$4.5b Hole In National’s KiwiSaver Policy Would Mean More Public Service Cuts – PSA
PSA analysis shows National failed to tell whole story of KiwiSaver promise
National’s policy to make KiwiSaver compulsory and increase employee and employer contributions to 6% would result in $4.5b of unfunded extra costs that government organisations and funded sector providers would have to meet from existing budgets.
New PSA analysis shows National’s policy only allows for the cost of bringing workers who currently are not in KiwiSaver into the scheme, not the cost of increased employer contributions for existing workers, leaving a $4.5b funding hole.
The PSA is New Zealand’s largest union, representing workers across the public sector and funded sector.
“The PSA has consistently supported higher employer contributions to workers’ KiwiSaver, but it shouldn’t mean more cuts to public services, and this is exactly what our analysis shows is inevitable to plug the hole,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
“National has not been upfront with New Zealanders about the true cost of its KiwiSaver election promise.
“National’s KiwiSaver policy does not provide the funding publicly funded organisations would need foot the bill. Its policy factsheet implies that government organisations would need to find the money out of their existing budgets.
“Public services have already faced deep cuts under this government as it ploughed money into tax cuts for landlords, business and big tobacco. There is no $4.5b money pot just sitting around to fund KiwiSaver contributions.
“This is not chicken feed – $4.5 billion is around 80% of the entire spending on Defence in the current financial year.
“National’s $4.5b funding hole would mean even more cuts to public services and more job losses in the public service, health and education. And that’s on top of the 9,000 jobs National is promising to cut over the next three years if re-elected.
“That’s why we need to change the Government – we can’t afford another three years of a Coalition hell bent on cutting the public services New Zealanders rely on.
“As the election approaches, voters need honest answers on this policy – National must go back to the drawing board and present a KiwiSaver policy that doesn’t boost savings at the expense of public services,” said Fitzsimons.
Airhead, Willis, is so fixated on finding fault with Labour and Green’s policies, she and her party have not been upfront with NZ’ers about the true cost of their KiwiSaver election promises – the fact that there is $4.5b of unfunded extra costs that govt. organisation and funded sector providers would have to meet from existing budgets! I wonder what budgets they will be taken from – certainly won’t be a claw-back from the landlords or the horrible tobacco or mining budgets etc. I guess again, it will be from the already needy!! Surprise, surprise! Is there no end to the corruption, deceit and lies from this CoC-up? It’s disgusting and now we have the fork-tongued PM defending govt’s record on helping housing-deprived families! It would be funny if he hadn’t already put his big foot in his big gob and pretended he didn’t know the homeless weren’t under cover at nigth! How in the hell do these muppets sleep at night?