Revenue insurance scheme misses the mark

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“The workers’ income insurance scheme will hurt productivity and further aggravate welfare dependency,” says Karen Chhour, spokesperson for ACT Welfare.

“Our social protection system needs to be overhauled. It imposes a one-size-fits-all solution that doesn’t work for anyone. It drops people trapped in long-term addiction. It fails workers who contribute generously to a scheme that does not adequately support them if they lose their jobs unexpectedly. It ignores the realities of a modern economy.

“The ACT is open to some form of employment insurance, but the Labor plan will do more harm than good.

“Labour is proposing a nearly 3% tax hike on workers when Kiwis are already struggling with the cost of living. Only the Labor Party could believe that adding new taxes would help productivity.

“Labour says employers will pay for part of this scheme, but the new tax will ultimately be levied on workers’ overall wages. There is no free lunch.

“The ACT has already proposed an employment insurance scheme, but that would not have raised taxes and would have forced workers to actively look for work and show up.

“Work seems to encourage workers to take as long as they want to find work.

“Slowly but surely, Labor is transforming welfare in a way that will increase dependency – by making benefits more generous and removing obligations from welfare recipients.

“The ACT welcomes a debate on Employment Insurance, but the Labor plan will effectively punish work and subsidize unemployment. New Zealanders should not tolerate this.

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