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Budget 2011—KiwiSaver

Thursday 5 May 2011 Hansard source (external site)

Cunliffe4. Hon DAVID CUNLIFFE (Labour—New Lynn) Link to this
to the Minister of Finance

Will he rule out cuts to KiwiSaver in the coming Budget, such as those outlined in today’s Dominion Post?

EnglishHon BILL ENGLISH (Minister of Finance) Link to this

The Government remains committed to KiwiSaver. We have said many times that we are committed to lifting national savings. The member will have to wait for the Budget to find out what, if anything, happens.

CunliffeHon David Cunliffe Link to this

Does the Minister stand by the following quote made by him: “It is important the Government plays its part in improving New Zealand’s national savings”, given that he has reduced the default KiwiSaver contribution from 4 percent to 2 percent, has reduced the employer contribution from 4 percent to 2 percent, has deferred contributions to the New Zealand Superannuation Fund, and now appears, at least, to be planning further cuts to KiwiSaver?

EnglishHon BILL ENGLISH Link to this

Yes, I stand by the statements I made. I am a bit surprised to find today that the Labour Party no longer has a position on KiwiSaver. It will wait until we announce ours so that it can follow it.

CunliffeHon David Cunliffe Link to this

Will the Minister, in trying to lift national savings, acknowledge that 90 percent of New Zealand’s total international debt is private debt and only 10 percent is public debt, and will he therefore accept that even the most savage cuts to public expenditure could not possibly save the private savings problem?

EnglishHon BILL ENGLISH Link to this

We take a national view—after all, we are a National-led Government. We believe that households and Governments should do what they can to increase national savings. I know the member agrees that the country needs more of that.

CunliffeHon David Cunliffe Link to this

Does he agree that the 271,400 jobless New Zealanders—according to Statistics New Zealand today—will struggle to save at all, and does he think they might be tired of waiting for the brighter future his party keeps promising is just around the next Budget?

EnglishHon BILL ENGLISH Link to this

We agree that the number of people without jobs is too high. The good news today was that, as a small step in the right direction, there are 30,000 new jobs in the economy in the last quarter. That is a start. Clearly, there is a long way to go.

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