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

Gordon Campbell: On Why The Dice Are Loaded Against Women In Public Life

If they enter public life, women can expect a type of intense (and contradictory) scrutiny that is rarely applied to their male counterparts. If they are relatively young and conventionally attractive, such women will tend to be written off as lightweights – yet if they’re older and obviously competent, doubts will then tend to be raised about their “electability” and whether they are “warm” and “likeable” enough to connect with voters. Too conventionally feminine or not conventionally feminine enough? Too cold and too cerebral, or too warm and flighty to be seriously considered for high public office? For women in the public spotlight, the Goldilocks moments (when things are just right) are few and far between. More>>


PGF Kaikōura $10.88M: Boost In Tourism & Business

The Provincial Growth Fund (PGF) is investing $10.88 million to boost business and tourism opportunities in Kaikōura, Parliamentary Undersecretary for Regional Economic Development, Fletcher Tabuteau announced today. More>>


Whitebaiting: Govt Plans To Protect Announced

With several native whitebait species in decline the Minister of Conservation Eugenie Sage has today released proposals to standardise and improve management of whitebait across New Zealand. More>>


Education: Resource For Schools On Climate Change

New resource for schools to increase awareness and understanding of climate change... More>>


In Effect April: New Regulations For Local Medicinal Cannabis

Minister of Health Dr David Clark says new regulations will allow local cultivation and manufacture of medicinal cannabis products that will potentially help ease the pain of thousands of people. More>>


RNZ: New Year Honours: Sporting Greats Among Knights And Dames

Six new knights and dames, including Silver Ferns coach Dame Noeline Taurua and economist Professor Dame Marilyn Waring, have been created in today's New Year's Honours List. The list of 180 recipients - 91 women and 89 men - leans heavily on awards for community service, arts and the media, health and sport.


Gordon Campbell: On What An Inquiry Might Look Like

Presumably, if there is to be a ministerial inquiry (at the very least) into the Whakaari/White Island disaster, it will need to be a joint ministerial inquiry. That’s because the relevant areas of responsibility seem to be so deeply interwoven... More>>






InfoPages News Channels