Brian Gaynor writes in the Herald about what he calls “the worst economic decision of the last 40 years” – National’s scrapping of Labour’s compulsory Super scheme in 1975. Had it been allowed to continue, today it would be worth over $240 billion.
Muldoon claimed that the scheme should be opposed because it was “socialist” – an argument National aimed to reinforce by running the now famous dancing Cossacks ads in the ’75 election campaign (I’ll post these if I can track them down somewhere).
The one concern is the attitude of the National Party, particularly deputy leader Bill English. For some unknown reason English is totally opposed to KiwiSaver and John Key is sitting on the fence as far as the issue is concerned.
It would be a tragedy if a new National Government, under Key and English, made the same dreadful mistake as Muldoon in December 1975.
Over at Kiwiblog National Party blogger and staff member, David Farrar is predictably running the National Party line that “In 2008 we are being asked to fund universal state super, pre-fund future universal state super and also fund a semi-compulsory private savings scheme. One of them has to fall away at some stage”
Clearly Bill English has cuts to super in mind, while Key’s got his eye on cutting KiwiSaver – audio below. National gambling with the country’s future – and yours – it’s like a return to 1975.