John Key addressing Probus, Grey Power and Age Concern members at Bureta Park Motor Inn.
The National Government is determined to get more young people off the benefit and back into circulation, whether it's working or completing more education.
Prime Minister John Key signalled in Tauranga yesterday that his party will be campaigning hard about reforming the social welfare system - after the Rugby World Cup is over.
The general election is on November 26.
Addressing more than 200 Probus, Grey Power and Age Concern members at Bureta Park Motor Inn, Mr Key said 328,000 working-age New Zealanders were on benefits.
"That's not right. A society is judged on the number of dependent people it creates," he said.
Up until the early 1970s, 1-2 per cent of working-age New Zealanders were on benefits; now it's reached 13 per cent.
"Up to 13,000 young New Zealanders, 16- and 17-year-olds, leave school and are not in work, education or training. They are on a collision course to the benefit.
"The day they turn 18 years, 90 per cent of them register for the domestic purposes benefit, and they will stay there for a long time," Mr Key said. "Those days are over. We will pay a fee and put providers around them and get them into work and training."
He said the National Government would no longer pay the $500 a week domestic purposes benefit. "We will pay the rent, power so they are warm and put money on their credit card for food but they can't use the benefit to buy cigarettes and alcohol.
"There are people who are legitimately on benefits, but we have to stop the system where people are going on welfare and staying there."
The government spends $20 million a day on welfare, and Mr Key said there was a lot cash there that can be saved.
Mr Key, all charm and humour, made contact with more than 500 people during his six-hour stay.
After the Bureta meeting, where he was presented with his second Bay of Plenty Steamers rugby jersey, Mr Key visited the building site at 247 Cameron Rd.
A group of businesspeople from Staples Rodway, Cooney Lees Morgan, Bayleys and Eves Realty and KPMG - prospective tenants for the $30 million office building - were there to meet him.
Right on cue, the first steel column was put in place. The construction team is two weeks ahead of schedule and the business centre will be completed by next September.
After lunch at Club Mount Maunganui with 200 National Party supporters, Mr Key rushed to The Good Food Trading Co in MacDonald St where he was met by St Thomas More school pupils, who fired off questions.
Your favourite book? Mr Key replied: "Green Eggs and Ham by Dr Seuss." Your favourite subjects: "Economics was my best, English worst." Your highlight as prime minister: "Getting around New Zealand meeting so many people and finding out all the good things they do." What's it like to have so much power: "It's amazing how little power I have, everyone orders me around, starting with my wife." Least favourite thing about being prime minister: "Being away from the family; I'm away a lot and that's the worst."
When Tauranga MP Simon Bridges introduced the prime minister he may have given away the sex of his and wife Natalie's new baby.
He suggested that if she's a girl, her name would be Bronagh (Mrs Key's first name). Quick on his feet, Mr Key responded: "Call her John; that would be different."