Wednesday, 31 October 2007

Dunne: Treasury reports confirm desirability
of compulsory KiwiSaver

UnitedFuture leader Peter Dunne says two Treasury policy perspectives papers released today reinforce his call to make KiwiSaver a compulsory savings scheme.

Mr Dunne has frequently suggested that KiwiSaver should be made compulsory when voluntary uptake levels become substantial.

Today's Treasury reports on savings and investment and investor protection and the New Zealand market both acknowledge the role of KiwiSaver in improving New Zealand's currently low savings levels and boosting stock market capitalisation over time.

"What they're really saying is more KiwiSaver means more savings and investment, which means more growth and opportunity for New Zealanders.

"It's a short step from there to the conclusion that the logical next move is to make KiwiSaver compulsory at the point where a significant majority of the workforce has signed up to it," he says.

Mr Dunne says the strong public support shown for KiwiSaver in the four months since its launch on 1 July shows it is already a winner with the New Zealand public and will be here to stay.

"It's quickly become iconic - like New Zealand Superannuation - and the reality is no future government will dare pare it back, for fear of the political consequences of playing around with people's savings.

"Making KiwiSaver compulsory would not only be the best way of future proofing the scheme against political interference, but also of making a positive contribution to boosting long-term savings and investment, and ultimately the standard of living of all New Zealanders," he says.

ENDS

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