IMF announces support for NZ Income Insurance Scheme

IMF announces support for NZ Income Insurance Scheme | Insurance Business New Zealand

IMF announces support for NZ Income Insurance Scheme

The International Monetary Fund (IMF) has announced its support for the NZ Income Insurance Scheme, joining several other local and international organisations that support the proposal.

In the IMF’s concluding statement for its 2022 Article IV mission, it said that “the planned introduction of the Income Insurance Scheme is welcome, as it closes an important gap in social protection.”

If approved and implemented, the proposed insurance scheme would also help promote durable and inclusive growth in New Zealand, IMF said.

Among other international organisations that support the NZ Income Insurance Scheme is the Organisation for Economic Cooperation and Development (OECD). In its latest report on New Zealand, the OECD said that “a social insurance scheme would also be likely to improve the resilience of New Zealand’s economy and job market.” The OECD recommended that the New Zealand government introduce the scheme being developed.

The Council of Trade Unions (CTU), an organisation representing 350,000 union members across 40 affiliated unions in New Zealand, welcomed these endorsements from international bodies.

“New Zealand workers have some of the lowest levels of protection when they lose their job,” said CTU economist Craig Renney. “It costs workers billions in lost income and costs the economy billions in lost productivity and output. The IMF and the OECD have recognised the value that the Income Insurance Scheme will provide. The CTU and affiliated unions also recognise the value of this proposed support. It’s clear that now is the time to deliver an insurance scheme that will provide welcome protection for New Zealand workers and their families.”