22 July 2002

Super pledge honoured - Labour

“Frank Moloney has his facts tangled when he suggests that Labour did not honour its pledge to reverse National’s pension cuts,” Finance Minister Michael Cullen said today.

“In 1999 as part of its policy to cut the cost of New Zealand Superannuation, National cut the wage relativity from 65 percent to 60 percent.

“In April 2000, the Labour-led government restored the wage relativity back up to at least 65 percent of the net average ordinary time weekly wage, making single superannuitants more than $12 a week better off and married couples $21 a week.

“Honouring this commitment cost $684 million over the term of this government, compared with what would have happened under National,” Dr Cullen said.

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