29 June 2007 Media Statement

English suggests scrapping KiwiSaver extension

In the clearest sign yet of National's policy on KiwiSaver, finance spokesman Bill English has hinted that a future National government could scrap the extension to KiwiSaver, Finance Minister Michael Cullen warned today.

On Morning Report today Bill English stated; 'any arrangements between government and employees now, you know, any subsidies or whatever, whatever is done between now and the next election stays.'

"This is no guarantee whatsoever. Clearly, if there is a change of government, National could prevent new KiwiSavers getting the $20 a week tax credit.

"And Mr English has again failed to state whether National supports matching employer contributions. Will he scrap those? Will he just keep the first phased in contribution of 1 per cent from next April and not move to 4 per cent?

"It's a typically confused statement from the National Party which has hedged its bets over KiwiSaver, waiting to see how many people sign up.
"At least Mr English is for once being consistent with his leader, even if both are being vague. Just last month John Key told Morning Report (23 May), 'Oh, no. No guarantees over KiwiSaver Mark II.'

"But there is one thing that is clear. Only a Labour-led government guarantees KiwiSaver and universal superannuation.

"It's National that has no credibility over super. It illegally scrapped Labour's 1975 superannuation scheme and it was a National government of which Bill English was a Minister that cut the annual adjustment to New Zealand Superannuation to 60 per cent of the average wage.

"It's high time National was honest with voters. Thousands of workers are about to make important long term decisions. They deserve some certainty from National. They have it from Labour. We are committed to helping ordinary New Zealanders achieve their retirement dreams. National appears not."

Note: High state of readiness in state sector
A Treasury survey of government departments and Crown entities shows a high degree of readiness for KiwiSaver. 99% of respondents said their payroll systems will be ready to provide KiwiSaver on 1 July. 1 DHB and 1 SOE are doing final testing of new payroll software and expect to be ready.

ENDS

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Scoop Exclusive: Rania Masri Ph.D reports from Lebanon that two civilians have been killed and 27 wounded after the Lebanese Army opened fire on a peaceful protest at Badawi Refugee Camp in north Lebanon. Children are among the wounded. Palestinian civilians had fled to the camp after fighting broke out at Nahr el Bared camp between Fatah Al Islam insurgents and Lebanese soldiers. This report includes eye-witness accounts. More >>