REFERENDUM RESULT DOES NOT VOTE AWAY THE PROBLEM OF HOW TO PROVIDE FOR AN AGEING POPULATION

  • Jim Bolger
Prime Minister

Prime Minister Jim Bolger said tonight that while the Compulsory Retirement Savings Scheme had been rejected by voters, the Referendum result had not voted away the problem of how to provide for an ageing population.

"The Compulsory Retirement Savings Scheme was one of a number of possible solutions to the problem. That particular solution has been rejected."

"However, as a country, we still have to face up to the cost pressures on New Zealand Superannuation that a maturing population will create, including associated health and welfare costs, and how we manage them.

"We now have to look at the other options for managing retirement costs in a way that is affordable for New Zealand and addresses the fiscal pressures associated with an ageing population."

The Government will wait for the final report of the Periodic Report Group in November and would then consider and discuss the different options for the way ahead.

"I am aware there is some support in Parliament for the development of a new multi-party Accord on Retirement Income and the Government will also be considering that after the Final Report has been published."

Mr Bolger said the high voter turnout for the Referendum was a credit to all New Zealanders as it reflected the seriousness with which they had debated and considered the issues put before them.

"There has been a useful period of public discussion in the lead up to this Referendum and I believe New Zealanders are now much more aware of the issues that need to be worked through," he said.