4. R DOUG WOOLERTON (NZ First) Link to this
to the Minister of Finance
Has he received any recent reports regarding New Zealand’s public pension system and retirement savings?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
As I mentioned earlier, I have received a report from the OECD calling for an increase in the age of eligibility for New Zealand superannuation. I have ruled this out, but the report was endorsed by Mr English, the Opposition spokesperson on finance. I have also received reports showing that in 1998-99 the floor for New Zealand superannuation was cut from 65 percent of the average wage to 60 percent by the then National Government, of which Mr English and Mr Ryall and others were a part, and restored to 65 percent in 2000 by the incoming Labour Government.
Has he seen any reports suggesting New Zealand should completely cede its economic sovereignty to Australia, and unnecessarily expose our exporting and agriculture sectors to fluctuations in world mineral prices, among other things beyond our control?
Hon Dr MICHAEL CULLEN Link to this
Indeed I have. I have seen a suggestion from Mr Key that we should adopt a common currency with Australia. Actually, that has never been on offer. What is on offer is adopting the Australian currency. This would mean that we would be highly influenced by the very much larger increase in minerals prices than has occurred in New Zealand’s agricultural prices over recent times.
Darren HughesCan he tell the House what successive Labour-led Governments have done to protect New Zealand superannuation into the future?
Hon Dr MICHAEL CULLEN Link to this
In 2000 we restored the level of New Zealand superannuation. We also established a superannuation fund that, along with our prudent fiscal strategy, has made us one of the best-placed nations in the world to tackle the challenges of an ageing population. On 1 July this year the KiwiSaver scheme comes into force, which will make it easier for New Zealanders to save to supplement their retirement income.