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


Labour plan secures Savings and Super

Finance Spokesperson

Thursday 27 October, 2011 MEDIA STATEMENT

Labour plan secures Savings and Super

Labour’s Universal KiwiSaver and Superannuation plan will guarantee Kiwis the certainty they need in planning for retirement, and will provide a pool of savings that will pay down debt and grow our economy, says Labour’s Finance spokesperson David Cunliffe.

“New Zealand is at a crossroads,” David Cunliffe said. “We need to act decisively to provide New Zealanders with security in the future.

“The package announced by Labour Leader Phil Goff today will do just that.

“Labour has always taken the lead in savings and superannuation, and this plan is the most far-reaching since Norman Kirk’s super scheme of the 1970s,” David Cunliffe said.

“The Muldoon National Government undermined that scheme, and in the past three years the John Key National Government has put both the Super Fund and the future success of KiwiSaver at needless risk.

“National under John Key is incapable of making tough decisions unless they are at the expense of people who cannot argue back,” David Cunliffe said. “Labour is prepared to make tough decisions that are right for this country, and fair for all Kiwis.

“Labour’s plan will introduce compulsory KiwiSaver for all workers that protects current incentives and investment choices, but will also move the scheme gradually toward an employment-funded system as in Australia.

“Employer contributions will rise from 3 per cent in 2014 to 7 per cent by 2022. Minimum employee contributions will fall to 2 per cent with a voluntary opt-up option for those who want it.

“Universal KiwiSaver will increase the pool of savings to 17 per cent of GDP in 20 years --- four times faster than under National’s tentative scheme,” David Cunliffe said.

“The pool will be invaluable in paying off private debt, and in funding the sort of investment and innovation that is needed to grow our economy, exports and jobs in a way that hasn’t happened before, but must happen now."

David Cunliffe said Labour will also increase the age of eligibility for Super from 65 to 67 over a 22-year period, and restart contributions to the New Zealand Super Fund from 2012.

“The slow and gradual raising of the age will not affect anyone currently over 55. The current entitlement rate of 66 per cent of the average wage will be guaranteed.

“Those not readily able to work for longer will qualify for a transitional Super payment equal to NZ Super until they reach 67. We are determined to protect the vulnerable,” David Cunliffe said.

“NZ Super prefunding will resume in $750 million per annum increments up to the legislated level, around $2.4 billion, by 2015/16.

“Taken together these changes provide the decisive intervention the country needs so that we can all own our own future. Without them NZ Super costs would double from 4 per cent to 8 per cent of GDP by 2050. These changes limit that to 5 per cent.

“National’s short-term approach to grow the economy is to sell our precious state-owned assets overseas,” David Cunliffe said. “Labour’s plan will allow us to keep our assets, and will provide a substantial pool of funding that will make us the envy of much of the world.

“Labour’s plan is far-sighted. It is fair to everyone. It is enduring. It guarantees our future."


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Elusive Charms Of Christopher Luxon

Well, the first 36 hours of viewing the Christopher Luxon selfie were always going to be the best, before the repetitions set in. We get it, already. He’s an extroverted/big ego/high achieving/God fearing/country music lovin’/family man who is not at all averse to mansplaining to little ladies like RNZ’s Kathryn Tyan what “technical” words like “productivity” actually mean. But wait, there’s more. National is back! Mind you, that’s not the Bad National of recent experience, but the Good National of days gone by... More>>


Government: Delivers Reactivation Package As Aucklanders Reconnect For Summer
A new support package will help revive economic, social and cultural activities in our largest city over summer, and ensure those in hardship also get relief. The Social Development and Employment Minister Carmel Sepuloni and the Economic and Regional Development Minister Stuart Nash... More>>

Government: Crown Accounts Reflect Strong Economy Amid Pandemic

The Government’s financial accounts continue to reflect an economy that has performed better than expected, despite the latest Delta COVID-19 outbreak. The Crown accounts for the four months to the end of October factors in the improved starting position for the new financial year... More>>


National: Christopher Luxon Elected Party Leader
Christopher Luxon has been elected Leader of the New Zealand National Party, alongside Nicola Willis as Deputy Leader. “It is a tremendous privilege to lead our great party, and I thank my colleagues for the confidence they have placed in me,” Mr Luxon says... More>>

Waitangi National Trust: Waitangi Week
The Waitangi National Trust has decided there will be no in-person events at Waitangi Treaty Grounds during Waitangi Week 2022. Under the COVID-19 Protection Framework it would be practically impossible to safely proceed with the usual events of Waitangi commemorations... More>>

Freedom Camping: Making Sure People Are Up To Play With Changes
People interested in finding out how the proposed improvements to freedom camping might affect them are being invited to an information-sharing webinar... More>>

AUT: Aucklanders Are Less Concerned With Covid
In reaction to commentary that Aucklanders are at breaking point after more than 100 days in lockdown and that compliance with the rules is under threat, AUT Emeritus Professor of Sociology Charles Crothers says... More>>




InfoPages News Channels