It would be very silly for the National Party not to be involved in this discussion and, for my money, we should lead the discussion - because if we don't others will. Can anybody think of anything worse than a debate led by Winston First and the Greens?
But here are some of the issues some younger people won't have considered and that, at least in the short term, have to be factored in:
1. New Zealand is still paying the costs of World War II, (and more recent wars) by the support of veterans and their dependents. These past events have a cost, and our all-inclusive welfare policies help these people because their lives were seriously affected by events they participated in that created a comparatively peaceful world order that we have benefited from.
2. I, like many of us older folk (born around the time of WW II) who fortunately didn't have to go to war, have paid taxes which included our contribution to the super payments of past generations. Just like ACC levies, these payments are part of a social contract that we have in this country that transcends generations and helps provide a cohesive network of caring for everyone. I have worked and paid taxes now for 50 years, and paid far more in tax than I would ever receive back.
Again, part of being in a just society. I have never been unemployed or had a sickness benefit, but when the day came to register for my National Superannuation payment, I very reluctantly humbled myself and went to the Social Welfare office for the first time, because it was a right that I and others had paid for. I am fortunate that I can currently use this money to pay the accommodation costs of my granddaughter for her first year of university studies.
3. The reality is, though, that National Super for many people is not sufficient to live active lives on, and must be supplemented by other income or assets. While in comparison to other countries ( such as the UK), our rate of super payment is generous, we also have the lowest rate of poverty among older generations in the OECD. Surely this is a factor alone worth saving? Remember too, old folk all have votes, and making changes that affect older generations adversely will not be easy politically.
4. Most older people in this country own their own homes, and as we get older we plan to use the proceeds from the sale of private property to supplement our income. We have not been seduced by the many economists (from Don Brash down) who have for many years preached the merit of renting our homes and investing in the capital markets that go up and down like the proverbial. Younger people today appear, in many instances, not to be buying their own homes.
5. One great advantage of the current National Super is that it is a pay-as-you-go scheme. In other words, the costs this year of the pension payments are made from taxes paid this year, so there is no loss of value from inflation or loss of investment of income.
David Bennett is a Wanganui businessman and CEO of Pacific Helmets (NZ) Ltd
