KiwiSaver changes won't break promises - Key
The Government remains adamant planned changes to KiwSaver will not break election promises, but the Labour Party is doubtful.
The Government remains adamant planned changes to KiwSaver will not break election promises, but the Labour Party is doubtful.
Prime Minister John Key confirmed yesterday this year's budget would deliver some changes to the scheme, saying he would give further details in a pre-budget speech tomorrow.
It was reported last week that the May 19 budget could target the KiwiSaver tax credit, worth up to $20 a week.
The tax credit costs the Government up to $700 million a year, and there has been speculation it could be scrapped or reduced.
Speaking to media today, Mr Key said the Government's aim was to lift national savings in a sustainable way.
"I think New Zealanders recognise that these are not the easiest of economic conditions for the Government."
Mr Key said he was comfortable the changes would meet the conditions his party campaigned on.
Finance Minister Bill English also said he was confident the changes were in line with the party's promises.
"We're committed to KiwiSaver and we know a lot of New Zealanders are in it and we want to make sure that it's sustainable into the future and that it represents real saving," he said.
However, Labour leader Phil Goff said National had made explicit promises and it was hard to see how they could move on KiwiSaver without breaking those.
"It's no good saying now, 'Oh things are tougher than we thought'. They knew at the height of the financial crisis that things were going to be tough," he said.
"Mr Key is saying, 'You know, it's really raining now, things are really tough'. That did not stop him from making a promise for $2.5 billion a year, $45 million a week, to go in tax cuts to the top 10 percent."
NZPA and NBR staff
Tue, 10 May 2011
Tue, 10 May 2011
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KiwiSaver changes won't break promises - Key
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