6. Hon JOHN BOSCAWEN (Leader—ACT) Link to this
to the Minister of Finance
Does he stand by his statement that “I think the New Zealand Institute of Economic Research is referring to some longer-term issues around demographic change and healthcare costs, and we share the chief executive’s concern”?
Hon BILL ENGLISH (Minister of Finance) Link to this
Yes, I do, although I would say, having gone back and looked at the chief executive’s comments, that I think he has exaggerated some of the challenges a bit by using language like saying that costs will grow exponentially over time.
Hon John Boscawen Link to this
Does he believe that it is fair on pensioners to have to worry about the costs of the increasing number of elderly while he pretends that the age of entitlement can stay at 65, especially when Australia has announced several years in advance its intention to shift the age of entitlement to 67; if so, why?
I think the message for pensioners is that they do not need to worry, because they have attained the age of 65. I do not think that anyone is proposing that a change in the age of entitlement would affect them. They are a group who tend to worry more about these things, but in this case they do not need to. On the issue of raising the age of entitlement, the Government’s position is quite clear and well understood.
Hon John Boscawen Link to this
How is it that Australia, a far richer country than New Zealand, recognises that the age of entitlement must be shifted out, but here in New Zealand we have a Government promising to take on billions of dollars of extra debt over the next 4 years and potentially bankrupt New Zealand, rather than facing up to reality?
Hon John Boscawen Link to this
Does he accept that his Government’s decision to hang its reputation on holding the age of entitlement to 65 is a political one, to the long-term detriment of young people in New Zealand, who must shoulder the debt; if not, why not?
No. I think the Government’s reputation will hang on considered and consistent economic management in difficult times. With regard to the age of eligibility, yes, because it is a decision made by Parliament, it is a political decision. Our Government has made a decision not to raise the age of eligibility, and that is our position.