By Lynn Grieveson
The Government has allocated NZ$3.5 million in the budget to lure young beneficiaries to Christchurch to take up jobs and assist in the post-earthquake rebuild, but he brushed aside queries about where they would live.
In a pre-Budget speech to Business NZ in Wellington today, Prime Minister John Key said that under the so-called "3K to Chistchurch" scheme up to 1,000 beneficiaries would be offered a one-off payment of NZ$3,000 each if they take up a full-time job offer in Canterbury.
The offer would be open to beneficiaries of all ages, but targetted at young people aged 18-24 years.
Key said the fact that most of those moving to Canterbury to take up jobs would be young and single would mitigate the pressure the scheme might cause to the region's already over-stretched housing market.
He told reporters after the speech the workers might have the option of staying with relatives or friends, might find a boarding arrangement or choose to live with several others in a flat.
"We also see a lot of students pour into Christchurch and they seem to find a way through that," he said.
"I think you will see people saying 'I'll take on a boarder and help someone and get some money' that will supplement their income. It's not unusual for five or six flatmates to be in a particular flat."
Key added that in the long run the initiative would improve Christchurch's housing situation as the rebuild would progress faster with more workers.
Key said the government had briefly considered making the scheme compulsory, with beneficiaries forced to move to take a job in Christchurch, but "pretty quickly" decided against it.
"You risk taking them out of their support structure they have around them," he said.
"You want them to volunteer to do that. If we are pulling them out of that social support network they have got and forcing them down there then potentially you're forcing them into a situation they might find very challenging."
To qualify for the NZ$3000 payment, the job offer must be for over 30 hours a week, and for longer than 91 days. The payment will be non-taxable, and exempt from an income and asset test.
But if the worker goes back on benefit within three months of the payment without "sufficient reason", then the payment would have to be repaid. It covers jobs within the geographical areas of Ashburton, Hurunui, Selwyn, and Waimakariri District Councils, and the Christchurch City Council.
Reaction
Labour Earthquake Recovery Spokeswoman Ruth Dyson said the plan was flawed and ignored the problems of those already in Christchurch.
“Unemployed Kiwis can definitely do with some help, but it is wrong that local unemployed people are not being offered additional support to get into a paid job as well," Dyson said.
“The second challenge that has not been met by Mr Key is the desperate shortage of housing in Canterbury. Where are these people, coming into the region to take up paid work, going to live? There is an increasing shortage of affordable rental properties, more people moving in from overseas to take up work, and more Cantabrians moving out of their homes for repairs or rebuild," she said.
“ There is just nowhere for these new people that the Prime Minister is paying to come to Canterbury, to live. That is a recipe for disaster."
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