'Jobs Jolt' for unemployed who go bush

By KEVIN TAYLOR political reporter

A "tough love" jobs plan aims to put more unemployed people back to work by making it harder for them to stay on benefits.

The Government's $104 million, 10-point "Jobs Jolt" plan, announced yesterday, will penalise unemployed people who shift to remote areas where there is little work, possibly by suspending their benefits.

And it will require people aged between 55 and 59 on the dole to be available for work.

The Green Party accused the Government of "pandering to the right", but business reaction was positive.

Until now, the 8300 unemployed people aged between 55 and 59 have been exempted from the obligation to be available for work.

The Government says it is removing their exemption to meet a growing demand for skilled workers.

Prime Minister Helen Clark and Social Development and Employment Minister Steve Maharey said the new rules would help 22,000 people into paid work over three years.

Mr Maharey said about $91 million of the package's cost was expected to be recovered from what would otherwise be paid in benefits.

A spokesman for Mr Maharey said the remote area policy would start as soon as information could be sent to Work and Income offices.

Background papers with the package said unemployed people moving to remote areas might be breaching their obligations under the law and could find themselves tested for their willingness to work.

Their eligibility for the benefit might be affected.

Asked if unemployed people moving to remote areas would have their benefits cut, Mr Maharey said: "Not necessarily."

"What it would mean is that someone might come to you if you live in a small town and say, 'We have got a job for you and it fits your skills, but it depends on you shifting'."

The Government would pay the moving costs.

But it would not continue benefits forever for those refusing to shift.

The package would reinforce that those receiving the dole had clear obligations under the law to be available for work and to take reasonable steps to find a job.

Mr Maharey said the provisions available to suspend benefits would now be used more frequently.

Another move is to toughen the consequences of positive drug tests.

Those losing a potential job because of a positive test may have to undergo drug and alcohol education.

The package also includes moves to help solo parents, sickness and invalid beneficiaries, young people and the long-term jobless into work.

Greens employment spokeswoman Sue Bradford said the package was dreadful and she could not believe it came from a supposedly progressive Labour Government.

"Mr Maharey seems to be pandering to the far right, to the National and Act push on welfare," she said.

"He seems to want to become more repressive because National has taken quite an active role in welfare reform."

The union movement was cautious, saying the package must deliver real jobs.

Council of Trade Unions secretary Carol Beaumont said she was worried that the case management of sole parents should not operate as a work test that did not recognise the valuable caring work they did.

Employers and Manufacturers Association (Northern) chief executive Alasdair Thompson said the package had "a lot of merit" and was not inconsistent with National Party finance spokesman Don Brash's get-tough welfare approach.

But National social services spokeswoman Katherine Rich said the package was a "waffle-fest" that sounded tough but changed little.

Labour's polling showed it was on the wrong side of the welfare debate and the package was a "public relations exercise" that would not get people off welfare and into work.

The 'Jobs Jolt'

* Threatens to remove benefits for jobless people who move to remote areas with little work.

* Requires unemployed people aged 55-59 to be available for work.

* Makes those who lose potential jobs through a positive drugs test undergo drug education.

* Introduces intensive specialists to contract for one-on-one work with those without work for eight or more years - a plan intended to help 4200 people.

* Intensifies employment programmes for solo parents, aimed at helping 5000.

* Links with industries to give training to 2500 people at risk of long-term joblessness.

* Introduces employment coaching for skilled and work-ready jobless, targeting 4000.