4. SHANE JONES (Labour) Link to this
to the Minister of Finance
What recent reports has he received on enrolments in the KiwiSaver scheme?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
The latest data is that the total number of enrolments received by the Inland Revenue Department has reached nearly 92,000. Treasury’s forecast was that 345,000 would have enrolled by the end of the first year—that is, by 30 June 2008—an average of just under 30,000 per month. Although some further opt-outs from the cohorts who have already enrolled will still occur, the final take-up for that cohort seems very likely to be running well ahead of the forecast, contrary to a number of reports.
Hon Dr MICHAEL CULLEN Link to this
I have seen a huge range of support for the scheme within the public arena and within this House. The one exception is the National Party, which simply cannot make up its mind. Indeed, I have in front of me a photograph of Mr Bill English, appropriately in Doubtful Sound, saying: “We will sit and watch KiwiSaver for a time.” So far the National members have voted against the original bill, the KiwiSaver Bill, voted against the extensions to KiwiSaver in the Budget legislation, and voted against the bill with the employer contributions, which is in front of the select committee.
Hon Peter DunneIf the current rate of uptake continues to be ahead of the forecast and to be strong, will the Government in time give consideration to removing the voluntary opt-out provision of the scheme and making it a compulsory one for all New Zealanders?
Hon Dr MICHAEL CULLEN Link to this
No. I think the compulsory opt-out provision is the best way to proceed. It does not raise further issues around the structure of New Zealand superannuation, which a fully compulsory scheme might. What it does mean is that we will have achieved a major shift in New Zealanders’ savings behaviour.