5. ANN HARTLEY (Labour) Link to this
to the Minister of State Services
What reports has she received regarding developments in the State Sector Retirement Savings Scheme?
Hon ANNETTE KING (Minister of State Services) Link to this
I have received a report from the State Services Commission that describes the success of the scheme. At 31 December 2005 30,990 State servants were members of the scheme—that is 16.8 percent more than a year before. Eighty-one percent of all members of the scheme contribute at least 3 percent of their salary to their retirement saving every pay day. That is outstanding. In only 18 months the scheme has shown that New Zealanders are prepared to save for their retirement.
The Government introduced the scheme in 2004 out of work in its Partnership for Quality agreement. We introduced the scheme because we are committed to a strong public service, and because we believe New Zealanders need to save more. It is important that the Government, as a major employer, shows leadership in encouraging workplace saving, and this scheme will ensure the living standards of many New Zealanders in their retirement years, as will the Superannuation Fund and KiwiSaver.
I have seen two reports. One report stated tax breaks would increase people’s incentive to save. The other report stated tax deductions do not work. The first report was from John Key and the second was from Don Brash. I think it would help the debate on superannuation in this country if they could make up their minds what position they are going to take before they actually enter the debate, because this Government is committed to ensuring that New Zealanders save more.