Christopher Luxon has dodged questions from Green MP Chlöe Swarbrick about the "untaxed capital gains of land bankers" as he gets tough on "free rides" for young people on benefits.
The National Party leader announced on Sunday a new policy targeting under-25s on the Jobseeker benefit. He proposed giving under-25s who have been on the Jobseeker benefit for more than three months a job coach and an individualised plan to help them get back into work. National would also pay $1000 to anyone under 25 years old who stays in work for more than one year after having been on a benefit for at least 12 months.
During the announcement, he said young people "who don't want to work" have had a "free ride" under Labour and that this would end under National.
The idea of young beneficiaries getting a "free ride" was criticised by Minister of Social Development and Employment Carmel Sepuloni, who said such a thing wasn't happening under the current Government.
Swarbrick responded to Luxon's announcement on Twitter and used his "free ride" comment to bring up a capital gains tax.
"I hear you're interested in getting tough on 'free rides.' May I introduce you to the untaxed capital gains of land bankers?"
Land banking is the practice of buying a piece of land based on its potential for future sale or development. In New Zealand, you're taxed on the sale of land that was bought with the intention of selling it, but there is no comprehensive capital gains tax similar to what many other countries have.
During a press conference on Monday about National's new welfare policy, Luxon was asked to respond to Swarbrick's comment but dodged answering it.
"I'm not going to get into that. What we're here to talk about is our Jobseeker policy," he told reporters, before explaining how the doubling of young people on this benefit for longer than a year "doesn't compute".
Luxon said on Sunday those who remain on the Jobseeker benefit for more than three months will face "consequences" and "sanctions".
Young people will get help "whether you want it or not", he said, and a sanctions regime will be used.
Louise Upston, National's spokesperson for social development and employment, said the sanctions regime that currently exists includes reducing someone's benefit, right through to suspension or cancellation. They would also use money management, where a person's provider looks after payments so that important costs are cared for and any leftover money gets put onto a personal payment card so they can buy groceries at approved stores.
While the payment card applies to those under 20, Upston said National would use it in some cases as a sanction for those aged 18 to 24 who "are not playing their part".
Sepuloni said she doesn't believe there's any merit in what National announced.
"They've oversimplified what can be a very complex issue and they've ignored the fact that we've made record investments into things like upskilling and training, and we're seeing the results for it," she said.
"What I see with National's policy is they're completely out of touch with what is happening for young people and what works for young people."
Luxon did admit that it is complex, especially given the different lengths of time people have been on the Jobseeker benefit.
"We just feel like after three months, we've got to be starting to make some interventions and that's why [the policy] captures someone who's been on for longer than three months," he said.
"But obviously, someone who's been on for three months or six months is different than someone who's been on for four or five years, and so there's different levels of complexity or barriers that we have to deal with."
Meanwhile, ACT leader David Seymour said his party welcomes National's move.
"Requiring case management for long-term and young beneficiaries is good policy," he said.
"ACT has long said welfare should inspire people to be the best that they can be. Welfare policy has to stop constantly telling people they can't achieve and giving them an easy out from what could be an amazing life."
