Tracy Watkins reports:
“National has been forced into an embarrassing u-turn on KiwiSaver after its industrial relations spokeswoman Kate Wilkinson appeared to put the kibosh on a major component of the scheme. Ms Wilkinson was forced to retract comments made earlier today suggesting National would do away with the compulsory employer contribution.”
On his blog Vernon Small points out:
“It’s a classic case of ‘I’m sorry I’ll say that again’. National DOES approve of compulsory contributions to KiwiSaver schemes. But what a way to announce such a major policy…. in ‘clarifying’ her blunder National has announced what amounted to a $2 billion spending commitment… I guess that’s what happens in a policy vacuum; there are just too many things you can’t say and too many things you might say.”
Someone should tell John Key that there’s been a slip-up. Just three months ago he was hinting at changes:
‘I think it’s important to take a step back on our position on KiwiSaver. We fundamentally support savings schemes, we recognise New Zealand has a savings problem but the question has been in recent times that KiwiSaver doesn’t have a reach across a big enough number of New Zealanders.’ The scheme worked better for high-end wage earners ‘and we think there’s something we can do there. So we are looking at it’
Update: Key has said his MPs first statement was wrong but indicated her later statement was right. Key: “We haven’t finalised our KiwiSaver programme yet, but there will be compulsory employer contributions ….at pretty similar levels to what is outlined in the legislation at this point.”
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