David Parker
Spokesperson for Finance

2 July 2013

KiwiSaver’s benefits a Labour legacy

Labour’s KiwiSaver is going from strength to strength six years on, despite National’s clumsy changes that risked destabilising the savings policy, says Labour’s Finance spokesperson David Parker.

“It’s been six years since KiwiSaver was set up. Over two million New Zealanders have now signed on. That’s a great success by any standards. It’s also been a great boost to first home owners, helping them build up a deposit.

“The success comes despite National’s clumsy changes that risked destabilising KiwiSaver. A retirement savings policy needs certainty to be a long-term success but in just five years National has twice changed the contributions rate and changed the tax rates. This did not benefit KiwiSaver.

“Thanks should go to the architect of KiwiSaver – Labour’s Michael Cullen. Rather than misrepresenting his legacy, National should acknowledge his role as Finance Minister. Labour reduced gross debt from 38 per cent of GDP to 18 per cent and net debt to zero, and addressed private workplace savings through KiwiSaver.

“Labour will build on the success of KiwiSaver. By making it universal we will have a strong base for the retirement savings of our ageing population.

“KiwiSaver is already making a significant contribution to business investment. It shows yet again that Labour is the party of substantial economic reform, while the timid National Government refuses to make the changes needed to create jobs, increase wages and grow our economy,” says David Parker.

ENDS

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