Source: PSA
PSA analysis shows National failed to tell the 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 (see attached analysis).
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.
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.