INTRODUCTION

THIS GOVERNMENT STATEMENT OFFERS a new approach to social security for people of working age in New Zealand. It is an approach that actively invests in people so they can respond to the challenges and opportunities of our emerging knowledge economy.

The Government’s objective is to give everyone the opportunity to benefit from the high skill economy that is developing in New Zealand. Rather than trapping people on a benefit or forcing them into unproductive work for the dole, this Government intends to build the skills and talents of all New Zealanders; to provide them with a pathway to opportunity so they can find meaningful work for real wages.

As well as providing security, the $5.4bn we spend each year on benefits must become an investment in people’s potential. Our social security system must be focused towards that end for those of working age, whilst ensuring that those, who for good reason cannot work, get the support they need.

In the past the social security debate has been an unproductive “more versus less” argument. On the one side are those who see benefit payments as just a drag on the economy; on the other there are the supporters who only want a constant injection of money, despite changing needs and times.

We must move past this fruitless debate and focus instead on the purpose of social security in our economy. Technological, economic, and social change makes a social development approach to welfare more, not less, important.

For New Zealand to compete successfully in the global economy we need skilled workers. The sense of security provided by an effective and properly-focussed social development approach can support people to develop their job skills, and provide a springboard for them to move to new opportunities.

This means seeing social security not as a fortnightly benefit cheque, but as a carefully considered social investment to lift people’s capacity today, so they can look after themselves tomorrow.

We have made a good start. We are working with beneficiaries to support their families and children and genuinely address their job-related needs. A hallmark of the new approach is that it will respond to the needs of each individual.

Moving from social welfare to social development is an ambitious challenge for the whole community. Like all far-reaching social change, it takes time.

For its part, the Government is committed to working with New Zealanders to overcome inequalities and provide a foundation of security from which opportunity can grow. This is at the heart of the social development approach of the Government.

Rt Hon Helen Clark PRIME MINISTER	Hon Steve Maharey MINISTER OF SOCIAL SERVICES AND EMPLOYMENT

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