27th May 2011
Concern increased retirement contributions could result in backdoor education cuts
The education sector union NZEI TE Riu Roa is calling on the government to come clean about how increased employer
contributions to Kiwisaver and other retirement schemes will be funded for the education sector.
“We are concerned that if the funding comes directly out of the Vote Education budget the government will have to find
savings of tens of millions of dollars to cover increased employer contributions for school and education staff,” says
NZEI President Ian Leckie.
“That could result in job cuts and funding cuts which will affect schools and teaching and learning programmes.”
“The government trumpeted education as a big winner in the Budget but there is a huge risk that millions of dollars will
now be stripped away. That hardly represents considered or meaningful investment in education,” he says.
NZEI is calling on the government to clarify how the increased contributions will be funded and provide assurances that
they won’t be used for backdoor job or funding cuts.
ENDS