Day two and Work for the Dole could create trouble for new government

The new Labour-led Government is little over 24 hours old and already has a potential conflict brewing between its two minor party partners over the reintroduction of a Work for the Dole scheme.

As I predicted on Tuesday, there are a number of areas where NZ First and the Green Party differ significantly on policy, and I identified the re-introduction of a Work for the Dole scheme as one of those areas. I have to admit, that I'm a little surprised that a potential flash point has been created so early.

While Labour and the Green Party might agree on creating job opportunities for those on a benefit to participate in cleaning up waterways, the Green Party approach is to create the opportunity and allow people to take it if they're willing and able to, not to force them to participate.

NZ First's approach is taken straight out of the play book from the Fourth National Government, where those on benefits were threatened with having their benefits reduced, or cut entirely, if they didn't participate in the euphemistically named "Community Wage" scheme as Work for the Dole was known as.

Given Shane Jones says he's been "encouraged" to look at a Work for the Dole scheme, I have to wonder if NZ First isn't trying to draw a line in the sand early on with the Green Party. It could be likely that they're testing the waters, trying to put the Green Party in what NZ First sees as their place as the most junior partner in the arrangement, and seeing how much they'll bend on this issue.

There's three ways out of this:

  1. NZ First backs down on creating a Work for the Dole scheme for the Regional Economic Development Fund, which given it's been their policy for almost as long as they've been a party would be an embarrassing start to their time in government.
  2. The Green Party either backs down or keeps very silent on the issue, effectively abandoning one of their policies and no doubt annoying their supporters given their very strong stance on social development issues in recent months.
  3. A very uncomfortable compromise is reached where the environmentally orientated, and entirely optional, work scheme that Labour and the Green Party have envisaged is expanded to include projects delivered by the Regional Economic Development Fund. This result won't be entirely satisfactory to NZ First, as they've historically taken a very hard line on wanting non-participation to punished.

Where National will have difficulties in exploiting this tension is that they've historically been supporters of Work for the Dole and its variants. Not that support for a prior policy position has been an obstacle for political parties in the past, such as Labour displayed over its opposition to the Trans-Pacific Partnership and other recent free trade agreements.