Robertson Grant: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeRobertson Grant: Oral Questions — Questions to Ministers[Sitting date: 02 March 2016. Volume:711;Page:9287. Text is incorporated into the Bound Volume.]4.GRANT ROBERTSON (Labour—Wellington Central) to the Minister of Revenue: When was he first advised that employers owed $29.3 million in contributions to KiwiSaver accounts and what action has he taken in response to this?Hon MICHAEL WOODHOUSE (Minister of Revenue): The statistics on contributions to KiwiSaver accounts are published and tabled in this Parliament each year as part of the Inland Revenue Department’s (IRD) annual report. When employers do not pass on the deductions they are required to the IRD will take action if it is unable to resolve the situation and to implement a repayment plan.Dr David Clark: Is he going to answer the question?Mr SPEAKER: Supplementary question Grant Robertson—does the member want to raise a point of order?Grant Robertson: No because there is not really any point. Is it correct that 46154 employees have not received the required employer contributions to their KiwiSaver accounts since the scheme began?Hon MICHAEL WOODHOUSE: I am aware of media reports to that effect and at this point I have been unable to verify them. But what I should—Grant Robertson: Oh hang on you just said it was tabled in the House.Hon MICHAEL WOODHOUSE: Well those figures were not in the IRD’s annual report. What I would say is that that does not constitute the overall loss by those and the high-level maths on that suggests that the average amount owed to those employees by that loss is about $229—irksome but not dramatic.Grant Robertson: So is he saying by that answer that because it may be $229 for one person or $2000 for another that it does not matter and that he cannot be bothered following up with the department to find out whether it is 46000 New Zealanders not getting what they deserve?Hon MICHAEL WOODHOUSE: No.Grant Robertson: Is he satisfied with the department’s work to follow up the nearly $10 million of employer contributions that KiwiSaver account holders are owed given statements by tax consultant Terry Baucher that the department is too slow to act in these cases?Hon MICHAEL WOODHOUSE: Yes I am. That $10.68 million the member refers to has been accrued since the scheme began in 2007 and represents 0.06 percent of the total contributions to KiwiSaver. So although it is extremely concerning for those people who are affected by the non-payment of those funds by their employers I am satisfied that the IRD has a very speedy and effective process for ensuring compliance by employers.Grant Robertson: Is he so out of touch with the lives of ordinary New Zealanders that he does not think that 46000 people not getting what they deserve from KiwiSaver is something he should care about as a Minister?Hon MICHAEL WOODHOUSE: Quite the opposite; I am extremely concerned to ensure that the payments that are being deducted from employees’ wages—and which are Government guaranteed by the way—are passed on to the Inland Revenue Department—Grant Robertson: No they’re not. I know. I’m not asking you about that.Hon MICHAEL WOODHOUSE: —the employee contributions which are Government guaranteed are passed on—and that where employer contributions are not deducted they are chased up. I think we are very effective at that and the evidence of that is the 99.9994 percent collection rate that the department is successful at.Grant Robertson: Can he confirm to this House that employer contributions are not guaranteed and what action will he take on behalf of the 46000 New Zealanders who have not had money paid into their KiwiSaver account that they are meant to get?Hon MICHAEL WOODHOUSE: I can certainly confirm that the framework that was established by the previous Labour Government under Dr Michael Cullen where employer contributions were not guaranteed has not changed. I am also very satisfied that the Inland Revenue Department has extremely good processes for ensuring compliance with the deductions.