ACT leader David Seymour has been questioned about why his party has emphasised new initiatives to tackle benefit fraud, whilst not having policies to target tax evasion.
With around two weeks until the first votes are cast, the party is officially launching its campaign today. ACT launched its crime and social welfare policies earlier this week.
Polling has generally shown ACT would be an essential part of any potential coalition that Christopher Luxon would need to form a National government after the election.
Seymour announced new policies to pick up on more cases of benefit fraud on Friday — which it released as part of a plan to help "drug-addicted beneficiaries".
He said: "This policy will not make life harder for the people the benefit was designed to support. It will increase the number of cases that are picked up as fraud, as there will be more active inquiries into cases, and doctors will feel empowered to offer a frank opinion."
The party leader said ACT wanted to "ensure only [beneficiaries] genuinely unable to work remain on sickness benefits".
The two parties may need each other to form coalition.
As a result, it wanted to expand the roles of "regional health advisors" and introduce new protocols and processes for social workers to follow to pick up on fraud.
Speaking to Q+A, Seymour was challenged about whether spending time and effort on new initiatives to crack down on fraud was actually necessary.
In the 2021/2022 year, 4638 cases of benefit fraud were either investigated, facilitated, or had early intervention. Only 33 resulted in successful criminal prosecutions.
Officials said the total overpayment to fraudsters in that time period was $2.4 million. But authorities spent around $49 million on investigating benefit fraud over a similar time span, according to Victoria University researcher Lisa Marriott.
In response, Seymour said: "If we weren't doing this investigation — if there wasn't the possibility that you'll be investigated for benefit fraud — you might find that a much greater number of people would take advantage of the system.
"And that in the long term, it's not only cost the taxpayer a lot more, but it's about the morals and ethics of it."
He added: "What happens over time — apart from you'll get more people taking taxpayer money and not making any effort — you'll also erode the culture of New Zealand, the people that get up and make a difference say: 'Well, actually, it makes no difference to me'."
When challenged that tax evasion appeared to pose a much larger issue, the ACT leader began speaking about the need for a flatter tax system — a policy the party is pushing.
Estimates in the past have suggested billions could be lost to tax evasion every year, but, according to Marriott, the IRD only pursues and finds around $1 billion in evasion a year.
"What I'm interested in is what is the underlying policy beneath these areas that government is active in," he said.
The ACT leader then appeared non-committal when asked whether his party would push for increased funding to tackle tax crimes — like through the Serious Fraud Office.
"Look, we very well might. As I say, we haven't actually released a policy on tax evasion," he said.
The ACT leader saw red when he was asked about his Waikato candidate Darren Gilchrist.
Seymour was then asked whether ACT would support in-principle changes to align tax fraud and welfare fraud into the same legislation when it came to prosections.
He said "possibly, in principle" and suggested the issue wasn't overly pressing for Kiwis.
"I think to be really honest, what most people are concerned about is the problems that we have with our economy and our declining productivity," the leader said.
"Now we can have an argument about the relative enforcement and prosecution of welfare and tax if you like, but you know what, Jack, I think what most people are seeing is that we've got an economy where productivity is in the tank.
"We've got a regulatory state that is massively overbearing. We've got a welfare system and education system, a healthcare system that's not delivering.
"If you really think the biggest issue is ACT's comparative policies on tax evasion versus welfare, then I don't think that's quite right."
David Seymour says "being nice to criminals" hasn't worked and the justice system needs to "start putting victims first".
Q+A with Jack Tame is Public Interest Journalism funded through New Zealand On Air
SHARE ME