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Home / Business / Personal Finance / KiwiSaver

Savers seek reassurance from Nats

By Jacqueline Smith
NZ Herald·
27 Jun, 2008 05:00 PM2 mins to read

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KEY POINTS:

KiwiSaver experts say the security of the scheme under a National Government is one of most frequent concerns raised by would-be investors.

The National Party continues to remain tight-lipped on its KiwiSaver policy.

The party's deputy Bill English told the Weekend Herald that National supports a KiwiSaver scheme
but he would not elaborate any further.

"We are having a good hard look at KiwiSaver because we want to make sure that it has a long-term future and we'll announce our policy closer to the election."

He provided little reassurance for people opting out of KiwiSaver for fear that it may be abolished by a National government.

"We'll announce our policy and people will be able to make their decisions. If we become the Government then what we announce will be our policy."

English has previously refused to say whether National would retain the $1000 one-off payment to kick-start KiwiSaver accounts, or whether it would keep up to $20 a week in tax breaks.

Other comments over the past year have also alluded to a less-than-supportive stance.

In July 2007 English used a criticism of the Labour party's "extravagant spending" ($1.2 million) on advertising KiwiSaver, as leverage in a debate over the Electoral Finance Bill.

In April this year English said Labour's intervention in Auckland Airport would discourage New Zealanders from investing, right when the Government was trying to encourage it with its KiwiSaver scheme.

And last month National Party Industrial Relations spokeswoman Kate Wilkinson said employer contributions to KiwiSaver under a National Government may be axed after the first term.

She then retracted her comment and said she misinterpreted the question.

Before KiwiSaver was launched, Labour Finance Minister Michael Cullen called the National Party's stance "vague".

As National has disclosed little more since, all impatient KiwiSaver investors can do is sit tight until the party starts campaigning.

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