Benefit fraudsters let off hook, says MP

Heather Roy

An Act MP has released figures which she claims shows the full scale of benefit fraud.

Heather Roy said the figures included over a million dollars of fraud that has never been prosecuted.

She said the total sum of the 10 highest debts came to $5.7 million.

For unemployment the total was $1.3m, domestic purposes benefit $1.6m, sickness benefit $1.1m and invalid benefit $1.7m.

"Even worse, these figures only represent the 10 largest debtors on each benefit. The full cost of welfare abuse is much higher," Mrs Roy said.

"The Minister for Social Development and Employment, David Benson-Pope, says that no one is let off the hook, yet even among those 40 anonymous fraudsters nine were never prosecuted.

"Those nine fraudsters have taken over a million dollars from taxpayers and no one has been held accountable."

A spokeswoman for Mr Benson-Pope yesterday said every case of benefit fraud, or alleged fraud, was investigated and taken to prosecution if it was proved.

"Jail is a very frequent response to a conviction," the spokeswoman said.

"There are currently people serving jail time for benefit fraud -- including some of those listed by Heather Roy."

The spokeswoman said even if a case was not taken to court, any overpayment had to be paid back.

"That debt stays with people for life, even on superannuation," she said. "We are not soft on benefit fraud, it is unacceptable."

The spokeswoman said about 50 per cent of the debts owed by beneficiaries was under $500.

"Heather Roy has taken extreme cases and presented them as an epidemic. By and large, we're talking about very small amounts."

- NZPA