Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Govt ignored officials' advice on KiwiSaver

Craig Foss MP
National Party Associate Finance Spokesman

30 October 2006

Govt ignored officials' advice on KiwiSaver

Officials repeatedly told the Labour Government not to introduce mortgage diversion into KiwiSaver and, after initially agreeing, Cabinet did a U-turn, says National Party Associate Finance spokesman Craig Foss.

He has obtained papers under the Official Information Act which show that in February, Cabinet agreed with officials' advice that mortgage diversion was unworkable and too complex.

"Yet by the end of July, Ministers had had a change of heart and did a U-turn by embracing mortgage diversion," says Mr Foss.

"The papers show that officials were dead against mortgage diversion. One paper warned that the 'issue here is tipping the balance towards a home buying scheme and undermining long-term savings...'

"Another paper said mortgage diversion would make KiwiSaver 'unnecessarily complex', while a third pointed out that more work was needed to allow for non-traditional mortgages like revolving credit mortgages.

"In the end, however, mortgage diversion and the tax-break for employer contributions to KiwiSaver were part of Michael Cullen's late changes to the scheme, announced on 29 August.

"This mess is typical of Labour's cavalier attitude to parliamentary processes and advice from highly-paid officials."


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On What We Could Do For Hong Kong, If Only We Dared

There has been something repulsive about PM Jacinda Ardern’s assurances that our joint 5 Eyes criticism of China’s actions over Hong Kong – and China’s harsh reaction – are all well understood on both sides. According to Ardern, it has been a case of us saying the sort of things we’ve said before, them acknowledging our need to do so, and then them responding much as we would expect them to do. All neat and tidy. Frankly, if all of this is merely virtue signalling on our part, and huffy declarations of independence on their part, then what’s the point of this diplomatic dance..? More>>


Grant Robertson: Government To Review Housing Settings

New Zealand’s stronger-than-expected economic performance has flowed through to housing demand, so the Government will review housing settings to improve access to the market, the Finance Minister Grant Robertson announced today. “Our focus More>>


Law Commission: Recommends New DNA Laws For Criminal Investigations

Te Aka Matua o te Ture | Law Commission today released a report that recommends a new, comprehensive regime to control how DNA is obtained, used and retained for criminal investigations. The report has revealed significant gaps in the operation ... More>>


National: Leader’s Speech At Annual General Meeting

Good morning delegates. It’s an absolute privilege to be speaking as your leader. I’d like to acknowledge the party president, regional chairs, board members, National Party staff, our MPs, our candidates, and most importantly, you – the delegates, ... More>>


Economy: Crown Accounts Reflect Govt’s Careful Economic Management

The better-than-expected Crown accounts released today show the Government’s careful management of the COVID-19 health crisis was the right approach to support the economy. As expected, the Crown accounts for the year to June 2020 show the operating balance ... More>>


Green Party: Announce Portfolio Reshuffle With Talented And Energised Caucus Team

“The Green Party caucus offers a breadth of talent and energy to the Parliament this term. In ten MPs you have a small business owner, a human rights lawyer, an academic, a climate negotiator, a transport planner, and so much more”, Green Party ... More>>


APEC: New Zealand Ready To Host Virtually

Prime Minister Jacinda Ardern took over the leadership of APEC earlier today, when she joined leaders from the 21 APEC economies virtually for the forum’s final 2020 meeting. “We look forward to hosting a fully virtual APEC 2021 next year. While ... More>>





InfoPages News Channels