The Financial Service Council’s savings report shows while we have lost one pot of gold, Labour’s savings policy will help create a new one, says Labour’s Finance spokesperson David Parker.
The Infometrics analysis on Labour’s 1974 New Zealand Superannuation Fund shows it would be worth $278 billion had it not been axed by National.
“Higher savings mean better paid jobs. Those missing billions would have meant higher wages for Kiwis and less reliance on foreign debt and foreign ownership as a country.
“It is clear evidence that New Zealand needs KiwiSaver to be made universal, which the next Labour Government will bring in.
“National’s opposition to universal Kiwisaver, and their long-term suspension of contributions to the NZ Super fund, shows they have not learned from their earlier mistakes.
“New Zealand was economically ahead of Australia at the time the Fund was established. Australia set one up ten years later. It is a major reason for the huge wage gap between New Zealand and Australia.
“It’s why the Australians own their banks plus most of ours.
“National’s broken promise, to close the wage gap with Australia – which has grown by $90 a week since 2008 to $210 now – is further proof of the need for a universal scheme.
“It would be refreshing if National admitted its mistakes,” says David Parker.