Labour would split Winz functions, keep name

Labour would split Work and Income New Zealand into welfare and employment arms to ensure a stronger employment focus.

Releasing the party's employment policy yesterday, Labour spokesman Steve Maharey said Winz would keep its name because millions of dollars had already been spent rebranding it.

He said Winz would be split because it had concentrated on finding work or training, not jobs.

Under Labour, work-for-the- dole would be replaced with new schemes, including efforts to encourage regional job growth and the establishment of businesses to do community work.

Labour would set up community employment organisations to provide services to community groups, disadvantaged groups or individuals.

Comparing Labour's approach with National, Mr Maharey said: "We are about jobs, they are about welfare."

Only job-seekers should be work-tested under Labour.

"The sick, the widowed or someone bringing up kids or with a disability should be given opportunities to train and get a job," he said.

Mr Maharey said Labour did not have a set target, but with about 3 per cent unemployment the country would be close to full employment.

He said economic growth was essential to increase the number of jobs and provide wealth that could be redistributed to create more jobs.

"Without growth it is hard to do that because you end up slicing the pie thinner and thinner."

Labour would encourage unemployed people to set up their own small businesses, providing them with support to develop businesses and at the same time provide services to the community.

The programme would not support organisations in direct competition with the private sector, however.

Community employment organisations could be set up by central and local government, as private not-for-profit businesses and as joint ventures between various groups. They would be eligible for establishment grants, the equivalent of the unemployment benefit, for each of the unemployed workers they took on.

They would be required to pay at least the minimum wage and engage in work or contracts approved by a local committee.

Community and voluntary organisations, schools, the elderly, local government, sports clubs, people with disabilities and the environment would be among the beneficiaries.

A scheme called Workstart would allow job-seekers to use their benefit as a wage subsidy for a specified period.

Employers would be required to top up their wages to market levels.

Mr Maharey said the goal was to make sure people had the skills and opportunities they needed to get work and stay employable.

Labour would also establish an independent Future Work Unit to advise how work practices could "adapt better to people's needs." - STAFF REPORTER, NZPA