Hon Peter Dunne
MP for Ohariu Belmont
Minister of Revenue
Associate Minister of Health

Wednesday, 4 July 2007

Dunne baffled by EMA KiwiSaver criticism

Revenue Minister Peter Dunne says he's baffled by criticism of the KiwiSaver retirement scheme from Alasdair Thompson, chief executive of the Employers and Manufacturers Association.

"Mr Thompson claims KiwiSaver is an estimated $3 billion to $4.5 billion tax cut for those who elect to join KiwiSaver – and this is apparently a bad thing.

"Setting aside Mr Thompson's figures, which appear to have been plucked from the air, I fail to understand how billions of dollars in non-inflationary tax cuts - plus billions more in company tax cuts from the Business Tax Reform package – are so terribly bad for the New Zealand taxpayer.

"After all, that's what business groups and taxpayers have been clamouring for for the past several years.

"Mr Thompson further claims KiwiSaver is expensive because we are employing another 1200 public servants to administer the scheme. This is another figure plucked from the air.

"My advice is that the number of extra public servants helping run New Zealand's biggest superannuation scheme in decades is about 400 - 480.

"Mr Thompson also appears upset by the fact that KiwiSaver is a voluntary scheme. It's a rare moment to see an employers' group arguing for the Government to make anything compulsory."

Mr Dunne urged Mr Thompson to better represent his members' interests by recognizing KiwiSaver for what it truly is – a voluntary superannuation scheme that will help the vast majority of working New Zealanders save for their old age and benefit the country by building up its capital funds at the same time.

ENDS

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