Social assistance clawbacks break rules, Cardy says

The Alward government is breaking its own rules by going after former Social Development clients who were overpaid by mistake years ago, says NDP LeaderDominc Cardy.

Earlier this week, a Minto man told CBC News the government wants him torepay $264in social assistance overpayments dating back to 1997.

Ron Power, who now has a security job two days a week, said he recently received a letter saying the Department of Social Development's recovery unit discovered the accounting error.

Butthe department's website states the policy on overpayments is: "Clients will only be required to make restitution for the overpayment incurred in the 12 months prior to the date of detection."

"The Ministry of Social Developments policy manual is clear on overpayments. They have to be requested within 12 months," said Cardy.

"Instead of going after over-billing doctors and patronage it looks like this government is trying to balance the books on the backs of the poor," he said, referring to theauditor general's report, which found some doctors are overbilling medicare without facing any penalties.

"I'd like to hear the plan for going after that money."

Government officials have said $14.5 million in overpayments is outstanding. The recovery unit, which was formed last year, has recovered more than $500,000 to date, officials said.

Liberal social development critic Bill Fraser believes it's worth pursuing recent overpayments, but not one that is 15 years old.

"I think this is a little heavy-handed," said Fraser, the MLA for Miramichi-Bay Du Vin.

'You owe the money, you still owe it, right? When you move out of the system, and you have the ability to pay, we will try to recuperate that.' Social Development Minister Madeleine Dub

Cardysays going after people like Powers "sounds punitive."

"The gentleman from Minto, his case is going to take up a lot more than $250 in government time, so what is the point, there, for the province?"

But Social Development Minister Madeleine Dub contends any overpayment is never too small or too far back to pursue.

"You owe the money, you still owe it, right? So this is where, if there's an overpayment, it has been noted, and when you move out of the system, and you have the ability to pay, we will try to recuperate that," she said.

Dub was rushed away by herstaff before she could be asked about the department's one-year policy on overpayments.

Cardysays the government should be going afterAnderson Consulting instead. The company was brought in to set up a new system to handlesuch payments, he said.

"It seems that system did not do the job it was designed to do and now the Conservatives are breaking the rules and making our most vulnerable citizens pay the bill."

People who work closely with low-income residents in New Brunswick are also up in arms about the social assistance clawbacks.

Dan Weston, who runs the Fredericton Anti-Poverty Organization, says he can't believe the government would demand payment from someone years after the fact.

"To hold these people responsible, because now maybe they have a part-time job, for your mistake, let's get real. This is just bad, bad government," Weston said.

Volunteer Samantha Young says she can't imagine getting a letter like the one Powers received.

"It would be pretty disheartening," she said.