David Seymour challenges political leaders to support NZ Super referendum

Press release: ACT New Zealand
February 21, 2015. 2:45pm

ACT Leader David Seymour closed his speech to the party’s annual conference by challenging political leaders to support a referendum process to determine the future of New Zealand’s superannuation system.

“If the public can vote on the New Zealand flag, a matter that is largely symbolic, why not follow the same process for another intractable problem, one that politicians have been dodging for decades.

“It is vital that we ensure NZ Superannuation is viable over the longer term, avoiding undue fiscal stress and pressure on tax rates, and achieving fairness across generations.

“National won’t address the issue. Labour tried and are now backing away. This is a political Mexican stand-off, with the guns pointed at the younger generations.

“Almost everybody realises that change must be made eventually. We are living longer, and the baby boom generation is starting to hit retirement age. On current settings the cost of NZ Super will rise from over 4% of GDP now to close to 8% by 2060, with most of the increase happening in the two decades to 2030.

“Policy must adapt to people’s increasing life expectancy. But there are other issues to consider and options to weigh, like provisions for those unable to work past 65, whether there should be some element of means testing, indexation issues, the relationship with KiwiSaver arrangements, the possibility of flexible starting dates for taking up superannuation, and the arrangements for new migrants and citizens returning after decades away from the country.

“The best option is, as with the flag referendum, to establish an independent body to consult with the community and establish a range of options on which voters can express a view in a referendum.”

Mr Seymour called for a cooperative approach on the issue, directly challenging each political party to support this process for resolving the political impasse of NZ Superannuation.

“In short, let’s resolve this Mexican Standoff.”

ENDS

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