GEORGINA BEYER (Labour): I am pleased to rise and speak on the first reading of the Social Security (Long-term Residential Care) Amendment Bill. In addressing the question asked by the member who has just resumed his seat, I point out that he answered it himself. If he would care to sub himself on to the Social Services Committee, I am sure his contribution, and particularly the questions he raises, will be well traversed there. The Social Services Committee, which I am very proud to chair, looks forward to receiving this very good legislation.

This Labour-led Government is committed to providing high-quality affordable care for all older New Zealanders. This is a far cry from the experience in the 1990s under the National Government. Older New Zealanders are a valued and important part of New Zealand families and communities. They deserve certainty about how much they will need to contribute to the cost of their care. It is about investing in New Zealanders—in this particular instance, our older New Zealanders. Last year we made significant changes for people in long-term care. Most important was our manifesto commitment to remove asset testing progressively for long-term residential care. We also clarified the rights and obligations of people in care.

This bill amends a number of anomalies. The changes include treatment of overseas private pensions, which will be treated the same as New Zealand private pensions—that is, 50 percent of both will be excluded as income when determining how much someone should contribute towards the cost of care. Previously, 100 percent of overseas private pensions were treated as income. Also, the bill clarifies that the contribution of older people who are assessed as needing long-term residential care indefinitely, and who are receiving their care in a facility contracted to a district hospital board, will be no more than the maximum weekly contribution, which is currently set regionally at between $640 and $740 a week for their care.

The maximum contribution caps the weekly amount individuals must pay towards their care. The amendment makes it clear that even if people have assets of more than $150,000, they will pay no more than the maximum contribution for standard residential care services. Currently, around 28,000 people are in age-related residential care and the Government invests about $539 million, exclusive of GST, in their care. In addition, the Government is funding district health boards for the impact of income and asset testing changes implemented from 1 July 2005, at a cost of about $93 million, exclusive of GST.

As I mentioned previously in my speech, this is about a Labour-led Government investing in New Zealanders - in this particular instance, in our older New Zealanders who, in their twilight years, should be able to enjoy with some security the residential care they need. I will conclude on one historical point by taking us back to asset testing in the 1990s—and this is why I look forward to the National Party’s contribution at the select committee. In 1998, the day before International Day of Older Persons, the then Minister of Health, Bill English, announced he was abandoning the bill that would have abolished asset testing for older people in private and public hospital long-term geriatric care. One has to ask whether the attitude from that party on the other side of the House has changed. I would have to say that it probably has not.

With the passage of this bill, which I hope will come to the Social Services Committee expeditiously, we will hear National members explain what their policy on the care of older New Zealanders supposedly is. They have shown little care in the past, and some of the disasters they left us with from the 1990s, with their policy of integrated care and privatisation of the area, have provided this Government with a headache—yet another one from the previous National Government. This Government is only too happy to help rectify the situation, because it is a Government that cares, that knows, and that understands New Zealanders. We will invest in them, and we will, along with the rest of the nation, transform our country into something that we will most definitely be proud of.