IMF Joins Growing Chorus Supporting NZ Income Insurance Scheme

The International Monetary Fund has today joined other organisations in supporting the NZ Income Insurance Scheme. The IMF said “The planned introduction of the Income Insurance Scheme is welcome as it closes an important gap in social protection” in its Article IV report. The proposal would help promote durable and inclusive growth. (https://www.imf.org/en/News/Articles/2022/03/23/new-zealand-staff-concluding-statement-of-the-2022-article-iv-mission)

The IMF joins the OCED in supporting the proposed insurance scheme. The OCED found in their latest report on New Zealand that “A social insurance scheme would also be likely to improve the resilience of New Zealand’s economy and job market”, and that New Zealand should “Introduce the Social Insurance Scheme being developed”. (https://www.oecd.org/economy/surveys/New%20Zealand-2022-OECD-economic-survey-overview.pdf)

CTU Economist Craig Renney said “New Zealand workers have some of the lowest levels of protection when they lose their job. 
 

It costs workers billions in lost income and costs the economy billions in lost productivity and output. 
 

The IMF and the OCED have recognised the value that the Income Insurance Scheme will provide. 
 

The CTU and affiliated unions also recognise the value of this proposed support. It’s clear that now is the time to deliver an insurance scheme that will provide welcome protection for New Zealand workers and their families."

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