Sunday 8th of July 2007

Don't Dismantle KiwiSaver To Pay For Tax Cuts For High Income Earners --- "KiwiSaver is good news for many workers, and the government and employer contributions shouldn't be scrapped to help National pay for tax cuts that deliver the biggest benefits to those on high incomes," CTU secretary Carol Beaumont said yesterday. "The main income issue for low and middle income workers is the need for better wages, and strengthening collective bargaining so that low wages can be addressed at an industry level by workers and employers. CTU unions are actively working on that while the National Party is significantly silent." "There is strong interest in KiwiSaver from workers, and unions are working hard to make sure their members know about their entitlements and get the best opportunities to benefit from Kiwisaver." "Yes there are problems for those on low wages, and the CTU has consistently argued for easier access for low-income workers into KiwiSaver, and will still argue for a 2% minimum contribution option." "The introduction of a 4% employer contribution to workplace savings phased in over the next 4 years means New Zealand workers can start to catch up with their Australian colleagues where a 9% employer contribution is required. This is excellent news for many workers, and we hope it stays."