16 November 2000
Hon Steve Maharey
Damning report charts failure of
work-for-the-dole scheme
Social Services and Employment Minister Steve Maharey said a new report evaluating the work-for-the-dole scheme proves once and for all it has been a complete failure getting people off the benefit and into real jobs.
Mr Maharey today released the November 2000 evaluation report carried out by the Department of Work and Income's Centre for Operational Research and Evaluation. The report finds that:
- beneficiaries are no better off in Community Work than if left on a benefit;
- their employment outcomes are lower than that of the comparison group not participating in Community Work;
- the probability of people achieving a positive employment outcome decreases whilst they are participating in Community Work; and
- the negative outcomes are stronger for community work than for its predecessor programme, Community Task Force.
Mr Maharey said that the report proved the Government was correct to be scrapping the Community Work scheme.
"The Community Work has been a failure and this Government will scrap it.
"The scheme has failed to improve beneficiaries chances of moving into the paid workforce. Worse, as the report notes, 'it would appear that the probability of people achieving a positive [paid employment] outcome decreases whilst they are on the programme'.
"Community Work was the central tenet of both National and Act's social security policy at the last election and it is now in tatters.
"The Government's Social Security Amendment Bill now in front of Parliament is designed to build people's abilities and to support them into paid employment. Giving unemployed New Zealanders the opportunity to earn a real wage in a real job is our promise," Steve Maharey said.
