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More DPB 'Largesse' Revealed

More DPB 'Largesse' Revealed
January 25, 2004

"The revelation that two DPB mothers with a 70A deduction are receiving weekly payments of over $700 demonstrates, again, that it is high time this system was abandoned," said Lindsay Mitchell, petitioner for a Parliamentary review of the DPB.

"The 70A deduction is a joke because it is more than offset by the family support each child receives. If it was an effective penalty, there wouldn't be nearly 18,000 mothers refusing or failing to name their children's fathers or apply for child support."

"In addition to their DPB cheques, these mothers could well be receiving extra support from the unnamed father, privately. Unidentified, he doesn't have to pay the IRD child support payments which go towards the DPB. Instead, the couple can enter into a private arrangement whereby he pays considerably less directly to her. The reduced amount is still more than the weekly $22 the mother currently forfeits under section 70A."

"These lucrative arrangements provide a further incentive for her to stay on the benefit - not that she is likely to want to get a job or even a partner when she is already receiving well above the average income."

"This is just one of many examples of how our welfare system has evolved into one riddled with bad incentives and opportunities for those who would rip it off. This leaves genuine recipients under-resourced and taxpayers increasingly bewildered and angry."

"Those who want to see something done about this state of affairs should sign the petition calling for a Parliamentary review of this DPB, available from PO Box 38-290, The Wellington Mail Centre or www.liberalvalues.org.nz"

Lindsay Mitchell Petitioner for a Parliamentary review of the DPB e-mail dandl.mitchell@clear.net.nz

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