Benefit spending not up, counters Maharey

Steve Maharey

ACT's claim that benefit spending has increased under the Labour-led government is simply wrong, Social Development and Employment Minister Steve Maharey said today.

ACT Social Welfare spokesperson and Deputy Leader Muriel Newman said yesterday new social welfare statistics show benefits are costing taxpayers $23 million a day, or almost $1 million an hour.

"The Statistical Report released by the Ministry of Social Development shows welfare expenditure rose from $7.9 billion in 2000 to $8.5 billion to the year end June 2004", Dr Newman said in a statement.

"The latest statistics show there is no cause for complacency," Dr Newman said. "It highlights a growing trend in the number of people stuck in the welfare trap."

However Steve Maharey refutes ACT's claims.

"Muriel Newman is desperate to show that Labour has increased welfare spending," Steve Maharey said. "The figures she's touting today include superannuation and the veteran's pension. When only benefits are included expenditure has actually fallen slightly from $3.65 billion to $3.59 billion despite annual inflation adjustments.

"I'm sure most New Zealanders would not classify super and veteran's pension as benefits. Does ACT propose to cut these entitlements?

"The truth is that there are fewer people on benefits than there were five years ago and the government spends less on benefits now than it did before the Labour-led government was elected."

- HERALD ONLINE STAFF