Labour's suspect Superannuation sums

  • David Carter
Senior Citizens

Labour is still refusing to face up to the fact that NZ Superannuation is going to contribute to a massive blow-out in Government spending over the next 30 years, Minister of Senior Citizens David Carter said today.

"Helen Clark repeated to Greypower yesterday that she'd put the floor of Superannuation back up to 65% by April 1 next year.

"That is estimated to cost $280 million in the first year. There goes most of her extra $300 million from Labour's tax increases.

"How's she going to pay for the rest of her Super promises?" Mr Carter said.

"If Labour's policy was adopted, namely eight percent of taxes being ring-fenced for super, that would only raise $1.3 billion a year. The problem is we already spend $5.2 billion every year paying current superannuitants.

"The lesson for Helen Clark is simple. New Zealand can't pay for today's superannuitants AND put money aside for the next generation of retired people, without huge tax increases," Mr Carter said.

"Everyone knows that an alternatives must be found. This is why the Government has established the independent Super 2000 Taskforce.

"Labour should join the Taskforce and help all parties find a long-term solution," Mr Carter said.

"Talk is cheap, but Labour's Superannuation promises certainly aren't," Mr Carter said.