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


Budget 2004 Strengthens safety net under NZ Super

Hon Dr Michael Cullen
Minister of Finance

Budget strengthens safety net under NZ Super

Budget 2004 further strengthens the safety net the government has put under NZ Super' entitlements by committing another $2.1 billion to the New Zealand Superannuation Fund.

"The payments will be made in fortnightly instalments over the course of the 2004-05 financial year. As at 30 June 2005, the Fund will contain $6.3 billion. By 30 June 2008, this is forecast to have increased to $15.5 billion.

"The Fund honoured a key Labour Party election commitment and is designed to deal with the fiscal burden of an aging population by setting aside savings now to smooth the cost pressures created by the baby boomers as they retire.

"The alternative is to send the bill to younger generations in the form of punishing tax hikes," Dr Cullen said.

"In the year 2040, the Fund will contribute 36 per cent of total anticipated NZ Super costs. That represents $138 a week on the current married couple rate. If the Fund did not exist, this money would have to be found elsewhere."

But Dr Cullen said NZ Super could only provide a basic income. New Zealanders wanting to enjoy the little luxuries in retirement would have to make additional private provision.

"The government as an employer has set an example with the creation of the new State sector superannuation savings scheme. The government will match contributions to a maximum of 1.5 per cent of gross base salary in the first year and to 3 per cent thereafter," he said.

"Budget allocations bring the total provision for this purpose to $8.9 million in 2003-04, $35.7 million in 2004-05 and $58.1 million in each of the following three years.

"We have also recently set up a Savings Product Working Group with industry representatives to report by the end of August on ways to overcome barriers that might be inhibiting the use of work-based schemes in the private sector."


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news