1. CHARLES CHAUVEL (Labour) Link to this
to the Minister of Finance
Has he received any reports of employer support for KiwiSaver?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
Yes—indeed, many. Just today Coca-Cola has indicated it is moving immediately to match employee contributions at 4 percent for those of its 1,100 workers who joined KiwiSaver. This is 4 years earlier than required. This follows Air New Zealand and the New Zealand stock exchange. I note that the New Zealand stock exchange chief executive officer, Mark Weldon, said that the cost of the employer contribution was “far outweighed by the value it brings to our talent recruitment and retention”.
Hon Dr MICHAEL CULLEN Link to this
I have seen a report that Budget 2007’s enhancements to KiwiSaver may be scrapped by a National Government. When TV3 recently asked National leader John Key whether he supported the enhanced KiwiSaver scheme he said: “I can’t give you a yes or no.” This, of course, would be quite consistent with moves like the cutting of New Zealand superannuation in 1998-99 by the outgoing National Government.
Hon Bill EnglishHas the Minister seen the estimates by his own department, Treasury, that show that the increment to household savings arising from KiwiSaver will be less than the fiscal cost to the Government of the incentives it will apply to KiwiSaver, and can he explain why the taxpayer would be spending more on incentives than the country gets in savings?
Hon Dr MICHAEL CULLEN Link to this
Treasury provided a variety of estimates over a period of time. I think that the reaction to KiwiSaver once the announcements were actually made indicates we will see a significant rate of take-up and far less of the behaviour that Treasury was forecasting.
Hon Dr Nick Smith
Gordon CopelandWhen does the Minister expect to have the detail of the mortgage diversion aspect of KiwiSaver in place so that information will be available to both employers and employees?
Hon Dr MICHAEL CULLEN Link to this
Regulations in relation to that have already been proceeding through, so I will try to get information to the member about those details.