Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Super Fund Will Dictate Tax And Spending Decisions

Super Fund Will Dictate Tax And Spending Decisions For Generations

If the Government adopts Michael Cullen's superannuation prefunding scheme, no government will be able to make significant changes to tax or spending levels for the next 30 years, National Finance spokesperson Bill English said today.

"Dr Cullen is about to put his Government in a straitjacket, and I suspect his colleagues don't know it. The Cabinet - and Labour and Alliance backbenchers - need to understand that Dr Cullen's scheme means there will be no money left over for the promises Labour is already lining up for the next election.

"There won't be anything like enough money for significant changes to the student loans scheme or pay parity for kindergarten teachers or abolishing asset testing for people in long-term care - which Labour has promised.

"Nor will there be enough money for other measures Labour is hinting at, such as increasing benefit levels or rates rebates for superannuitants.

"In fact, even shorter-term spending like the pay rise for the armed forces which the Prime Minister is promising will have to be reconsidered.

"It also means there will be no room for tax incentives or lower taxes. For instance, it would be almost impossible to drop the company tax rate to match Australia.

"National has always said the public needs a better understanding of this policy because it is a huge commitment of taxpayers' dollars for coming generations.

"People certainly don't understand what the real choices are. Dr Cullen ought to make sure that at least his caucus does understand the consequences.

"The prefunding scheme will only give certainty about superannuation if governments run surpluses of about $3 billion every year for the next 30 years. This Government itself won't even achieve that.

"This is the single most important decision on what New Zealand governments will do for a generation. Let's do it on the basis of proper discussion, not back-room deals between a couple of parties," Mr English said.

Ends

A printable formatted copy of this press release will be available on http://www.national.org.nz along with an archive of previous releases.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>

ALSO:

Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>

ALSO:

Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news