ACT party leader David Seymour claims Labour's plan to award a $60 family benefit for every New Zealand child under three is symptomatic of a welfare system "destroying this country".
Speaking to Jack Tame on TVNZ1's Breakfast today, Mr Seymour said the $60 benefit would lead people to intentionally profiteer off having more children.
"At the margin, yes people will change their mind [about having children] because they'll say 'oh the Government will give me this money now'," Mr Seymour said.
In a fiery exchange with Tame, Mr Seymour said that while "$60 probably doesn't seem like much to a highly paid television reporter like yourself Jack" the ACT Party's rejection of Labour's $60 benefit was based off evidence of a similar failed policy in Australia.
"We believe in a safety net but we don't agree in terrible incentives that actually encourage people to have more kids when they wouldn't otherwise," Mr Seymour said.
Exploring the negative impact of such family benefits as Labour's $60 baby bonus, Mr Seymour said they actually contributed to child poverty at a broader societal level.
"We're not going to keep paying people a pay rise every time they have an extra kid on welfare because it's actually destroying this country." Mr Seymour said.
"It actually has Jack because all of the things a bleeding heart liberal, like yourself Jack, worries about all the time have been created, in terms of child poverty, by a welfare experiment gone wrong over the last 50 years."
Labour is promising to dump the National Party's recent tax changes and use the funds to assist struggling lower and middle income families, awarding $60 a week for every child under three.