"No" Means "No" to Compulsory Super

“Labour's proposal to make Kiwisaver compulsory is flawed,” says Conservative Party Leader Colin Craig, "and disregards the 92% who voted against it in the public referendum on this issue."

“The problem here is that Labour has missed the obvious, the best form of saving that any individual can make on average is to reduce their borrowing, and in most cases this means paying off credit cards, and then their mortgage as soon as possible.”

“By legislating for the compulsory use of Kiwisaver, Labour would be forcing many New Zealanders to make a less than optimal financial choice. Government should not dictate the types of investment New Zealanders hold, particularly when they dictate a sub optimal choice,” Mr Craig says.

"Current Kiwisaver options are not guaranteed and therefore Labour's proposal will be forcing a financial risk on New Zealanders; a risk that they may not wish to take," he says.

“Additionally Mr.Cunliffe has overlooked another obvious fact. There are many Kiwis who are unable save as they use all their income to provide for the necessities of life; food, clothing and shelter. If those struggling financially are forced into Kiwisaver they are most likely to take on borrowing, and often at a punitive interest rate. Labour's policy will be putting these New Zealanders in an impossible position, and in most cases increasing their personal indebtedness,” he says.

“While saving is something that needs to be encouraged, forcing people to save in a sub-optimal way or when they cannot afford to is plainly ridiculous, and will hurt the financially vulnerable in our society,” Mr Craig says.

New Zealanders voted overwhelmingly (92%) in a 1997 referendum against a compulsory savings scheme. It is our view that New Zealanders have already spoken on this issue, with good reason, and the government should not override the wishes of the people."

"The Conservative Party believes clear referendum results should be binding and opposes both Labour and National's practice of ignoring referendum results. This matter has already been decided by the New Zealand people."

“The Conservative Party has a policy to introduce a new Kiwisaver option whereby New Zealanders can save by investing in government guaranteed bonds. These bonds will be used by the government to build infrastructure, and reduce dependence on overseas borrowing. This is a retirement savings option that makes sense. It is voluntary, with a sensible rate of return, and a government guarantee.”

ENDS

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