Act-type debut by Brash

By FRANCESCA MOLD

Former Reserve Bank Governor Don Brash called for time-limits on benefits in his first speech since he resigned to stand for National.

Speaking to business leaders on the North Shore yesterday, he suggested limiting the time the "able-bodied" could be on unemployment and domestic purposes benefits.

"A top priority should be to reduce this utterly demoralising welfare dependency."

His suggestions do not match National Party policy, and leader Bill English said yesterday that they were Dr Brash's personal views.

"As we get into a campaign he'll be giving speeches about National Party policy, but he's giving pretty much his own speeches at the moment," said Mr English.

Dr Brash's views echo those of Act, which has a draft policy that welfare assistance for "able-bodied" people should be short-term only - two years continuously and five years over a lifetime.

Dr Brash said unemployment was at its lowest in 13 years but about 350,000 people of working age were on benefits - more than in the early 1990s when unemployment peaked.

He also questioned whether New Zealand should keep its own currency. This appears to contradict Mr English, who, when he was National's finance spokesman, said no one had put up a compelling economic case for a currency union.

Dr Brash also said the country's economic growth rate - a potential 3 per cent a year - would not be enough to close the gap in living standards between New Zealand and other developed countries that had arisen in the past few decades.

He criticised the Government for taking the country in the wrong direction by increasing the top personal tax rate and maintaining high company taxes, and for raising the minimum wage for young people.