Press Release – New Zealand Labour Party
Labour’s savings policy will grow domestic savings, make superannuation sustainable and provide New Zealand with the pool of capital we need to repay debt and own our future without having to sell assets, says Labour Finance spokesperson David Cunliffe.Labour’s plan provides security and capital
Labour’s savings policy will grow domestic savings, make superannuation sustainable and provide New Zealand with the pool of capital we need to repay debt and own our future without having to sell assets, says Labour Finance spokesperson David Cunliffe.
“The Retirement Commissioner, Treasury and a slew of economists have been calling for reform to the age of entitlement to Super to make superannuation sustainable.” David Cunliffe said.
“Without responsible reform, superannuation payments will represent 8 per cent of GDP by 2050. That’s would inevitably mean less money available for other vital public services — or mean a future government would have to take drastic and sudden action to cut Super.
“Under Labour’s approach, the well-signalled, gradual increase in the entitlement age will make superannuation at 66 per cent of the average wage sustainable. It will also free up $100 billion over 30 years that can be invested in health, education, and other important services.”
David Cunliffe said that restoring contributions to the Superannuation Fund will help to ensure the money is there when we need it. “Labour is also determined that people who can no longer work will not be worse off as a result of these changes. Our transition allowance will ensure that superannuation payments are still there for these people.
“National is content to let the country’s debt rise out of control. Labour will make the changes needed to pay down our debt and build our wealth. Our lack of domestic savings has held New Zealand back for decades. We have become dependent on foreign capital for investment. This has resulted in net overseas debt of over $140 billion, projected to hit nearly $200 billion by 2016,” David Cunliffe said.
“Compulsory Kiwisaver, with a gradual ramp-up in employer contributions to 7 per cent, will dramatically improve our savings pool. Resulting growth in our net international investments will be four times greater than with National’s half-baked auto-enrolment plan.
“With this pool of capital to draw on, we will be able to fund investment in growth and jobs, without having to sell our assets to overseas buyers. That will mean a cheaper, more secure source of investment capital for Kiwi businesses, and will stem the flow of profits offshore.
“National may be happy to muddle through with high debt and low savings, and no plan for our future. Labour is not. We are determined to drive responsible policies that mean we can continue to invest in vital public services, build our economy, and own our future.”
Authorised by David Cunliffe, MP, Parliament Buildings, Wellington.