the Minister on that.

The second part, which is related to my tabled amendment, which I’d like the Minister to consider, is that in respect of supported living benefits, in all provisions where “52 weeks” is specified it is deemed to be “2 years”. Now, the reason I have made that specifically around “2 years” is that if you look at the criteria for the supported living payment, it is specifically when somebody has a condition affecting their capacity to work for more than two years, or has a life expectancy of less than two years. It doesn’t look at it on an annual basis; it looks at it on a two-year basis.

There’s a specific reason why I have put that in, because if someone is deemed to be unwell and unable to work for two years, I’m uncertain as to why they would be having any kind of review within that two-year period. It doesn’t make sense to me, so I’d really like the Minister—quite genuinely—to consider that amendment because it’s actually consistent with the criteria for this particular benefit.

But I do just note that my colleague Priyanca Radhakrishnan has some more detailed questions related to the reviews at the end of a benefit and whether the medical reviews the Minister has said don’t apply are actually only in relation to the end of that point, and I would like the Minister to answer my question specifically about disability-related costs.

Priyanca Radhakrishnan

Labour Party · List MP

Thank you, Madam Chair. Just to pick up on the particular point that Rachel Boyack made around the health and disability condition, in the regulatory impact statement (RIS), it says quite clearly that “All mandatory reviews for all clients will not include a review of their health condition or disability.” Having checked the Hansard as well, I note that the Minister for Social Development and Employment has said both that medical reviews will not be included but that disability-related costs will be. So I just want clarification on that point, given that it appears to be contrary to what is in the RIS. Specifically, I want to know whether specialised equipment, services like counselling and other therapies, transportation, and glasses and hearing aids, for example—will all of those need to be justified within a mandatory review every year? That’s my first question.

The other point that I’d like to get some clarity around specifically is on new section 310F, “Exemption from mandatory review”, in clause 4. The section reads that “MSD is not required to undertake or complete a review that MSD would, but for section 310E, be required to undertake and complete under section 310B(1) if, MSD is satisfied that, owing to the beneficiary’s circumstances,”—and it’s that word “circumstances” that I want some clarity around—“a mandatory review should not be undertaken or completed (for example, the circumstances specified in sections 326 to 330).”

So I went to sections 326 to 330 of the Social Security Act, and those sections all relate to the ending of a benefit. Section 326, for example, is: “After death of beneficiary receiving specified benefit”—I mean, it’s pretty clear that you wouldn’t need a review if the beneficiary has died. Section 327 is related to “Benefits payable to sole parent who stops caring for dependent child due to sudden and uncontrollable circumstances”, like—oh, it doesn’t go on to say like what, but, basically, if the benefit ends because of that. Section 328, “Supported living payment payable to beneficiary who stops caring for another person”—I mean, it’s fair that you wouldn’t get the benefit if you’ve stopped caring for the person that the benefit is related to. Section 329, “If child ceases to be entitled to orphan’s benefit or unsupported child’s benefit” for various reasons, and section 330, “Supported living payment on ground of restricted work capacity or total blindness and cancelled on medical grounds”.

So all of those exemptions that are specified in new section 310F, basically, say that the Ministry of Social Development doesn’t need to undertake this mandatory review if the benefit has ended. That seems, to me, to be pretty obvious. However, with regard to the words “for example” in new section 310F, I would like to know from the Minister what other exemptions are there and in what other cases can an exemption be made, and I ask that specifically because of the section in the RIS that relates to disabled people. It says that “We note that some disabled people (as well as [others]) may find it hard to engage with MSD within the required review timeframes.” Noting that the bill states that the time frame is just 20 working days, “To mitigate this, we are proposing the ability for MSD to allow appropriate exceptions, extensions and exemptions to clients who are not able to respond to these mandatory reviews due to their circumstances.”

Now, if the circumstances listed in the bill are only circumstances where a benefit has ended, you wouldn’t need a review anyway. So I’d like to know from the Minister: what mitigations are in place in the legislation to cater to the fact that MSD has pointed out, quite rightly, that there will be a number of people—particularly disabled people—who will not be able to respond within the 20 working days? Where is that?

I do have another question about the use of automated decision-making, but I’ll try and take another call for that.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

We are going back and forward in this debate. I have answered a question about extensions and the ability for someone to have a conversation with the Ministry of Social Development if they require an extension to the time frame that is required.

In my second reading speech, I talked clearly about the disability allowance and how that is an example where it may well be that somebody’s circumstances have changed, and they have additional needs and additional costs, which can lead to an increase in their disability allowance. The member who asked me that question in her reading of it specified that she was pleased that in the inclusion of the eligibility, there is no requirement to prove their medical condition again. She answered her own question when she did her reading, so I’m really hopeful that that has now registered because this is a very simple point and I have answered multiple questions. I’m losing track of how many, but I’m confident that members should get this by now.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Thank you, Madam Chair. My question is to clause 5, which is amending section 363A—just very quickly—and I want to just start this by saying that despite the size of the bill, and it might be small, it does not mean, in my view, that the question responses should be flippant, and, in fact, I can’t even see the Minister’s face, because she’s not addressing us directly.

The English literacy component of this new mechanism, or new-ish mechanism—and I say that in this context. Many of our young Māori people, they are kōhanga reo children, they are kura kaupapa children, and they are whare wānanga children, and, therefore, they have the gift and the benefit of two languages. They are fully literate in both those languages. Can the Minister assure Māori speakers, Māori people—in fact, ensure the committee of the whole House—that that is understood in the design? I’ll just wait. [The Hon James Meager replaces the Hon Louise Upston as Minister in the chair]

I’m sorry. I’m—can I continue? Sorry, I wasn’t sure whether James Meager—

Maureen Pugh

Chairperson

It’s your call.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

—was able to hear my interest in the questions.

So, just to come back to kōhanga reo, kura kaupapa children, and whare wānanga people, all of those awesome young ones that are coming through—they are literate in both languages, which is a missing piece in the House, and, therefore, there is a concern there for me whether that capacity has been understood in the design of this new-ish tool. I suspect that it won’t be, and that is something that I expect the Minister to have a response to and to give us any level of confidence that that is appreciated in design. If you’ve got an algorithm going on, in what language are we talking, because you can only say, “Well, it’s the English literacy, Meno; it can’t be Māori.” So can anybody—the current Minister in the chair or the Minister for Social Development and Employment—give us any confidence that the algorithm understands Māori?

Maureen Pugh

Chairperson

Can I just check that the member is referring to clause 5?

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Absolutely, and the earlier response was that “Well, there is an algorithm.”—except algorithms come from language, so whose language? It’s English, not Māori, and how, then, will it even be able to understand and appreciate, in the algorithm, te reo Māori, tikanga Māori—

Benjamin Doyle

Green Party · List MP

Ingoa Māori.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

—or ingoa Māori? It simply cannot.

So, again, right at the outset, it fails, and what it does is it forces the likes of the Hon James Meager and me to actually just, down the one way, say, “Look, it’s English, and that’s all that matters, Mariameno, so just stop having feelings about that.” But it is serious. Despite those good things, it is a serious and valid question, and not at all am I seeing it. Despite that it is said to be small, it is not a flippant answer that I’m looking for. Thank you.

Francisco Hernandez

Green Party · List MP

Thank you, Madam Chair, for allowing me to take my second call. I have some specific questions around clause 5 that I’ll lead with, and then I’ll go into the departmental report, which has had no discussion or context yet.

I’ll start with my specific questions around clause 5—in particular, around the use of artificial intelligence (AI)—and the previous speaker, Mariameno Kapa-Kingi, articulated some actually really thoughtful ideas about artificial intelligence. With a lot of the so-called AI, or language-learning, models, there’s a huge body of academic research that proves that they do have Western-centric biases in them, so it’s really important that we bring those perspectives into this committee because this would have been the select committee and submitters would have brought that point in.

I’ll go into my specific questions now. We’re using automated decision-making (ADM), and that decision making is currently being used by the Ministry of Social Development, I believe, in processing child support payments. I want to ask—and this is something that would have come up in the select committee—what has been the current experience with the ADM that’s being used for the child support payments? Have there been any reports on the efficacy of the ADMs as it’s currently being used, have there been any biases that have been detected, how has the ADM evolved, and how is the ADM going to evolve and change in response to the additional scope of requirements that it’s being made to undertake, because, currently, it’s quite a very narrow scope. Will the MSD be using a more sophisticated ADM to process the increased responsibilities that it’s being asked to deliver?

I do have specific questions around the ADM, like: what exactly is it? Is it simply a spreadsheet with some weightings? Is it a language-learning model? If it’s a language-learning model, what exactly is it: is it ChatGPT, is it Deepseek, or is it one of those European ones, like Mistral? I’m really interested as someone who is, I guess, the Green Party’s resident crypto bro on what technologies are actually being used and what future AI is actually being used by the department.

I’ll go now into my questions about the departmental report because, as I’ve mentioned, there’s been no discussion about it, and I also note that my colleague Benjamin Doyle also has some questions about Māori data sovereignty—

Maureen Pugh

Chairperson

As it relates to a clause.

Francisco Hernandez

Green Party · List MP

—as it relates to clause 5.

Maureen Pugh

Chairperson

Good.

Francisco Hernandez

Green Party · List MP

Yes, absolutely—as it relates to clause 5. Māori data sovereignty is absolutely about algorithms, and so it relates to clause 5 and they’ll be wanting to take a call. But on to the departmental report. On page 5 of the departmental report, at paragraph 2.3.1, it says that the regulatory impact statement was assessed as only partially meeting the quality assurance criteria. So how far short was it of actually meeting the full criteria—it’s concerning that it’s not meeting the full criteria, to my mind—and how much more work needs to have been done?

I’ve noticed another discrepancy in the numbers that have been provided in the regulatory impact statement and the departmental report. The departmental report mentions $158 million of savings under page 6, whereas the regulatory impact statement mentions $238 million of savings. That is quite a substantial gap between them, so I really would like the Minister to actually just show us the money, because that would be the best way for us to actually tease out why there are discrepancies between the departmental report and the regulatory impact statement.

I have some questions around paragraph 3.3, which is the consistency with the New Zealand Bill of Rights Act (BORA). This departmental report, as its written, says that it’s TBC, but I’ve taken the liberty to check the website and there is a BORA report that’s now there, and in that BORA report it says that it’s for an earlier version and not the final copy. So how early was the version that was supplied for the New Zealand Bill of Rights Act report, and what is the difference between the report that was supplied to the Attorney-General for the New Zealand Bill of Rights Act report as it is? Because, even though in the previous version that was supplied to the Attorney-General’s Office, they expressed that they were satisfied it did meet the BORA test and they also expressed some concerns that there was some prima facie limitation around freedom of expression, but that was an earlier version, and so I’m interested to see how it’s evolved. I’ll take my seat now so that my other colleagues can take a call. But I’m keen to get answers.

Damien O'Connor

Labour Party · List MP

Thank you, Madam Chair. I should feel slightly insulted—I have been following this debate from my office, like most MPs, but I’ve been kind of rolled in to speak on an area on behalf of older people, and I don’t know why that’s the case.

It’s in regard to clause 4 and it is around the mandatory reviews, and I’m just wanting to ask a few questions of the Minister for Social Development and Employment on the basis that for elderly people, a mandatory annual review of their disability allowance or their accommodation supplement is going to be an incredibly stressful threat to them. Most of us would understand, if we’re dealing with older people when they have to go and get their driver’s licence renewed, that to have a review of core income for them every year would be quite horrific for them. So the question to the Minister—there are a number of questions, actually. But one of them might be that given, potentially, there are 100,000 people on supported living payments and there are 125,000 who get the disability allowance, if many of them are going to be reviewed, or a large number of them, firstly, it’s the resource required for that to occur in a fair way and in a way that’s processed quite quickly so that older people don’t have this cloud hanging over them, basically, from year to year.

If we just think of ourselves here in this Parliament, we have a review every three years, and that sometimes seems quite stressful every three years. It’s somewhat hypocritical, if not unfair and unjust, to then turn around, particularly to older people. This is not, for the most part, a dynamic community. Their circumstances don’t change like that of, say, an 18-year-old or a 25-year-old. For the most part, they’re probably locked in, many of them, unfortunately, due to disabilities, or are relying on accommodation supplement, and to have that reviewed every year—the question to the Minister: do the agencies have the resources to do that in a fair and timely way, and what’s the cost-benefit analysis of that, or the cost of going through that, on the assumption that these older people have had their circumstances changed in some way that warrants the removal of a disability?

Many will have had to go through a process to get the disability allowance. To then think that, well, they’re going to get better or they’ve got a major change of circumstances—indeed, some might. But a review every year—that is something that we struggle with. So it is a question to the Minister of what is the cost-benefit analysis of doing that.

The other question is: who was consulted in this process? Was it Grey Power, or were the disability groups consulted? What was the feedback from those groups as to what the effect will be on their mental health of the pressure and the stress on those groups, and, indeed, is it a net benefit? There might be a saving to the Crown, but if we end up paying more through mental health support or other areas of hospital care because people have got stressed or haven’t been able to stay in their accommodation, then the question is: are we making progress?

So the question to the Minister: what’s the cost-benefit analysis, who was consulted, and, indeed, does the Minister in the chair, on behalf of the Minister for Social Development and Employment, think that threatening elderly people with a review of their benefit every 12 months—does he think that’s fair for New Zealand society?

Kahurangi Carter

Green Party · List MP

Thank you, Madam Chair. I want to speak to my tabled amendment, which will amend clause 4, “New subpart 3A of Part 6 inserted”. I think that this would really help the Minister for Social Development and Employment, because we have heard from the Minister, and we can see in the regulatory impact statement that there were limitations on consultation. Though the Minister did say that she had consulted with the Minister of disabled people, we can see that Whaikaha, or the Ministry of Disabled People, was not consulted on when the Government was drafting this legislation. That’s where my amendment can come in and help here, because what we want to do is make sure that any notification is going to be reasonable in terms of the person receiving it being able to actually read it and have access to the information, and it is just to limit the barriers to disabled people.

So I would like to ask the question that the Minister consider my amendment, and also a further question to that is: what advice has the Minister sought about the effects that this legislation will have on Braille readers and whether any notifications are going to be in that easy-to-read format? What I’ve done here is some work to help the Minister make this legislation more accessible in order to break down those barriers for disabled people who were not able to participate in the select committee process. This is about democracy and this is about all New Zealanders—all of us—being able to participate in the democratic process, and part of that is actually access.

You will see that in my tabled amendment, it’s looking at that clause 4, and so after clause 4, what I am asking the Minister to consider is that we put in a new paragraph under Subpart 3A in Part 6. After new section 310D(1)(b), it would insert new subsection 310D(1)(c), which would say that “MSD must first take all reasonable steps to ensure that the manner that MSD informs a beneficiary must be accessible, including but not limited to te reo Māori, Braille, and easy-to-read formats.” We know that when we say “reasonable steps” in the law, there is precedent there, and, actually, these are really reasonable steps.

So I do hope that the Minister will consider my amendment, because as we’ve said, in the regulatory impact statement, on page 3, it does say who was consulted. Firstly, there was no public consultation. However, the Office of the Privacy Commissioner, the Ministry of Housing and Urban Development, Kāinga Ora, and Treasury were consulted, but, unfortunately, the ministry of Whaikaha was not, and we can see on page 5 of that regulatory impact statement, at point 8, specified benefits will be included. I’m not going to read them all out, but I will talk about the supported living payment and the disability allowance. We know that this bill impacts a massive proportion of disabled people, and we want to just help the Minister make sure that this bill breaks down barriers for disabled people. I think that this is a really reasonable amendment, and I really hope that the Minister considers accepting it. Thank you.

Maureen Pugh

Chairperson

I’m very close to taking a closure motion. I’m just going to give members another opportunity to come up with very new questions. The last few have been very repetitive of topics that have been covered even in the time that I’ve been in the House—so I’m just alerting people.

Helen White

Labour Party · Mt Albert

Thank you, Madam Chair. I want to ask about the privacy consultation. What I’ve picked up from the debate over time, when there have actually been many Chairs, is that my initial question about how many different kinds of benefits were included in the new sweep of who would be under review is—I’ve had it confirmed, not by the Minister, actually, but just simply by what the Minister hasn’t said that that’s an expansive list. So it can be added to under the regulations, and while it’s in the explanatory note of the bill, you can have more things in there. The Minister is pointing to the explanatory note, but that says that it includes that, but it doesn’t say that it stops at that, and then, later on, it talks about the regulations.

Now, the point of this is new, because there is a discussion in the regulatory impact statement (RIS) about the Privacy Act having been looked at and talked to and consulted on. But I don’t know from looking at the RIS what they were told or what the parameters of what they looked at were. I’m particularly interested in the gathering of information that’s going on, and whether they were aware that the gathering is as wide as it is and for the purpose that it is. Usually, if you’re collecting information, the person who you collect it from knows what the purpose is, and since there are issues around what is included in that list, I ask what the Privacy Commissioner was told about the scope of its advice. We haven’t seen that advice, so we’re in a particularly blind situation there. I’d like to know what it is that the Privacy Commissioner told the Minister and what was the scope of what was put to the Privacy Commissioner. That is my first question.

Another question is about the parts of the legislation that talk about this. The explanatory note of the bill states that “We propose to introduce legislative amendments to allow MSD to implement”—and then it bullet-points matters, and I don’t know. That’s actually in the explanatory note of the bill, so are there extra amendments coming, because that’s a strange thing to see in a bill. “We propose to introduce legislative amendments”—is that coming later? Are we looking at further things, or have they been incorporated? Is that perhaps a mistake in it? It’s a very genuine question.

I also wanted to ask about the social licence issue, which I have raised in one of my speeches, and it’s about the system of automated decision-making. Given that there is this issue raised in the RIS about people’s genuine concern about the technology that’s being used, what are the steps that the Minister intends to take to make people feel comfortable with the automated decision-making process?

I know that there’s a really good standard that’s been adopted and there’s some work in the background, but I don’t think that the general public would know that and there’s been no engagement with them over this. So what does the Minister propose to do, given that we’ve gone from having a very narrow setting of this type of use of technology to a much broader setting? Could I know about that? It does interface with the issue about the Privacy Act, I think, so I am very keen to hear an answer to those questions. Thank you very much.

Miles Anderson

National Party · Waitaki

I move, That debate on this question now close.

Party vote

A party vote was called for on the question, That debate on this question now close.

Ayes 68

Noes 53

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Motion agreed to.

Maureen Pugh

Chairperson

Rachel Boyack’s tabled amendment providing that where 52 weeks is specified in the bill, it is deemed to be two years, is out of order as not being in the correct form of legislation.

The Hon Willie Jackson’s tabled amendment to clause 4 deleting new Subpart 3A is out of order as being contrary to the objects and principles of the bill.

Arena Williams’ tabled amendment to clause 4 replacing every instance of the word “reviews” with an “automated AI-dystopian review” is out of order as not being a serious amendment.

Arena Williams’ tabled amendment to clause 4 replacing every instance of the word “reviews” with “automated AI-dystopian review that may be inconsistent with concern about entrenching inequality” is out of order as not being a serious amendment.

Arena Williams’ tabled amendment to clause 4 replacing every instance of “mandatory” with “automated” is out of order as being contrary to the objects and principles of the bill.

The question is that Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new Subpart 3A of Part 6, to replace every instance of the word “specified” with “particularised”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new Subpart 3A of Part 6, to replace every instance of the word “mandatory” with “compulsory”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new Subpart 6A and Part 6 of the principal Act, to replace every instance of the word “review” with “review by a natural person which must not use automated AI systems of any kind unless specifically authorised by the Minister”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310A, to require the Minister to consult with sector representative groups, including Mā te Huruhuru, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310A, to require the Minister to consult with other sector representative groups, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Vanushi Walters’ tabled amendment to clause 4 amending new section 310A, to add the words “except for an unsupported child’s benefit which will not constitute a specified benefit”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

The result corrected after originally being announced as Ayes 55, Noes 68.

Maureen Pugh

Chairperson

The question is that Vanushi Walters’ tabled amendment to clause 4 amending new section 310A, to add the words “except for a child disability allowance which will not constitute a specified benefit”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

Members, I’m just correcting the previous vote. I should have said that the Ayes were 53; the Noes 68. Thank you.

The question is that Vanushi Walters’ tabled amendment to clause 4 amending new section 310A, to add the words “except for an orphan’s benefit which will not constitute a specified benefit”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Vanushi Walters’ tabled amendment to clause 4 amending new section 310A, to add the words “except for New Zealand superannuation”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Ingrid Leary’s tabled amendment to clause 4 amending new section 310A, to add the words “except for a veterans’ pension”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Ingrid Leary’s tabled amendment to clause 4 amending new section 310A, to add the words “except for assistance paid under the Guaranteed Childcare Assistance Programme”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

Arena Williams’ tabled amendment to clause 4 replacing the words “set out in subsection (2)” with “of the alleviation of child poverty” is out of order as being inconsistent with the objects and principles of the bill.

Arena Williams’ tabled amendment to clause 4 replacing the words “set out in subsection (2)” with “of the alleviation of child poverty and social inequity” is out of order as being inconsistent with the objects and principles of the bill.

Ingrid Leary’s tabled amendment to clause 4 amending new section 310B(1) to replace “must” with “may” is out of order as being contrary to the objects and principles of the bill.

Benjamin Doyle’s tabled amendment to clause 4 amending new section 310B(1) and the heading above it to replace “must” with “may” is out of order as being contrary to the objects and principles of the bill.

The question is that Camilla Belich’s tabled amendment to clause 4 amending new section 310B(1), to replace “must” with “may”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Vanushi Walters’ tabled amendment to clause 4 amending new section 310A, to add the words “except for a youth payment which will not constitute a specified benefit”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Vanushi Walters’ tabled amendment to clause 4 amending new section 310A, to add the words “except for a young parent payment which will not constitute a specified benefit”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Vanushi Walters’ tabled amendment to clause 4 amending new section 310A, to add the words “except for childcare assistance which will not constitute a specified benefit”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

Camilla Belich’s tabled amendment to clause 4 amending new section 310B(1)(a) to add the words “52” is out of order as being not in the correct form of legislation.

The question is that Ricardo Menéndez March’s tabled amendments to clause 4 amending new section 310B(1)(a) and (b), to replace “52 weeks” with “2 years”, be agreed to.

Party vote

A party vote was called for on the question, That the amendments be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendments not agreed to.

Maureen Pugh

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendments to clause 4 amending new section 310B(1)(a) and (b), to replace “within” with “at”, be agreed to.

Party vote

A party vote was called for on the question, That the amendments be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendments not agreed to.

Maureen Pugh

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendments to clause 4 amending new section 310B(1)(a) and (b), to insert the word “specified”, be agreed to.

Party vote

A party vote was called for on the question, That the amendments be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendments not agreed to.

Maureen Pugh

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendments to clause 4, amending new section 310B(1)(a) and (b), to replace “52 weeks” with “a period determined by the chief executive after consultation”, be agreed to.

Party vote

A party vote was called for on the question, That the amendments be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendments not agreed to.

Maureen Pugh

Chairperson

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310B(2) to replace “ascertain” with “determine” is out of order as not offering any significant change in the meaning of the provision.

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310B(2) to replace “purpose” with “intended purpose” is out of order as not offering any significant change in the meaning of the provision.

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310B(2)(a) and (b) to replace “entitled” with “eligible” is out of order as not offering any significant change in the meaning of the provision.

Kahurangi Carter’s tabled amendment to clause 4 amending new section 310B(3)(a)(i) to replace “commenced” with “started” is out of order as not offering any significant change in the meaning of the provision.

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310B(3) to replace “no later than” with “within” is out of order as not offering any significant change in the meaning of the provision.

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310C(1) to replace “must” with “should” is out of order as not offering any significant change in the meaning of the provision.

Camilla Belich’s tabled amendment to clause 4 amending new section 310B(1)(b) to add the words “52” is out of order as being not in the correct form of legislation.

The question is that Ingrid Leary’s tabled amendment to clause 4 amending new section 310B(3) to replace “must” with “may” be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310B(3) to replace “must” with “may” is out of order as being the same in substance as a previous amendment.

Camilla Belich’s tabled amendment to clause 4 amending new section 310B(3) to add the words “52” is out of order as not being in the correct form of legislation.

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310B(5) is out of order as being outside of the scope of the bill.

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310C(3) to replace “not being able” with “unable” is out of order as not offering any significant change in the meaning of the provision.

Arena Williams’ tabled amendment to clause 4 replacing the words after “circumstances have changed” in new section 310C with “materially, having regard to the overall fairness of the circumstances” is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 replacing the words after “circumstances have changed” in new section 310C with “materially, having regard to the overall fairness of the circumstances of the beneficiary and their household” is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 replacing the words after “time allowed” in new section 310C with “with absolute discretion in the interests of fairness to the beneficiary” is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 replacing the words after “time allowed” in new section 310C with “with absolute discretion in the interests of fairness to the beneficiary, their whānau and community” is out of order as not being in the correct form of legislation.

The question is that Dr Lawrence Xu-Nan’s tabled amendment to clause 4, inserting new section 310C(1A) into the bill, relating to processes for completing a review, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 4, inserting new section 310D(2A) into the bill, relating to MSD taking reasonable steps, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

Benjamin Doyle’s tabled amendment to clause 4, amending new section 310C(2) to replace “determines” with “ascertains” is out of order as not offering any significant change in the meaning of the provision.

The question is that Camilla Belich’s tabled amendment to clause 4 amending new section 310C(2)(a), to include the words “with feedback from the affected beneficiary”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Camilla Belich’s tabled amendment to clause 4 amending new section 310C(3), to replace “20 working days” with “25 working days”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 4 amending new section 310C(3), to replace “20 working days” with “a date specified by the beneficiary”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310C(3), to replace “20 working days” with “30 working days”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Camilla Belich’s tabled amendment to clause 4 amending new section 310C(4), to replace “must” with “may”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

Ricardo Menéndez March’s tabled amendment to clause 4 amending new section 310C(4) to replace “must” with “may” is out of order as being the same in substance as a previous amendment.

The question is that Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310C(4), to replace “the end of the day before” with “the day after”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that the Hon Willie Jackson’s tabled amendment to clause 4 amending new section 310C(4), to include a 30 - working-day delay to a suspension under that section, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

Francisco Hernandez’s tabled amendment to clause 4 amending new section 310C(5)(a) to insert “or” after “subsection (1)” is out of order as not offering any significant change in the meaning of the provision.

The question is that Ricardo Menéndez March’s tabled amendment to clause 4, inserting “emergency benefit” into the benefits listed in new section 310C(6), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 4, inserting “student allowance” into the benefits listed in new section 310C(6), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that the Hon Willie Jackson’s tabled amendment to clause 4, inserting “Jobseeker Support—Health Condition or Disability” into the benefits listed in new section 310C(6), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Camilla Belich’s tabled amendment to clause 4 amending new section 310C(7), to replace “must” with “may”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 4 inserting new subsection (7A) into new section 310C be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

Francisco Hernandez’s tabled amendment to clause 4 amending new section 310C(7) to replace “MSD must” with “MSD may” is out of order as being the same in substance as a previous amendment.

The question is that Kahurangi Carter’s tabled amendment to clause 4 amending new section 310C(8)(a), to replace “8 weeks” with “12 weeks”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Maureen Pugh

Chairperson

The question is that Francisco Hernandez’s tabled amendment to clause 4 amending new section 310C(8)(a), to replace “starting immediately” with “starting 4 weeks after”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

I’m just getting some clarity on some questions that needed to be put but that were not put, and then we will continue.

The question is that Ricardo Menéndez March’s tabled amendment to clause 4, inserting “jobseeker support” into the benefits listed in new section 310C(6), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 4, inserting “working for families” into the benefits listed in new section 310C(6), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 4, inserting “sole parent support” into the benefits listed in new section 310C(6), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 4, inserting “emergency housing” into the benefits listed in new section 310C(6), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

We’re just doing a check to make sure that we’ve got all the questions that need to be put.

The question is that Ricardo Menéndez March’s tabled amendment to clause 4, inserting “disability allowance” into the benefits listed in new section 310C(6), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 4, inserting “special disability allowance” into the benefits listed in new section 310C(6), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 4, inserting “winter energy payment” into the benefits listed in new section 310C(6), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Rachel Boyack’s tabled amendment to clause 4, inserting “supported living payment” into the benefits listed in new section 310C(6), be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310C(8)(b), to replace “2 years” with “3 years”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310C(9), to delete “113” and “290”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Camilla Belich’s tabled amendment to clause 4 amending new section 310D(1), to replace “20” with “30”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310D(1), to replace the words after “MSD must” with “either in a reasonable timeframe or”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310D(1), to replace the words after “MSD must” with “either in a reasonable timeframe or a period of 90 days or”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Kahurangi Carter’s tabled amendment to clause 4 amending new section 310D(1), to replace “at least 20 working days” with “at least 8 weeks”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

Francisco Hernandez’s tabled amendment to clause 4 amending new section 310D(1)(a) to add “and” after “for the review” is out of order as not offering any significant change in the meaning of the provision.

The question is that Kahurangi Carter’s tabled amendment to clause 4 inserting new paragraph (c) into section 310D(1) be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310D(2), to insert the words “the benefit of compassionate consideration and” before the words “a notice”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310D(2), to insert the words “the benefit of compassionate consideration, and justice, and” before the words “a notice”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 4 amending new section 310D(2)(a)(iii), to replace “will be” with “might be”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310D(2)(a)(iii) replacing “fails to” with “unable to” is out of order as not being in the correct form of legislation.

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310D(3), to replace the words after “not apply” with “to this Part 3A - mandatory reviews”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

Arena Williams’ tabled amendment to clause 4 amending new section 310D(3) to replace the words after “not apply” with “to this Part 3A—mandatory reviews and all subsequent clauses in this Act” is out of order as being contrary to the objects and principles of the bill.

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310D(b)(ii) and (iii) to replace “way” with “manner” is out of order as not offering any significant change in the meaning of the provision.

The question is that Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310D(4), to replace the words “as soon as practicable” with “on the day before the suspension ends”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310E, to replace every instance of the word “MSD” with “the Minister”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310E, to replace every instance of the word “MSD” with “the relevant agency”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310E(1)(b), to delete “or times, or at all times”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

Arena Williams’ tabled amendment to clause 4 amending new section 310F to replace the words “complete a review” with “at all” is out of order as being contrary to the objects and principles of the bill.

Camilla Belich’s tabled amendment to clause 4 amending new section 310F to add the words “particularly if the consequences of the review would cause hardship, homelessness or poverty” is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 amending new section 310F to replace the words after “complete a review” with a full stop is out of order as being contrary to the objects and principles of the bill.

Kahurangi Carter’s tabled amendment to clause 4 amending new section 310F to insert “and Subparts 12 to 14” after “sections 326 to 330” is out of order as not being in the correct form of legislation.

Francisco Hernandez’s tabled amendment to clause 4 amending new section 310F to insert “and Subparts 9 to 11” after “sections 326 to 330” is out of order as not being in the correct form of legislation.

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310F to insert “and Subparts 7 and 8” after “sections 326 to 330” is out of order as not being in the correct form of legislation.

Ricardo Menéndez March’s tabled amendment to clause 4 amending new section 310F to insert “and Subparts 2 to 4” after “sections 326 to 330” is out of order as not being in the correct form of legislation.

Benjamin Doyle’s tabled amendment to clause 4 amending new section 310F to insert “and Subparts 5 and 6” after “sections 326 to 330” is out of order as not being in the correct form of legislation.

Dr Lawrence Xu-Nan’s tabled amendment to clause 4 amending new section 310G(2) to insert “reasonably” after “as soon as” is out of order as not offering any significant change in the meaning of the provision.

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310G, to replace the word “practicable” with “fair”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310G, to replace the word “practicable” with “reasonable and just”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310G(2), to replace the word “review” with “consider the fairness of”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310G(2), to replace the word “review” with “consider the fairness and appropriateness of”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310H, to replace the words after “apply” with “if in the view of MSD that would result in a fair outcome”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310H, to replace the words after “apply” with “if in the view of MSD that would result in a fair outcome under the assessment of a natural person and not AI”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310H, to replace the words “all necessary” with “all suitable”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310H, to replace the words “all necessary” with “fair and reasonable”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

Arena Williams’ tabled amendment to clause 4 amending new section 310H(b) by replacing the number “306” with “311” is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 amending new section 310H(b) by replacing the number “306” with “310” is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 amending new section 310H(c) to replace the words as written with “the purposes of social security” is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 amending new section 310H(c), to replace the words as written with “the purposes of social security net availability for all New Zealanders”, is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 amending new section 310H(d), to replace the number “8” with the number “4(2)”, is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 amending new section 310H(d), to replace the number “8” with the number “4(3)”, is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 amending new section 310H, to replace every instance of the word “certain” with “specified”, is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 amending new section 310H, to replace every instance of the word “certain” with “every”, is out of order as being not in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 amending new section 310H, to replace every instance of the word “section” with the words “for the avoidance of doubt, there is no application to this part of section”, is out of order as not being in the correct form of legislation.

Arena Williams’ tabled amendment to clause 4 amending new section 310H, to replace every instance of the word “section” with the words “for the avoidance of doubt, there is no application to this part of sections or clauses”, is out of order as not being in the correct form of legislation.

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310H, to replace the word “all” with “no”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Arena Williams’ tabled amendment to clause 4 amending new section 310H, to replace the word “all” with “none of”, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

Arena Williams’ tabled amendment to clause 5 amending new section 363A(3), to include “the fair and reasonable use of electronic systems to make decisions”, is out of order as not being in the correct form of legislation.

The question is that Ricardo Menéndez March’s tabled amendment to clause 5, deleting new subsection (3)(b)(i) and (ii) of section 363A, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed to.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is that Ricardo Menéndez March’s tabled amendment to clause 5, deleting new subsection (3)(c) of section 363A, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Teanau Tuiono

Chairperson

The question is, That Ricardo Menéndez March’s tabled amendment to clause 5, deleting new subsection (3)(d) of section 363A, be agreed to.

Party vote

A party vote was called for on the question, That the amendment be agreed.

Ayes 53

Noes 68

PartyCount
Ayes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6
Noes68
New Zealand National49
ACT New Zealand11
New Zealand First8

Amendment not agreed to.

Party vote

A party vote was called for on the question, That Part 1 be agreed to.

Ayes 68

Noes 53

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes53
New Zealand Labour32
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Part 1 agreed to.

Part 2 Other amendments to principal Act

Teanau Tuiono

Chairperson

Members, we now come to Part 2. This is the debate on clauses 6 to 8, “Other amendments to principal Act”, and the Schedule. The question is that Part 2 stand part.

Ingrid Leary

Labour Party · Taieri

This is a short part, but it does have some of the most concerning elements of this legislation in it. I will draw the committee’s attention to the Schedule, actually. So going straight to Part 2—sorry, it’s new section 438A, inserted by clause 6. This is about the regulations required for specified benefits.

We’ve spoken a little bit about the fact that there is an issue with regulation-making powers in this legislation, but we haven’t offered fulsome contributions because we were aware it was in Part 2. But under this section, particularly in new section 438A(1)(a) in Part 2 where it designates “the benefits or kinds of benefits that are a specified benefit or specified benefits for the purposes of Subpart 3A of Part 6.” The problem with this is I see the word “designating”, so I’m hoping that the Minister for Social Development and Employment can clarify that this is the designation only, not creation of the benefits that are specified. Even then, it’s problematic to go into regulations, but it would be great to have that in the Hansard. There are two issues. One is that it’s in regulations, as I’ve said, and the other one is that it’s the kinds of benefits, which means that it’s opening the door to saying that there could be other benefits that are not currently even thought of or created that might suddenly find themselves being made in secondary legislation.

Now I’d like to turn to the Legislation Design and Advisory Committee’s Legislation Guidelines: 2021 Edition—it’s known as the LDAC. For people at home, this is the Bible, if you like, of how to write proper laws. In 14.1, it’s really clear that “Legislation should not delegate a power to make secondary legislation in respect of matters that are more appropriate for an Act.” In it, it talks specifically about how it’s OK if it’s minor or technical details for the implementation and operation of the ACT, but matters that affect fundamental human rights in a significant way should not be included. Yes, it admits that there are some grey areas, but I would submit that does not apply in this case. If we look at it, it’s teased out, it talks about “matters of significant policy” and “matters significantly affecting fundamental human rights”.

Now, when we’re talking about benefits, we’re talking about people’s ability to live quality lives, to not be on the street, to have food on the table, and to have lives with dignity. I don’t think there would be any dispute that when we’re talking about housing, food, shelter, and those fundamental things in the hierarchy of human needs, that those are fundamental human rights. So, clearly, this should not be relegated to regulation.

It’s been done very deliberately. If I look at some of the benefits that are not captured by the exemption—and we’ve seen amendments on them: Working for Families; the winter energy payment, that’s about people being warm; the widow’s benefit; the supported living benefit, which we still don’t have clarity about; jobseeker support; the special disability allowance; the student allowance; the young parent allowance; sole parent support; young parents. These currently are not exempted. They are in the designated regulations that is going to happen in this empowering provision new section 438A, inserted by clause 6. That’s a problem to us because those, even if they’re in the exemptions, should be specified, and, if they’re not, that should be clear, rather than relegating that. At the moment, the door is wide open.

There is also the question of the words “kinds of benefits”. Now, I’m hoping the Minister will say that designating does exclude creating, but the “kinds of benefits”, if we could cut that out, that would maybe close that door a little. It doesn’t really resolve the problem, but this is wide open now to give this Government, which doesn’t like beneficiaries, lots of power to be able to put a whole lot of other things in there, call them benefits and say, “We are now going to capture those.” in the new bill that is being slammed through urgency today. That is completely unacceptable, and in my view, goes against the LDAC.

So I’d like to see what the Minister has to say about that. Coming up, I think there are also going to be some other really important questions about retrospectivity and the application of this Act, so bear with us, Mr Chair.

Lawrence Xu-Nan

Green Party · List MP

Thank you, Mr Chair. I also have a question for the Minister for Social Development and Employment around new section 438A, inserted by clause 6, but I’m coming at regulations from a different angle, and particularly when it comes to regulation-making power (RMP).

One of the things that we have seen, particularly with bills under urgency, is that they don’t have the chance to even go through a vetting process or review process from some of committees here in Parliament itself, one of them being the Regulations Review Committee, which does oversee some of the secondary legislation. Now, the reason I mention this is because when we are looking at the way that this particular bill is worded, what we are risking is potentially elements of ultra vires. I was wondering whether the Minister or officials have considered in their analysis around instances or risk of ultra vires and what that would mean from a perspective of either judicial review or—let’s say, for example—a complaint to the Regulations Review Committee under Standing Order 327(2)(c), to give an example. So my question for the Minister is: when something like this is drafted, has the Minister considered the potential risks and the scope of the regulation-making power in this particular provision?

Also, this is something that we see in other legislation, particularly legislation under urgency—because, again, I understand there are certain requirements, etc. But what we also see in some of this other legislation around regulation-making power is the ability for there to be a review within a certain period of time. That is also something that we’re not seeing in this specific section 438A.

I also want to ask a follow-on from my previous question around the scope of the regulation-making power and the potential risks of the regulation-making power and whether the Minister would then consider my amendment, which is to introduce a new subclause (1A), which allows there to be a provision for review no later than four years after this particular section being introduced. That’s a very reasonable amendment, because it allows sufficient time for anything to be vetted, for this to be fully implemented by the commencement date, and for there to be a number of years for us to be able to track some of that data. And, indeed, in some of the legislation we’re introducing RMP, particularly as secondary legislation, we do see that review as a baseline safety net for anything that potentially might happen.

So those are my three questions on the specificity of the regulation-making power. I know other people may have questions around the specificity around the designation of certain kinds of benefit, but my question is on the risks, the possibility of ultra vires, the possibility of a judicial review or of a complaint to the Regulations Review Committee under Standing Order 237, and whether the Minister would consider my amendment.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I do want to just remind members that the list of benefits that’s included is very clear because they are payments that don’t expire. So I was surprised when members were considering changes to this, that benefits that are due to expire were included in some of the amendments. I can assure the committee in terms of the Labour member’s question that the design of the regulation-making power has been aligned with the Legislation Design Advisory Committee guidelines and passes that threshold.

Ricardo Menéndez March

Green Party · List MP

Thank you, Mr Chair. I wanted to take a call on the Schedule—this is the “New Part 11 inserted into Schedule 1”. I wanted to look at clause 105, and this is the “First mandatory review … for specified benefit granted and commences before commencement date”. The way I read this is that—and even the other provisions in Part 2 as well—it’s creating the potential as well that if a new benefit where there’s not a review, as she just outlined, is introduced by the Minister for Social Development and Employment—say she decides to introduce a new type of benefit—some of this can be used, which then begs the question as to whether she has any intention of introducing any new types of benefit. That’s how I’m reading it, and therefore, you know, I’d be keen to get some clarification about this.

This is particularly important—and her official’s giving some notes—because, you know, for example, when we were discussing the Social Security Amendment Bill that had provisions around automatic decision-making, the Minister didn’t tell us at the time that she intended to use this piece of legislation following up the Social Security Amendment Bill that broadened the use of automatic decision-making. So now I wonder if I’m interpreting the Schedule correctly—whether, then, she also has an intention to introduce new types of benefits that don’t have a review to which this could then apply. If that is the case, I’d be keen to give the Minister the opportunity to offer some transparency to the committee.

I say this because we didn’t get engagement in the previous debate around, for example, the breakdown around the savings and where they’re going to be coming from, the breakdown around the benefit types. We didn’t get engagement around the algorithm and presenting it to the committee. And we didn’t get any engagement from the Minister around giving us the unredacted part of the regulatory impact statement. So I’m really keen to get some engagement from the Minister around whether she intends to add any new types of benefits that are not reviewed and therefore would then be captured with this, and, if so, what are they and whether any work’s started around this.

Then, following up on my colleague Lawrence Xu-Nan’s questions in relationship to the broader sort of reviews, I did want to ask whether the Ministry of Social Development (MSD) already did an analysis on the potential staffing utilisation that could occur as part of MSD as part of these reviews, and, if so, what is the intended potential cost that could arise from that? If she has any information from whatever MSD has produced as a result, that would be really, really useful.

I say this again because, looking at the budget lines, it seems like MSD isn’t getting—well, the way I read it, and we didn’t have a lot of time because we, basically, jumped straight into this debate, is that there doesn’t seem to be a huge increase in staffing capacity at MSD. I note as well from questions I asked under, I think, the Official Information Act, there still remains a large amount of vacancies being unfilled by MSD. So I do wonder, in terms of the sort of reviews in Part 2, whether the Minister is confident that there will be enough capacity for MSD to progress with those.

But just to recap, I’m keen to hear around the Schedule in new Part 11 as to whether she intends to introduce any new types of benefits that could be captured, and the second part. Thank you.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I want to just confirm to the committee that the regulation-making power has been carefully designed so there is no “Henry VIII” clause. For the previous member, the primary legislation specifically includes benefits that can’t be included in regulations, which protects parliamentary sovereignty. I have already answered questions around resources, front line, efficiency, and gains from automated decision-making.

Teanau Tuiono

Chairperson

Members, the time has come for me to leave the Chair. This House will resume at 7 p.m.

Sitting suspended from 5.57 p.m. to 7 p.m.

Maureen Pugh

Chairperson

Members, the committee is resumed on the Social Security (Mandatory Reviews) Amendment Bill. When we rose for the dinner break, we were debating Part 2. Once again, the question is that Part 2 stand part.

Benjamin Doyle

Green Party · List MP

Thank you, Madam Chair. Thank you very much. I’m really pleased to be standing to speak to Part 2 and ask some questions to the Minister for Social Development and Employment as I have been waiting a little while—we were voting on that last round for quite some time. I’m presenting some new questions for the Minister as they pertain to Part 2, clause 8, the amendments to Schedule 2, particularly subclause (1). We have reference here to automated electronic systems.

I do want to refer, first of all, to the Ministry of Social Development’s regulatory impact statement (RIS). We have some really useful information on pages 16 and 17 regarding human oversight and standard requirements. In regards to automated electronic systems, I would like to ask the Minister around the provision that is assured in this regulatory impact statement of providing a channel for challenging or appealing decisions made using automation, and how this channel must be made easily visible and accessible to the individuals impacted by the decision.

We know through the RIS that there are some risks around the impacts that will be disproportionately affecting Māori communities. As this bill has come through under urgency, we have not had a chance to debate or tease this out in a select committee as would be standard. So we do need to present these questions here in the committee and go through them methodically and try really to earnestly get some responses from the Minister.

The bill talks about automated electronic systems, which are a reference to artificial intelligence (AI), effectively. The Minister might be able to give assurances around what information she has received from community, from experts, from researchers in the field around the requirement in the RIS, or the promise that it will be made—the safeguards will be in place around the use of AI. We know that community have provided their thoughts and recommendations despite there not being a select committee in order to hear from community.

I am referring to the report that was released or presented publicly by Mana Raraunga, which is the Māori Data Sovereignty Network. This is a new point that has not been explored in any part of this debate yet—data sovereignty for Māori—and it’s essential, as it is a part of a guarantee under article 2 of Te Tiriti o Waitangi: tino rangatiratanga over ngā taonga katoa. Data is a taonga. It is a protected right under Te Tiriti o Waitangi, and Mana Raraunga outline in their principles document, Principles of Māori Algorithmic Sovereignty as it pertains to the use—

Member

What?

Member

Are you kidding me?

Benjamin Doyle

Green Party · List MP

Yes. You wouldn’t know much about that on the other side, I assume. Automatic—

Maureen Pugh

Chairperson

I’m sorry to interrupt the member. Can you just refer me to the clause you’re—

Benjamin Doyle

Green Party · List MP

Certainly. Thank you. Part 2, clause 8(1), the amendment to Schedule 2, which is around automated electronic systems, which is a reference to the algorithmic programming and machines used to process data. Did you find the clause?

Maureen Pugh

Chairperson

No.

Benjamin Doyle

Green Party · List MP

It’s on page 8, around line 25.

So automated electronic systems is a reference to algorithmic data collection and use. Mana Raraunga references principles of good algorithmic data sovereignty in their report presented publicly. I would like to know if the Minister has made any consideration to the principles of Māori algorithmic sovereignty as they pertain to the use of AI in data.

Maureen Pugh

Chairperson

Can I just remind the member that that clause that you’re referring to is a cross-reference in in terms of Part 2. It’s not actually a debate on the detail that the member is—

Benjamin Doyle

Green Party · List MP

Sure. May I reiterate my question to the Minister pertaining to that?

Maureen Pugh

Chairperson

You’ve got 22 seconds.

Benjamin Doyle

Green Party · List MP

Fabulous. Thank you.

So my question is around what information or advice has the Minister been given regarding the use of automated electronic systems as it pertains to Māori data sovereignty? Thank you, Madam Chair.

Louise Upston

National Party · Taupō

Minister for Social Development and Employment

I move, That the committee report progress.

Kieran McAnulty

Labour Party · List MP

Point of order, Madam Chair. Can you please confirm to the committee that it is appropriate for a Minister in the chair to move that when there are speakers that were seeking the call?

Maureen Pugh

Chairperson

Yes. This is a motion to report progress; it’s not a closure motion. The question is that the motion be agreed to.

Motion agreed to.

House resumed.

Maureen Pugh

Chairperson

Madam Speaker, the committee has considered the Social Security (Mandatory Reviews) Amendment Bill and reports that it has made progress on the bill. I move, That the report be adopted.

Motion agreed to.

Report adopted.

Barbara Kuriger

Deputy Speaker

The bill is set down for third reading immediately. [Interruption] Oh, have I got the wrong—oh, OK. The bill is set down for further consideration next sitting day. I think something’s changed on us, so that’s OK. We’ve done that bit right. Just a moment. Let me get on the right page here. I’m going to call the Hon Simon Watts, which is what I’ve got on this one.

Rates Rebate Amendment Bill

First Reading

Simon Watts

National Party · North Shore

Minister of Local Government

I present a legislative statement on the Rates Rebate Amendment Bill.

Barbara Kuriger

Deputy Speaker

That legislative statement is published under the authority of the House and can be found on the Parliament website.

Simon Watts

National Party · North Shore

I move, That the Rates Rebate Amendment Bill be now read a first time.

Madam Speaker, honourable members, I would like to thank you for considering this bill under urgency. We know it’s tough out there for many Kiwis and the cost of living has significantly impacted households over the past years, and that is why this Government is working hard to grow this economy, to reduce the cost of living, and to help Kiwis get ahead. We know things won’t change overnight, but our plan is making a difference. Inflation is under control. Tax relief is putting more money into Kiwi back pockets. Initiatives, like FamilyBoost, are helping with the costs of childcare for families. We recognise rising rates are adding to the challenges faced by some of the most vulnerable citizens, including many seniors living on fixed incomes. These individuals are burdened by rates that they simply cannot afford. These Kiwis deserve better. They deserve peace of mind in retirement, not financial stress. That is why we are considering this bill under urgency, as it will provide that peace of mind to our seniors.

The Rates Rebate Scheme is part of a larger set of tools designed to help and support households in managing their living costs, and to address the impacts of rising rates. This bill proposes eligibility changes to the scheme that will provide additional financial relief for 66,000 more SuperGold card holders. This new threshold will be set at $45,000 per household, which is nearly $13,000 higher than the threshold for the general population. This means that for anyone paying an average level of rates and earning New Zealand superannuation, the Government will reduce your rates bills by $805 next year. Furthermore, thanks to the way the abatement thresholds function, individuals can earn more than $45,000 and still be eligible for partial rebate if they hold a SuperGold card. This allows the Government to provide financial support for some of our most vulnerable ratepayers.

The changes announced today will take effect from 1 July 2025. The Government has allocated over $150 million over the next four years to support this initiative, with more than $30 million budgeted for the first year. Other changes taking effect on 1 July 2025 will increase the maximum rebate for all taxpayers from $790 to $805. Additionally, the income abatement threshold will rise from $31,510 to $32,210 for low-income ratepayers who do not hold a SuperGold card. The Rates Rebate Scheme currently assists over 100,000 low-income ratepayers in managing their living costs, and starting from 1 July 2025, we estimate that the number of individuals eligible for the scheme will increase by nearly 40 percent.

While this may seem like a small change for some, I am proud to be part of a Government that will be introducing legislation that will make the average New Zealand ratepaying couple earning New Zealand superannuation better off by more than $800. It will mean more money in the pockets of Kiwis, especially our seniors, who have worked their entire lives to enjoy their retirement.

This bill is a cost of living solution to a much wider issue the Government wants to address. Kiwis are feeling the impact of dramatic rates increases from their councils, and many feel they aren’t getting better services for those increases. I want to assure Kiwis that this Government does not see this as acceptable. We have made it clear to councils that they must prioritise essential services over the nice-to-haves. Their focus needs to be on ensuring that core services, like waste collection, water infrastructure, and road maintenance are delivered brilliantly. We will also be investigating instituting a rates cap system for councils, and hope to have more to say on this shortly. As we work hard to address these broader issues, I am proud that this bill can offer immediate relief to those most vulnerable to rising rates. I commend this bill to the House.

Barbara Kuriger

Deputy Speaker

The question is that the motion be agreed to.

Tangi Utikere

Labour Party · Palmerston North

Kia orana, Madam Speaker. Well, it’s interesting listening to the Minister of Local Government talk about and acknowledge the pressures that councils are under, because he himself is directly responsible for many of the expectations that have been placed upon councils around this country without any expectation that there will be any funding that flows from that. So, whilst he’s happy to talk about how this will alleviate pressures on households, at the same time, within the same breath, and by the same sentence, he is, basically, indicating that they need to get back to basics, when they are doing more than that. Everyone around this Chamber should acknowledge the fact that local government do an amazing job in our community and they must be supported by those of us who serve in this Chamber.

The Labour Party will be supporting this piece of legislation today.

Members

Great news. Excellent.

Tangi Utikere

Labour Party · Palmerston North

Oh, their tune has changed. The Labour Party will be supporting this legislation today. However, given that this is under urgency, there are a number of questions that we will be expecting to put to the Minister for him to address. Now, one of the interesting things—and we’ll get to this later in the debate—is that this is actually a bill that does have a regulatory impact statement (RIS). Often we don’t, but this bill has a RIS. However, the RIS identifies that, given the haste with which this bill has come to the House, there are a number of holes that need to be addressed and looked into. So, as the Opposition, we will be, even though we do support the tenets of this bill, expecting, none the less, to provide some scrutiny and for the Minister and the Government to be able to respond to some of these concerns.

One concern is the inadequate amount of time that officials have had to actually prepare a number of aspects in response. One example is that the sector hasn’t really been consulted around this as to what it will mean for councils and communities. It’s great to have this as an option and an opportunity, but if the Government is going to be setting up councils to fail because it’s not going to be able to be administered or delivered in a way that meets local community needs, we do have some concerns around that.

This is a bill that, effectively, creates an additional tier for the Rates Rebate Scheme. The Rates Rebate Scheme has been around for a wee while, but, unfortunately, just under 60 percent of those who might be eligible are actually able to access it for whatever reason. I look forward to putting that to the Minister around how that could change, moving forward into the future, because it should be more, given that times are tough for folks at the moment.

The Minister talks about how this change is going to deliver real difference. When he talks about the increase that will be proposed—from $790 to $805, which is the full rebate that would be available—what does that actually equate to for those who are on New Zealand superannuation? It equates to an extra 58c per fortnight. So from a Minister talking about taking action to alleviate the pain and suffering that senior citizens are having in this particular community, the actual increase that he himself referred to in his introductory speech—from $790 to $805—equates to an extra 58c for those on New Zealand super. So it’s things like that that we want to tease out. While this is important and it will provide some financial sustenance to some households, it won’t provide all of it. So from a Government that crows about a Budget that is seeking to do certain things, this is certainly not something that is going to make huge inroads, really, when it comes to addressing and tackling the cost of living crisis that households are doing it tough in at the moment.

This is a bill that creates those two tiers: one in terms of those who can currently access the Rates Rebate Scheme, but the other, of course, is setting a new tier or a new opportunity for those that hold a New Zealand SuperGold card, as part of that. It’s interesting that this seems to have been on the cards with the Government in terms of its National and New Zealand First coalition agreement. But we have some questions. Why has it taken so long? Why has it taken so long if the ink is, basically, dry on that agreement and it was signalled? Why has it taken so long, and why have sector organisations and groups actually not had an opportunity to engage with the Government through officials around this?

What we learnt from the RIS is that there are only five councils that had any form of input into this, and we’d be interested to know what that input actually was. Whilst this is the first reading—yes, at this stage, we are happy to support this, but there will be many questions as part of our scrutiny obligations that we will intend to work through as this debate progresses.

Lawrence Xu-Nan

Green Party · List MP

Thank you, Madam Speaker. I rise on behalf of the Green Party of Aotearoa New Zealand, as the Green Party spokesperson for seniors, to speak on this particular bill, the Rates Rebate Amendment Bill. I think one of the key things we are seeing here is that, yes, those people who are SuperGold card holders, which is the majority of people who are over 65, will be eligible for this additional rates rebate, going from $32,000 to $45,000 for SuperGold card holders. However, a couple of things, obviously, we need to follow are that there’s a conception, or misconception, that anyone who is over the age of 65 will be eligible for a SuperGold card. But we must understand that those people who are not residents of Aotearoa New Zealand are not eligible, at this stage, for SuperGold cards, so, therefore, it does create a degree for people who are potentially migrants or on a working visa etc. If you are no longer eligible to buy properties here, for example, you are not actually eligible in this case under the rates rebate, even though you are over the age of 65, purely because of the fact that you are not a SuperGold card holder.

On top of this, one of the other things that we thought was quite interesting—and I wouldn’t want to go into some of the more detailed things that we want to discuss at the committee stage, because, again, we are currently doing this under urgency. We’re not going to have a select committee. Therefore, we’re going to go straight into a second reading, so there’s more things for me to discuss in the second reading of some of the things that we would like to tease out during the committee stage. But, again, painting that broader picture of this particular Rates Rebate Amendment Bill, you know we are looking at that increased threshold from $32,000 to $45,000, but it’s also interesting that we’re looking at it from a household perspective, as opposed to an individual perspective. So that element is also something for us to really consider when we are looking at this bill in greater detail.

Now, on top of all of these things, in terms of what I said, the other thing that I found particularly a bit of an anomaly is that if we’re going to be putting this up to a particular threshold, why have we decided to only expand it to those who are SuperGold card holders? Surely there’s no need for us to create this two-tier system where, if you’re not a SuperGold card holder, you are still on the lower rate of $32,000, but if you are a SuperGold card holder, you are on the higher rate of $45,000. On top of that, there is also the addition that the commencement date is 1 July 2025, but only when we see the passing of the Rates Rebate (Specified Amounts) Order 2025, which then also lifts the other ratepayers from $31,000 to $32,000.

So, even though it’s a reasonably small bill, there’s actually a lot of things in here that we do need to unpack. The previous speaker also mentioned the potential impact that this will have for local government and local councils. We have seen, in the regulatory impact statement, some of the additional administrative cost that’s associated with that. I wonder, again, if part of that is going to be underestimated.

But when we come into this bill, there other things that are also drawing my attention around clause 6 of this bill, “Section 5 amended”, in terms of the things that local authorities can or can’t ask. So this is also quite interesting in the sense of why these four things are specifically limited and what additional things we are also seeing in the context of this bill, in the context of the process that people need to go through in order to require for the verification of this and for the requirement to verify the statement that they will need in order to be eligible for this—or if it’s simply that they are a SuperGold card holder.

I think one of the final things that I want to draw the House’s attention to is some of the things around the definition of “cardholder”, but also in terms of the definition of “SuperGold card”. I think that also warrants some consideration as we are going through the second reading and going through the committee stage, and I’m sure there are more things for me to discuss as a result of that. However, in saying that, we do see that if you are a couple, if you are family, and you are on a superannuation, there is a gap in there in terms of eligibility that allows you to exercise the maximum rate. So because of that, the Green Party will be supporting this.

Cameron Luxton

ACT Party · List MP

Thank you, Mr Speaker. It’s a pleasure to speak in support of this bill on behalf of the ACT Party. What we’re doing here with this piece of legislation is, contrary to some of the comments previously made, removing some of the burden on councils, because the ease in which to verify SuperGold card status is easier than the current situation. We’re going to be getting some money back into the hands of retirees who’ve done their debt to society. They’ve worked their lives and they’ve seen rate rises going up at a very high rate, as we all have in the last few years. Change is coming in New Zealand. It changed in 2023. In October, local government is up for election, and people will be able to vote for more sensible councillors if they feel like their council has been profligate. But in the meantime, we need to do something to make sure that councils—the effects of rate rises are not affecting some of our most vulnerable, who are SuperGold card holders. I commend this bill to the House.

Andy Foster

NZ First Party · List MP

This is a promise that New Zealand First campaigned on. It’s part of the coalition agreement. This is this Government again delivering on what it said it would do. What this does is acknowledge that rapidly rising rates are really hurting people across the board, especially our seniors, who do not have the ability to change their income level.

I just want to pick up one issue that Tangi Utikere raised; he said it was about 58c. No, it’s not about 58c; it’s about the difference between that $31,000 and the $45,000. If you are a married couple, at the moment, you get virtually nothing, depending on what your rates level is. This, for the first time, lifts the income level before the rebate begins, to approximately the level which is paid to a married couple on superannuation. It will make an important difference to those people, but, as the Minister said in introducing this, it is not going to be an excuse for councils to raise rates. I commend this bill to the House.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Tēnā koe e te Pīka. Tēnā tātou e te Whare. I might have used a similar phrase the other night and I’ll probably use it again. I expect that I’m going to get a similar reaction. I was talking about a shed then, so I’m waiting for the lads to start cheering—

Tom Rutherford

National Party · Bay of Plenty

Oh, another one!

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Yes, exactly. But, to this point, to be grateful for small mercies—I mean, the points that I’m making in that regard is that we see the intention and the intention seems good. So we will be supporting this—

Member

Good choice.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

—but we will also be looking to—I know. I’m waiting for the applause, people, let’s go—[Applause] But if the intention is true—if it is to provide financial support for those that might be struggling, and right now I’m seeing our kaumātua—that’s a good thing—that’s a good thing. But it is in the detail that we need to examine it and I look forward to doing that at the next stages.

The size of it, when the Minister of Local Government referred to it being a small bill and we don’t need to hold it up in any way, unlike the previous bill—it was small but the regard was flippant. I would like to think that this might be small but it is important. And, despite the size of things, it still requires what I think is a trust and verify process, so I’m looking forward to that. And our kaumātua in Te Tai Tokerau, I think they’ll be very pleased, but they will still expect me to ask the questions and go, “Can you trust them, Meno?” So kia ora tātou.

Cameron Brewer

National Party · Upper Harbour

Thank you, Madam Speaker. This is a Government for seniors, and this Rates Rebate Amendment Bill goes further in confirming that. I am very pleased to support it as up to 66,000 more seniors are now eligible for rates support. Superannuation is up as well, following the impact of our tax relief package, and we’re going to fix the Retirement Villages Act next year. This is another great day for seniors in this country, thanks to this Government. I commend the bill.

Jenny Salesa

Labour Party · Panmure-Ōtāhuhu

Madam Speaker, thank you for this opportunity to debate the Rates Rebate Amendment Bill. It is really unusual for a bill that we’re debating under urgency after a Budget that we get all members of Parliament, from all sides of the House, agreeing to a bill. So I would like to actually congratulate the Minister, the Hon Simon Watts, for all of his work on his bill, and his officials as well. As you heard from Tangi Utikere, who is leading us on this side of the House on this bill, we absolutely support this bill. The law that the Minister is proposing has the right intentions, but we will be asking a number of questions at the committee of the whole House stage because we think that there are lots and lots of questions that we still should have answered. From my perspective, although this bill is really great for our seniors, it stops far too short in terms of fairness.

I would also like to acknowledge something that we all know in this House, which is, here in Aotearoa New Zealand, we have an ageing population, and many of our elders, many of our seniors, who have worked hard all their lives, are now struggling, unfortunately, under the rising costs, and this actually affects their ability to stay in the homes that many of them have worked really, really hard for over many, many years—the homes that they love. So this is one of the reasons why we really support the Minister on this bill.

Lifting the income threshold to $45,000 for SuperGold card holders gives real support and assistance to many of our seniors, many of our homeowners—and, for that, I congratulate the Government, and I say thank you, especially on behalf of all of the seniors in my electorate in Panmure-Ōtāhuhu who will qualify for this particular rebate.

But here is where the agreement ends, because this bill, for all of its compassion towards our beloved seniors, it, unfortunately, leaves many others behind. It draws a sharp line between the deserving elderly homeowner, and the invisible battler who doesn’t fit the box. A 68-year-old couple on superannuation and who own their own home gets help when this bill becomes law, and that’s great for our seniors who qualify. But a 40-year-old woman, a hard-working solo mum who works two jobs—many of them—earning $42,000, renting in South Auckland, living in Panmure-Ōtāhuhu, and raising three beautiful children, gets nothing—absolutely nothing; no relief, no rebate, no recognition. And if she is Māori, if she is Pacific, her odds of homeownership are lower—much, much lower. Her experience of poverty is deeper. Her exclusion from this bill is almost guaranteed. That is not just a policy gap; that is a moral failure.

So the question is not whether this bill does something good—because obviously it does; we acknowledge that and we support the bill—the question is: why is this bill so narrow in its kindness and support? Why does one group get the assistance, while so many others who are hurting just as much, and sometimes more, are not getting the relief in terms of rates?

What about the disabled woman who is under 65 years old, on a supported living payment, who owns her own home, but earns less than $40,000? No help for her. What about the single dad in the regions, struggling to afford rising rent? No support for him either. What about the low-income grandparents raising their mokopuna, living in an overcrowded house, priced out of homeownership entirely? No assistance.

So this bill is great but it is narrow. If you’re old enough, this bill says, “We will help you.”, but if you’re not old enough, this bill says, “Tough luck.” Hardship doesn’t always follow a timetable, hunger doesn’t wait for retirement, and stressing out about losing your home doesn’t care about which year you were born.

So, in terms of housing, which I want to touch on because the reality is that beneath this rebate bill in this debate sits a deeper problem: New Zealand’s housing affordability crisis is not age specific. So for a lot of the questions that we’ll be asking the Minister during the committee of the whole House stage, we hope to get some answers about this. Thank you, Madam Speaker.

RYAN HAMILTON

National Party · Hamilton East

Oh, peace has broken out in the House. I commend this bill to the House.

Lemauga Lydia Sosene

Labour Party · Māngere

That was really short-lived, but thank you. We are peaceful people. Madam Speaker, thank you for the opportunity to be able to take a call. This is a very important bill because for our community, whilst the principle is intended to provide financial support or relief for our low-income SuperGold card holders who may otherwise face financial hardship due to high rates bills across the country, we on this side of the House really need to ask some questions around process and procedure.

I just want to draw the attention of the House, because on behalf of the New Zealand public, there is no select committee process. That’s shocking because if we really care about our seniors’ community, then we will give them the opportunity to be able to come and have kōrero with the select committee so that they can bring their contribution. It doesn’t matter how long it takes; what is important [Interruption]—what is important is that they have the opportunity to follow the process. [Interruption]

Barbara Kuriger

Deputy Speaker

That’s enough!

Lemauga Lydia Sosene

Labour Party · Māngere

Calm down. I’m just going to go through the regulatory impact statement (RIS) because it was a very useful document to read and to then ask further questions—and I know I don’t have a lot of time.

So without the select committee process that the New Zealand public is entitled to, on page 2 of the regulatory impact statement, “The primary objective of the policy”—and thank goodness I get another contribution—“is to provide financial relief”. One of the things about rates rebates in a previous life that I had in council was there was the rates rebate option that many in my local community didn’t know about. What concerns me is how this bill is being rushed through this process under urgency, which is the Government’s call, but I have to ask the question and that is outlined right here in the RIS. One of the things that I wanted to ask about is how the “Success of this policy will be demonstrated by higher uptake of the Scheme.”

I’ve heard and I’ve listened to some of the contributions from the other side, and yes, we will be supporting. However, I want to ask: what communication will go out to the community at large? I am referring to Māori, Pasifika, ethnic, disabled in terms of the comms, because in the RIS, and I will find it, it doesn’t have a 100 percent uptake. It says it right here in this document. And so my question is, if it’s a great system that is going to benefit 66,000 pensioners who have the SuperGold card, that’s really good, but that’s not enough. Because if we are wanting and supporting this, then the decision made at Cabinet is for lifting the abatement levels of rates rebate for SuperGold card holders; effectively, what does that mean?

So some couples will benefit, there’s no doubt about it, but what about those people where English is their second or their third language and they don’t understand that they are eligible, but if you don’t apply to your territorial local authority, you will not have that benefit. There are questions that I have with regards to the process and the procedures.

The other thing I wanted to raise was on page 3 where the sentence begins, “The Department is aware of a review into local government funding and financing which canvassed local authority and private sector views on the Scheme”. Well, where’s the public sector? I want to ask the question: why? Now, I read further and the RIS states there was not enough time. There were presentations to Cabinet, and Cabinet then approved the process. So it’s wonderful to have a contribution and ask those questions because, for the record, for many of our community listening at home, they need to be aware that this is an option that they may be eligible for. Why? Because they are a holder of the SuperGold card. But what do they do? Where do they go? How do they apply for it when it comes into force, which is 1 July 2025?

So we appreciate on this side that there is going to be relief for our some of our seniors, particularly those where both of them earn retirement pensioner income. It’s really important that they understand that there is an option that’s coming up for them and I look forward to asking questions in the committee stage. Thank you.

NANCY LU

National Party

This bill is providing higher support to low-income SuperGold card holders. This is fantastic news, and I commend this bill to the House.

Motion agreed to.

Bill read a first time.

Barbara Kuriger

Deputy Speaker

This bill is set down for second reading immediately.

Second Reading

Simon Watts

National Party · North Shore

Minister of Local Government

I move, That the Rates Rebate Amendment Bill be now read a second time.

I’m going to take a quick call on this bill as it needs to be enacted under urgency so that it can take effect before the next rating year, staring on 1 July. This urgency is justified to remedy the unjustified burden of high rates on those with low incomes. To anyone who says there is no need for urgency and that this change could wait until 2026, I ask “Why wait?”

This Government supports the concept of “ageing in place”, which enables elderly people to continue living in their own homes for as long as they choose. This approach not only respects the preferences of many seniors but also supports their physical and mental wellbeing by maintaining familiar surroundings and community connections. Policies promoting “ageing in place” emphasise the importance of accessible, safe, and affordable housing, as well as proximity to essential services, like public transportation. However, the rising costs associated with homeownership, particularly those of council rates, has meant that this is not a financially viable option for people as they age, stop working, and rely on New Zealand superannuation to cover costs. This is not fair. After a lifetime of contributing to society, seniors deserve the dignity and peace of mind that comes with financial security in retirement.

Ensuring that “ageing in place” remains a viable and affordable option is not just a matter of policy; it is a reflection of our values and respect for the generations that have built our communities and our country. That’s why this bill proposes eligibility changes to the Rates Rebate Scheme that will provide additional financial relief for up to 66,000 SuperGold card holders. By creating a new income abatement threshold to the scheme specifically for SuperGold card holders, we are supporting ratepayers to stay in their homes by lowering the cost to do so. The new abatement threshold will be set at $45,000 per household, which is nearly $13,000 higher than the threshold for the general population. This will allow more people to have the option to stay in their homes they are so comfortable in and remain close to friends, family, and their community they love and rely on for support.

I’d like to take some time in this speech to discuss how the changes will practically affect a low-income SuperGold card-holding couple. I am sure many of you know of just such a couple in your electorate. New Zealand super is, roughly, $49,000 for a retired couple living together in a home they own and paying average rates of around $3,500 per year. They would currently only qualify for a less than $250 debate. With the changes made through this bill, that same couple will now receive $805 off their rates next year. For many of you in this House, that may not sound like a lot of money, but for a low-income elderly couple, that money will allow them to do the things they otherwise could not. They might be able to spend more on groceries, keep their power on for longer, or otherwise live life a little better because of this coalition Government. I am proud to commend this bill to the House.

Barbara Kuriger

Deputy Speaker

The question is that the motion be agreed to.

Tangi Utikere

Labour Party · Palmerston North

Thank you, Madam Speaker. I acknowledge the contribution that the Minister of Local Government has just said. It would’ve been helpful if he was able to perhaps even just touch on some of the issues that have been raised by members on this side of the House. Perhaps he is leaving that to committee stage, because I know that we will certainly be having some direct questions that touch on some of the issues that we’ve already raised, and then some.

There has been some reference, by the Minister, actually, about the fact that this needs to be enacted as part of this urgency in order to deliver on the 1 July deadline. Again, this has been well signalled in the coalition agreement by the Government, yet they have decided to bring it to the House under urgency as opposed to doing this sooner—earlier than they had signalled.

Usually, at this particular stage in the process, as we all know, we would have had a select committee process by now, and, actually, I don’t know, maybe this would’ve gone to the Governance and Administration Committee perhaps, but who knows—we won’t know. What we would have in front of us, of course, would be the feedback from the community, from stakeholders. Now, I have no doubt that, actually, probably, the overwhelming level of feedback would be in support of this legislation. That is why we are supporting it tonight, but also because it is the right thing to do.

But it would’ve been none the less helpful to have heard from communities all around the country as to what it would mean for them. It would have been helpful to have heard from senior citizens, who give so much to our community, about what difference it would make as a result of the increased pressures that the Government are placing on their household when it comes to cost of living and other pressures—not just around rates, not just around insurance, not just around actually the choice that seniors and others have to make about whether they can afford a block of cheese or not. These are the real issues and the impacts upon households that we would have had the benefit of hearing and learning from, and what this Government has done is they have stripped that opportunity away from a very, very important sector in our community.

Not only would we have heard from seniors within our country, I’m sure we would have heard from those many NGOs and sector organisations that do a sterling job, both those in Age Concern but also some of those that take quite a political bent. I know in my own electorate, Grey Power is very vocal, and it would’ve—I’m sure—been of benefit to have their views on the record.

I think we definitely would have heard from more than the five councils that, as part of this process, weren’t formally consulted with but did have an opportunity to feed into some sort of process. It’s a little bit unclear around what that process is, and that will be one of the questions that I intend to put to the Minister: those five councils, what was the specific level of engagement? They themselves, as I understand it from the regulatory impact statement (RIS), didn’t know what this proposal was going to be, so they may have given some indication, perhaps, that it would be difficult to implement. In some cases, the RIS identifies that the cost to councils would be $200,000 extra to implement this. Yet another example of the Government putting more mandates, unfunded mandates, on to local government councils.

So there is a question around—well, where is the level of support from the Government to address the additional expenses that councils will undoubtedly incur? Look, I accept that not every council in the land is going to be faced with a $200,000 bill to implement this, but there will be other councils all around the country that would either have to wear that cost themselves or reprioritise existing services in order to deliver on this. Members opposite might think, well, actually, no, you can’t reprioritise something that’s going to cost, I don’t know, $5,000. Well, you do, because this is what local government is all about. So I want to hear from the Minister about what Auckland Council had to say, Tauranga City Council, Christchurch, Manawatū, and Clutha, because those are the only five that are specifically mentioned in the RIS. So we look forward to hearing about it.

I also want to hear from the Minister about this “back to basics” rhetoric that he seems to enjoy. Yes, roads and footpaths, libraries; part of the basic sort of theology of this Government—cemeteries—is community development. These are the sorts of things that the Government is saying, get on with it, get back to basics. These are the very things that councils do, and so for many, and in small rural communities, which have a very small relative ratepayer base, it may be the difference of trading off some of these services in order to meet the additional expenses that this Government are foisting upon councils. So I look forward to hearing from the Minister to clear that one up.

This is a bill that very clearly identifies two tiers, both of them equally valid in my view. One is those that hold SuperGold cards, and my colleague Dr Xu-Nan talked about that definition and I’m sure we’ll delve into that when it comes to the regulations—the two regulations that exist in that particular area. That’s at a higher threshold under this bill. Then the other is the existing lower thresholds that those that choose to or are able to apply for this are able to access.

Now, earlier, we talked about the fact that there are a number of community members and households that do not access this scheme. Well, why is that? Why is it that this scheme, which would provide some alleviation—and, when it goes up on 1 July, for those that have been getting it, the extra 58c a fortnight. But why is it that there is some reason that more than 40 percent of households that are eligible for this don’t get it? That’s not the new ones that are going to come on board for those that hold a SuperGold card; these are the existing households that the department indicate are eligible for whatever reason.

So one of the questions to the Minister is around that particular space: what work has he been doing as part of this suite of work to try and increase the level of awareness, support—whatever it might be—to ensure that households are able to access this support, because it is a bit of support that has been in the pipeline for a wee while?

The other thing is, it’s interesting, from the bill—you know, we would’ve heard from the community as part of the select committee process about whether that $45,000 is an appropriate threshold or not. Whilst those who are earning New Zealand superannuation and are a couple that live in a household are, basically, bang on that particular threshold—slightly over it, actually—there are many circumstances where those in that demographic undertake a little bit of work, not a lot but in many circumstances a little bit of work. So where is the threshold appropriately sitting? The Minister suggests through this bill that it’s $45,000. It would be good to have heard whether that was hammering that home or not.

The other thing I think would have been interesting to hear about—and this does sound a bit reflective, but given the fact that we don’t have a select committee report in front of us, one has to be reflective. There are a lot of “what ifs” and much of it is—well, all of it is unknown at this stage in terms of what community feedback will have been. But the other two areas that I am specifically interested in is whether the Minister received any advice around extending this to the existing tier. It would be helpful—perhaps that would give officials a chance to provide the Minister with advice this evening, if he hasn’t received it already, around whether there was any advice sought or advice forthcoming about the costs around that and what that would look like.

But also, the time frame for implementation—now, I know that 1 July is certainly fast approaching for this Government, but ensuring the time frame for rolling that out is going to be very, very important and making sure that this is going to be manageable.

On this side of the House, we want this regime to be workable, all right? We do not want to have a regime that is not going to be workable. So the points of clarification, the issues that we seek to put to the Minister for his response are actually, believe it or not, in the spirit of ensuring that this is a workable regime for councils, for the department, and for households that will be able to access this, particularly those households who would be new accessees to this particular opportunity.

So, as we move through committee stage, we’ll be looking forward to teasing those out. I agree with the Minister that it is important that seniors in our community do feel as though they are seen and are able to live in our community with dignity. This bill will go some way to assisting that, and some small step to addressing some of the concerns that they’re facing, but there are still some questions that we have to put.

Lawrence Xu-Nan

Green Party · List MP

Thank you, Madam Speaker. Here we are on the second reading, and I did promise in the second reading we would go into more details about some of the questions that we would like to ask as part of the committee stage.

Todd McClay

National Party · Rotorua

This is a promise you’re allowed to break.

Lawrence Xu-Nan

Green Party · List MP

You know what? I want to start by saying that I love the fact that the other side of the House is jeering and heckling about the fact that we are treating this bill seriously and doing our jobs. I think, for those people, they should really think about the contribution that they are making, which would constitute as a partial strike under the current definition of the regulation on partial striking—maybe you should be looking at some pay deductions.

But on to this bill. When we are looking at this, I think the most—again, we think that the context of this bill and about the fact that we are looking at wanting something to help our seniors as we are looking at people who are getting older and older, getting into more precarious situations, as we’re seeing an increase in the number of people who are over 65 and, in response, will be eligible for the SuperGold card and would be eligible for this increase in terms of the rates rebate. But, fundamentally, there is a question that we need to address, and I really want to take up the previous speaker Tangi Utikere’s question to the Government, which is: if this Government is tweeting about the fact they’re going back to basics, why don’t we just increase the superannuation amount? Why don’t we just increase our public housing stock or genuinely sort out the Retirement Villages Act review—which is still being held by the Government despite the fact that it is with the Government, because this is still tied into the whole package we’re looking at here, if this is indeed a bill that is supposed to benefit seniors.

But what we are seeing is that, although we are trying to bring, let’s say, someone who may only be living in their own house, who’s got no other income other than their superannuation—and SuperGold card for all the other amenities one can enjoy as part of the SuperGold card—it nevertheless comes back to the fact that they are still someone who’s able to own a property in the first place. If we are really looking at being serious about the way we look at seniors in this country, why doesn’t this bill look after and also support the most vulnerable seniors in our community: Māori and Pasifika, who proportionately have lower numbers of homeownership; migrants who are not citizens, who are not eligible for super in the first place, or a SuperGold card, are not eligible for something like this?

So it is quite perplexing and confusing when we are looking at, on one side, something that potentially can be really good for our community and our seniors, but, on the other hand, kind of tries to make sure that they’re still really just speaking to the landlords. So it is a little bit confusing.

Casey Costello

NZ First Party · List MP

What? Landlords?

Lawrence Xu-Nan

Green Party · List MP

Well, are you telling me that this bill goes beyond landowners or residents? If it does, please let me know, because that’s actually then quite exciting, if this goes beyond landlords.

Tom Rutherford

National Party · Bay of Plenty

What if you just owned one property? You wouldn’t be a landlord.

Lawrence Xu-Nan

Green Party · List MP

Hmm. I feel like that would still be considered a landlord, because you are in fact owning that particular piece of land. But semantics; on to the rest of this bill.

I think there are some genuine policy questions—[Interruption] You know what, if all of you have so much to say, I would love to see you actually get up and give a speech that’s longer than 30 seconds.

So when we are looking at this, there are some broader policy questions, and I really like the fact that the previous speaker, Tangi Utikere, really focused on the territorial authorities element and the local council element, and I think all of the questions that he asked are incredibly valid as we’re going into the committee stage. For me, I would really like to drill down on the broader policy questions of why this policy came about and why this policy needed to be under urgency in the first place, because surely we are able to—particularly considering that this only needs to be implemented by 1 July 2025, there is sufficient time for us to tease it out, even with a shortened select committee stage.

But in terms of the broader questions around policy, we also need to read the fine print when we are looking at what income is not included as part of this threshold of $45,000. So if you do look at the original Rates Rebate Act 1972, it does say that capital is not included as part of that, which also means that, yes, you might be a homeowner, owning your own home, in which case you would be struggling, potentially, to try and pay the rates, or if you would like to enjoy the highest rates rebate that you can be eligible for, which is $805 by the time we move up to the new order on 1 July 2025, up from $790. But at the same time, we are looking at—those people who potentially are getting income through capital don’t necessarily need to be considered as part of that income. So you could still be earning money through capital—at least, that’s my reading, and I would love to see the Minister’s explanation around this. So you could still be earning money through capital, but that doesn’t count towards this upper threshold of $45,000.

Then let’s talk about the fact that if we really want to benefit more people, we know, statistically speaking, when we have the data through Stats NZ, through the Retirement Commission, through the Office for Seniors, through Age Concern, all of those organisations—we are seeing a real issue with our seniors not being able to own their own homes. We’re seeing, by next decade, almost 40 percent of the people over the age of 65, or senior-like in name, will not be able to own their own home, which also means that they will not be eligible for this really amazing thing that the Government is trying to do.

That is also, I think, a broader policy question, because going through the regulatory impact statement, it doesn’t necessarily state other policy opportunities and options it was considering. In fact, it specifically states that we didn’t really consider anything else; this is really all we’ve considered. So I think there is definitely scope for us to ask that during the committee stage as we go forward. I also think that it is interesting that as we’re going through the regulatory impact statement, certain departments were considered. For example, the Office for Seniors is expected to support the roll-out of the scheme, but I could not identify them being a party that was consulted on this bill. In fact, if they were consulted on, surely they would have alluded to or informed the Government that by us having this rates rebate—which, again, is not a bad thing, but that’s not the biggest issue and the biggest challenge facing our seniors and our senior population in Aotearoa.

Additionally, when we’re looking at the full package that is being introduced by the Government over this urgency period, we also need to ask the question of the bill that we just passed, the Social Assistance Legislation (Accommodation Supplement and Income-related Rent) Amendment Bill, which looks at the inclusion of one or two boarders as part of this—that also begs the question of are they going to now tie into the income of the senior? So if you are grandparents and your grandchild is having to live with you and they pay board, now they’re included as part of that new legislation, and they pay you that, and their board not only affects their student allowance now but it may also in fact affect your income as part of this and potentially push you over the threshold for you to be eligible for the maximum amount of rebate anyway.

So we simply don’t know a lot of these questions just by going through the legislation and also going through the regulatory impact statement. I think, yes, when we are looking at this bill, it is important for us to ensure that our senior population and the concerns that our seniors are raising around the fact that what they have to put up with in the retirement village, and the exploitation they experience in retirement villages—the fact that we have a lot of seniors who are ineligible or still on waiting lists for Kāinga Ora housing and in the precarious situation of having to pay ever-increasing rent to their landlords because they simply do not have the money to buy their own property. But instead of that, we do see $155 million being placed into this particular scheme that may potentially alleviate and address some of the other challenges we are seeing.

So, fundamentally, this is a good thing. It’s good that we are also looking after seniors and actually treating the seniors’ issues seriously for a change. But at the same time, we are not addressing the fundamental discrepancy that we’re seeing within that population through this bill, and I think there is a lot more for us to unpack during the committee stage.

So, finally, the Green Party is, at this stage, supportive of this bill, but we would love to see more engagement and have engagement with the Minister.

Cameron Luxton

ACT Party · List MP

Thank you, Madam Speaker. This Government is putting in place a Budget that sets the foundations for a growing New Zealand in which the next generation can do better. But, as every party in this House has spoken about tonight, we need to look after the generations that have gone before. That’s why this Budget’s putting forward $150 million over four years for a rebate on rates to help our senior citizens—as the Minister said—“age in place” amongst their community where they’ve built a life; where they feel at home is where they should be. This is what it looks like when you get back to basics.

In response to Tangi Utikere, there are councils around this country, some of which have gone from 650 to 1,150 staff numbers in the last five years. That’s a 73 percent increase. I’ve also heard of spending doubling in five years. That’s the sort of stuff that needs to be taken under control. We can’t have $100,000 spent on a statue; we need to get councils back on basics, just as this Government is. I commend this bill to the House.

Casey Costello

NZ First Party · List MP

Minister for Seniors

I rise with great delight to speak in support of this important bill. This is a great moment for this coalition Government because, to clarify for the members opposite, who are wondering where this policy came from, it’s a unique thing about a coalition agreement that outlines the actions we’re going to take as a Government and, surprise, surprise, we do it. It’s an amazing day for us. This is about doing some good stuff. The fact that we are linking it to the SuperGold card means that—and I can do a plug for the SuperGold card website to ensure that every senior makes sure they have their SuperGold card, that they take advantage of all of the opportunities of discounts, and then, on top of that, they can get all the information that they need about this rates rebate from the website. I can assure the members opposite that the Office for Seniors was fully consulted. They do amazing work ensuring our communities remain connected, and this is one more step to a wonderful life for our seniors in New Zealand. I commend this bill to the House.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Kia ora. I’m delighted to stand and bring the other parts of the truth to this discussion—so here we go—and, of course, to record that we do support this. But I just want to raise a couple of points that I think might be important—well, they will be important. I guess, to the Minister of Revenue: I noticed that in your opening lines you talked about the urgency of it, which sounded plausible, which is why you’re running an urgency, but it’s been urgent for probably at least 180 to 200 years. So I just wonder where your urgency radar really applies—so a point to be noted.

Maureen Pugh

Assistant Speaker

I don’t have one.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

I am interested in the “ageing in place” description. I mean, it’s so new age-ey, to be honest. In 1860-something—the concept of papa kāinga has been around since then. It’s an important thing, and I would invite the Minister to have a look at it, because it’s been around for that long. So “ageing in place”, I think, is cute. It’s very new age-ey, but it does apply—I mean, of course it applies, but it’s kind of new age-ey and trendy.

We would call that “papa kāinga lifestyle”. We would call that “rohe pōtae”. We would call that “ā whakapapa”. So those ideas of growing, living, dying, burying your whānau here, raising them there in your own rohe—those ordinary things. They have been practices that we have had for a very long time, but where were you? I don’t mean you, Madam Chair—not at all. I mean this crew on my left here.

Another point: SuperGold—or “SuperOld”; that’s what I’m hearing in this SuperGold and “SuperOld” kōrero—again, in our context, we talk about kaumātua. We talk about mātua-mokopuna lifestyles. So when I hear the description that is when you’ve got a couple that lives in that home, and there’s a kaumātua or an individual that lives in another home—that is not our reality. So somewhere in this discussion, I look forward to when—and I hope it really comes up.

For our kaumātua, we’d have probably at least one mokopuna, if not three, and that is a typical huānga mokopuna model. Again, if those were known to your people and your writers, you might have understood that when you were designing this—and, again, please, just stay with me. We do support it, but it needs a lot of work and improvement. I’m happy to be that adviser.

The other part of this is important to note: it is about “SuperOld”, and it is about our older generations. The fact is that optimal health is not our privilege; it is your privilege, but it’s certainly not ours. So when we’re dying at least seven years earlier, if not more—10 years earlier—we just won’t get to bloody SuperGold, because we’re all nodding off, all dying, and in a miserable and terrible way, not because we want to, but because the system and its commitment to poverty in paradise—this is what we get. “Live long and prosper” is rare in our reality.

So, though this is a small bill, let’s try to make it bigger, would you? I’m happy to support you to redesign it a bit better. Madam Chair, thank you. Those are my contributions. Good evening, people.

Hūhana Lyndon

Green Party · List MP

I rise on behalf of Te Rōpu Kākāriki to speak to this legislation. While we do support the progress of this bill, we have questions around unintended consequences—the unintended consequences of the haves and the haves-not: those who will benefit—and recognising the huge investment of $155 million over four years—who are homeowners, those that are lucky enough to have an asset, and then, largely, Māori, Pasifika, and migrant communities who may not own an asset like a home.

So, on behalf of Te Rōpu Kākāriki, I raise concerns over the need for the rush. What is the need for the rush? What is the rush for this legislation to come through so quickly and commence on 1 July? The Department of Internal Affairs shared that “The context within which this RIA has been undertaken is unusual, in that the policy decisions have already been made by Cabinet,”. So there has been no regulatory impact assessment accompanying this because there’s been little analysis conducted. Then, I reflect on the departmental disclosure statement. It says that while there have been no issues identified with the bill and its implications on the rights and interests of Māori and to protect Te Tiriti o Waitangi, the issue is there have been no formal steps taken to determine whether this policy—I’m reading from the report itself—and this bill is consistent with the principles of Te Tiriti. That’s interesting in itself, because if we had a process, there would be an opportunity for the officials—like the Office for Seniors, like the Department of Internal Affairs—to critique and provide that extra analysis that we need, as a House, to fully support this bill.

I absolutely support ageing well. I pay full tribute to our elders, our kaumātua, for what they have contributed to building up New Zealand. But also, I query the need for the rush. Also, where is the space to look at equity? Where is the space for us to look at whenua Māori, and many of those kaumātua who live on whenua Māori, and the ability for whenua Māori land owners to even benefit from this? Is the rates rebate stretching out into whenua Māori land as well—and knowing many of our kaumātua do live in Kāinga Ora homes, or they live in intergenerational homes that they do not own. So maybe, if we had time, we would have the opportunity to really unpack in a fulsome way and understand who are the haves and who are the have-nots in terms of this legislation, and the way that it can stretch out across New Zealand and show benefit for the elders that we cherish and we care for. So that’s some of the concern that I would like to bring, in terms of what we can do, in the committee of the whole House, and ask the Minister of Local Government these pātai.

I think about the admin burden too. Because of the limited, truncated process that we are undertaking, again, there was limited engagement and consultation with councils as to how much of an admin burden they would have to take on board and if they are ready to launch on 1 July. Or will they be in a situation where they’re going to have to catch up because it’s going to be hoisted on them with little engagement—in fact, no engagement—and it’s going to happen at quick pace, with the expectation to implement on 1 July? And then our elders will start turning up, looking to clip it and go, “Yep, we’re ready to go.” So those are questions.

I worry about the size of the investment—$155 million is a great gesture towards our elders, but then if we look at where the powerhouse and the people power of New Zealand is, it’s certainly our young people. Maybe even if we consider the way that we can give a bit of a hand up to those young people that might be in homeownership and might be ratepayers, they might be able to benefit in the space too. These are some of the questions we would love to interrogate—even if there was a select committee process. I mean, just imagine: if we had had a select committee process, the voice of the community would have come and they would have shared—but, unfortunately, this Government shuts out the voice of community. Kia ora tātou.

Cameron Brewer

National Party · Upper Harbour

This is $154 million very, very, very well spent. Again, it’s another example of Budget 2025 delivering practical cost of living relief. You’ll see $154 million invested over four years. It delivers up to $805 off your rates for 66,000 more New Zealanders. It’s great news, it’s a great part of our Budget, and we’re very proud to support it.

Deborah Russell

Labour Party · List MP

I wish to draw the House’s attention to the explanatory note for this bill, and the second paragraph: the Rates Rebate Act 1973. That was the Kirk Government that brought this kaupapa in, in the first place. So this has been a long part of the Labour tradition, a long part of Labour legislation—and Labour legislation that we are proud of that has lasted since 1973. It’s good to see the pretty unanimous support across the House this evening for continuing this Labour kaupapa, so we thank everyone for their support of this, and we agree that this is a good piece of legislation to be brought to the House.

Nevertheless, we do have some questions that we will wish to explore in some detail during the committee stage, and they’re questions that are worth having a look at. Having had this type of legislation around since 1973, it’s always worth looking at whether or not it’s still a good piece of legislation. Now, we do think it is, but our colleagues in Te Pāti Māori and the Green Party have raised some interesting questions. We have some other sorts of questions that we will want to ask.

So the first one is why the particular threshold that has been set for the rates rebate, which this Government—and we support them doing it—is increasing the threshold to $45,000. Now, as it turns out, a couple holding a SuperGold card—a couple on New Zealand superannuation, so that is their income and their only income—their income is about $49,000 a year, give or take, provided they have no other income.

I’m sure you’ve seen it’s the case—and certainly I’ve seen it’s the case as well—that, at present, if an elderly couple is living on just New Zealand super, if that is the only income they have in their old age, it’s pretty tough. It’s pretty tough living on that kind of income. It’s not pretty. We see that often some of our seniors are accessing food parcels, they’re accessing other kinds of support. They really do need a hand to get by on just that amount of income.

So I am interested to understand why the threshold was set at $45,000. Why not just set it at a level that was actually above the couple rate for New Zealand superannuation? It would be worth understanding why that particular $45,000 threshold was chosen. There would have been a few more people who had come into the Rates Rebate Scheme, in that case. I’m hoping that the officials will be able to give us some kind of analysis as to why the threshold was set at that particular level.

Now, don’t get me wrong, we still agree that this is a good thing to do, but why not just that little bit more to take it above the amount of New Zealand superannuation? I’m sure there’s a reason for it, and we’ll hope to elucidate that in the committee stage.

Of course, there’s the concern around the need for it in the first place and it was an issue that was raised by our colleague in the ACT Party, Cameron Luxton, who talked about rates increases in recent years and repeated the mantra of getting “back to the basics” for councils. Actually, rates have been increasing quite dramatically in recent years. Some territorial authorities have had double-digit rates increases year on year, outpacing the cost of inflation. The diagnosis from some people is that local councils are just not good enough at what they do. I think that’s unfair. I know many city and district councillors. I’ve seen how hard they work. I’ve seen how they do try to balance up all the competing concerns of their constituents.

I’ve seen their commitment to things that some people might think are luxuries but I think are absolute necessities—parks, libraries, recreation areas—and that’s without considering the cost of roading and the cost of the decaying infrastructure in some of our cities and towns. Of course, one of the biggest costs that is driving some of the rates increases for cities, for towns, for territorial authorities is the cost of water supply, the cost of dealing with stormwater, drinking water, waste water. Now, we had a solution in place to prevent some of those dramatic rates increases—that solution was taken away.

But one of the reasons that rates have been going up is because of trying to deal with those issues around water. So of course that makes it harder for our senior citizens to pay their rates, because those rates increases have been dramatic. There was—on this side of the House, when we were in Government—an attempt to deal with that. I want to see the Government—certainly, this is a good thing, helping senior citizens pay their rates, but we do need to deal with the issue of local government funding as well. This is a bit of a band-aid. It’s a good band-aid—I’m glad to see it—but there is a serious problem here that we also need to deal with in time.

A third issue, I think—and I want to just sort of canvass in this contribution—is just the amount of consultation with councils. I think my colleague Tangi Utikere is correct when he says that it will increase administration costs for councils. I know there has been some limited consultation with councils, but we’ll want to explore that a little further in the committee stage.

There is another issue that I’d like to look at, and I’m going to direct the members of the House to clause 6 of the bill. What the bill lists is some of the items that one of our senior citizens might list in their application for a rebate. So the sorts of things that, when a person is applying for this rebate, what they’ll put in their application is their income: obviously, because it’s income-tested, the income of any other person who lives with them, because, of course, that matters—it’s a household income that matters here; who’s actually occupying the property—of course, that’s an obvious thing to be concerned about; and the ratepayer’s status as a SuperGold card holder. So a number of items which have to be included in the application.

It lists those, but then in the section it says that “The chief executive of the territorial authority or [any] other authorised officer is not required to verify a statement about any of the following matters”—is not required to verify those matters when processing these rates rebate applications. So it’s a high-trust system. That might well be appropriate—I think it is likely to be appropriate. After all, if a person has applied for a rates rebate year on year on year, some of the details of their situation are unlikely to change, particularly for senior citizens. People get in their homes, they’re set in their ways, things are unlikely to change. This is a good thing—it’s one of the things that surrounds our “ageing in place” policy.

Nevertheless, this is a high-trust system, so I’m going to want to hear from the Minister of Local Government just how exactly we intend to verify those applications. Obviously, the great majority of people respond really, really well to a high-trust system, but there are always a few who try to rort it, so we are going to want to hear from the Minister as to what is going to be done to ensure that the system operates as intended and that it serves the people that it is intended to serve—that is the SuperGold card holders with an income of less than $45,000.

A final thought: this is going through under urgency. It is legislation that we do want to see going through the House. It’s not clear that it needs to be passed tonight, but it does need to be passed soon—so I guess that use of urgency is appropriate, but perhaps the Leader of the House could have considered putting it further up the Order Paper. I fail to see why we had to deal with David Seymour’s vanity bill, the regulatory systems bill, ahead of dealing with this. If this was so time-dependent, this should have been further up the Order Paper. I’m going to invite the Leader of the House to reflect on not just how much he crammed into that urgency order and whether it was all strictly necessary. This one, I can make a case for it, but just hold that thought, Mr Bishop.

RYAN HAMILTON

National Party · Hamilton East

Well, the last couple of days have been very exciting. We’ve seen legislation to support business; we’ve seen legislation to support our young people, 16- and 17-year-olds; and tonight, we see legislation to support our seniors. I commend this bill to the House.

Jenny Salesa

Labour Party · Panmure-Ōtāhuhu

Thank you so much, Madam Speaker, for the call on the Rates Rebate Amendment Bill. It is always a good feeling, especially for those of us who have been here for a little while, when we come to the House—after so many hours’ lack of sleep last night—and we actually agree on a bill when the bill actually does something good. I do want to reflect on the Hon Casey Costello’s speech, reminding us that this was actually a policy of New Zealand First. I’d like to congratulate them for this bill.

But can I also reiterate that we support meaningful rebate relief, especially for those who need it most: our kaumātua, our pensioners—those who all deserve to be treated with dignity, to have security, and to be supported to continue living for as long as they can in the place that they have worked really hard for most of their life, the place that they call home.

This bill is needed because—and I’ll just cover some of the main issues that the bill covers—older couples living on superannuation in Aotearoa New Zealand: many of them earn just above the general income threshold, but they’re excluded from receiving the full rebate, or any rates rebate, currently.

I also do want to reflect on something that my colleague the Hon Deborah Russell reminded us of earlier on, which was that the original Act was passed under a Labour Government in 1973.

Kieran McAnulty

Labour Party · List MP

That’s right—Norman Kirk.

Jenny Salesa

Labour Party · Panmure-Ōtāhuhu

Under Norman Kirk. When you actually look at the regulatory impact statement (RIS), we’ve heard a number of times the fact that there’s $155 million over four years for this overall bill, but I do want to remind the House that the current scheme actually invests $82 million, currently. So the new money that’s being added to this legislation is an additional $32.9 million, and my colleague Tangi Utikere covered earlier on that it amounts to several cents. I looked through the RIS, and, actually, $15 is the overall amount when this bill becomes law, so in terms of the scope, it is somewhat limited. So that is one of the concerns that we’ll ask the Minister questions on during the committee of the whole House stage.

But I’ll go back to what the bill actually covers. It proposes to be fairer for older New Zealanders. It will reduce hardship for low-income seniors. Many pensioners, of course, are asset-rich, but many of them are income-poor. It maintains the existing rates of the rebate framework, but it adds the SuperGold card threshold by Order in Council. The reason why it does this is so that it gives it flexibility over time so that we don’t always have to come back to the House to go through a long process—like we are under urgency tonight—and it focuses support where the need is greatest: older people on fixed income who are affected by the rising living costs that many are having right now, including those who live in my electorate in South Auckland, in Panmure-Ōtāhuhu.

However, we still have quite a few concerns. The bill creates a two-tiered system. It sets a threshold based on age and status, which could be seen as inequitable for low-income non-retirees. As I mentioned earlier on, it is limited in scope. The maximum rebate increase is only $15. It only increases it from $790 to $805. Yes, $15 will be a lot of money for some people, but it is still quite modest. Especially when you look at the average rates that people pay in Aotearoa, it is between $3,000 to $4,000 per year. It does not also address the deeper housing cost drivers that we face right throughout Aotearoa. The rates are rising faster than incomes. Homeownership is falling, particularly for Māori and Pacific, and for young people—so many young people are locked out of homeownership, and many New Zealanders are being squeezed from every side.

We have many more questions, but we’ll address it when the Minister takes the chair. Thank you, Madam Speaker.

NANCY LU

National Party

This is a $150 million initiative support from the Government, supporting 66,000 more seniors. The Opposition asked why we make it so fast: well, we are a Government that delivers, and we deliver fast. I commend the bill to the House.

Lemauga Lydia Sosene

Labour Party · Māngere

It’s a pleasure to be able to make another contribution. In my opening contribution, I did elaborate further that as to this side of the House, we will be supporting this bill, but I have some real concerns around the process and the urgency in terms of our community and the consultation. The reason why I raise it again is because when I have read the regulatory impact statement (RIS) and seen the steps that have been taken, and carefully read and understood the primary benefit—the primary benefit is really important for our seniors in our community who are SuperGold card holders. They are entitled to this benefit. They then take the steps to understand the eligibility. The other concern that I have is there were only a small group of councils who actually were consulted, but they weren’t given specific information because of the Budget sensitivity around the Cabinet rules.

What is important is when we see a good piece of legislation that could have gone further by way of public engagement. What is the Government afraid of? It should be, when there is a good piece of legislation that will help our seniors and our community who have worked so hard in their lifetime to contribute—and now some of those households are not eligible. Some of the households have got limited income. It’s all described in here. What is the Government so afraid of in terms of public engagement? The reason why I want to stress public engagement, although some parts of our community have diverse communities by way of Māori, by way of Pasifika, by way of ethnic and our disability communities—their views to be consulted are important. And sometimes, as parliamentarians in the House, we have to consult with our community.

So it’s really important: we can’t just sit here, in the different sides of the House, and then be as arrogant as sometimes we can be, or not listening or not having kōrero. It is important to have engagement—the proper process. There is no select committee process, so we find ourselves in a position where—it’s not that we’re guessing; we know the benefit of this system—but we have to continue to ask the questions to that side of the House, that, whilst we support it, when you have limited engagement with councils who have a number of elected members on the ground who could have gone further and been able to contribute in a process—and I understand, because it’s right here. The limitations and constraints in terms of the analysis that Cabinet agreed with a preferred option and had broader Budget decisions and had agreed on the start date. Those things we have to question, and we look forward to the time with the Minister of Local Government so that we can run it through the committee stage.

But there is an expectation that councils or territorial authorities will just be able to receive a system and then be able just to run with it. [Interruption] Ministers, please, we’ve listened to you. Can you please just listen to us? Thank you.

I want to raise that in the proposals that are now going to be effective with councils, there is the expectation and the intention that council staff will just pick this up and run with it without further income, further administration costs. Are those staff trained? Do the staff have proper processes in place? We don’t know that. The RIS also pointed out, due to the sensitive nature of these proposals, that they did do some consultation. So that has been helpful. However, have we got a proper, comprehensive, and robust system that, when this comes live, it will benefit some of the seniors?

The policy problem that this solution is for is the Rates Rebate Scheme; how will it work—how will it work? What I’ve read in the RIS is that some households—and it says right here, on page 9: 110,000 households will benefit from this scheme in terms of the cost of rebates in 2024-2025. You’ve heard from my colleagues in terms of the dollar sign; that’s going to be a good thing. But still, I have questions around the public engagement.

There is the intention or the assumption that once this is rolled out, everybody will know about it. Well, they won’t. I can tell you that, because in my part of South Auckland, there are still questions around Rates Rebate Schemes. Some of our households—Pasifika, Māori, ethnic—they don’t understand fully the benefit and the eligibility of the scheme. There’s an assumption that is made that council will just roll it out and then council can give the bill to the Department of Internal Affairs to get their money back. There are systems in place that sometimes our public don’t understand, but they need to understand what they are entitled to.

So my plea is to the Ministers. I know they want to get through because they want to go home. I’m asking around the fairness and the design of this scheme. It’s important that the aspects that we raise on the different sides of the House are taken into account, so that feedback is given to the councils and their public officials who can understand the constraints and the limitedness to make and design a better system.

I’m really concerned at the problems that may not always be answered, particularly for the households that are eligible. If I think of some of the seniors in my community, where they’ve got very limited income—they’re only on superannuation; they’ve got increase in insurance, increase in petrol, increase in other household expenses; it’s a real issue if they speak only a Pacific language; they’re quite fearful of public officials; they don’t have the interpretation skills; and they don’t even have digital skills. So they’re quite limited as to how they can access information that is important so that they can understand their responsibilities and obligations. Because we want the seniors to understand their financial security, and if they need help running their households, where do they approach? Who do they approach? Do they approach council? Do they approach Internal Affairs? So those are the issues that I continue to raise.

But it’s important for our parliamentarians that they understand the pressures, and I’m sure some of them do. They understand the pressures that are facing our seniors in the community, particularly with the cost of living, particularly with this Government making different choices around cutting women’s pay equity.

Back to the bill. One of the things that I wanted to raise was that—[Interruption] You’ve had your time in the House, thank you; we’re having our time. So one of the things that I wanted just to highlight—and we will get the time with the Minister to ask questions. It is important to have a full cost-benefit analysis so that we are fully informed that we can make right decisions and give the contribution that is important, because we get lobbied by people in our local communities. It’s important when this scheme, this Rates Rebates Scheme, is for our community, then we’ve got to help people, educate them—you take this path, you take this step, so that you can understand what you are eligible for.

So we will be supporting it, but we will continue to ask those questions to the Minister so that his officials will hear our questions and it will be recorded for those who are at home. We want to help them understand what they are eligible for.

So, just as I finish up in the last seconds, this is a very important scheme that some New Zealanders—senior New Zealanders—are eligible for, and it is my hope that those who are eligible for it will apply for it. Thank you, Madam Speaker.

Dan Bidois

National Party · Northcote

This is a great bill. We respect our seniors. I commend this bill to the House.

Motion agreed to.

Bill read a second time.

Maureen Pugh

Assistant Speaker

This bill is set down for committee stage presently.

Invest New Zealand Bill

First Reading

Todd McClay

National Party · Rotorua

Minister for Trade and Investment

I present a legislative statement on the Invest New Zealand Bill.

Maureen Pugh

Assistant Speaker

That legislative statement is published under the authority of the House and can be found on the Parliament website.

Todd McClay

National Party · Rotorua

I move, That the Invest New Zealand Bill be now read a first time.

The purpose of the bill is to establish a new Crown entity—Invest New Zealand—and provide for its function and operation so that it can help to position New Zealand as a premier destination for foreign direct investment (FDI). Investment is key to economic growth; it fuels innovation, drives productivity, and assures world-class business have the capital they need to scale. Foreign investment is crucial because as well as bringing in your capital to support the growth of New Zealand firms, it also strengthens our international connections, facilitates technological transfer and the commercialisation of our science space, creates jobs, enhances infrastructure development, and contributes overall to boosting New Zealand’s productive capacity and competitiveness on a global scale.

As of March 2024, New Zealand’s foreign direct investment stock was $158.5 billion, about 39 percent of our GDP. This is below the OECD average of 52 percent and considerably below Ireland, a comparable small, advanced economy, whose FDI stock sits at 260 percent of their GDP. While last year, our FDI grew by 5 percent, compared to Singapore, which grew at 31 percent, we have much work to do.

New Zealand produces world-class businesses with huge potential. Sectors like fintech and finance, renewable energy, cleantech, advanced transportation, aquaculture, and food manufacturing all have companies that are scaling, innovating, and looking for global partners to help them grow. In order to attract that investment, we need to grow the economy, we must scale up our efforts, and take a more coordinated, strategic approach to investment attraction. By establishing a dedicated stand-alone agency focused solely on attracting foreign direct investment, we will do just that.

Invest New Zealand will be the Government’s front for foreign direct investment, cutting through bureaucracy and proactively securing major investments. Through the establishment of Invest New Zealand, we’ll remove unnecessary barriers so that investing here is easier, efficient, and predictable. Invest New Zealand will be able to target high-impact investment in key sectors, like technology, agritech, renewable energy, fintech, finance and advanced manufacturing, and many more; proactively engage with global investors and multinationals, showcasing the unique advantages of doing business in New Zealand; and support high-growth Kiwi businesses to become investment-ready so that they can scale up and expand internationally.

This is a relatively straightforward bill, but I would like to summarise some of the bill’s key features. It establishes Invest New Zealand as an autonomous Crown entity. It sets out the function of the entity. Its main function will be to facilitate and enable increased overseas investment in New Zealand. The bill also lists additional functions of Investment New Zealand in order to carry out the main functions, including facilitating connections and collaboration between overseas investors, New Zealand investors, research institutions, organisations; provide investment opportunities for businesses; and build and share knowledge about overseas investors, the investment environment in New Zealand, and the investment opportunities here. It will provide advice and information to Government on policies and legislation needed to attract overseas investment, including identifying and advising on options for reform that are likely to enable for further overseas investment and carry out any additional function in relation to investment. The bill provides abilities for Invest New Zealand to charge fees and to recover costs if it chooses to do so. The bill also includes some transitional provisions to ensure transfer of employees, assets, and liabilities to Invest New Zealand from the New Zealand Trade and Enterprise, which currently carries out investment activity, functions smoothly.

The Government is committed to showing the world that New Zealand is open for business. Alongside our ambition to double exports by value over 10 years, Invest New Zealand will be able to ensure that New Zealand attracts the capital that it needs to drive growth, create jobs, and deliver for all New Zealanders. I commend this bill to the House.

Damien O'Connor

Labour Party · List MP

Madam Speaker, thank you very much, and thanks to the Minister for Trade and Investment for explaining some of the bill. Labour has always appreciated and valued the investment that has come into this country over the, I guess, last couple of hundred years that has enabled us to get to where we are as a nation. We acknowledge the importance of foreign investment, but I’m not sure we need a real estate agency to sell off New Zealand, as is being proposed in this legislation.

The question we must always ask of any legislation in this House is why, because, actually, we have New Zealand Trade and Enterprise, and the Minister is responsible for what is a very high-performing Government agency that has, as part of its mandate, to identify and to attract, where necessary, investment into our country, to provide opportunities for New Zealanders and for New Zealand. There are many questions that we will ask in relation to this piece of legislation because Labour is not convinced that this is, indeed, necessary. There are provisions proposed in this that lead to some serious questions around the independence of the agency, the ability of the Minister and the Government to have direct intervention and influence, and who it might be attracting and who it might be facilitating.

We, in Labour, have always, as I’ve said, supported foreign investment, with some safeguards. If it is just to sell off assets, land, or intellectual property (IP) from this country by bringing in investors, that will not deliver the net benefit that our country needs. We have no shortage of capital in this country—

Todd Stephenson

ACT Party · List MP

Yes, we do.

Damien O'Connor

Labour Party · List MP

No, we don’t actually.

Todd Stephenson

ACT Party · List MP

We do.

Damien O'Connor

Labour Party · List MP

No, actually—

Todd Stephenson

ACT Party · List MP

We absolutely do.

Damien O'Connor

Labour Party · List MP

Well, if the members over there would like to go and just do some research on the amount of New Zealand capital that is invested offshore, it is literally hundreds of billions of dollars. This is New Zealanders’ money, hundreds of billions that is invested offshore to attract income—we accept that—and we already have foreign investment in this country that is quite significant. Indeed, in March 2024, we had a level of about $171 billion of foreign investment in our country put to good purpose, for the most part, delivering $26 billion of income for those investors that flows offshore, outside of our economy.

We had, as I say, $128 billion, at last count, of investment offshore. The question should be asked, as we’re moving forward, to manage investment flows in and out of our country, as to whether we would be better off investing in ourselves, and indeed we may reduce the outflow of capital—the $26 billion might be reduced; that could be kept in our country to keep the economy growing—and whether long term that would deliver us the sovereign rights and control of the direction of our economy. This bill simply sets up an agency to shift the investment objectives of New Zealand Trade and Enterprise into an autonomous Government agency, under the direction of a Minister who can direct the chief executive to provide guidance to the board. For what purposes? It’s very vague.

So, while we appreciate and understand the value of foreign investment into our country, and have done to get us to where we are, the question is: do we need a real estate agency, as is being set up here, to simply go out and attract buyers of assets and of the valuable part of our country—be it businesses, be it IP, be it land or houses—just for the benefit of foreign investors? Labour will not support this bill, and we will be questioning it right through the House.

Lawrence Xu-Nan

Green Party · List MP

Thank you, Madam Speaker. I think that we first need to address the bigger question, I guess, in some ways, in this room. Here we are, speaking on a new bill, despite the fact that we have pulled the plug halfway through a committee of the whole House stage of a bill, and then we have just stopped the previous bill, the Rates Rebate Amendment Bill, in the second reading to introduce a new bill, because this Government, frankly, can’t handle the fact that every bill they introduced in this House under this urgency is, frankly, baseless and without an ounce of evidence and cannot stand the Opposition’s scrutiny. So what we are seeing is all of these sort of things being pushed through as a result.

Simon Court

ACT Party · List MP

Point of order, Madam Speaker. I’m a little bit concerned that the member there, in his diatribe—while I know we’re in the middle of a debate—just forgot that the Greens just supported the last Government bill.

Maureen Pugh

Assistant Speaker

That’s not a point of order, Mr Court.

Lawrence Xu-Nan

Green Party · List MP

Thank you, Madam Speaker, and I thank that member for his contribution, although juvenile as it is. Now, when we are looking at this particular bill, when we’re looking at this Invest New Zealand Bill, essentially what we are asking for is to set up a brand new agency that’s going to cost New Zealand taxpayers millions of dollars, under urgency, without the ability to scrutinise. That’s the thing: we are pushing through bills under first and second reading only because of the fact that we are under urgency and we don’t have to go through a select committee stage. Let me put it on the record as saying: if for this bill we are going straight to second reading without a committee stage, then it is the Government trying to avoid having to call another urgency for a select committee stage. That is clear if we are going to second reading.

Todd Stephenson

ACT Party · List MP

Well, you won’t know, will you?

Lawrence Xu-Nan

Green Party · List MP

That’s why I’m proposing the question. That’s why it’s a question. We shall see, but when we’re looking at this bill, I think the first question is—look, trade is important. It is a fundamental aspect of human civilisation and it’s one of the earliest forms of profession in the world. It is supposed to be something that benefits everyone within the community. Indeed, under the last Government, we saw the report All for Trade and Trade for All being produced on improvements that we could be making in terms of our trade opportunities and potential here in Aotearoa. Let me tell you: this new agency was not part of that trade-for-all report.

This agency that we are looking at here will do nothing to genuinely support the people of Aotearoa other than selling Aotearoa off bits at a time, both in terms of human capital and in terms of our physical environment. Why do we need this? I think that is the question. Why do we need this, when in all of the reviews we’ve done for NZTE—that’s New Zealand Trade and Enterprise—didn’t show any evidence, to my knowledge, that suggests that NZTE is not performing? So why are we carving out what NZTE is already doing into a new agency? Who is this agency going to be for? I think the previous speaker, the Hon Damien O’Connor, captured this really accurately. We see in the regulatory impact statement people saying that there are asymmetries of information, investment, and biases between domestic and international. Oh! Should we be criticised and penalised for taking care of our own people? Is that what we are looking at here?

This bill here is nothing more than a terms of reference that is riddled with concerns and issues and biases and monopolisation and lack of transparency for something that should be benefiting everyone in Aotearoa, as expressed in the trade-for-all report. So I won’t, in my first reading speech, talk about the specificities of this, because, frankly, I am still looking forward to the possibility of having a select committee stage to really discuss with the officials and the Ministers and also the New Zealand public why we should be spending all of this money on this agency in the first place. So the Green Party of Aotearoa will not support this particular bill, because we do not see this as something that would be beneficial to trade in Aotearoa in the long term. If we do not have a select committee stage, and we move on to the second reading, there is a lot more for me to say on that. Thank you, Madam Speaker.

Simon Court

ACT Party · List MP

The ACT Party is going to support this bill—

Maureen Pugh

Assistant Speaker

Are you seeking a call, Mr Court?

Simon Court

ACT Party · List MP

Yes, Madam Speaker.

Maureen Pugh

Assistant Speaker

I call Simon Court.

Simon Court

ACT Party · List MP

Thank you, Madam Speaker. The ACT Party will of course support this bill. This is a great bill. It establishes Invest New Zealand as a Crown entity to facilitate, promote, and support foreign investment in New Zealand.

New Zealand has historically lacked a stand-alone centralised agency focused exclusively on attracting capital and investment. Investment functions have been spread across multiple agencies, including New Zealand Trade and Enterprise, the Ministry of Business, Innovation and Employment, and of course, regional economic development bodies.

This bill responds to recommendations from economic advisory groups telling the Government that the international investors and local investors need to know how to access Government so we can participate in major projects and new assets. We need a coordinated and strategic approach to attract investment. It links this bill to the Overseas Investment Act because, as Minister Jones made clear in his reply to the Budget, this bill is complementary. There’s no point in setting up Invest New Zealand, however, unless we start treating investors as a taonga—rather than terrorists, like the Opposition would. Invest New Zealand makes it clear we want them to come here and we will respect them.

Labour won’t support it, but their finance spokesperson recently agreed with the use of public-private partnerships, which, because of their scale, rely heavily on not just local investors but international investors prepared to bring billions of dollars to New Zealand to help us deliver major projects. That is incoherent and it shows that Labour are not fit to govern New Zealanders, not for years, not for decades at the rate they’re going. And, of course, the Greens won’t support it and they don’t believe in growing New Zealand’s pie with international investment, only cutting New Zealand’s wealth into smaller and smaller plant-sized bites.

This is a positive and impactful piece of legislation. It provides a single point of contact for investors. It’s been hard to connect investors to major public projects. Invest New Zealand is going to play a big part in that. It’s going to help align New Zealand with international best practice where many countries have dedicated investment promotion agencies. It’s going to support economic development. It’s going to attract investment into priority sectors, all of those sectors where we know New Zealand lacks a lot of capital oomph, and it’s going to support regional development by directing investment to areas with growth potential, but that are often overlooked by significant local investors. And, of course, it’s going to facilitate stronger public-private collaboration. It’s going to encourage co-investment models and joint ventures aligned with our national interest. It’s going to direct investors to these major project opportunities like Corrections’ Christchurch Men’s Prison expansion and the Northern Corridor project to link Auckland to Whangārei, 100 kilometres of new highway. That’s going to be a phenomenal growth engine for the North Island and Northland.

Strategically, it supports the Government’s economic strategy Going for Growth, attracting investors to New Zealand so that we can actually grow the market for jobs and make New Zealand a wealthier place to live.

This bill is part of a broader economic transformation agenda focused on lifting productivity, diversifying the economy, and building resilience in the New Zealand investment and infrastructure market through high-quality sustainable investment opportunities that are identified and managed by Invest New Zealand. On behalf of ACT, I commend this bill to the House.

Mark Patterson

NZ First · List MP

Minister for Rural Communities

I rise as well to support this bill on behalf of New Zealand First. At its core, it’s a very simple bill. It sets up the Crown entity, the structure Invest New Zealand, which is a one-stop shop to enable the attraction of foreign capital in New Zealand. So we do support this bill.

That said, it is no secret that New Zealand First is at the more cautious end of the coalition regarding foreign investment. New Zealand First—it says it on the tin—and we are unwavering in our view that with regard to assets like farmland, existing family homes, fishing quota, key strategic assets like ports and airports, and this is certainly our preference, that the State builds our own hospitals and schools. We must not become tenants in our own land. There is no free lunch with foreign investment, and we need to be aware of that.

We have a structural current account deficit, and the sale of all our major banks offshore shows that it is not one-way traffic. But we are pragmatic, and we are not for “Fortress New Zealand”. New Zealand has always needed foreign investment, and it certainly does now. We have insufficient funds to address a major infrastructure deficit.

The other thing this bill does is it does actually focus New Zealand Trade and Enterprise on the doubling exports part about getting out and building our export base and creating market opportunities for our exporters. Our vision for Invest Zealand is to attract high-quality, long-term foreign investors who can assist us in building capacity—new capacity—to grow the economy, create jobs, build infrastructure, and bring expertise, particularly in areas around mining, energy, and further manufacturing.

It does give us, as the Minister said, access to their domestic and international markets. That is a good thing. That is actually an essential thing. Every member of the Parliament should have digested this book—the fiscal strategy report—and should be memorising it. It shows us that if we do not grow the growth curve bend in this country, future politicians not too far down the line are going to have to be making some very painful choices.

New Zealand First chooses growth, so we choose to support this bill. In doing so, we’re making New Zealand a more welcoming and seamless entity to attract high-quality foreign investment. So New Zealand First will support this bill.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Kia ora, Mr Speaker. I’m going to raise this glass just like my beloved cousin did the other night with oil in it when he gave his magnificent speech expressing what Te Pāti Māori might do with it and what the Green Party would do with it, and I do that just to, I guess, add a little bit of interest to the speech that I’m about to provide you with.

Todd, in 1990, I was in a room with your dad in Taupō, and the question to all that were there—there was a number of politicians. The question was—

Teanau Tuiono

Assistant Speaker

If I could ask—

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Oh, Todd McClay, sorry.

Teanau Tuiono

Assistant Speaker

If I could ask you to kōrero mai ki a au, kaua ki te tangata [you to speak to me, not to anyone else].

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Oh, I’m sorry.

Teanau Tuiono

Assistant Speaker

Kia ora.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

I was expressing to Todd McClay that I was at a hui in 1990 with Todd McClay’s father, Roger McClay, and they were discussing—these politicians—what is tino rangatiratanga, and his wonderful kōrero was, “Well, I’ve just been down to Ngāti Porou,” he said, “and it’s about all these young boys planting trees up the maunga, Meno.” I said, “Well, that’s not tino rangatiratanga; that is merely the beginning. That’s just our young fellows planting trees.” Tino rangatiratanga in 1990 was more than that. It was not just about planting the trees; it was deciding whether trees would be planted at all, where would they be planted, how would they be planted, when would they be harvested, where would they be sold, would we sell them, and all of that. That is tino rangatiratanga.

So in regard to this investment idea, it concerns me greatly. It concerns me greatly, Todd McClay, that from that particular time with your dear dad to now, things have, I’d say, gone downhill even further.

So the key to economic growth—so this what I know about economic growth for Māori. Tourists come to Aotearoa to see Māori people. They come to see things: our tikanga, they come to see our haka, they come to understand the indigenous whānau, what we’re made up of—in fact, what I’m about to go do in a couple of weeks’ time when I go to Japan. And what they want to understand is—see, we have our Māori ownership of our own Māori businesses. We have our own diverse range of Māori businesses. Yes, we’ve got the primary industries, we’ve got agriculture, we’re into forest—Te Aupōuri—we’ve got one of the biggest pieces of dirt with lots of trees on it. So I get it from that aspect. That’s Māori in business, understanding and knowing how do we do that at home. How do we look after that at home? How does that flourish on our own lands from our own business models and our own ways? So I want to make those points as I go to the next about—oh, and by the way, we’re great at fashion, we’re great at food, we’re great at health models, and we’re great at rongoā. Those are all the things that Māori have and know in our own kete, right? We do all of that—we do all of that. Would I want to sell that off? Well, absolutely not.

So why this is bad—and there’s a bunch of bad ones. They all link together. So when all the bad things get together, they call it the Treaty principles bill. Oh, it got voted down, that’s right. Sorry, I’ll put that aside. Then you add fast-track approvals—that’s very bad. Then you add regulatory standards—let’s just really worsen the scenario. And then Treaty clauses—all of those together. When you bunch all of that together, we are buried, and that boot is still on our throat. So when you come with a “Look, we’ve got this little idea and we’ve got to set up an agency, and it’s going to be good for you Māori, so, you know, just give us a thumbs up.” It’s not going to happen.

We need to understand how it’s going to occur, whether we even want it—whether we even want it at all. From what I’m reading, it doesn’t look good. No, I wouldn’t want to sell off to the highest bidder. When investors from overseas don’t know us, don’t appreciate us, they will not bring them profits home. They will swan on by and go “See you, Meno. That was really real. Thank you very much.” We never see them again. If they don’t know us and they don’t understand—and I mean us; I mean tangata whenua. They don’t know us; they won’t appreciate us. That is why this is a dangerous idea and, shucks, we will not support it in any regard. Thank you, Mr Speaker.

Cameron Brewer

National Party · Upper Harbour

This is not about selling off New Zealand, this is actually about building New Zealand—building New Zealand. What the hell did they build for six years? Nothing—nothing. We would love to be wandering around the country, cutting their ribbons, but with absolutely no ribbons to cut—they left us with nothing other than debt.

Invest New Zealand will streamline the investment process and provide tailored support to foreign investors. It will increase capital investment across critical infrastructure—building roads, building tunnels, building bridges like that $56 billion bridge you were going to build over the harbour in Auckland; never done, never achievable, but you promised it—fostering greater innovation in key sectors and attracting world-class talent to the shores. I commend this bill.

Reuben Davidson

Labour Party · Christchurch East

Thank you, Mr Speaker. I finally get to deliver a speech on this Invest New Zealand Bill. I thought I was going to be doing that this morning because I heard that we were under urgency, but it doesn’t appear that there’s much happening very urgently, so I think it’s false advertising on the part of our Government.

I thought it would be very good to reflect before we step into the purpose of this bill on where we are at in Budget week, particularly for our science, innovation, and technology sector, which this bill affects deeply, because what we’ve seen in the Budget, this last week, is a whole lot of money being moved around and away from our science, innovation, and technology sector. This is a sector that, since this Government came into power, has faced unprecedented uncertainty and inconsistency to the point that it has created a crisis in our science sector.

James Meager

National Party · Rangitata

Rubbish!

Reuben Davidson

Labour Party · Christchurch East

A member calls out “Rubbish!” He obviously hasn’t had conversations with the people who hold it together.

Now, I will come back to the bill, specifically back to the policy objective of the bill. This bill says in its explanatory note that it wants to “provide a permissive environment”. That does not sound to me like responsible investment. I can see New Zealand First MPs quaking in fear about a “permissive environment”. They will shake and quake even more if they read on to see the note that says, “if directed by the responsible Minister,”. That is singular—just the one Minister: “if directed by the Minister,”.

Trust is at risk here with this bill, with the level of power that it hands over to a small number of people when it comes to the matter of investment in New Zealand. Or let’s talk about what it is: selling New Zealand. Now, I don’t know if you’ve seen one of these before; it’s a regulatory impact statement (RIS), a very rare breed in this House—a very rare breed. Not only do they not read them, as pointed out by one of my colleagues, but very rarely do they ask for them. But option one in this regulatory impact statement has two magic words—“status quo”—which means this very bill and the objective that it sets out already have a function of Government doing exactly what you claim to want to be doing. Reading on through the RIS under “Balance of benefits and costs”, it simply says, “It is difficult to anticipate quantitative benefits.”—“It is difficult to anticipate quantitative benefits.” Let’s keep reading: “Limitations and constraints on analysis”. This will be interesting: “Various factors limit our ability to quantify the exact net increase in foreign direct investment that will be attributable to this policy initiative.” It goes on, and I will too: “Decisions have been made on this process prior to this regulatory analysis. This has necessitated decisions being made about Invest NZ at an earlier stage before analysis could be completed.”

New Zealand First are starting to look like they are feeling a little sick, and they reach for the bucket because this is where it gets bad: “The speed of implementation required for establishing Invest New Zealand presents risk of delivery as inadequate time may compromise development of the entity’s functions.” We should be very concerned, and we are, which is why we are opposing this bill. But it is unbelievable to see that the priorities of this Government, who—under urgency, which I must say they’ve moved at record slowness, their version of urgency—are trying to push this bill through. I have plenty more to say on it. I look forward to further calls, and most of all, I look forward to dissecting it slowly in the committee stage.

RYAN HAMILTON

National Party · Hamilton East

That was a weird speech from Reuben Davidson. But what I would like to say is we’ve got a great Prime Minister and a great trade Minister that wants to do business with the real world. Up until now, we’ve been all show, no go—all hui, no do-ey. Well, that stops tonight. I commend this bill to the House.

Deborah Russell

Labour Party · List MP

A tiny bit of history for the newbies on the other side of the House: there used to be an entity called Investment New Zealand. It wasn’t actually especially effective. So, eventually, instead of being a stand-alone entity within New Zealand Trade and Enterprise (NZTE), it was folded back into NZTE—this is back in around about 2003. This has been tried before. It didn’t work then, and it’s actually not clear how it’s going to work now. The regulatory impact statement is a joy in terms of finding ways to say to the Minister for Trade and Enterprise, “You’re wrong.” It’s actually just a misplaced policy.

I think one of the ways that we can see most clearly that it is a misdirected policy at best is by looking at the comparisons that are made with invest Ireland, and the claims that invest Ireland is what has made Ireland successful in attracting all the multinational companies and the high-tech investment and so on. I have to say that’s disingenuous at best. Of course, the first thing is that Ireland is much physically closer to the economic powerhouse of Europe—in fact, it’s part of it. But here’s the other thing that is quite different about Ireland in terms of attracting foreign direct investment: it’s not the existence of invest Ireland; it’s the extraordinarily low corporate tax rate, which, in fact, amounts to a huge subsidy by Ireland to the foreign direct investors in Ireland. It is a huge subsidy.

Here’s the thing: we agree. We agree that it is worthwhile working with foreign investors. We agree that there can be a place for it, that it is a useful way to leverage our own capital in order to ensure that we get some of our projects built. That’s not the issue in itself. The issue is that foreign investors want a return. They don’t come here because they think New Zealand is a pretty country. They don’t come here because of hobbits and orcs and mountains and all those sorts of things. They come here because they want a return, and a return that takes money out of New Zealand as well.

Now, ideally, everyone gets better off because of foreign investment, but it has to be really, very, very carefully assessed in the first place as to whether or not it is worth us going down that track—instead of this particular project which is just laying out the welcome mat and saying, “Come in and take what you want.” That is not a good strategy for New Zealand. So we really need to examine this very, very thoroughly.

It’s quite amazing that this project of Invest New Zealand was announced by the Prime Minister way back on 24 January this year. That was an announcement that was off the back of the Science System Advisory Group report. He announced Invest New Zealand back on 24 January, and yet it has taken until now to get this legislation into the House. Not only that, it is being done under urgency—urgency which we suspect will be used to skip the select committee process so that this proposal cannot be adequately examined by this Parliament. That is a disgrace.

The way that urgency has been used this session is appalling. There is good reason for using urgency to put some tax changes through. There is good reason for using urgency when fiscal needs demand it. But doing it for this, for setting up a particular Crown organisation? That is an abuse of urgency. We have fought urgency all the way this time; they kept us here until 1 o’clock, and it’s because that side of the House has abused urgency. Every time that side of the House abuses urgency, we will test and test and test it to the limit. Say goodbye to your families, people. We will test this all the way.

NANCY LU

National Party

Our vision is about growth, growth, growth, so Invest New Zealand will unlock this potential. Invest New Zealand will grow New Zealand. I commend this bill to the House.

Party vote

A party vote was called for on the question, That the Invest New Zealand Bill be now read a first time.

Ayes 68

Noes 55

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes55
New Zealand Labour34
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Motion agreed to.

Bill read a first time.

Teanau Tuiono

Assistant Speaker

This bill is set down for second reading immediately.

Second Reading

Todd McClay

National Party · Rotorua

Minister for Trade and Investment

I move, That the Invest New Zealand Bill be now read a second time.

I want to thank all members across the House for the views they have shared during the first reading, but I would like to clarify a couple of points because I don’t think the bill is as well understood as it could be. I’d like to be clear that Invest New Zealand will be focused on attracting investment into high-value sectors with the potential to raise productivity, expand research and development, and drive increased activity by multinationals and other investors in the New Zealand economy. It will not work to attract investment in sectors that could pose national security risks in New Zealand, and investment will still need to comply with the Overseas Investment Act—it doesn’t alter that; it is guided by it.

As outlined in the first reading speech, the key functions of this bill are to establish Invest New Zealand as an autonomous Crown agency, an entity to focus on bringing investment to New Zealand, rather than a broader mandate that New Zealand Trade and Enterprise currently has. To provide for its objectives, functions, and operations, this will be by establishing an agency whose sole focus is attracting that investment, and we have exciting opportunities to transform New Zealand into a top-tier destination for high-quality international investment that’s good for New Zealand and good for New Zealanders.

I do note the comments by the Hon Damien O’Connor—and I know that when he, previously, in the last Government, was trade Minister, he had many opportunities to talk to investors from around the world who were interested in investing in New Zealand. I daresay and imagine he tried to attract them to New Zealand into areas that would help grow the economy or, in partnership, grow New Zealand businesses. But he too would have realised that it is often harder than it should be for that capital to come to New Zealand to benefit New Zealanders to grow the economy, and it often goes elsewhere.

We should compare ourselves against the country in the world with the highest level of foreign direct investment on a GDP basis, which is Ireland; we should compare ourselves to Singapore, that attracted almost eight times the foreign direct investment last year that New Zealand did. Because in both cases, their citizens earn more, they have more opportunity provided for them, they have better jobs, and they’ve done it in partnership with that capital.

We can’t get rich selling to ourselves; we won’t become wealthier by only investing in ourselves. This is a nation that has always attracted foreign direct investment. This Government backs growth, it backs New Zealanders, it backs the companies of New Zealand, and I commend this bill to the House.

Damien O'Connor

Labour Party · List MP

I take issue with that Minister who said we will not get wealthy by investing in ourselves. What an outrageous, unpatriotic statement to make in this Parliament. What we need is to invest in ourselves, in ways of education, in ways of research and development, in better housing and infrastructure—investing in ourselves, believing in ourselves, and getting the return through future generations. Not seeing the 191 people who leave this country every single day because they’ve lost faith in New Zealand and they’re going somewhere else.

I’ll go to the regulatory impact statement—the Government’s own assessment of this: “Note that an increase in the level of foreign investment will not necessarily equate to an improvement in access to capital or productivity. This is because the impacts of the increased foreign direct investment are dependent on the characteristics of the domestic firms. Investment in non-productive areas will not necessarily improve access to capital, particularly if a given domestic sector already has sufficient access to capital. Foreign direct investment will only improve access to capital if it is directed to sectors and firms where access to capital is currently lacking.”

We welcome, and have welcomed, foreign investment into this country. The Minister is right. We do talk to people who are interested in coming to our country—but for the right reasons: to ensure that we have long-term benefit from that, not just selling off our country. In fact, the primary objective of this agency in relation to the outcomes is an increase in the level of foreign direct investment in New Zealand—full stop. We have amendments that we will talk about in the committee stage that ensure it is subject to the net benefit and ongoing sustainable development of our country.

We’re not here just to deliver profits and returns to foreign investors. We’re here—or I am, and people on this side of the House are—for New Zealand and our future generations, not for the opportunities of foreign investors. We’re happy to have partnerships, but we must ensure that the benefits accrue to us. We are told that we have a shortage of capital—I don’t think many New Zealanders would understand: we have $373 billion—sorry, we did have in March 2024; it’s probably improved since then—of New Zealanders’ money invested offshore. Well, I would suggest that many sensible New Zealanders would say, “Actually, why aren’t we investing a little bit more of that ourselves?” We have KiwiSaver funds—and can I thank Michael Cullen and the Labour Government for finally committing ourselves to develop investment funds that we own and can control. How much is there? There’s $111 billion in KiwiSaver funds. The Superannuation Fund has $76 billion, and 85 percent—

Todd Stephenson

ACT Party · List MP

It’s invested offshore.

Damien O'Connor

Labour Party · List MP

Yes, it is invested offshore, and can I say that because the fund managers have freedom to invest wherever they like, and they receive income and bonuses on the basis of maximising the return—the short-term return—

Todd Stephenson

ACT Party · List MP

No, the long-term return. That’s how it works.

Damien O'Connor

Labour Party · List MP

—no, the short-term return—for their incomes. I suggest that the ACT Party will never understand this. I’m not even going to try and explain it to them. The long-term returns to our country depend upon investing in infrastructure and assets and people and research and development that give us more opportunities into the future. I suspect—and someone asked why this bill has come to the House now under urgency. Well, I think it’s because Winston Peters is away, because let me quote: “New Zealand First stands”—

Simon Court

ACT Party · List MP

Point of order. The Standing Orders are very clear. Members are not allowed to refer to other members not being in the House. I ask that you ask that member to withdraw and apologise. He’s a very experienced member—

Teanau Tuiono

Assistant Speaker

OK, I take the point of order.

Damien O'Connor

Labour Party · List MP

Mr Speaker, I didn’t say the member wasn’t in the House. I said he’s away. It’s widely known that he’s offshore doing valuable work for us. Mr Speaker, can I quote?

Teanau Tuiono

Assistant Speaker

I take your point but please move on with your speech.

Damien O'Connor

Labour Party · List MP

I am moving on: “New Zealand First stands for controls and restrictions on foreign investment. We oppose making it easier for foreigners to come into this country, leave their money, buy our businesses, buy our homes, and buy our land.”

Mark Patterson

NZ First · List MP

Exactly what I said.

Damien O'Connor

Labour Party · List MP

No, not quite, because if the member goes and reads the objectives of Invest New Zealand, he will find that it’s not out to necessarily ensure—as I quoted from the regulatory impact statement—that the money coming in here—and he can vote for our amendments if he does support this—does deliver net sustainable benefits for all New Zealanders. No, it’s just coming in, possibly, for opportunistic investments into a country that has no capital gains tax, and those investors can take away, as they did last year, $26 billion from our economy into their pockets.

Now, that’s perfectly reasonable. They’ve been able to do that. We can’t stop or challenge that. The question is: is there a better way forward and can we invest more in ourselves? Because this agency has been set up, in my view, just to sell New Zealand—to sell New Zealand. Well, it’s about time we invested in ourselves, and if we do get foreign capital in here, we put conditions and provisions on it, as suggested by New Zealand First, and we welcome their support for our amendments. That money can come in and work in partnership, but it must have conditions that ensure the long-term benefit for our country, not at the expense of others.

Now, let’s have a look at what we see. If it comes into houses, no doubt it will drive up the price of houses. People might feel better in the short term. What does that do to long-term housing affordability? If the money comes into research and development—because the Government has squeezed money for research and development; they have taken money from a core part of our economic development for the future and they’re hoping that this money will come in and replace it. Well, you don’t get something for nothing, and if they’re going to invest into our research and development sector and into the bright minds and innovative practices of Kiwis, then those investors are likely to take that IP offshore. Where does that leave us into the future? There are many, many questions in this piece of legislation that we will be asking during the committee stage of this bill.

It is a sad day when we have to have a real estate agent for New Zealand, run by the Government that says it wants growth for them, not for us. I’ve got real concerns about the direction of travel for our country under this current coalition Government. I would have thought that New Zealand First, in particular, in this area of foreign investment, would have had the courage to stand up for what it has stated and stood on in principle over many, many years. The Minister said it: “New Zealand first.” This is not New Zealand first; this is investors first—this is foreign investors first.

Joseph Mooney

National Party · Southland

What a load of nonsense.

Damien O'Connor

Labour Party · List MP

Well, we’ll go and test some of these theories through the committee stage. I know that ACT do have a fairly open mind to sell off anything for any reasons. We have tabled a number of amendments, and we look forward to support from New Zealand First for those. They simply put in place safeguards. If this bill is to progress—because the Government has the numbers—the least that New Zealand First can do is stand up on its principles and support adequate controls and safeguards that mean this money will deliver additional benefits. At the moment, this agency, “Sell New Zealand”, is simply going to go out, find any money it can, bring it into this country, for whatever projects—we don’t know—and not necessarily deliver the long-term benefits we need.

We appreciate, and I can refer to many projects and many businesses in this country that have been set up and deliver long-term benefits for our country. But they’ve been set up under Governments that have put in place those safeguards. There are no safeguards here—absolutely none. New Zealand Trade and Enterprise did have an overall objective of driving an increase in trade and enterprise in this country, and the foreign investment that they sought played into that comprehensive objective. This agency simply brings foreign money into New Zealand for the purposes of the foreign investors. We oppose this legislation.

Lawrence Xu-Nan

Green Party · List MP

Thank you, Mr Speaker. I rise on behalf of the Green Party of Aotearoa New Zealand to hear and oppose this bill. Here we are in the second reading because this Government simply cannot have the guts to let the New Zealand public weigh in and have a say on an entirely new Crown agency that they are creating here under urgency.

I look forward to, following the second reading, spending time with everyone here in this House during the committee stage and getting the chance to have a chat with the Minister, alongside other members of this House, to really scrutinise why we need to have this agency in the first place. So, Mr Speaker, and also to the Government, I look forward to this opportunity coming up after the second reading tonight.

On to the second reading of this speech. I think one of the things that is really apparent, and I want to address this up front and centre, is the complete and alarming lack of any form of Te Tiriti analysis in this bill—not just on this bill but also in this bill. The concern that we see when it comes to the department impact statement: “What is the policy objective? The policy objective is to lower foreign investors’ liability of foreignness as much as possible.” I echo the previous speaker, the Hon Damien O’Connor, to really question this Government of who we are placing first here with this agency. If this is the policy objective, is this really putting Aotearoa New Zealand first? Maybe a political party who have supported this bill should call themselves “Foreigners First” instead of New Zealand First, or—even more appropriately—“Migrants First”, because, God, that party certainly loves themselves some migrants!

When it comes to Te Tiriti, what we are seeing here is a complete disregard for the foundation document of Aotearoa New Zealand. What we are seeing here, as we see in all of the trade deals that we have been negotiating under this Government—and that includes the latest New Zealand - United Arab Emirates Comprehensive Economic Partnership Agreement—is Te Tiriti still being placed as a tag-along, as something that is nice to have rather than a core part of what we are offering here in Aotearoa New Zealand, both to our own people and how we would like to see ourselves projected on the international stage.

When we are looking at why people would like to invest in Aotearoa New Zealand, the world has moved on, but this Government has not. This Government would love to be stuck in the 18th century, like all of their policies around offshore mining, seabed bottom trawling when we were looking at opening gas and oil exploration, removing all of our climate obligations, a lacklustre emissions reduction plan, not upholding anything under the United Nations Declaration on the Rights of Indigenous People, putting more Māori and Pasifika in prison, and putting more of our young people in prison. That is not what other people would like to contribute.

Indeed, we have heard from our overseas partners that they are concerned with the way that Aotearoa New Zealand is moving. They are concerned because it is out of step with our international obligations. They are concerned at our complete disregard to environmental protection under this Government. So I ask you: under this Government and under this agency, what are they hoping to do?

When we are looking at this particular bill, and when we are looking at the way that we promote ourselves internationally, our most successful marketing campaign as a country is the fact that we paint ourselves as a clean and green country. Yet the truth now is so much further away from that. What we are seeing are unswimmable rivers. What we’re seeing is beaches that, with the tiniest bit of rain, or even during dry season, people can’t swim in. Those kinds of lack of sustainable goals and sustainable targets is not what foreigners or investors would like to invest in.

They are afraid that when they are investing here—for those of them who would like to have the Government’s ear in terms of opening more offshore drilling or allowing for more mining permits—they know they’re only getting a short-term gain out of this, and they know that they can exploit Aotearoa New Zealand, because they couldn’t do it to any other country. Other countries have moved on; yet they know.

We removed the Clean Car Discount. It was a great form of input for us. You have clean-car companies who are like, “We were hoping to invest more, but do you know what? We’ve got all of these really fuel-intensive vehicles that we can’t push off to any other country.” But do you know what? Aotearoa New Zealand will then become a dumping ground for all of these sorts of things. This is what this agency and this bill will allow.

We are looking at the fact that when we get to talking about some of these issues, like I said, foreign investors will not invest—or the kind of foreign investors we would like to attract will not invest—in a country that doesn’t invest in itself. What is so telling about this—and as part of the Budget 2025—is the fact that the bulk of the funding that is going to be funded towards Invest New Zealand, as the Hon Damien O’Connor said so accurately, as a real estate agency for Aotearoa New Zealand, comes out of Callaghan Innovation, an institute that this Government cut that is supposed to support local and New Zealand entrepreneurs and innovators. Instead, we are taking that money from people of Aotearoa and then trying to use that money to draw overseas investors. That is not going to work and is not a long-term solution; it is, at most, a band-aid. We may not even get to the band-aid stage, because this agency is going to fall apart, because there is nothing tangible that we can see that’s going to hold this agency in itself accountable to the functions and targets.

With that, we do have a number of amendments that, hopefully, will amend or address some of these concerns and risks that we are seeing. When we are looking at international trade, we know the precariousness of our position internationally. We have seen, and the Minister has also spoken about the fact—how the US tariff and the changes in geopolitics has affected our own ability to do trade and how we have to be agile in response to that. So we know from that that we should be investing in our own people first. We know that we should be putting in more investment in education, in health, and in regional areas, but this is not going to do that.

This is a Government that wants to talk the talk but not walk the walk. This is a Government that through its Budget would like to paint a beautiful picture for the people of Aotearoa but without addressing any of the core issues that it’s experiencing. This is a Budget that only reprioritises money from one area to another, because, ultimately, this is an austere Government that only cares about balancing the books but will not actually, ironically, invest in New Zealand.

So I challenge the House—and I challenge all of us—to be able to have this debate coming up in the committee stage. Some of these, as we heard from the Minister, we are basing on Singapore and we’re basing on Ireland. But do you know what? Neither of those two countries care about speculative investment. They are there to invest, genuinely, in the arts and culture and technology of those countries; they’re not there just for the landlords. That is the difference we’re seeing between this Government and those countries they refer to. So, with that, the Green Party of Aotearoa New Zealand will not support this bill.

Simon Court

ACT Party · List MP

That is why this bill is needed; because, after six years of a Labour-Green Government wrecking investor confidence, doing crazy things like banning oil and gas exploration, tanking one of our most productive sectors that keeps the lights on and energy prices low, New Zealand is simply not set up to channel the growing interest in investing in this great country that this Government has generated with the policies that we are putting in place. We are an open economy and we need investment. We have a hunger for capital. The hundreds of billions of dollars invested here in New Zealand and by Kiwis overseas shows that this is a country that is facing up to the realities of having to grow our business in a pretty tough environment.

I’m shocked and surprised that Labour won’t support this bill. But, look, even hearing about the Greens and Labour spouting this xenophobic nonsense, this fearmongering about foreigners, fearmongering about foreigners buying New Zealand assets, it was shocking and disturbing from people who claim to be social justice warriors—

Francisco Hernandez

Green Party · List MP

Look who you’re in coalition with. Don’t talk about xenophobia.

Simon Court

ACT Party · List MP

—and even from people—

Francisco Hernandez

Green Party · List MP

The Deputy Prime Minister tells migrants they can’t have their say. Nonsense.

Simon Court

ACT Party · List MP

Again, you can tell, for those listening and watching at home, how triggering it is to have this pointed out to people who claim to be social justice warriors. The Opposition have no credibility on this bill. Damien O’Connor and Lawrence Xu-Nan, the previous speaker, absolutely jumped the shark in their opposition to it. They were unhinged. Labour, the Greens, Te Pāti Māori are unfit to govern, ever, based on that position.

ACT supports this bill because it provides a pathway for international investors to invest in the assets and the infrastructure we so desperately need. Thank you, Mr Speaker.

Mark Patterson

NZ First · List MP

Minister for Rural Communities

This is a pretty narrow bill. It’s been an interesting philosophical debate but, essentially, it’s a pretty narrow bill trying to set up this Crown entity, Invest New Zealand. It has seemed to draw a bit of attention to New Zealand First from the Labour Party, and following on from Simon Court—what a pale comparison to the Labour Party’s farce.

I can tell you that unless we grow this economy, all the visions that you might have for throwing money around are not going to happen. Look at the things we’ve championed. Fast track—to get projects going. We’re supporting Simon Court and Chris Bishop in getting the wider Resource Management Act reforms. The Regional Infrastructure Fund: $1.2 billion into regional New Zealand. Championing mining—remember that? You used to champion mining, Reuben Davidson and Damien O’Connor, when you had a Labour Party worth the name. The West Coast is booming, thanks to Shane Jones. Water storage and irrigation. Energy—the $200 million investment into oil and gas exploration.

We will not stand aside—like the Labour Party looks like it’s doing—while New Zealand deindustrialises. We’re going to stand up for New Zealand. That’ll mean attracting some foreign capital and some overseas expertise, so that’s where our focus is. We’re going to throw the absolute kitchen sink at this. We’re not going to allow ourselves to be smothered by the Greens and their Marxist ideology, and who knows what the Māori Party are doing. But we’re going to build this economy and we’re going to make it so that there’s a future for our kids to stay here. We’ll support the bill.

Julie Anne Genter

Green Party · Rongotai

This is like an episode of Utopia. Has anyone seen Utopia? It’s meant to be like a satire, but it’s actual reality—is this Government, in the thick of it.

There’s two issues overall with the bill. I’ll start with the first one. The first one is: what is this Invest New Zealand concept, and how many one-stop shops is the Government going to put up? Like, pretty soon they’re going to need a one-stop shop for all the one-stop shops. As previous speakers in this debate have noted, they’ve got fast track as a one-stop shop. But then, last year—I don’t know if anyone remember this—the National Infrastructure Funding and Financing (NIFFCo) was established. What is the point of NIFFCo? Well, again, it’s just something that’s evolved, over time, and keeps getting different names. But when Minister for Infrastructure Chris Bishop announced NIFFCo, he said that the agency would be tasked with serving as a “shop front” for receiving investment proposals, supporting private infrastructural investment, partnering with agencies and local government on projects involving finance, and administering the central government’s infrastructure funds.

So, previously, in the first reading debate, I was intrigued to hear from Mr Brewer that this bill—this bill, Invest New Zealand—was all about getting investors to come here and build roads and bridges and tunnels. But then, which shop front are they going to go to? Are they going to go to NIFFCo, or are they going to go to Invest New Zealand? This is getting very confusing because now we’ve got two shop fronts to get foreign and private investors into infrastructure, which is actually a core responsibility of the Government.

That sort of brings me to my second point. I mean, firstly, we do really have to laugh about this, right? Because Invest New Zealand—it just sounds like a Christopher Luxon special. It just sounds like a brainwave he had. You know, somebody who’s been a corporate manager selling deodorant, or whatever, and running an airline for a while—like, their big idea on how to improve productivity for our country is to set up another agency that’s going to attract foreign investors. And it’s the second agency. This is the second agency in less than one year that they’ve set up, and they’re putting in $85 million to set this up over four years—$85 million for another agency to interact with investors and try to get them into building infrastructure, because they can’t figure out that, actually, all we need to do is improve our tax system and make better investment decisions, and then we could actually build the infrastructure that would improve the productivity of our country.

Amazingly, changing the tax system is the number one recommendation from the IMF and the OECD about how to improve productivity in New Zealand—it’s actually tax capital, tax land; don’t tax labour. You’re overtaxing workers, and low-paid workers, and you’re not taxing all of the people who are earning money just through passive capital gains. And then people just put all their money—like we’ve seen in a recent report; how many of the Government members have millions and millions of dollars invested in property? Big surprise! They don’t want to change the tax system, because that wouldn’t suit them personally. But, actually—

Member

That’s you, you fool!

Todd Stephenson

ACT Party · List MP

You’re the number one in the Greens.

Julie Anne Genter

Green Party · Rongotai

I don’t have any investment properties; I don’t know what you’re talking about. But it makes sense that people invest in property, but that—

James Meager

National Party · Rangitata

Do you own a home? Willow’s got a home, Damien’s got a home, Rachel’s got a home, Tracey’s got a home.

Julie Anne Genter

Green Party · Rongotai

James Meager, that’s not how you get the economy to be more productive. Like, we understand that people personally can get ahead by investing in properties and renting them out, but that’s not what makes New Zealand a better-off country. That’s the whole problem: these people cannot differentiate—the Government cannot differentiate—between what made Christopher Luxon rich and what’s actually going to make the country prosperous. You can’t differentiate between those two things, so you come up with Invest New Zealand. “We’ll just get some really great salespeople to go overseas and get all the benevolent rich people overseas to come here and build our infrastructure and buy our things, and then they will make money out of it and take it back offshore!” It’s the same problem that’s happened since the 1980s and 1990s. Why can’t you learn from history, Government members?

That’s why I say this could be a Utopia episode. I can imagine Chris Luxon coming up with the idea of Invest New Zealand: “I know how we’re going to tackle this productivity problem.” [Interruption]

Teanau Tuiono

Assistant Speaker

I want members to not have a conversation in the middle of the speech. If you want to have a conversation across the Chamber, you’ve got the hallways.

Julie Anne Genter

Green Party · Rongotai

Thank you, Mr Speaker. But, like, more seriously, it’s basically a joke that you’re going to have another one-stop shop and spend $85 million over the next four years for an agency, when we already had New Zealand Trade and Enterprise, we already had NIFFCo, we already have plenty of opportunities, and we had the Government spending heaps of money on the public-private partnership (PPP) investor summit. What’s come out of that? Crickets. I mean, I think there was one reference to one PPP project—a Corrections project—in the Budget.

So you continually have the Government coming up with these ridiculous bills, setting up a second agency that’s meant to be a one-stop shop. That’s why the Green Party’s not going to support this. I did listen with interest to the amendments that were referred to by Damien O’Connor that will be coming up in the committee of the whole House stage of the bill. Of course, it would be better if this did go to a select committee so that we could consider it properly and we could hear from actual experts and people what they think about this. But that’s probably not going to happen.

I think the Hon Damien O’Connor made some really excellent points about wanting to make improvements to this bill to at least make sure that, in the process of going out and trying to hawk off New Zealand to overseas investors, we have some protection to make sure that it’s actually in the long-term interests of the people of New Zealand, because it is the case that there might be a very small percentage of people who profit or become very wealthy because of attracting foreign investment to New Zealand, but I think it’s highly unlikely—and I think most New Zealanders would want that to actually be relevant to the long-term wellbeing of New Zealand. So we might consider supporting some amendments to the bill, but we won’t be supporting the bill.

Fundamentally, besides the “We can’t think of anything else other than setting up a second agency to be a one-stop shop front for attracting foreign investors to invest in infrastructure.”, I think this bill and the shallowness of this Government’s assessment on how we actually build a thriving society here in Aotearoa—it’s really made clear through bills like this and Budgets like this: it’s like there’s no real depth of thinking and taking on the challenges that we’re facing when it comes to climate change. In fact, they’re getting rid of the green investment—green investment’s gone now. That was only just building up. It takes time for these institutions to build up—so just five, six years after it had started, before it could really be useful, we’re shutting that down, setting up a new agency, hoping that magically it’ll solve New Zealand’s productivity problem while we continually avoid and refuse to acknowledge the problems with our tax system which perpetuates the worst inequality and child poverty, and that inequality is actually part of our productivity problem, and that the Government can be investing at a much higher level in both infrastructure and services that help people be their best.

This whole Budget has been quite targeted towards certain sectors of the population, just like the last one, and they’re not the sectors that are going to make us a thriving, innovative society in the future, because our younger people are going overseas; they don’t get opportunities. It’s very, very difficult for young families. We’re not building as much housing as we could be, and I know that the Minister is passionate about increasing the housing supply but literally 250 homes that would have been contracted, would have been built on Kāinga Ora land in my own electorate, just in Rongotai, have been cancelled since the 2023 election—cancelled; not happening. That’s why the construction sector is so upset and the infrastructure sector is so upset, because a whole lot of work that would have been done in the last year or two was completely cancelled by this Government. While they claim to care about these things, their actions are actually about protecting the status quo, protecting the people like them, and they’ve got no real ideas or understanding. It’s pathetic.

Cameron Brewer

National Party · Upper Harbour

Oh, I think the first thing that Invest New Zealand should help us with is finding some funding to dig the second Mount Victoria tunnel—the second Mount Victoria tunnel. The Minister of Transport would agree with that. Let’s find it. The amazing thing is that when that member is in Seatoun, she’s all for the second Mount Victoria tunnel; and when she’s in Island Bay, she’s against it. Unbelievable. So that would be a great focus for Invest New Zealand.

The policy objective—if we look at the non-partisan, non-political statements on this explanatory note—is to lift New Zealand’s investment attractiveness internationally by establishing an investment promotional agency, Invest New Zealand—$88 billion worth of tax; $44 billion worth of debt. It’s a rainbow and unicorn Green plan. Invest New Zealand is our only option. I commend the bill.

Vanushi Walters

Labour Party · List MP

I am very troubled by the use of urgency in the House. Having experienced it as a former member and coming back to the House now, it feels as though the nature of what we’re using urgency for is different and really quite concerning.

I read clause 8 of the bill several times over. It is the clause that creates a new Crown entity, and one of the questions I will be asking the Minister, when we get to the committee stage, is whether a Crown entity has ever been created during urgency, using urgency, before. I know there are a lot of political things that happen in this House, but at times, we need to look to good governance, as well. The Crown Entities Act was set up in 2005, and, really, the intention was that we take care in establishing Crown entities—that we have respect for the independence that they hold in our system and that there is precision in terms of the role that they’re playing in New Zealand. Neither of these two things has happened.

In terms of the appropriateness of the independence, I’ll be speaking shortly about the governance function in this entity and how it’s actually quite markedly different to the one that currently exists in New Zealand Trade and Enterprise (NZTE). I will be asking some questions about the rationale for that and why the same model wasn’t used, why this dramatic new model is being used. Colleagues have spoken about this but, in many ways, we could kind of term what’s happening tonight as a bit of a ghost rationale being given for the creation of a Crown entity. There hasn’t been a rationale that’s been given in the regulatory impact statement (RIS), and colleagues have quoted a part of the RIS, which expressly says that decisions were made to create this entity before the analysis could be completed. It’s very clear in the RIS.

We had an announcement from the Prime Minister in January seeding the entity within NZTE and stating that it would become a Crown entity, before an analysis on whether it should become a Crown entity or not, before an analysis on what the function should be. I understand this is a political place. We are also responsible for good governance—and the Government members are talking over that statement. We are also responsible for good governance. On any new bill that they introduce, whether they introduce it in urgency or not, they must first have a problem statement. We do have elements of a problem statement here: that sufficient capital isn’t being directed to the areas that we need it to be. Great; I think we can agree on that as a problem statement. However, the questions that follow, which should be addressed through a robust analysis, are not answered in the RIS.

The next question is: is there anything that can be done to address the problem statement that doesn’t require legislation or an $85 million spend? Do we already have a mechanism? Multiple members have spoken about NZTE. If you read the statute that relates to it—Government members are laughing now; go ahead, read the statute—that entity has provisions in the statute that provide for them to do this function. There is an entity. Why wasn’t that option considered? If you go to the RIS, there are four options that are considered in the RIS. The most natural option, one would have thought, is that the current entity that already has statutory powers to do this function would then be given more funding, if it required it, and a more specific mandate to tie the work that needs to be done—getting the capital to precisely the places that we need it to go. That’s a legislative fix. It’s actually quite a small legislative fix of existing legislation.

Now, what is thoroughly curious is that that was not one of the four options considered in the RIS. I cannot, for the life of me, understand why that most obvious first option was not considered. The options go from identifying a legitimate problem to setting out three other options—none of which look at the most obvious solution of extra funding and a more targeted mandate—and leap to the creation of a new entity. It is a wild, wild leap.

I want to look at what a possible reason for the commitment to this new entity is. We know we’ve already got the function under statute. We’ve already got an entity. Why are we spending $85 million? Why are we establishing a new board, getting a new chief executive in, let alone thinking about all the staff who are now going to go through a redundancy process, either to be made redundant or to be absorbed into the new entity? Why? Surely this is a Government about efficiency, right? It’s a Government about efficiency. There is one difference that I could find, looking at the two pieces of legislation side by side. It relates to the governance provisions of the new organisation, compared to the governance provisions of the old organisation. I’ve got three minutes, so I’m going to read them out and explain the difference between the two.

Member

You’re not allowed to read speeches.

Member

That’s not very efficient.

Vanushi Walters

Labour Party · List MP

Madam Speaker, if I could have some quiet to be able to do that?

Barbara Kuriger

Deputy Speaker

Actually, I wasn’t going to interrupt the member’s speech, but half of the conversations that are going on, on my right, could take place in the lobby, because there’s far too much chatter over there and most of it doesn’t look like business being carried out. Carry on—to the member.

Vanushi Walters

Labour Party · List MP

Thank you very much, Madam Speaker. In the current legislation, the Minister does appoint the board, and they can also appoint special advisers to the board. They can only appoint two people to be those special advisers. That’s the Secretary of Foreign affairs and Trade or the Chief Executive of the Ministry of Economic Development. Now, this is an entirely normal governance function. It’s actually in accordance with section 107 of the Crown Entities Act, and it’s, basically, providing for a cross-governmental approach. It allows chief executives to sit in the room and provide context.

This bill is different. This bill, in clause 13, states: “(1) The Minister may appoint the chief executive as a special adviser to the Board. (2) The purpose [being] … to facilitate the exchange of information between the Minister and the Board on matters of Government policy relevant to the Board in performing its functions and exercising its powers under the Act.” I will be asking more questions about this during the committee stage, but, for now—

Member

Can’t wait!

Member

Don’t threaten us like that.

Vanushi Walters

Labour Party · List MP

I’ll wait for you to be quiet if you need to. I think people need to hear this.

Barbara Kuriger

Deputy Speaker

When people listen, they learn. If they choose not to listen, the speaker can carry on speaking.

Vanushi Walters

Labour Party · List MP

There are two unusual features of this. First, it appears to be making the chief executive of that organisation a ministerial conduit in the room. That’s an entirely inappropriate role for a chief executive to have in relation to a Minister. It’s also inappropriate in terms of the relationship between the chief executive themselves and the board. You’ll all remember that it is the board who appoint the chief executive, so it puts them in a very odd situation.

Everybody’s focus should be on why this governance arrangement has changed between the two Acts, and I will be asking more questions about that, and others. I do not support this bill. I think it’s extremely irresponsible, and I would like the Government to remember that—politics and urgency aside—you have a governance responsibility to New Zealanders.

RYAN HAMILTON

National Party · Hamilton East

Now it’s time for the adults to come in the room. As New Zealand goes overseas and has adult conversations with commercial constructs, Invest New Zealand is the vehicle which is going to enable that. New Zealand’s growing up. New Zealand’s open for business. Go the Chiefs.

Reuben Davidson

Labour Party · Christchurch East

Thank you, Madam Speaker. It’s good to have the opportunity to stand and continue to speak for a little longer than some of the members on the other side of the House have taken the opportunity to, because this is a very important issue and a bill that definitely deserves some proper and thorough examination here.

Now, we’ve heard, in a number of ways and from different people, some assessment around the policy objectives of this bill, which is “to lift New Zealand’s investment attractiveness internationally by establishing an investment promotional agency, Invest New Zealand,”—

Tim van de Molen

National Party · Waikato

Good reading!

Reuben Davidson

Labour Party · Christchurch East

—“which will facilitate and enable increased overseas investment into New Zealand.” Now, someone called out and said, “He’s reading that.” Yes, you can do that, even if you’re not taking the opportunity to do so yourself, sir.

The thing that a number of people have pointed out is that this is actually the same as creating a real estate agency to sell New Zealand. That’s what it is. My questions are: who’s the agent and who’s getting the commission? I’ve seen some suggestions here. So I’m looking and I’m thinking: who’s a strong leader in the National Party that could be doing that? Maybe the Hon Erica Stanford. People can get in touch on assettsforsale@gmail.com, because she’d be very accessible via that. Perhaps, you lean on a coalition partner and see if the Hon David Seymour would be available to drive a good deal—almost as well as he tried to drive that Range Rover up the steps of Parliament. But the problem is he’s good at negotiating with a weak leader, but he won’t be good at negotiating with much bigger countries, which is what this is about. So maybe it will all fall on the Hon Casey Costello from New Zealand First. But, as we’ve seen, the deals that she does go up in smoke, so that’s not going to be good for the country.

The reality with the Invest New Zealand Bill is that you are being reckless with the future [Interruption]—

Barbara Kuriger

Deputy Speaker

Quiet!

Reuben Davidson

Labour Party · Christchurch East

—and the reality is it’s not yours to be reckless with, because investment needs to be ethical and investment needs to be responsible, not “permissible”. That’s what you’re doing: you’re creating super-permissible investment that is not well governed. One Minister; a board of as few as three. That’s not good governance. That is not democracy. That is chumocracy, and that is what this bill is setting up.

If you were real estate agents, you’d be flippers, because all you’re doing is making quick deals. You’re saying, “Just trust us—just trust us”, and people look and they say, “Like we did with the cancer drugs? I don’t think so. Like we did with the surprise tax cuts for big tobacco? I don’t think so. Like we did with the pay equity settlements that you cancelled with no notice, in less than 24 hours?” There were more people standing on the lawn protesting your Budget than there were listening in the lock-up to try and find out the details.

You are merely becoming flippers in a real estate industry, and, at the same time—at the same time—you are taking money from our science, innovation, and technology sector and putting it into starting up a new entity that is already provisioned for within New Zealand Trade and Enterprise. You are setting up a new entity that is not needed—your own regulatory impact statement (RIS) says that. Even if you only read the bits of this RIS that are pro your idea, it would take you a matter of seconds; there’s so little in there to support it. The reality is that our science, innovation, and technology sector creates jobs. It creates IP—that’s intellectual property. I don’t know if you know that on that side of the House, but that’s what it creates.

It also creates pride. New Zealand has a very, very long, proud history of great self-funded science, innovation, and technology, and you have pulled the capital out of that and pushed it into the establishment of an agency that sells that off. When they pay, they own, and it’s gone. All those ideas, all that talent, everything that you get invested into, you have, effectively, sold. As real estate agents, you’ve flipped the house; it’s not yours anymore; it’s gone. You ultimately end up becoming sell-outs. You are being reckless with the future, and it is not yours to be reckless with.

NANCY LU

National Party

New Zealanders, remember this: this Government wants New Zealand to grow, grow, grow. The Opposition over there—Labour, Green, and Te Pāti Māori—you are here to stop New Zealand to grow. I commend this bill to the House. [Interruption]

Barbara Kuriger

Deputy Speaker

Excuse me, I’m going to be sending a couple of people out soon if that barrage doesn’t stop. If you want to make intelligent interjections, that is fine. But no one can hear a word any of you are saying, because you’re all just yelling it at the same time and it’s not good.

Deborah Russell

Labour Party · List MP

Madam Speaker, thank you. My colleague Vanushi Walters asked the critical question here: what problem is this bill trying to solve? Now, it’s a critical question right from the start. What problem is it trying to solve? Sitting in the regulatory impact statement, we have some of the analysis that’s going on as to what problem the bill is trying to solve, and in paragraph 1 of section 1, it says that the problem—the first problem: “The Prime Minister has highlighted economic growth as the core priority for the Government.” So one of the Prime Minister’s priorities—and, of course, it does seem to be something we indeed need to focus on—but in the second paragraph comes the nub of it, that this bill might be oriented towards: “The most important driver of economic growth is productivity.”

So we’re casing this as a productivity problem. That’s what this regulatory impact statement says. In fact, then, the analysis prepared by the Ministry of Business, Innovation and Employment draws on an economic analysis by Treasury, and says that “In a recent analysis by the Treasury, several possible causes for our low productivity were identified, including education and skills, employment composition, capital, innovation and technology, business dynamism, globalisation and trade, sectoral composition, and measurement.” It says, “While the report ultimately concluded that there is no singular cause for this issue”—for low productivity—“poor access to capital was identified as a major issue.” Well, that’s interesting, because there was a whole lot of issues identified there.

So I went and got the actual analysis from Treasury. It’s a May 2024 paper, The productivity slowdown, and it really does canvass the particular issues as to why productivity has slowed down in New Zealand. It does indeed list all those issues in terms of what might slow down productivity, and one of them is indeed capital, but it’s only one. Access to capital is one problem that might be causing our problems with productivity. In fact, that’s backed by the Productivity Commission, who say that we do need to have certain concerns around access to capital. But if we are looking for the biggest driver in terms of productivity, it’s not access to capital; it’s innovation. That is what Treasury says—it says, on page 20 of their report, “Innovation is perhaps the most fundamental determinant of productivity.”

What do we need for increased innovation? We need solid, secure education at primary and secondary levels, and especially at tertiary levels. We need a tertiary education system that ensures that everyone has a trade, a diploma, or a degree. Yet that Government is in the midst of destroying one of our tertiary institutions, in particular the tertiary institution that most students go to, that most students go to for a trade or a diploma.

What else do we need for innovation? Well, we need a thriving research and science sector. What is that Government doing? It is taking apart our science sector. In fact, notably, a heap of the funding that is coming into this new entity that the Government is setting up is coming from Callaghan Innovation research. It is money that is being reprioritised—reprioritised—out of our research and science sector and put into this new entity. That’s where it’s coming from.

So two of the things that we know drive productivity are being decimated by this Government, and what is an alternative? What are they offering us? A new Crown agency which replicates work that is already being done within New Zealand Trade and Enterprise (NZTE), and for which they cannot identify the success factors. Well, actually, that’s not quite the case. The purpose of this entity is going to be to drive more foreign direct investment, and its success is going to be measured by having more foreign direct investment. Well, that’s kind of just—that’s OK, but what is not clear is the link between foreign direct investment and the drivers of productivity. That link has not been made, and we would need to see that link being made.

Now, this is exactly the sort of issue that we could’ve dug into in a select committee process to see whether setting up this particular type of Crown entity would, in fact, drive the productivity that is needed. Let’s remember: access to capital is only one of the factors that drive productivity. We could’ve been able to weigh them all up against each other, but because we didn’t have the select committee process, we weren’t able to do that.

Now, there is a whole lot of objectives, then, that are set for this policy. One is that there’s greater investment into innovative activities. One is greater research and development, investment, and innovative activity in New Zealand. One is more skilled professionals in New Zealand. But how exactly is more foreign direct investment going to drive all those? The link needs to be made clear.

But then we come to the assessment, the analysis of how the options proposed in this regulatory impact statement—the Minister’s preferred option compared to the status quo, and so on. They are all assessed, as is the usual way, with a spreadsheet with plus signs in green and minus signs in red. The curious thing is the way that these are allocated in this particular document. So, for example, in terms of getting an increase in foreign direct investment, option two: reprioritisation within NZTE would’ve been just as good as enhanced option three, which would’ve been removing some of the regulatory barriers, which would’ve been just as good as option four, the dedicated agency.

But this one is the one that, just, I find gobsmacking: one of the ways that the options are assessed is by looking at the Government mandate. Well, of course the option preferred by the Minister has the Government mandate. That’s just circular. Of course it does. And of course the status quo doesn’t have the Government mandate, because they do want to change this. That is just a nonsensical assessment, and it’s the only one that’s got two little green plus signs.

But then—and this is the one that really astonishes me—increased cost to Government. In terms of assessing whether or not a policy is positive, with that positive green sign, well, of course, focusing on general business settings, well, that could have costs involved in that. But then it gives a positive green sign and says the establishment of a new Government agency can have significant costs. Now, blow me down—I would’ve thought that was a minus for a policy, but here it’s assessed as a positive. I’m just a little bit blown away by that. So it’s really hard to assess what is going on. There is no clear lead from this paper. There is no clear evidence that says that this solution is a good solution. Frankly, the analysis here, to me, feels skewed, and it is not strong enough to rest the formation of a new agency on.

Finally, I do just want to think about the types of investment that might be facilitated by this new Government agency. We’ve seen in this Budget an absolutely shocking commitment—a shocking commitment—to fossil fuel industries. A shocking commitment—you know, $200 million allocated to them. And then an absolute shocker with the new partial expensing, with two clauses specifically there in the legislation saying that petroleum and coal mining can get this extra subsidy from the Government to get going. At the same time, we know that offshore wind in South Taranaki, which would have brought investment into the country that would have been good for the climate, has been driven off.

This Government has shown its priorities already for the sort of investment it likes, and it is the sort of investment that leads to more global warming, that puts this country at risk. I think this is an absolutely shoddy policy, and we should not support it.

Dan Bidois

National Party · Northcote

Foreign direct investment equals growth. Ireland gets it, and we on this side of the House get it. Invest New Zealand is going to match foreign investors with great opportunities in the Hutt Valley, in Bay of Plenty, in Selwyn—in great areas—in Hobson, Southland, Northcote, and that is why I commend this bill to the House.

Party vote

A party vote was called for on the question, That the Invest New Zealand Bill be now read a second time.

Ayes 68

Noes 54

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes54
New Zealand Labour33
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Motion agreed to.

Bill read a second time.

Barbara Kuriger

Deputy Speaker

This bill is set down for committee stage, presently.

Public Finance Amendment Bill

First Reading

Chris Bishop

National Party · Hutt South

Associate Minister of Finance

on behalf of the Minister of Finance: I present a legislative statement on the Public Finance Amendment Bill to the House. I move that the Public Finance Amendment Bill be now read a first time.

Barbara Kuriger

Deputy Speaker

Is there a legislative statement or not?

Chris Bishop

National Party · Hutt South

Yes, I said, “I present a legislative statement”.

Barbara Kuriger

Deputy Speaker

Oh, sorry. OK. That legislative statement is published—[Interruption] Could we have a bit of quiet so we can hear ourselves. That legislative statement is published under the authority of the House and can be found on the Parliament website.

Chris Bishop

National Party · Hutt South

I move, That the Public Finance Amendment Bill be now read a first time. I nominate the Finance and Expenditure Committee to consider the bill.

This is an important bill and it’s a little bit disappointing that it’s being dealt with at 10.29 p.m. on Thursday night—well, Saturday night, but of course it’s still Thursday in Parliament’s time—because the Public Finance Act has served New Zealand well for over 30 years. Our public finance system is highly regarded by overseas jurisdictions. So I want to be really clear that we are not proposing wholesale changes to the Act, but we’re introducing targeted amendments to strengthen fiscal transparency, remove unnecessary requirements, and improve how the Act works in practice.

In particular, we do want to signal we are going to be paying close attention to the recommendations of the parliamentary inquiry on performance reporting, which the Finance and Expenditure Committee is conducting, chaired by the very able Cameron Brewer. The inquiry is expected to report in the middle of next year and will address longstanding concerns about how the results of spending are reported. The Auditor-General, as members will know, has pointed out, particularly this current Auditor-General or the retiring Auditor-General, that it’s not always clear to parliamentarians when spending is appropriated through the system by this Parliament, whether it actually results in positive outcomes for taxpayers and New Zealanders. That was particularly the case in the six years of fiscal profligacy of the last, failed regime.

One change we are proposing to make is around fiscal risks. Members will recall that when this Government came to office in late 2023, preparing for the “mini-Budget”, as it was then called, it was not at all clear that the outgoing Government had adequately presented fiscal risks to the new Government. The statements were opaque and did not always lead to good public understanding. There have been operational improvements by the Treasury since then, including explicitly identifying time-limited funding and capital cost escalations. The bill makes these categorisations a requirement, so there are sensible changes there.

The last Government pretended that they were the first Government in human history to care about wellbeing. Of course, it is the Government’s first responsibility to look after the wellbeing of New Zealanders. Grant Robertson had this facile and fanciful view of the world that he was the first person in human history to come up with the idea that Government should look after their citizens, and, therefore, this fatuous insight required the insertion into law, the requirement for wellbeing Budgets. And members will recall glossy documents—taken by Grant Robertson himself—of mountains, and of social and human capital. There were lots of words and glossy pictures, and we had wellbeing into the Public Finance Act.

Ingrid Leary

Labour Party · Taieri

Talk about the bill.

Chris Bishop

National Party · Hutt South

And Government was—well, I am talking about the bill; we’re getting rid of these requirements. That’s the whole point.

The Act was amended to make the Government articulate the wellbeing objectives that would guide the Government’s Budget decisions. Of course, building a stronger economy and delivering public services are the most important contributions the Government can make to socioeconomic, environmental, and cultural outcomes.

Now, if a Government wants to dream up any old thing and call it wellbeing, then they’re well-entitled to do that. But we should not pretend that the nebulous notion of “wellbeing”, inserted into law, makes everything better, and nor does it actually lead to Governments making good decisions. I’ll tell you what isn’t wellbeing: 120 billion bucks of extra debt, a ginormous increase in Government spending—that is not wellbeing. Inflation of 7.3 percent is not wellbeing. Rents going up by $170 a week on average is not wellbeing. And here’s the kicker—a particularly not-wellbeing thing would be—

Willow-Jean Prime

Labour Party · List MP

Is living in a car.

Chris Bishop

National Party · Hutt South

—4,000—oh, ho, ho, ho! “Living in a car”, she says. Well, I’ve got the numbers. Guess how many children ended up living in cars between 2018 and 2023? There was a four-fold increase. Jacinda Ardern spent the 2017 election campaign talking about how no child should live in a car, and the numbers went up by 400 percent. So, actually, the squawking member over there, who pretends to care about the poor, knows that Labour’s approach was a failure, and simply harping on about wellbeing does not actually lead to better outcomes. What matters is good fiscal policy. Most importantly, what matters is good public policy, and that’s what this Government is focused on.

There was a requirement in the Public Finance Act, which we are soon to amend, which required the Treasury to produce a report on the state of wellbeing. It had to happen at least every four years. There was a report in 2022, and the Treasury opined on subjects such as work, care and volunteering, cultural capability and belonging—this is my favourite one—engagement and voice, leisure and play, and family and friends. All of these things are important things—all of these things are important things. But I think Treasury should be focused, and that the bright and talented people at Treasury should focus on economic and financial advice rather than preparing reports on whether or not people have friends and whether their life has meaning and purpose.

Now, that would be an interesting study—into the Opposition, who don’t have many friends. Actually, sometimes, they probably sit there at 10.34 at night in urgency and wonder whether or not their life does have any meaning and purpose, particularly when it comes to the things they are saying at the moment about the Budget.

If the Government in the future wants to produce a wellbeing report, of course it is free to do so, but it should not be a legal requirement in the Public Finance Act.

There was this ridiculous situation where Grant Robertson used to say, “Oh, look, there’s a very high bar for new spending in this Budget. We’ve had to put everything through the wellbeing analysis.” It turned out that doing a wellbeing analysis just literally meant the Government would fund whatever Grant Robertson thought they should fund. I actually think what they used to do in the Labour Party was sit around and put up every fanciful, fantasy idea they could possibly do, put them all on the side of their caucus room, and then fire darts at the at the massive board and whatever it just got included in the Budget. How else could you explain Grant Robertson never once sticking to his operating allowance? He used to turn up here and say, “Things are very tight this year. My new operating allowance is $3.2 billion and I will definitely not exceed it.” That’s what he used to say at the Half Year Economic and Fiscal Update—HYEFU—every December and everyone would go, “Oh, OK, yeah, fair enough. That’ll be interesting to see what happens.” And every year in May, in Budget, he’d say, “Well, look, we’ve just had to push out the operating allowance.”

But the nadir of all of this was Budget 2022, which was the worst Budget in New Zealand history, in which Grant Robertson said he would stick to—from memory—$4.2 billion. By way of context, the operating allowance in this Budget is $1.3 billion, so it was already at least three times larger than this year’s Budget. And he smashed it and ended up with a $6 billion operating allowance. This was the cost of living payment Budget—remember this?—when Grant Robertson turned up and said, “I’ve got a great idea for the cost of living—not fiscal discipline and restraining the growth of Government spending and being a friend to monetary policy. No, no, I’ve got a really good idea. We’re going to give everyone a free thousand dollars in New Zealand.”—including French backpackers who worked here 10 years ago on the vineyards down South, dead people, and investment bankers in London who got a thousand bucks in their New Zealand bank accounts, who used to email me and say, “That’s my Friday night drinks fund. Thanks very much, Grant Robertson.” That was the height of fiscal largesse and stupidity. Rather than actually running sound fiscal and monetary policy and being a friend to monetary policy, he decided to give everyone free money. Of course, all the chickens eventually came home to roost.

But in relation to the allowances, that was the Budget when Grant Robertson decided they were outside the allowance—the free thousand bucks he gave everybody wasn’t counted as part of the operating allowance. So, actually, what is required for true wellbeing is actually good economic wisdom, and that’s what this Government is going is going to do.

So these amendments are important. This ended up being a slightly more political speech than I thought it was going to be, but I remembered that we made a decision to get rid of these wellbeing things and it reminded me about just what a stupid idea it was in the first place. I mean, there were endless sort of The Economist articles about what a world-leading insight this was, that we were going to enshrine in law wellbeing as the centrepiece of fiscal policy for the first time in human history—as if Grant Robertson, of all people, had this insight that no one had ever had before: that Government should look after their people. Thankfully, these days of fantastical, illogical wisdom have been consigned to the dustbin of history. Let’s make sure these useless people on the other side never get back to do it ever again. [Interruption]

Barbara Kuriger

Deputy Speaker

That’s enough. The question is that motion be agreed to.

Deborah Russell

Labour Party · List MP

What an extraordinary speech from this backwards-looking and backwards-thinking Government. It’s really interesting looking at what this bill does, because I would say that at least two of the items in it are about saving Nicola Willis from her own folly, and the third one is about escaping Government responsibility.

So let’s start on saving Nicola Willis from her folly. As we all know, when that Government took office, it turned out that Nicola Willis hadn’t bothered to read the previous Government’s Budgets, hadn’t bothered to pay attention to Labour’s election Budget, didn’t worry about understanding what was going on, and it became “Oh, no. Oh, no. I have to pay for something I didn’t think I had to pay for.” That’s the fiscal risk. They spent a lot of time talking about fiscal cliffs. All they were were things that Nicola Willis didn’t bother to look at, so she didn’t take them into account. So at least part of this bill is just about saving face for Nicola Willis. That’s the first thing that is wrong with this bill.

There’s another little wrinkle in this bill which is terribly interesting, and it’s also about saving Nicola Willis. It’s the bit about enabling the use of variable measures—sorry, it’s enabling the Government to express its fiscal strategy using alternative fiscal variables, like operating balance before gains and losses (OBEGAL) versus OBEGALx—the new fiscal measure that made its appearance just this year in order to enable that Government to claim that it was meeting its objective of getting rid of the deficit. The only way it could be done was by having a new and fanciful fiscal variable that no one had ever used before, so much so that Treasury wouldn’t agree to it being called by a proper name and it had to be called OBEGALx. So two things there that are all about saving someone’s face.

And the third thing: changing the rules around wellbeing budgeting. Now, we had a good stand-up comedy routine over there—great stand-up comedy. Chris Bishop is good at that. What we didn’t have is a sensible analysis of that thinking behind the Wellbeing Budget. We all know that Government sets fiscal policy, but fiscal policy has an impact on people’s lives. We need to measure not just where money goes in and money goes out—what gets spent on particular programmes and what doesn’t—but we actually need to try to understand how it affects people’s lives.

This is something that has been worked towards by eminent economists such as Amartya Sen, trying increasingly hard to work out how we best enable people to live good lives. We’ve had a longstanding understanding now that measures such as growth and GDP do not capture the richness of people’s lives. That is what one of the most eminent economists produced by this country has shown us, Professor Marilyn Waring—a former National Party member—that we need to have a much wider understanding and a much wider measuring of what life is like for people beyond the mere dollars and cents.

That’s why we introduced wellbeing budgeting. It was to try to enable Government to do much, much better than just looking at the sterile numbers of GDP—just looking at the dollars in and dollars out. It was trying genuinely to engage with the lives that New Zealanders live and making it a key part of Government’s plan each year. That’s all a Budget is: it is the Government’s plan, obviously expressed in terms of money and all those sorts of things, but also expressed in terms of what the Government is trying to achieve. So we were to report on it, and this shoddy piece of legislation gets rid of it. We oppose this bill.

Julie Anne Genter

Green Party · Rongotai

Tēnā koe, Madam Speaker. I actually think that when the Hon Chris Bishop gets all self-righteous and angry and talks about how terrible the last Government was, it’s a little bit because he’s probably a bit embarrassed about that previous bill that we were debating and the fact that they’ve set up yet another agency, Invest New Zealand, which could absolutely be a Utopia episode.

Look, in fact, the Greens’ interest in the Public Finance Act and improving that goes back many, many years. I mean, I think Jeanette Fitzsimons was talking about it. My colleague Dr Kennedy Graham had a member’s bill; the Public Finance (Sustainable Development Indicators) Amendment Bill was a member’s bill that would have brought in some very precise indicators that should have been inserted into the Public Finance Act. That would have been really excellent.

Ultimately, I think what was trying to be achieved by the Wellbeing Budget was trying to get at that idea that we can have better information and better understanding about how Government investment and support for people flows through and is effective or is not effective. I think everybody realises that, for decades, the traditional method of looking at it hasn’t enabled us to make the investments that we need to make, and it certainly isn’t recognising the enormous costs and risks of carrying on with the status quo. A perfect example of that is the idea of just going for growth—growth in anything. If growth is growth in fossil fuel extraction and use, that’s not a productivity gain, that’s not helping us live a better life; it’s actually putting us at risk of more climate change, which is really bad for us. It’s more storms, it’s more death, it’s more famines, it’s more floods, it’s more fires. And we know that’s already happening.

But it’s like—you’ve got to join the dots. If we have an earthquake in Christchurch, GDP will go up. It’s not that we’re better off from the earthquake, it’s just that there’s more activity as a result of the earthquake, and that’s all that’s being measured. I think we are actually having an inquiry at the Finance and Expenditure Committee about getting better measures and reporting from Government departments on the value of the things that they’re doing, and I think that is really useful and constructive. But I think the debate in the House under urgency about a bill like this isn’t very illuminating.

We should all care about having more effective measures of what it is we’re doing and more effective ways of keeping track of how Government investments are not supporting people. I was really hopeful when I first came to this House that that might be something we’d be doing by now. But instead we have this highly politicised approach, which is one Government does something, the next one comes in and says, “Oh, wasn’t that a big disaster?”, and doesn’t actually take a nuanced look at what was good and where things went wrong but just comes out, points blame, and frivolously and shallowly repeals things and then makes a bunch of announcements. It’s just like—it must be so tiring and boring for New Zealanders at home, and I don’t blame people for losing faith in the political system when all you hear is politicians on one side talking about how the other side are idiots and vice versa. Like, actually, we have some problems in common and we should be trying to work on them together. I think the Government’s reaction to the Green Budget is a pretty good example of not taking a constructive approach. They’re terrified. The Prime Minister spent most of his Budget speech talking about our Green Budget rather than looking at the merits of what we are proposing.

So the particular proposals in this bill I don’t think are particularly useful. We actually are open to the more flexible fiscal variables, but we need further time to investigate that properly. So if we have time, and I’m actually not sure if we’re doing the second reading straight after this or whether this is going to select committee—

Chris Bishop

National Party · Hutt South

Committee.

Julie Anne Genter

Green Party · Rongotai

If it is going to select committee, then that will be useful. But, initially, we oppose it because of the removal of the wellbeing requirements—but are open to looking at it further in select committee.

Todd Stephenson

ACT Party · List MP

I rise on behalf of ACT to speak in support of the Public Finance Amendment Bill. In ACT, we’re actually very excited to be supporting this because, obviously, people will know that the Public Finance Act 1989 was introduced by no other than ACT founder, Sir Roger Douglas. What he actually wanted to do was make sure that we had a set of transparent accounts and ways of looking at Government that people could understand. We are very excited to be supporting this, which is going to ensure that we continue to have that transparency, reporting, and ensuring the Government accounts are actually fit for purpose. I commend this to the House.

Jamie Arbuckle

NZ First Party · List MP

I rise on behalf of New Zealand First to support the Public Finance Amendment Bill. We support better Government transparency, improving fiscal strategies, disclosures, and forecasting. Also, the time frames around the Half Year Economic and Fiscal Update and Pre-election Economic and Fiscal Update reports. But, bye-bye to the wellbeing objectives. This side of the House, we are interested in real outcomes. I commend this bill to the House.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Madam Speaker, tēnā koe. The opening statements from the Associate Minister of Finance referred to wellbeing and belonging, and one of the key factors that came out of a young person’s survey in the suicide prevention space was the key element of what was missing was they did not belong. So I find it interesting, in the context of wellbeing and those things potentially being removed out of this bill, and it saddens us deeply, so I’m going to help him out here.

Māori wellbeing is made up of a bunch of things. It’s made up of optimal health, and optimal health, in a Māori context, is to live longer, which is always a good thing; and to live in a context and a reality that suits the ways which make sense culturally and customarily, and ideally on our own whenua. So that’s optimal health.

Māori-owned businesses—we like those. Over COVID, the number of Māori women’s businesses that started just in their garage flourished in Te Tai Tokerau. It was a good thing. So wellbeing and trying to take care of it when COVID was going on—we did really well.

Papa kāinga lifestyle—that’s a Māori wellbeing predictor, OK? So it’s good to take note of in this discussion, Minister. The re-establishing of marae and all the things that surround the marae—that’s Māori wellbeing. It’s a bunch of stuff. It’s the flourishing Māori communities wherever you live, even in our urban Māori settings. Take your marae with you. Take your awa with you. Flourish and grow as Māori. Speaking te reo Māori everywhere and anywhere every day, just like our Kiingi said—being Māori every day.

These are the things that make a strong, vibrant, young Māori community and all the individuals that exist within it. Creating our own local, our own national, and our own international offshore relationships—a whole bunch out of the Iwi Leaders Forum have already organised their own trips. They’ve been organising this for quite some time, and, in fact, over the years, creating relationships and businesses with indigenous and non-indigenous across the world. So these are some of the things that I hope are understood when we’re describing Māori wellbeing when this public finance piece of work is being done. Because if it’s not acknowledged and it’s not considered in the thinking and in the design, then of course this Government will fail us yet again.

Sadly, the failing has already showed up in a number of bills that have been rammed through, not only last night and tonight but in the last little while. Of course, one of them which failed miserably—thank goodness, and we’re going to make the next one fail—is the Treaty principles bill. So thank goodness, because that’s when most of this House made some sense and voted it down.

But that in itself—what that says to many Māori is, “Gee, can they really be trusted?” Well, no. It takes an extreme set of circumstances for that to actually rise to the top when people think, “Gee, 100,000 people marching. Oh, that was saying something.” So it’s important for this public finance piece of work and discussion to understand that if wellbeing is a thing and you get that, do not bunch all Māori into this wellbeing as if we’re non-Māori. Don’t do that. That’s a dumb thing. Please don’t do that.

So if you don’t want to do that, you need to talk to some Māori. Just the fact that you’re rubbing shoulders next to one doesn’t give you the full analysis and understanding of what it takes to really know whether this bill and any other is going to work for us. Don’t do this work. Don’t build and design something without us. That has gone on for 180 years—so my time is really running out; dang it. But anyway, that’s what I want to say and I really want to offer the Minister that assistance and these words and these concepts so it’s understood fairly and genuinely. Tēnā tātou.

Cameron Brewer

National Party · Upper Harbour

The Finance and Expenditure Committee is looking forward to opening submissions on this and running a full process as we look at the first tranche of the Public Finance Act legislation amendments. The second tranche will of course be our performance reporting inquiry and any consequences and subsequences that come out of that. So we look forward to submissions and dialogue. Thank you.

Duncan Webb

Labour Party · Christchurch Central

So here we are. Budget week, 11 o’clock on a Saturday night, and we’re talking about amendments to the Public Finance Act. What is the Budget? The Budget is the Government’s plan for the country over the next three years and beyond. What this bill, the Public Finance Amendment Bill, does is it rips out from the heart of the Budget process one of those key things, and that’s the wellbeing objective.

Now, I sat in this Parliament when Grant Robertson introduced the first Wellbeing Budget. Chris Bishop may scoff, but it was the first Budget in New Zealand that put at the centre of the Government’s plan the wellbeing of New Zealanders. GDP is all very nice. Growth is good in so far as it enhances the wellbeing of New Zealanders. But measuring GDP alone is not enough. After the Christchurch earthquakes, after a huge catastrophe, GDP skyrocketed as we fixed up broken buildings, but we weren’t better off. We were making ourselves better off, but the harm that had occurred—we weren’t better than we were before 2011.

So here we have it. This bill takes out the wellbeing objectives from our budgeting process. So we’re all very happy to measure how much more money we’re making or how much more so-called productivity we’re having. If we sell more cigarettes on this measure, we’re more productive.

Glen Bennett

Labour Party · List MP

Bonkers.

Duncan Webb

Labour Party · Christchurch Central

It’s crazy. If we sell more arms, we’re more productive. What does it do? How does it measure those things that really matter? That’s what the Wellbeing Budget did. The wellbeing objective is about measuring things that really matter.

How do we measure the health of our children? How do we measure the strength of our intellectual debate? How do we measure social cohesion, the strength of our communities? How do we measure the relationships between Pākehā and Māori? Well, those things this Government is not interested in measuring.

But it was a challenge and it is a challenge and it remains a challenge to ask, how are we doing? Not what’s the bottom line of the balance sheet, but how are we doing as a country? What is the health of our nation? How are our least well off being treated? What is the access to our healthcare for the most vulnerable New Zealanders—those in our remote communities, those in our poor communities? We can measure GDP in our Budget and it can look like we’re doing OK, but if only 10 percent or 2 percent or 1 percent are doing OK, I don’t think we’re doing OK; I think we’re doing really poorly. That’s not the wellbeing I want to be a part of, and that Government doesn’t want to measure how we are really doing.

Kieran McAnulty

Labour Party · List MP

They don’t care.

Duncan Webb

Labour Party · Christchurch Central

They don’t care. They want to turn a blind eye to the true wellbeing of the nation because they want growth for some, but they’re leaving many of us behind. What the Public Finance Act as it stands says is “We want to know how everybody is doing.”—not just some. We don’t want the blunt measure of GDP; we want a measure of wellbeing which crosses the arc of all of what’s going on in New Zealand, and that Government’s not interested, because it just wants to look after its friends. It’s a Government of cronyism. It’s a Government of elitism. What we want is to look after all of New Zealand. That’s why this Public Finance Amendment Bill is shameful and that’s why we will oppose it.

Miles Anderson

National Party · Waitaki

This bill, just like this tie, is outstanding, and I commend both of them.

Willow-Jean Prime

Labour Party · List MP

Tēnā koe, e te Māngai o te Whare. Me tīmata taku kōrero pēnei:

Ko tēnei ture he ture hei whakatikatika i ngā hapa, i ngā hē, o te Minita Pūtea, nā te mea, kāhore e taea e ia te kaute. Ko tāku ki a ia, hoki ki tō karaehe, tahi hāora ia rā, ako i te Pāngarau kia tika tō kaute i tō pūtea. Moumou tāima te tari mai i tēnei pepa ki roto i te Whare nei ki te whakatikatika i te koretake o te Minita Tahua Pūtea.

Tuarua: Tino pōuri ahau, te Māngai o te Whare, tēnei Kāwanatanga e whakakore ana i ngā kaupapa oranga i roto i te Ture, Ngā Whāinga Oranga i roto i te Tahua Pūtea. Kātahi anō ka tīmata tērā i te tau 2019, ināianei e whakakore ana rātou i ērā whāinga oranga i roto i te Ture

He aha ai? Nā te mea, kāhore rātou e whai whakaaro ana ki te pani, ki te rawakore, ki ngā tāngata noho motokā, ehara i te noho whare, noho motokā, whare kore. Kāhore rātou e whai whakaaro ana ki te oranga o te tangata, e whakakore i Te Aka Whaiora.

Kāhore rātou e whai whakaaro ana ki te taiao, ki te oranga o te taiao, ki te oranga o te whenua, ki te oranga o te tangata, ki te oranga o Aotearoa, nō! E whai whakaaro ana rātou ki te whakawhanaketanga i ō rātou hoa, pērā i ngā kamupene tūpeka; pērā i ngā kamupene keri hinu; pērā i ngā tāngata whai whare maha. Pēhea oti ngā tāngata, ngā tamariki, ngā mokopuna korekau he kāinga, moe ana i roto i ngā motokā? Mōhio ana tērā taha o te Whare te kī a Chris Bishop, nā mātou tērā hē. E kī, e kī!

He aha ai? Nā te mea, kāhore rātou e whai whakaaro ana ki te oranga o te tangata, te oranga o te whenua, te oranga o te taiao, te oranga o ngā tāngata o Aotearoa. Nō reira, āe, e tū ana ahau me taku riri i tēnei pō, me taku pōuri, nā te mea, tata ki te waenganui pō, te pō mutunga o tēnei tautohetohe mō te Tahua Pūtea, i tēnei wā tere, ohorere, he aha te ‘urgency’ me kī. Tērā pea, ko tēnei te ture mutunga i tēnei pō, ā, e kōrero ana tātou i tēnei Whare, (i) tēnei pire, te tango i ngā whāinga mō te oranga. Tino—āe, patua e te whakamā.

Kāhore rātou e hiahia ana ki ngā rīpoata, ki te rīpoata, mehemea ko ō rātou kaupapa e pērā ana, e whakaora ana i te tangata, e whakawhanake ana i te tangata, i te taiao, i te whenua, Aotearoa. Kāhore rātou e hiahia ana ki te aromatawai, te arotake, te rīpoata ngā mahi kua tutuki i a rātou kia pai ake a Aotearoa. Kāhore ahau, kāhore mātou e tautoko ana i tēnei ture kino.

[My acknowledgments, Mr Speaker. I’m going to begin my speech like this:

This bill is a bill to correct the errors and mistakes of the finance Minister, because she isn’t able to count. My suggestion to her is go back to class, for one hour every day, to learn mathematics, so that she can count her Budget correctly. It’s a waste of time to bring this document into this House to correct the uselessness of the Minister of Finance.

Secondly, I’m extremely saddened that this Government is eliminating the wellbeing initiative in the Act, the Public Finance (Wellbeing) Amendment Act. That had only just started in 2019, and now they have eradicated the wellbeing focus in the Act.

Why? Because they don’t consider the bereaved, the destitute, the people living in cars, not living in houses, living in cars, homeless. They don’t consider people’s health. They’ve abolished the Māori Health Authority.

They don’t consider the environment, the health of the environment, the health of the land, the health of people, the health of New Zealand. No. They do consider the progress of their friends, like the tobacco companies, like the oil extraction companies, like the people who own multiple houses. What about the people, the children, the grandchildren instead, who have no homes, who sleep in cars? That side of the House knows that Chris Bishop said that we were to blame. What a cheek! Your front bench has changed the law for people who want to own a house.

Why? Because they don’t consider the wellbeing of people, the wellbeing of the land, the wellbeing of the environment, the wellbeing of the people of New Zealand. Therefore, yes, this evening, I stand in my anger, in my sadness, because it is nearly midnight, on the last night that the Budget is debated, in this short moment of time, unexpectedly. What’s the, as we call it, urgency? Perhaps this bill will be the last one tonight, and we are discussing this bill to take away the focus on wellbeing. It’s extremely—yes, you should be ashamed of yourselves.

They don’t want any reports to chronicle if their policies are like that, if they improve people’s wellbeing, if they develop people, the environment, the land, New Zealand. They don’t want to be assessed, to be audited, for the work they do to improve New Zealand to be reported on. I don’t and we don’t support this dreadful bill.]

NANCY LU

National Party

As the last Government member to speak to support the Public Finance Amendment Bill, I’m all for it. I support fiscal transparency, strengthening fiscal responsibility, and improving practical operation. I commend the bill to the House.

Party vote

A party vote was called for on the question, That the Public Finance Amendment Bill be now read a first time.

Ayes 68

Noes 54

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes54
New Zealand Labour33
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Motion agreed to.

Bill read a first time.

.

Party vote

A party vote was called for on the question, That the Judicature (Timeliness) Legislation Amendment Bill be now read a first time.

Ayes 116

Noes 6

PartyCount
Ayes116
New Zealand National49
New Zealand Labour33
Green Party of Aotearoa New Zealand15
ACT New Zealand11
New Zealand First8
Noes6
Te Pāti Māori6

Motion agreed to.

Barbara Kuriger

Deputy Speaker

The question is, That the Public Finance Amendment Bill be considered by the Finance and Expenditure Committee

Motion agreed to.

Bill referred to the Finance and Expenditure Committee.

Judicature (Timeliness) Legislation Amendment Bill

First Reading

Nicole McKee

ACT Party · List MP

Associate Minister of Justice

on behalf of the Minister of Justice: I present the legislative statement on the Judicature (Timeliness) Legislation Amendment Bill.

Barbara Kuriger

Deputy Speaker

That legislative statement is published under the authority of the House and can be found on the Parliament website.

Nicole McKee

ACT Party · List MP

I move, That the Judicature (Timeliness) Legislation Amendment Bill be now read a first time. I nominate the Justice Committee to consider the bill, and at the appropriate time I intend to move that the bill be reported to the House by 23 September 2025.

The justice system needs to be able to deal with cases efficiently and fairly, and bring timely resolution for all court parties and participants—which is why this Government is committed to improving timeliness and reducing delays in the courts. New Zealand’s courts are currently experiencing delays, duplication, and proceedings that impede the process of the courts.

The Judicature (Timeliness) Legislation Amendment Bill addresses these challenges by maximising judicial resource to improve court timeliness. These changes will reduce duplication and unnecessary churn, and deliver efficiencies not only for the courts but also for partners across the system, including Police and Corrections. Importantly, these changes benefit the people who use the courts: defendants, victims, witnesses, whānau, bereaved families—they’ll all get closure more quickly so they can move on with their lives. The changes will also reduce stress and costs for people associated with defending meritless litigation.

The bill is an omnibus bill that makes changes across three Acts. The bill is being introduced alongside the Government’s Budget package as the changes either directly link to a Budget initiative or are required to manage cost pressures across the justice system. Court timeliness is expected to reduce costs and the resources required across the justice sector over time, and to ultimately drive savings and efficiencies.

Firstly, the bill increases the number of High Court judges that may be appointed from 55 to 57. The maximum number of judges is set in legislation and has not changed in over 20 years, despite the workload of the High Court steadily increasing. These additional judges will better enable the High Court to manage its workload and help to ensure the most serious matters are heard in a timely manner.

The bill also maximises judicial resource and improves timeliness through changes that will enable civil proceedings that abuse court process, the criminal pre-trial procedures, and appeals to be better managed. In the senior courts, there is an increase in proceedings that are plainly an abuse of process of the courts, which take up valuable judicial time and resource. These proceedings can also cause stress and cost to the other parties involved. The bill will enable abusive proceedings from vexatious litigants to be disposed of quickly by a single judge, allowing judicial attention to be focused on legitimate civil proceedings and reducing the burden on other parties to the proceedings. Vexatious litigants who repeatedly abuse the process of the courts will also be barred from bringing civil proceedings for three years.

The bill makes improvements to pre-trial case management in the District Court to drive efficiency and to reduce delays. Currently, multiple charges against the same defendant are often filed and proceeded with in different courts. This means the defendant can have court appearances at several locations, potentially involving multiple prosecutors, legal aid lawyers, and transport to different courts. The bill reduces duplication at this pre-trial stage by enabling a judge to require multiple charges against the same defendant to be case-managed together in one District Court office. Timeliness benefits created through this change will be felt across the system.

The bill will also make sure appeals from District Court trials are heard by the most appropriate court. Many appeals related to the District Court judge-alone trials go to the High Court for determination, but appeals relating to the District Court jury trials go above the High Court to the Court of Appeal. These appeals must be heard by a panel of three senior judges, which is time- and resource-intensive because the level of appeal court is based on whether the defendant elected a jury trial or not, rather than the nature of the appeal itself. Some of these appeals could be appropriately heard in the High Court. Therefore, the bill enables one Court of Appeal judge to determine if an appeal from a District Court decision should be referred to the High Court for determination, rather than being heard by a panel of three judges in the Court of Appeal.

Finally, this bill improves timeliness in the coroner’s court. Currently, a coroner is not able to close an inquiry once opened, even if new information or a change in circumstances mean the inquiry is no longer appropriate. The bill will enable this to allow judicial attention to be focused on necessary inquiries and, importantly, this will mean that bereaved family and friends will have closure more quickly.

From the outset, this Government has been clear about its commitment to an efficient and effective justice system. These changes will collectively improve court timeliness across multiple jurisdictions, and I’m confident they will enable cases to be progressed more quickly across the system. I look forward to the Justice Committee’s consideration of this bill, and I commend this bill to the House.

Duncan Webb

Labour Party · Christchurch Central

Thank you, Madam Speaker. We support this to select committee, but I just would observe that here we are in Budget urgency on a Saturday night with legislation which simply isn’t urgent. It’s yet another example of this Government abusing parliamentary procedure.

But, having said that, here we are. Our job is to scrutinise this legislation. This is legislation which is about as routine as you get. We’ve seen it yesterday. We’ve had a look at it and we formed a view that we should vote in favour of it going to select committee. High Court judges numbers: we accept that they haven’t gone up for a while. They probably need to keep up roughly with population, roughly with the amount of litigation going through the High Court forum, and so it’s very hard to disagree with that.

Vexatious litigants is the second aspect of this, and we accept that vexatious litigants are challenging and that it’s entirely appropriate to have a look at the rules. And we’re glad that this is going to select committee, because we want to look at it closely because there are a class of litigants who are difficult people, who frame their claims very poorly, but there’s something in them. Now, just because you’re a difficult person who’s hard to get on with and is perhaps obstructive and annoying, doesn’t mean that you shouldn’t have a right to go to court. If you’ve got a good claim, it should get there.

So the question about vexatious litigants is where you draw the line between what is an absolutely unmeritorious claim brought in an inappropriate way—and I think you have to have both those strands: both the way in which it’s brought and it being unmeritorious. You’ve got to remember there are plenty of claims which would have been thought as unmeritorious but, ultimately, won the day. Simpson v Attorney-General is the classic example, where it was found that there were damages for an illegal search in breach of the New Zealand Bill of Rights Act. There was no established right in the law, but, ultimately, the courts recognised that if there was a right to be free from search and seizure, there must be a remedy. But it was brought responsibly. So you’ve got to have both of those things: an absolutely unmeritorious claim and a vexatious litigant as well.

District Court case management: I want to look at the detail. I haven’t had a chance to look at the detail, but there is a principle in New Zealand and across the common law world that you get tried, essentially, by your peers in the place where the offence occurred. Whilst if you get into trouble in Queenstown and in Auckland, I can see the administrative efficiency of having it managed in Auckland, say—but at the end of the day, the defendant needs to have a say to make sure that they are tried in the community in which they caused the harm. That’s part of it. It’s actually quite a visceral thing. So that’s the third thing that this does.

And then the fourth aspect of this legislation or this bill is the Court of Appeal being able to remit matters back to the High Court on appeal. Now, jury matters in the District Court can be very serious matters. They can hear matters from which would follow, if convicted, very serious sentences—sentences of three years or more that would ultimately be sentenced in the High Court. That’s why they go, ultimately, to the Court of Appeal, because while the trial might happen in the District Court, the sentencing would happen in the High Court. So, again, I can see what’s going on. I can see that the Court of Appeal has a heavy criminal cases workload, but I’m not sure that this is the fix yet, and that’s why this shouldn’t be under urgency. That’s why we should have had more time to look at this, because these are actually relatively important, largely criminal justice, matters.

So, yes, we’re going to support it, but this isn’t the forum, this isn’t the time. Let’s see if this makes sense and we’ll have a good look when it gets to select committee.

Lawrence Xu-Nan

Green Party · List MP

Thank you, Madam Speaker. I rise on behalf of the Green Party to speak on the Judicature (Timeliness) Legislation Amendment Bill, and I feel like my portfolios are getting a good workout tonight—seniors, trade, and now justice. What a shame that we didn’t manage to get on to the committee stage of the Invest New Zealand Bill. I was looking forward to that.

But on this bill, in terms of the Judicature (Timeliness) Legislation Amendment Bill, there are three components—well, technically four components—to this. Starting with the Senior Courts Act 2016—I acknowledge the fact that this is an omnibus bill, and I do thank the Minister for giving us the opportunity to scrutinise this in the Justice Committee.

Now, when it comes to the Senior Courts Act, I agree with the other speakers that, yes, the number of High Court judges in Aotearoa New Zealand hasn’t increased in a little while, and this bill does increase the number of High Court judges from 55 to 57, which is much needed, particularly on the back of previous legislation we have seen that increases the number of District Court judges by one. But I also feel like—and particularly with the way that the Government is progressing a number of justice-based legislation—it does raise the question of whether adding even two more senior court judges in the form of High Court is sufficient in terms of the workload that we anticipate or expect, particularly when we haven’t seen, in this bill, an increase in the number of Court of Appeal judges, as well as Supreme Court judges.

But, overall, the increased number of High Court judges by two is good. For the Greens, I think our biggest concern is around the automatic restraint for vexatious litigation. I think, from our perspective, this is the part that we are really looking forward to, in the select committee: getting a chance to ask legal experts, as well as officials, to give more detail about the breadth of the impact that this would have on people. As the previous speaker, the Hon Dr Duncan Webb, has already mentioned, there are some concerns and fish-hooks around this automatic restraint. I think I particularly found that, out of all of our debates today, the term “unmeritorious” is probably my favourite word so far. So that is something that, probably, from the Greens’ perspective, is the greatest concern for us.

Moving on to other elements of the bill, when we’re looking at the criminal procedures as well as the coroners, I think, in both cases, they are making important recommendations and looking at something that will potentially assist the backlog and the work that our current court system is currently doing, which is to ensure multiple District Court charges can be heard in one court office, allowing coroners to close an inquiry when a change of circumstance is deemed appropriate. I think all of those things are things that we are interested in finding out, and learning more about, through the committee stage as well. But, on the surface, it seems to support having better resourcing but also better processes and more streamlined processes within our court system.

I think it is really important when we’re looking at the way that we do justice or at the trajectory of justice here in Aotearoa New Zealand, particularly in light of some of the recent challenges around access to court and also in terms of the digitalisation of the court system, which is long overdue—I think this bill is something that moves towards having a better system. However, we cannot forget the fundamental issue that, within our court system, we do need to properly fund and resource the system, rather than simply just looking at—I mean, optimisation is important, but the funding part is something that the court system has been asking for for a little while now.

So it will be good, for myself and also for others, to dig into Budget 2025 as well to see what is available there. But, on the Budget, the Green Party of Aotearoa New Zealand, does support it to select committee on the basis that there are some really good things that the bill does—I think, most importantly, like I mentioned, the increase of the number of High Court judges. But the thing that we will be scrutinising, moreover, is the automatic restraint of vexatious litigation.

Rima Nakhle

National Party · Takanini

I’m so proud to stand up in support of this bill, and, essentially, it’s going to allow the judiciary to focus on cases that matter the most—another way that our Government is putting victims first. I commend this bill to the House.

Casey Costello

NZ First Party · List MP

Minister of Customs

I rise on behalf of New Zealand First to speak in support of the Judicature (Timeliness) Legislation Amendment Bill. This is a significant programme of work, and I acknowledge Minister Goldsmith, who has put this bill together and is driving this programme of work. It’s complex. There’s a lot of moving parts. It is essential. It is, again, an indication of this Government tackling things that have been kicked down the road for a long period of time. We commend this bill to the House. Thank you.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Tēnā koe e te Pīka. Tēnā tātou. It is a complicated area. Even the word I struggle to say, just by the way. But the word I don’t struggle to say is “timeliness”. Improving timeliness in this context is not the way to get it right. What you need to improve is the system, the deeper system and how it functions and why it dysfunctions. Making it faster, making it smoother—you may as well just say it’s fast tracking more Māori into prisons. That’s what it sounds like; that’s what it feels like. Sadly, it’s another dot to connect to all the other bills that have been rammed through by them in the last two days. So fast track—well, it is a fast track. It’s fast tracking Māori into prison. Way to go. [Interruption]

Here’s the other part to it, and you need to hear this. So this is the teaching moment. More judges, we’ve not got more judges, right? And then you build another bed extension in a prison, and then you put $149 billion capacity: you are building it and they will come—you are building it and they will come. That is the context. You won’t understand it, and I’ve already told you why. The fact that you ignore it, I don’t understand; that’s just your privilege blinding you to these ideas, and I hope—but stick with me. But that’s important. It’s important because to understand what I’m saying, you’ve got to have some history and some understanding about this, but you do not—but you do not. [Interruption]

Look, it’s OK. I’m happy to keep talking and ignore the nattering. This will disproportionately impact Māori. This is about streamlining the process.

Joseph Mooney

National Party · Southland

This is about speeding justice up.

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

This is what was known—and Joseph will know this—as smoothing the dying pillow of Māori. This is fast tracking Māori into prisons. [Interruption] This is—

Maureen Pugh

Assistant Speaker

Shh!

Mariameno Kapa-Kingi

Te Pāti Māori · Te Tai Tokerau

Thank you, Madam Speaker. This is smoothing the dying pillow. It might disturb you on the inside and look, ka aroha [condolences] to you, but you need to hear this. The fact that you get all fluffed and you go, “No, that’s not what we’re doing, Maria. We’re nice white people. We’re good. We’re not the bad ones. We’re the good ones.”—don’t do that to yourself. Pause for a minute and think, “Nah, Mariameno, she’s smart enough. She’s worked in this area.” I know this. I know this from the inside out.

I doubt if any of you on my left really know what this is like; I do. I do. I used to work in the prisons. I understand what it sounds like, feels like, what it smells like. I understand this—understand the system of it. So do not talk to me and do not be beguiled by your nonsense in your head that you think I don’t know. I would undo any of you in a debate around this out in the corridor. Trust me, you will fail and I will win. [Interruption] You will fail and I will win. I know this better than anyone. So I’ll leave that with you just to fester on and, hopefully, haunt your dreams because you need to know this. You need to know this.

This is me, a very able, willing, experienced Māori person telling you that you are screwing up majorly. So you know, well, it’s certainly—it’s like these little nonsenses: “Oh, I really think this is a great bill and I commend it to the House.” Who on earth talks like that? You sound like a three-year-old.

Madam Speaker, I appreciate your time. Thank you very much, and, hopefully, the nattering and childish giggling on the left, they will understand. They’ll get it one day, one hopes. Kia ora.

Barbara Kuriger

Deputy Speaker

Thank you. I’m just going to remark that, yes, we don’t overuse the word “you” in this House, but there were that many teachers coming from over the other side that I didn’t feel the need to correct at that point of time. But it is a good reminder.

TIM COSTLEY

National Party · Ōtaki

The defence rests. I’m not sure which bill that one was about, but this one’s about timeliness in the courts. We had six years of the backlog building up. It’s stabilised now, but we want to improve timeliness, and, to that end, I commend the bill to the House.

Vanushi Walters

Labour Party · List MP

Thank you, Madam Speaker. As my colleague Dr Duncan Webb has said, we will be supporting this through to select committee. I think, as a former chair of the Justice Committee—and I see some other colleagues, the Hon Nicole McKee in the House as well. In the last term of Parliament, we were frequently hit with issues of delay in the courts and it was something that concerned us cross-party, whether it be in the Family Court or in others. Often in a criminal setting, it was a matter of concern for both parties when there was delay in the courts. So in regard to the increase in the number of judges, my initial view is that that seems entirely appropriate. We’re looking at an increase from 55 to 57. I think the only questioning I’ll have at the select committee at that stage is what determined that number and whether that’s sufficient in terms of looking at the backlog.

Chris Bishop

National Party · Hutt South

That is a legitimately good question.

Vanushi Walters

Labour Party · List MP

Thank you to the Hon Chris Bishop. I think that is a question we should address. I guess part of the reason why I’d address that question is that it’s been 20 years since we’ve increased the number of judges in the High Court. So the question is how we landed on that precise number of two.

I think, in terms of some of the Government contributions that this is a simple bill and it’s just about that question of efficiency, that’s actually just not true when you read the bill. There are multiple aspects to it, and I think it’s important in the House if, when we speak on bills, we acknowledge every part of the bill. So first part: yes, I agree; the second part: my colleague from Te Pāti Māori raises a very valid point. There are issues in terms of the balance of justice and different rights in this space. That is what the criminal system is about. We cannot deny it in this House. We must always be attuned to what presents in New Zealand Bill of Rights Act vets.

Here, I just echo the comments from the Hon Dr Duncan Webb. There are very live issues here in terms of the New Zealand Bill of Rights Act. The problem in terms of the way in which this has been introduced is that it doesn’t allow sufficient time for the Opposition to engage with the Attorney-General’s section 7 report. If you wondered what I was doing, scrambling on my computer just then, I was looking for the section 7 report. It is important that all sides of the House review those issues before we consider what we want to make law in this country.

So it’s not an objection from me; it’s just a request that the Government look to going through diligent process for issues that prima facie touch the New Zealand Bill of Rights Act, which this absolutely does in terms of further limiting an ability to raise a claim or have an appeal in the House. Again, I’m not saying that it’s not warranted, but we certainly need to examine that, as well.

Perhaps just the other issue that I was looking at in terms of—there’s a collection of issues that this bill is looking to amend. There’s also one on the Coroner’s Act 2006. Clause 20 provides for a new power for a coroner to close an inquiry they’ve opened if a change in circumstances or new information means that it’s no longer appropriate to complete an inquiry. I’m just highlighting that point because, again, colleagues who were in the last Parliament will be aware that we had several issues come to us in regards to the Coroner’s Court. It is an area where there is a lot of public interest, it’s an area where there is a lot of personal feeling, and I do think when we’re giving powers to a coroner to be able to close an inquiry for any reason, we just need to examine what public sentiment and what the public feeling is around the parameters that we’re putting into legislation.

So I do look forward to a robust select committee process and, no doubt, many submitters who we may have seen before in terms of some of these issues. We will be supporting this bill through to the first reading and, hopefully, address some of the questions that we have at the select committee stage. But if not, then I’m sure that there will be robust questioning of this bill at committee stage as well. Madam Chair, thank you. We will be supporting it to select committee.

Carl Bates

National Party · Whanganui

New Zealand elected this Government in order to restore law and order. It’s been 20 years since the number of High Court judges has been increased. This is a practical step in order for us to deliver on that promise. I commend the bill to the House.

Glen Bennett

Labour Party · List MP

Kia ora, Madam Speaker. As I rise to consider this piece of legislation, it was interesting to listen to the debate across the House—some more cohesive than others—but it was interesting to listen and to be in a space where, over a number of days, to actually come to a point of agreeance where we are comfortable to support this in the first reading to take it to select committee, where it rightfully should be, in a place where it can actually have its robust process. I often talk about our small and our agile and swift democracy here in Aotearoa, and how it can actually go to a select committee and be discussed and be unpacked, pulled apart, and put together—and, hopefully, in a better shape—for it to come back into the House for us to debate again.

As I listened to my colleagues on this side of the House—I listened to the Hon Dr Duncan Webb and to Vanushi Walters—it was just interesting to understand some of what this legislation does and the reasons that we support it. As I was listening—and we’ve heard from a number of speakers around the Coroners Act of 2006—but as we look at that and the changes that this legislation will make, it’s the reality that these are people’s lives that we’re talking about. Yes, this is legislation; these are words, these are laws, these are changes we’re making to how we move forward. But when you have the Coroners Act 2006, it’s actually people’s lives and families that we need to consider the impacts on, and so that’s why we are happy to continue and support it.

Then we look at population growth and look at the senior court judges. Obviously, as our population continues to rise—it’s a no-brainer, of course: with the rise of population comes, unfortunately, a rise in the need for people to be in the court system and the fact that we need to consider upping the numbers of High Court judges—the first time, as was said just before, within 20 years.

Then we look at the Act, as it is, around vexatious litigants. This is something I had to read up on. I am no expert on the courts, I will admit, although I’ve spent a lot of time in court—

Chris Bishop

National Party · Hutt South

Oh!

Glen Bennett

Labour Party · List MP

—supporting people. “Whoa”—exciting, eh? But I’ve spent a lot of time in court supporting people. I’ve been in court supporting victims. I spent a lot of time in court supporting offenders. I spent a lot of time in court as a restorative justice facilitator. So I know the District Court well. I know its proceedings and how it works, the ins and outs of it. But we’re looking at, obviously, some High Court stuff here. When it comes to the vexatious litigant, we need to find that balance to make sure there are legitimate cases, that people aren’t playing the system, that people aren’t creating more harm with their frivolous—with things without merit or, indeed, causing hurt and harm, which can actually be part of the court system, which we need to do our best to protect fiercely, because so often, for a victim of crime, the vulnerability of stepping into that courtroom is a place that is not easy for anybody. So we need to make sure that they are protected to the highest degree and ensure that legislation in this place is fit for purpose and will protect people—that is important. I’ve seen that many times in my role as a restorative justice facilitator.

My final thoughts are around the Criminal Procedure Act of 2011. Now, as I was looking through the legislation and getting my head around this—I don’t sit on the Justice Committee, but I think it’s always good, in this place, to learn and understand the breadth of knowledge you pick up when you have random legislation that isn’t in your wheelhouse. Just looking at the Court of Appeal—relating to the District Court decisions to be heard by a court at the appropriate level. I think it’s important when we look at the “appropriate level” because, often, the paperwork and, I want to say, almost the binary space of our judicial—judicial—I can’t even say the word—“that system”—is the fact—

Member

It’s getting late.

Glen Bennett

Labour Party · List MP

Yeah, it is late. We’ve got to get it right, so the fact that we’ve got to find appropriate levels to do that I think is important, that’s why we’ll support it to select committee.

Tom Rutherford

National Party · Bay of Plenty

Thank you very much, Madam Speaker. This is a short, sharp, and very pragmatic proposed piece of legislation, and therefore I commend it to the House.

Bill read a first time.

Barbara Kuriger

Deputy Speaker

The question is, That the Judicature (Timeliness) Legislation Amendment Bill be considered by the Justice Committee.

Motion agreed to.

Bill referred to the Justice Committee.

Instruction to the Justice Committee

Nicole McKee

ACT Party · List MP

Associate Minister of Justice

I move, That the Judicature (Timeliness) Legislation Amendment Bill be reported to the House by 23 September 2025.

Party vote

A party vote was called for on the question, That the motion be agreed to.

Ayes 68

Noes 54

PartyCount
Ayes68
New Zealand National49
ACT New Zealand11
New Zealand First8
Noes54
New Zealand Labour33
Green Party of Aotearoa New Zealand15
Te Pāti Māori6

Motion agreed to.

Legal Services (Distribution of Special Fund) Amendment Bill

First Reading

Nicole McKee

ACT Party · List MP

Associate Minister of Justice

on behalf of the Minister of Justice: I present the legislative the statement on the Legal Services (Distribution of Special Fund) Amendment Bill.

Barbara Kuriger

Deputy Speaker

That legislative statement is published under the authority of the House and can be found on the Parliament website.

Nicole McKee

ACT Party · List MP

I move, That the Legal Services (Distribution of Special Fund) Amendment Bill be now read a first time. I nominate the Justice Committee to consider the bill. At the appropriate time, I intend to move that the bill be reported to the House by four months and one day after it has received its first reading.

From the outset, this Government has been clear about its commitment to an efficient and effective justice system. Promoting access to justice in a way that is sustainable is important to achieve this. The Lawyers and Conveyancers Special Fund—the Special Fund—serves an important role to ensure that people can access free legal help in the community. The fund works by collecting interest from banks on solicitors’ and licensed conveyancers’ nominated trust accounts. Money in the Special Fund must be paid to the Secretary for Justice for the purpose of funding community law centres.

Currently, the law is narrowly framed and there is ambiguity around whether Special Fund money can be used to meet expenses incurred by community law centres when delivering community legal services. Section 94 of the Legal Services Act 2011 enables the secretary to enter into contracts with the community law centres to purchase community legal services. Money provided by the secretary under contracts must come from either or both the Special Fund, or any other money.

This bill makes a minor change to broaden the use of the Special Fund. It does this by amending the scope of section 94 to enable the secretary to enter into contracts to also fund, facilitate, or otherwise support the provision of community legal services by community law centres.

The bill does not affect the core purpose of the Special Fund. The secretary would continue to have discretion to enter contracts and determine whether funding should be provided. This change will support the long-term funding of organisations that deliver community legal services and ensure people are able to access the legal help that they need.

I look forward to the Justice Committee’s consideration of the bill and I commend this bill to the House.

Barbara Kuriger

Deputy Speaker

The question is that the motion be agreed to.

Duncan Webb

Labour Party · Christchurch Central

Thank you, Madam Chair. Here we are, at 15 minutes to midnight on a Saturday night—

Barbara Kuriger

Deputy Speaker

It’s still Thursday, actually!

Duncan Webb

Labour Party · Christchurch Central

Oh, whatever night you like. That’s one of the strange twists of parliamentary procedure. We’re looking at probably one of the most trivial bills that could be possibly imagined. Whether it’s even necessary is moot.

Can I just commend the official who wrote the Minister’s speech and managed to give her four minutes of material, because what this bill does—the current Act provides that in respect of legal services the Secretary for Justice may, as they determine appropriate, “enter into a contract with 1 or more community law centres to purchase community legal services”. So that’s the current law. The new law adds to that “[and to] fund, facilitate, and otherwise support the provision of community legal services.” So that’s it—that’s it. There’s about 12 words in there, but she managed to stretch four minutes out of that. So well done to the official.

What I want to know is who’s actually digging here, because I can’t see—to be perfectly honest—how you even need it, because to purchase community legal services, you’ve got to purchase those things that fund, facilitate, and otherwise support the provision of community legal services. This seems to be a problem that doesn’t actually exist, so I’ll be interested, when we go to select committee for four months and one day, to know exactly what the problem is. I absolutely support the work that’s being done by community law centres. They do great work. I would have thought that a fair, large, and liberal interpretation—which, if you read the Interpretation Act, is how we approach statutory interpretation—is that if you purchase community legal services, you also purchase the administrative and other services that go into providing that.

So I’m very perplexed, and I’ll give the officials a heads-up that I’ll want to know that: exactly what is the problem here? Why is it that we’ve got to have this clarification? Why is it that we’ve got to have 123 MPs—as if—sitting in this House wondering about this on a Thursday or Saturday night whilst we do this?

To suggest that this is urgent is absolutely ridiculous. I’m very happy to spend tonight here with some of my good friends and some other people, but I simply cannot understand why we need to have this tacked on in urgency and to look at this question as if New Zealand’s future depends on how community law centre support services are funded.

Let’s wait and see. Maybe it will be a tough committee. Maybe we’ll get there and we’ll wrestle with some big issues over community law centres. Perhaps this is really going to be the Government saying, “Community law centres are doing such a good job that we wanted to make it really clear we can fund them more because they do such great work helping the most vulnerable members of our community out with some tough issues around employment, around immigration, around family violence that we want to make sure that we can give them more and the Special Fund or other funds can fund them appropriately.” So—great. But to be perfectly honest, I think that the Minister has, in some ways, been given a shake by somebody who’s like, “What are you doing over here?”, and her officials have said, “Oh my goodness! Someone might judicially review us.” And rather than saying, “Get out of here. They’ve purchased community legal services, as a perfectly legitimate thing to do, including support services.” But she’s taken another—perhaps you should throw a retrospectivity clause in there just in case you funded them last year rather than this year. But, look, off we go to select committee, four months and one day.

Simon Court

ACT Party · List MP

I raise a point of order, Madam Speaker.

Barbara Kuriger

Deputy Speaker

We’ve got a point of order, with six seconds to go, from Simon Court.

Simon Court

ACT Party · List MP

Does the member need a glass of water?

Barbara Kuriger

Deputy Speaker

That is not a point of order. [Interruption] He looks like he’s still alive. Dr Lawrence Xu-Nan.

Duncan Webb

Labour Party · Christchurch Central

Madam Speaker?

Barbara Kuriger

Deputy Speaker

Do you want your six seconds?

Duncan Webb

Labour Party · Christchurch Central

I absolutely want to do six seconds. I’m very grateful to the last Labour Government for giving me clean drinking water, thank you very much.

Lawrence Xu-Nan

Green Party · List MP

Thank you, Madam Speaker. Here we go again, 10 minutes before midnight. Again, I rise on behalf of the Green Party of Aotearoa New Zealand to speak on the Legal Services (Distribution of Special Fund) Amendment Bill.

Now, I think the first thing that we need to sort of unpack here—

Member

Slow down—slow down.

Lawrence Xu-Nan

Green Party · List MP

There’s a lot of stuff to say about this bill. I’m actually less excited about the bill, but more excited about the prospect of what our community law centres are currently doing.

The thing with this particular bill that I’m concerned with, similar to the previous speaker, the Hon Dr Duncan Webb, is: why do we need this bill in the first place and what is the problem about this bill? Now, for context, in terms of the Special Fund and what it is being used for right now: the Special Fund primarily is being funded for community law centres across Aotearoa as part of Community Law Centres o Aotearoa. There are 21 centres in Aotearoa geographically, and three special offices looking at different issues, including disability, including youth, and including family. When we are looking at the work that community law centres do, unlike other elements that are in dire need—and in the last speech, I mentioned some of the broader concerns with the justice and court system in Aotearoa New Zealand around access to justice. Broadly speaking, on par with this, community law centre and legal aid go hand in hand. Legal aid is currently going through a review because, fundamentally, the problem we have there is the fact that we are looking at an industry or a sector that people don’t want to go into because of the issues. We’re particularly seeing geographical issues when it comes to certain areas not being able to access legal aid.

However, when we’re looking at the use of the Special Fund for community law centres, the issues and opportunities present in a different way. One of the biggest issues that we do have here, from the community law centre, is the fact that one of the things they have the most challenges around is access to family lawyers. You would imagine that that particular access is an issue for regional and rural communities but, in fact, it is broadly more of an issue in urban areas. The reason we’re able to get those kinds of insights is because of the community law centres being at the front line of a lot of the work that they do and, particularly, representing a part of our community that usually is under-represented, through the work that they do, particularly around family law and employment law being their two biggest areas of legal practice that they represent, as well as immigration law.

One of the things we do hear from them is—and the fact that we are able to learn this is because they have that broader insight across Aotearoa New Zealand in terms of the work they do, which is funded by the Special Fund that we see here in the Lawyers and Conveyancers Act 2006.

I’m concerned that the broadening of the scope of the Special Fund is a lot more—I’m hoping to be proven wrong—sinister and removing some of the funding that is currently going towards CLCA: Community Law Centres o Aotearoa. I don’t know of any other reason why we need to specify that when that is already the current level of operation. The only thing I can think of is that through the Special Fund—which is not a Government fund because it’s specially required as part of legislation such as the one we are amending right now, which means that it is not part of the budgetary process. However, the Government is able, potentially, to use legislation like this to alter the way that the funding is being used by Community Law Centres o Aotearoa, and redirect and redistribute some of the funding for them to other areas. So I’m hoping to be proven wrong and this is why I’m excited that we will have a select committee stage as a result of that.

But that is a problem because what we have seen—particularly in recent years with CLCA, as part of their most recent package—an uplift of 14 percent in terms of access to justice. I particularly shout out to the kaupapa Māori initiative in Tairāwhiti. So, with all of that, at this stage, the Green Party of Aotearoa New Zealand cannot really support this bill without proper scrutiny.

Rima Nakhle

National Party · Takanini

Thank you very much, Madam Speaker. It’s an absolute pleasure to stand here and tautoko this bill that we’re talking about tonight. It’s a shame that the Green Party can’t support it—I think that’s what I understood—because, essentially, this bill is going to clarify a lot of the situations that the fund found itself in. What I’ve said before is that, unfortunately, whatever Labour gets its hands on become nebulous.

I just want to do a shout-out to the community law centres. As I was studying law in Australia, I did see a lot of the community lawyers. A lot of the time they didn’t focus on what they were wearing. They were just focused on helping the people they were helping. What I’d also like to say is that there is a reason why we brought this bill before the House, and the reason will continue to show itself.

But what I love is the fact that our Government is focusing on law and order, as we have said throughout the last two debates. With that, I would like to say it’s been a wonderful one day—or a few days—as we have been progressing our Government’s agenda after the Budget. I also want to say I am proud of the fact that our Government is focusing on law and order—[Interruption]—whether it’s a frivolous bill or not, and I want to thank all the staff of the Office of the Clerk for helping us out, bringing us water, and bringing us the notes. Thank you very much. I can see Venice there—thank you very much. It’s been wonderful.

I also want to say that a dress does not make a person—Nicola looked absolutely amazing, and this Minister in front of me is one of my favourite transport Ministers after Simeon, and he’s going to get Mill Road done. The suit he’s wearing is nice as well; not as nice as some other suits around me. Tom Rutherford is looking pretty sharp. When Mill Road is done, people will be able to get to the courts—

Lawrence Xu-Nan

Green Party · List MP

Point of order. I just want to check for clarity that the member over there—as we heard with a previous speaker, the Hon Damien O’Connor—has referred to someone who is not in the House.

Barbara Kuriger

Deputy Speaker

I’m sorry; I didn’t pick up on somebody not being in the House. Carry on, member.

Rima Nakhle

National Party · Takanini

I can’t wait for Mill Road to get done because when it gets done, people will be able to get to the courthouses much quicker, so that we can focus on our victims. I commend this bill to the House.

Jamie Arbuckle

NZ First Party · List MP

I rise on behalf of New Zealand First to support the Legal Services (Distribution of Special Fund) Amendment Bill. As a member of the Justice Committee, I look forward to hearing submissions on this bill. The Justice Committee is a very hard-working committee. Our new chair, Andrew Bayly, is doing a great job, and we look forward to hearing the submissions.

This bill puts an approach to ensure efficient use of existing resources, maintaining high-quality legal support without additional burdens on the Crown. That’s something that this side of the House is trying to do. As I’ve said earlier in other speeches, this 2025 Budget will be a game-changer—and any moment now as that clock clicks on to 12 a.m., it will be a game-changer. I would like to commend this bill to the House.

Barbara Kuriger

Deputy Speaker

Thank you to the member. Members, the time has come for me to leave the Chair. The debate is interrupted and set down for resumption next sitting day. The House stands adjourned until Tuesday, 3 June 2025.

The House adjourned at 12.00 a.m. (Sunday)