Amazing u turn from Key on savings. His two budgets both moved us away from a savings culture.
And his big move – set up a committee.
No secret that Peter Harris and I have different views – but important to have informed debate from all sides.
Policy progress has another Harris blog.
the third in a set of posts on savings and pensions issues from Peter Harris. The other two posts in the series are Good policy process – the case of New Zealand Superannuation and Why compulsory savings should not be on the agenda.
Is this a Govt effort to talk about something that NZ’ers think makes sense (increasing our level of savings) and then running a talkfest about it to look like they are doing something?
If I didn’t know better, the issue probably came up during some C.T. focus grouping and now its on the National agenda.
Hmmmm Labour will have to watch this, National have a record of stealing the Left’s best ideas at the last possible moment and acting like its completely consistent with what they have been doing all along.
And then of course making a deliberate dogs breakfast of it making any initiative a caricature of what it should be.
Yep stealing ideas is what they do, that’s why this transparency thing gives me the creeps
they so copied Labour on this issue. I mean just days after Cunliffe hinted at compulsory savings on the Nation they get this committee up and running to discuss the same thing!
Can they stop stealing your ideas and not be uncreative dummies!
Crap. Compulsory super has been an ‘idea’ for years, it’s a subject that’s been thrown about but it’s such a hot potato that nobody wants to have serious open debate, so stop this ‘I said it first. No I said it first.’ Nonsense.
I think the fear is that it may be seen (initially anyway) as just another form of income tax and businesses will moan that it hits their bottom line etc… As any fool know, increasing income tax (or perceived derivative of) is political suicide for the member/party introducing it. Mind, I don’t know what happened in Aussie when it was introduced, but it is now an accepted part of their pay structures.
I’m surprised Mr Harris is against compulsory super, indeed his arguments made in the link can be countered by an equally astute economist from any side of the fence.
It does come back to the problem of how NZers are going to fund their retirements or save in general and the belief that there will be a bottomless pit of centralised money to be dished out when the time comes. Buying a rental property and hope it doubles in value just doesn’t cut the mustard.
They pinched the idea!
!
Trevor says
Amazing u turn from Key on savings. His two budgets both moved us away from a savings culture.
I thought the 2010 budget increases in GST and lowering of tax were to penalise consumption and encourage saving.
At least the media seem to have seen it that way.
Some of the many google links describing this years budget as encouraging saving
http://www.businessweek.com/news/2010…/new-zealand-lowers-income-taxes-to-encourage-saving-update1-.html
http://www.nbr.co.nz/article/budget-2010-tax-reductions-detail-123294
http://www.taxguide.govt.nz/budget-2010-tax-changes-at-a-glance.aspx
unconditional.co.nz/christchurch/tax-cuts-rising-gst-the-2010-budget/
tvnz.co.nz/budget-news/budget-2010-not-just-rich-key-3560603
Spud maybe Mr Cunliffe was aware National were discussing compulsory savings and thought hed get in first
they so copied Labour on this issue. I mean just days after Cunliffe hinted at compulsory savings on the Nation they get this committee up and running to discuss the same thing!
You act like it’s the only thing the committee is going to discuss.
They did not pinch the idea, take a look at the debates in the 1990s and earlier
@Spud – I agree with you, no one had ever even thought about let alone discussed compulsory savings before Cunliffe thought it up on his own accord and announced it on the Nation.
Or more likely Labour’s recent annoucement!
:( 
!
Bleep!
“Is this a Govt effort to talk about something that NZ’ers think makes sense (increasing our level of savings) and then running a talkfest about it to look like they are doing something?”
You mean like the job summit.
I see we are tohave a new tax working group, was the first one to take a hard line view and this one to look moderate?
Interesting that they essentially cut the contributions (csavings) into kiwisaver, now they want compulsory. I happen to agree with compulsory, although I see one business group very quick thismorning to register its opposition.
We had a compulsary superannuation referendum which was soundly defeated, not because people wanted to start saving for themselves but wanted the old unsustainable pension to keep going, I think people have realised that unless we do something serious now, the flood of young NZers heading over the dicth will become a raging torrent and any sembalance of retaining a pension scheme will be gone…
“I’m surprised Mr Harris is against compulsory super, indeed his arguments made in the link can be countered by an equally astute economist from any side of the fence.”
Very true, this Mr Harris is an armchair economist and can poke holes big enough to drive lorries through his weak arguments…
People will always leave NZ because it’s in the middle of nowhere and there are so many interesting countries to visit.
Referendums are redundant without genuine debate and education, as opposed to PR and misinformation I mean.
Pathetic. A suggestion of balance seems to get deleted here. Won’t be back, and certainly will ridicule the Party I once thought was worthy of office.
Wasn’t compulsory super actually Winston Peters’ idea that the two major parties have stolen?
No, it was first implemented by the 1972 Labour Kirk government and scrapped by NZ’s biggest political moron of all time Muldoon…
Pretty sure Muldoon canned Rowlings’ compulsory super scheme. So the history in NZ goes back some way. Before Peters anyhows.
lol simulpost…and you got the facts better than I did JMH
Oh yes that’s right, Mr Muldoon cancelled before passing the legislation, so was taken to court over it.
But in recent political times, I do not think it is unfair to say Mr Peters has been the champion of it while others have not.
Yes! Labour invented compulsory super! Na na na na na!
Yes they did Spud and sweetness and light too…
*Rolls eyes*