Gerry Brownlee

National ACC Spokesperson

24th August 2002

New Zealand needs to look at mandatory savings schemes - Brownlee

New Zealand should debate the merits of some form of mandatory savings scheme for working New Zealanders, says National's ACC spokesman Gerry Brownlee, speaking at the Independent Insurance Brokers Conference in Christchurch today.

"If we want a wealthy and prosperous country we have to start looking at why other countries in the western world are doing so much better than us. Closing the gaps within New Zealand is one thing, but we also need to close the gap between ourselves and the rest of the developed world.

"New Zealand's per capita income is US$12,990. In comparison, Australia is at US$20,240 and Singapore measures US$24,740.

"Both Australia and Singapore have mandatory saving schemes that have become successful and well accepted. Both schemes have encouraged long-term savings and are worth examining.

"The Labour Government's Super Fund is not the answer. Even with the best performance possible, it will only discount future superannuation costs by 10 to 14%.

"If we want to improve our lifestyle and standard of living in New Zealand we need to pursue growth and wealth creation with more vigour. Opening up the debate on a savings scheme for workers is one way of achieving this," said Mr Brownlee.

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