Low income New Zealanders will benefit from Labour’s Reserve Bank changes and wider Economic Upgrade through higher wages, lower interest rates on credit cards and loans, and lower rents, says Labour’s Finance spokesperson David Parker.
“Labour has always supported low-income Kiwis. Those families will be better off under Labour’s Economic Upgrade that includes the Reserve Bank Upgrade announced yesterday.
“Those changes will lead to lower interest rates. That will mean lower interest on credit cards and hire purchases, as well as other payments such as car finance.
“Universal KiwiSaver will be introduced gradually while at the same time wages will increase, ensuring low-income Kiwis are better off.
“When Labour makes KiwiSaver universal it will still only apply to those in paid work. There will be no savings requirement for those on a benefit so their income will not be affected.
“The changes will help our exporters by tackling our overvalued dollar, enabling those companies to create more and better jobs.
“Australia has $1.5 trillion in their universal workplace savings. We are already 25 years behind them and playing catch-up. Universal KiwiSaver and the new VSR mechanism will mean everyone will be better off because we will not only have a low interest rate and fair exchange rate regime, but everyone will have their own savings nest egg as well, just like our Aussie cousins. What’s wrong with that?
“The idea that National is the protector of those on low wages is laughable. Have they forgotten that everyone in Australia, including the low paid, are on higher wages than in New Zealand?” says David Parker.