Govt makes mockery of KiwiSaver promise - Labour
The Government is making a mockery of its promise to seek an election day mandate on KiwiSaver changes, the Labour Party says.
The Government is making a mockery of its promise to seek an election day mandate on KiwiSaver changes, the Labour Party says.
Following last week's budget, Parliament passed legislation under urgency that would cut annual government contributions from $1042.86 to $521.43 starting in July this year, though the payment would be paid in 2012.
While the Government halved its payments, employee and employer contributions would increase from two percent to three percent.
Prime Minister John Key said KiwiSaver cuts would not impact New Zealanders until after the election and people would be able to vote on the changes.
But Labour finance spokesman David Cunliffe said the Government lied about seeking a mandate as it has passed legislation that effects people starting July.
"The Government has already budgeted on a 50 percent reduction in its contribution before it goes to the electorate for a mandate."
Mr Key has maintained that the changes would not kick in until after the election and a new government could reverse the changes.
"In July there is a new formula, but effectively what happens is that's not paid until an annual basis," he told reporters.
"So if there was change of government on November 26, and the incoming government decided they could afford to and wanted to make a change it could do so."
NZPA
Thu, 26 May 2011
Thu, 26 May 2011
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Govt makes mockery of KiwiSaver promise - Labour
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