2. LYNNE PILLAY (Labour—Waitakere) Link to this
to the Minister of Finance
What reports has he received on business support for KiwiSaver?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
I have seen reports from companies as diverse as Air New Zealand, Gallagher Animal Management Systems, and the New Zealand Exchange saying that they will adopt KiwiSaver because they want to do the best for their staff and for New Zealand. Indeed, this morning I visited Pacific Steel, where the management facilitated a visit, and which is putting in 2 percent straight away from 1 July. I have also seen reports showing that record numbers of people are visiting the website and calling the 0800 KiwiSaver line. I am glad to see so much interest in the scheme.
Hon Dr MICHAEL CULLEN Link to this
I have seen a taxpayer-funded letter to businesses that is clearly designed to discourage them from supporting KiwiSaver. But it seems that in addressing this letter of Mr Key to Child, Youth and Family, and Environment and Conservation Organisations of New Zealand, Mr Key cannot tell the difference between businesses and Government agencies. We know that the National Party favours privatisation, but this seems to be going a little bit too far.
Pita ParaoneTēnā koe, Madam Speaker. Has the Minister seen the cumulative increase in the value of the Australian sharemarket, which corresponds with Australia’s stock of superannuation funds over the years; and can he confirm that one of the advantages of having a large pool of savings in New Zealand would be the availability of onshore capital to allow Kiwi businesses to invest with New Zealand money?
Hon Dr MICHAEL CULLEN Link to this
Yes, indeed. That explains why I have had a lot of approaches from individual business people over the last few weeks who are very strongly supportive of the KiwiSaver scheme. The National Party, in failing to sign up to support for the enhanced KiwiSaver scheme, is simply out of step with where the major portion of New Zealand business is at the present time.
Hon Dr MICHAEL CULLEN Link to this
Yes. In Mr Key’s letter, supposedly to business, he claims that National supported KiwiSaver in its pre-Budget form. This is somewhat surprising, given that National is the only party in Parliament to vote against the third reading of the KiwiSaver Bill. I also note that the letter claims that after taking into account the benefits of the company tax rate, companies could be worse off in the first year of the scheme, and there is a 1 percent employer contribution, despite the $20 a week tax credit. That does not add up. The employer contribution is fully paid on the first $104,000 of employee income in the first year, which is 2⅓ times the full-time average wage.