About a week ago the government's new welfare fraud law came into effect. It means both beneficiaries in a relationship can be charged with fraud even if only one person committed the crime.I happened to question National MP Chester Borrows about the law change that simply appears to be more beneficiary bashing by this right wing government. During our twitter conversation he claimed that National is spending "roughly 4X as much on (tax evasion and white-collar crime) as on welfare fraud". Borrows thought that was about the right balance.
I knew this to be an untrue statement, so questioned him further and pointed out the correct figures he should be using. For instance in 2010 benefit fraud cost around $22 million compared to an estimated $7.4 billion for tax evasion in 2011, meaning X300 more money is stolen through tax evasion than with benefit fraud.
That clearly indicates where the government's attention should be focused. Obviously the government's efforts would be better spent going after the billions of dollars lost to tax evasion and white-collar crime.
Chester Borrows then proved beyond a doubt that he's not fit to be a Minister of the Crown.
@Jackalblog Actually IRD's owed about $6b (tax, not just fraud), while MSD's owed $1.2b, so at 4X the spend we've got it roughly right.
— Hon Chester Borrows (@ChesterBorrows) July 7, 2014
Ludicrous! Chester Borrows is comparing money attained through WINZ loans to tax fraud. What a complete idiot! With one being a perfectly legal undertaking that's in no way comparable to tax fraud, you've got to wonder if Chester Borrows has a brain at all? I mean since when has the government considered the loans that beneficiaries must attain to survive a type of fraud?This is another good example of just how stupid many of the out-dated National MP's are. It's obvious that they are incompetent on numerous levels and have become a burden to New Zealand.
