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Grey Power Note a Slight Relief for Elderly

MEDIA RELEASE

Grey Power Note a Slight Bit of Relief for Elderly

Grey Power National President, Mr Graham Stairmand states “We are all experiencing increases of prices for almost all commodities plus the continual deterioration of the value of the dollar: and it is more than possible that these increases in prices will continue unabated. This places enormous strain on those on fixed incomes such as superannuitants.”

“The recent rise in the payment of superannuation due to take effect on 1st April 2006, is certainly welcomed.”

“However, this has not taken place because of a change of mind of the government but arises from the inability of the government via the Reserve Bank to control inflation. At the end of the December quarter, the CPI figure was at 3.16% and as the Superannuation Act has the level of superannuation indexed by the CPI, the increase was 3.16%. This raised the level of superannuation to 66.12% of the nett average (after tax) ordinary time weekly wage, a level previously considered as fiscally irresponsible but as it comes from the legislation it has to be applied. This exceeds the value of 66% secured by New Zealand First in their supply and confidence agreement, so that while their intervention was welcome it had no effect on the final amount.”

“Grey Power feels it would have been more appropriate for a caring government to have anticipated this increase and in order to show that they actually care about the elderly, for them to have raised the level to 66.5%, which would be only slightly above the value reached without government influence.”

“At some time, due cognisance must be taken of the growing number of elderly, some of whom actually experience hardship”, said Mr Stairmand.

ENDS

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