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Home / New Zealand

Pensioners backing the Peters principle

By Catherine Masters
Property Journalist·NZ Herald·
2 Nov, 2008 03:00 PM3 mins to read

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Winston Peters remains a hit with older voters. Photo / Sarah Ivey

Winston Peters remains a hit with older voters. Photo / Sarah Ivey

KEY POINTS:

Winston Peters is a favourite with older voters and not only for his smile. Senior citizens have gained tangible benefits courtesy of the New Zealand First leader.

In policy offerings for the coming election Mr Peters looks to be out in front again, though he's not alone in
wooing the over 65s.

Whether he can deliver this time round is another matter because last time he was able to work advantages into the confidence and supply agreement he reached with Labour, allowing it to govern.

Among them was the SuperGold Card, which gives pensioners of entitlements and discounts.

Helen Clark has also claimed credit for the free off-peak travel on buses, trains and ferries recently awarded to SuperGold Card holders - Labour is allocating $72 million over four years to pay for it - but pensioners know whose idea it was.

The big issue for pensioners, though, is superannuation payments. National had been trying to get a bit of mileage with older voters by saying Michael Cullen was going to cut super.

But in its social development policy announcement, Labour has committed to adjusting super to ensure the rate is at least 66 per cent of the average wage for a married couple.

Super payments have gone up and down over the decades.

They are now based on 66 per cent of the average after-tax wage, lifted from 65 per cent as part of the Labour-New Zealand First deal.

National had said super could fall because the lower 65 per cent figure was used for calculations when the books were opened last month.

But the Treasury told the Herald one year was based on 66 per cent, as per the coalition agreement, and the others on 65 per cent because there was no formal Cabinet agreement to maintain the 66 per cent.

Now, though, Labour is in line with other parties, including National, in committing to keep the 66 per cent floor, and New Zealand First is promising to lift that further.

National finance spokesman Bill English queried Labour's then silence on its super plans, saying "Why isn't Dr Cullen explaining to superannuitants that he plans to cut their super?"

Cullen pointed out that it was English cut the floor of super to 60 per cent in 1998, just before Labour's nine years in power.

This also spelled the end of the troubled Accord on Superannuation, signed by National, Labour, the Alliance and United, which had been supposed to keep super at between 65 per cent and 72.5 per cent of the average after-tax wage.

So senior citizens have done better under Labour, and New Zealand First policy is to lift the rate eventually to 72.5 per cent.

But although Mr Peters is obviously popular among seniors, Labour is also well thought of.

Grey Power president Les Howard says good gains were made during Labour's last term. The rates rebate improved, doctors and pharmacy fees were down, asset testing for rest homes was being phased out, hearing aid subsidies were up and SuperGold Card and the free travel concession all rate with older New Zealanders.

But super payments are the core concern for older voters.

Many had lost supplementary money in finance company collapses, Mr Howard said, and so many more pensioners would be relying on superannuation alone.

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