1. MOANA MACKEY (Labour) Link to this
to the Minister of Finance
How many young people have enrolled in KiwiSaver?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
As at 29 February, 113,084 people aged under 25 were enrolled in KiwiSaver. Over 75,000 of those were young workers aged between 18 and 24, and an additional 37,000 were less than 18. By and large, those young people would not have been existing savers prior to the scheme’s launch, so it can be counted as adding additional savings to New Zealand’s record.
Hon Dr MICHAEL CULLEN Link to this
I have seen a report suggesting that take-up among young New Zealanders would be low because “a lot of young people are not thinking 30 years ahead”. That report comes from Mr Key, the same man who initially said the KiwiSaver scheme was “terribly designed”, “fatally flawed”, and “a glorified Christmas club”, and then later said that it was going to be successful. We are still waiting to find out what his position is on the KiwiSaver scheme.
R Doug WoolertonCan the Minister confirm, as he had previously estimated in the House, that had New Zealand introduced compulsory superannuation in 1997, as had been proposed by New Zealand First, Kiwis would have in the order of $100 billion invested now; and would he also agree that although KiwiSaver is better late than never, the New Zealand economy would have been much healthier if Kiwis had saved in the time between 1997 and the start of KiwiSaver?
Hon Dr MICHAEL CULLEN Link to this
Clearly, there would have been an improvement in savings. It would have been even greater, of course, had a former National Government not scrapped the Labour Government’s compulsory savings scheme in 1976. That scheme was based, incidentally, on contributions of 4 percent from the employee and 4 percent from the employer.
Hon Dr MICHAEL CULLEN Link to this
Initial projections suggested that 270,000 people would join by 30 June this year. Mr Key was reported as saying he doubted that, and that take-up would be low. In fact, we have now seen some 470,000 people join in the first 8 months of the scheme.
Madam SPEAKER
Rt Hon Winston Peters Link to this
He cannot help himself. He sits there, sniping away. He is described by the agricultural sector as being the invisible man—but not in this House, unfortunately.
Rt Hon Winston Peters Link to this
Is it not important that on the issue of long-term savings for this nation there be an agreement across the political divide, and what reports does the Minister have on that?
Hon Dr MICHAEL CULLEN Link to this
That would be highly desirable, but unfortunately when one is wrestling with jelly one realises that it is hard to reach a successful conclusion to the match. This is what we are doing at the moment with the National Party on KiwiSaver. National refuses to state its position, when it has voted against KiwiSaver in Parliament some 40-odd times.