New Zealanders happy with economic management, want super contributions

The Government gets a 56% good to excellent rating for its management of the global economic downturn to date. However, more (41%) rather than fewer (31%) believe the Government has not produced enough new policy ideas in the past seven months to successfully manage the economic recession.

Few expect the new Government's first Budget on May 28 to make them or their families better off.

The findings come from a weighted nationwide online ShapeNZ survey of 2,193 New Zealanders over three days this week, commissioned by the New Zealand Business Council for Sustainable Development.

The survey has a maximum margin of error of + or - 2% on the national sample.

It shows concern is surfacing over the future of retirement benefits if the Government postpones making its usual contribution of about $2 billion a year to the New Zealand Superannuation ("Cullen") Fund.

Only 21% think the Government should postpone the investment, 61% think it should not. Asked if it should continue to invest or postpone if this involves borrowing, 48% say continue, 39% say postpone.

Asked for their views if postponement meant making up contributions at a later time, or having less revenue for retirement payments, 49% again said to continue making contributions even if it involved borrowing, while 31% said postpone - even if this might mean higher taxes for future retirement benefits. 20% didn't know.

Some 58% are concerned that postponing contributions will eventually lead to lower retirement benefits, compared with 18% who disagree with this view.

The survey shows 48% think the Budget will make no difference for them or their families, while 21% think it will make things worse and 21% think it will makes things better.

Some 54% think the country is heading generally in the right economic direction (24% generally wrong direction). This compares with 55% right/ 24% wrong in April. Among 546 business decision makers responding in the May survey (maximum margin of error + or - 4.2%), 64% think things are heading in the right direction.

On the Government's performance to date on managing the global economic downturn, 6% rate it excellent, 19% very good, 31% good (total approval 56%), while 29% say it is fair, 8% poor (disapproval 36%), and 11% don't know.

On the effects they personally expect the Budget to have, 39% think it will lower interest rates (12% increase); 55% expect lower Government spending (23% an increase); 54% expect higher Government debt (23% lower), and 39% expect it will increase unemployment (27% lower, 22% have no effect).

A report on the April 12-14 survey can be found at www.nzbcsd.org.nz

The survey is continuing until 27 May 2009. at www.shapenz.org.nz

ENDS

ShapeNZ Economic issue survey

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