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Encouraging savings the National way

Written By: - Date published: 8:53 am, June 12th, 2011 - 15 comments
Categories: budget 2011, kiwisaver, national - Tags: , ,

Amongst the many vacuous claims made in relation to the last budget, this one always struck me as the standout:

Greater level of private savings for KiwiSaver

19 May 2011 by Hon Bill English

Changes to KiwiSaver will encourage a higher level of private savings, make the scheme more financially sustainable and build a large pool of local capital, Finance Minister Bill English and Revenue Minister Peter Dunne say.

Significantly cutting back on the benefits of the scheme was going to “encourage a higher level of private savings” – ummm – how exactly? What a stupid claim. If we had a functioning media in this country they would have ripped it to shreds. Never mind, bide your time for a bit and the facts will do the job instead:

KiwiSaver changes turn many ‘maybes’ off for good

More than half of those who were considering joining KiwiSaver before changes were made by the Government won’t now sign up to the scheme, a new survey says.

An Investment Savings and Insurance Association (ISI)-commissioned poll found that almost a third of the 2337 participants were not members of KiwiSaver, but were considering joining before the release of the 2011 Budget.

Since Finance Minister Bill English tabled changes to the savings programme, 62 per cent of those who had been fence-sitting on KiwiSaver no longer wanted to be involved. Thirty-eight per cent indicated they would still sign on.

Well duh. Looks like the Nats are just as good at encouraging savings as they are at most aspects of running the economy.

15 comments on “Encouraging savings the National way ”

  1. RedLogix 1

    Yeah, but so what. Vote Labour and you’ll get those nasty nanny-staters back who’ll tell you what kind of efficient light bulbs you are allowed to use.

    • r0b 1.1

      Yeah – wouldn’t it be horrible to live in a country like that

    • Irascible 1.2

      Interested to note that on several European websites as well as occasional US sites pop up ads appear warning readers to be ready for the phasing out of incandescent bulbs ad the phasing in of florescent bulbs as part of policies to encourage savings of resources and money.
      But then the Key-led NACT govt aren’t interested in savings of anything are they?

  2. queenstfarmer 2

    Looks like the Nats are just as good at encouraging savings as they are at most aspects of running the economy.

    Yes they have done a reasonable job, and debt repayment has significantly increased since they came in, in part due to the income tax/GST adjustments. This is significant, given the disaster that was allowed to happen in the finance company & residential property sector during the mid-2000s.

  3. Draco T Bastard 3

    Yes they have done a reasonable job, and debt repayment has significantly increased since they came in…

    Another rewrite of history by a RWNJ. I suppose we should be used to this by now.

    FACTS:
    1.) They cut taxes to the rich so that we had to borrow more and
    2.) NAct have been borrowing when they didn’t need to boosting the level of debt that we’re in

    This is significant, given the disaster that was allowed to happen in the finance company & residential property sector during the mid-2000s.

    It’s called the “free-market”. I don’t suppose you’re going to tell us you’re against that now are you?

    • Macro 3.1

      Draco – if he’s trying to farm in Queens St then what else can you expect??

      • Lanthanide 3.1.1

        I believe his name is in reference to white-collar businessmen who have part-ownership of a farm that is running an operational loss (on the books, at least), and therefore balance the loss against their taxable income and end up getting tax refunds from the government. Could be wrong, though.

        • Macro 3.1.1.1

          I know that!
          He certainly “re-writes”history.
          I’m not sure about his accounts

        • queenstfarmer 3.1.1.2

          I thought it was a Country Calendar thing. I do have an organic garden and regularly plant trees, but don’t think that qualifies as farming.

    • queenstfarmer 3.2

      It’s called the “free-market”. I don’t suppose you’re going to tell us you’re against that now are you?

      It depends what you define as the “free market”. Perhaps you disagree, but the finance company debacle and property bubble should never have been allowed to happen.

      • Colonial Viper 3.2.1

        +1

      • Draco T Bastard 3.2.2

        The “free-market” is, essentially, the removal of regulation and we had that in NZ from 1984 on and especially under the 4th Labour/National governments and now the 5th National government. The 5th Labour government went with the Third Way BS. You’re “not allowed to happen” is the opposite of that and is actually in line with my “highly regulated market” idea. The idea being that regulations force the market to operate in the best interests of society rather than freely at every individuals whim.

  4. Lanthanide 4

    I think this says more about the intelligence of the survey respondents than it does about the budget.

    Assuming you can spare the money, Kiwisaver is the best savings vehicle around because of the up-front additions you get from employer and government. Although having said that, if your employer contribution is actually taken out of your pay, then it really isn’t so great – but you can still sign up for a year to get the $1000 kickstart and then go on permanent holiday.

    I think Don Brash actually said that anyone would be foolish not to join kiwisaver because you would be leaving money on the table.

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