[Weekly wrap] Huljich punishment decided

Huljich was fined more than $100,000 (the company was fined twice that amount) after pleading guilty to a charge brought by the FMA.  This probably isn't a huge amount for a man whose family is on the NBR Rich List, but he had asked for a discharge without conviction. 

The Huljich scandal was one of the black marks against KiwiSaver in the early days of the scheme, alongside some decidedly dodgy sales methods that have been stamped out.  This case needed to be viewed not in isolation but with regard to the integrity of KiwiSaver. 

Another big KiwiSaver story this week was a new report released by the Treasury that found that KiwiSaver isn't reaching the people it's designed to help.  Only one third of people in the target group have joined, and at a heavy cost for the taxpayer. Worse still, the report found KiwiSaver may actually reduce national saving. 

This report seems to slay the myth that KiwiSaver is a sure-fire path to prosperity in New Zealand.  Many of those the scheme is meant to help can't afford to be in it, and making it compulsory would only make life even harder for these people.  Perhaps New Zealand's real problem is low incomes rather than low savings.