Hon David Parker
Associate finance spokesperson

6 May 2009 Media Statement
Future cuts to superannuation on the cards

The National Government has given its clearest signal yet that superannuation entitlements will be cut in the future, Labour Associate Finance spokesman David Parker says.

"In Parliament today Finance Minister Bill English clearly indicated the Government will not make the $2.2 billion payment it is due to put into the fund this coming year. This should raise alarm bells for New Zealanders.

“Those who are today in their 30s, 40s and 50s are now at risk in their retirement. The purpose of the Super Fund is to enable future governments to maintain entitlements as our population ages and a greater proportion are on Super.

“The pensions of tomorrow need to be protected today. National said before and during the election they would continue with payments to the Super Fund, but have now resiled from this.”

“Mr English argues that he’s not prepared to borrow to fund the investment in the Super Fund, but he’s already done that to pay for his tax cuts – an astounding third of which go to the top three per cent of income earners,” David Parker says.

“Those tax cuts were not just unfair, but they are a substantial cause of the structural deficit New Zealand now faces and are behind the Government’s plan to now cut investment in the Super Fund.

“Of course the top three per cent of income earners won’t be too affected by cuts to their Super entitlements when they retire – but most New Zealanders rely on getting their Super.

“National repeatedly cut Super when it was last in government and it simply can’t be trusted not to do it again,” David Parker said.

ENDS

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