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Small business hit by benefit message

Chris Tremain MP
National Party Associate Small Business Spokesman

11 February 2007

Small business hit by benefit message

National Party Associate Small Business spokesman, Chris Tremain, is appalled that Work and Income is recommending that some beneficiaries are better off on the benefit than in paid employment.

“We all know working is about more than just take-home pay. It’s about building a work history, getting into good work habits, developing confidence and getting ahead under your own steam. Taxpayers will be shocked by the message Work and Income is sending.”


Mr Tremain was recently approached by Hawke’s Bay Hells Pizza franchisee, Richard Stevenson, who said a staff member had quit her job because she was better off on the benefit.

“He told me he had a very good employee who was working anywhere between 35 and 40 hours each week.

“Suddenly, his employee approached him out of the blue to say she was resigning because Work and Income told her she would be better off on the benefit.


“Work and Income’s ‘Earnings Verification’ document states under the reason why employment was terminated: ‘xxxx resigned stating that Work and Income instructed her to give up work as she would be better off on a benefit’.


"This is simply unacceptable. The Minister should put an immediate stop to this kind of advice coming from his department. It’s no way to deal with the skills shortage," says Mr Tremain.

Ends


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