Sunday 28 February 2010

Seniors will be worse off

“The proposed increase in superannuation will not compensate seniors for the proposed increase in GST,” said Democrats for Social Credit (DSC) leader Stephnie de Ruyter, “and it is deceitful for the Prime Minister to claim otherwise. Seniors will be worse off.”

“It appears that neither the Prime Minister nor his Minister of Finance have done their sums. Pensions need to increase by a bare minimum of 5% in order for Superannuitants to maintain their current income levels if GST is raised to 15%.”

Ms de Ruyter cited as evidence the modest budgets which had been sent to her by seniors concerned that the Government was misleading Superannuitants into believing that their incomes would be raised sufficiently to meet the additional costs.

“It is very clear that the Government is guilty either of a dramatic miscalculation or of deliberately distorting the real facts to lull seniors into a false sense of security” she said.

“Seniors will not be so easily fooled. It’s not rocket science to work out that the increase in GST requires a higher level of compensation than the “double whammy” pledged by Prime Minister John Key at a Grey Power meeting in Auckland on Friday. Superannuitants can add, and subtract.”

Ms de Ruyter noted that the proposed GST increase was not the only additional cost facing seniors.

“Electricity, rates, and food prices are also on the rise. The real “double whammy” is the imposition of GST at 15% coupled with a simultaneous increase in the cost of essentials, and it is disingenuous of the Prime Minister to claim otherwise.

“The DSC opposes the use of GST as a mechanism to collect government revenue. It is a punitive, narrow-based tax which impacts most on those who can afford it least” said Ms de Ruyter.

“Raising GST to 15% will not contribute to a miraculous economic recovery. Instead, the most vulnerable New Zealanders will suffer unnecessary hardship, with Superannuitants and others on fixed incomes bearing the brunt of the costs.”

ENDS  

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