Maharey Steve: New Zealand Superannuation Amendment Bill — First Reading 
Maharey Steve: New Zealand Superannuation Amendment Bill — First Reading 
[Volume:617;Page:12555] 
Hon STEVE MAHAREY (Minister for Social Development and Employment) 
: 
 I move  
That the New Zealand Superannuation Amendment Bill be now read a first time. 
 At the end of the debate I intend to move that the bill be referred to the Social Services Committee for consideration. 
This bill repeals the Retirement Income Act of 1993. That Act was passed in 1993 to give effect to certain provisions in the accord on retirement income policies. The accord proposed in the Retirement Income Act established the role of the Retirement Commissioner and a requirement for 6-yearly periodic reports on retirement income policy. 
In recent years several developments have occurred that have called into question the appropriateness of the Retirement Income Act. The first of these relates to the non-observance of the accord. The accord has fallen into disuse since 1998. Many of the processes established by the accord are no longer followed. For example in the past accord signatories would meet on an irregular basis when there were issues to discuss. There have been no such meetings since 1999. The accord’s falling into disuse has created some practical issues in terms of the responsible Minister meeting his or her obligations under the Retirement Income Act. For example when appointing the Retirement Commissioner the Minister must have regard to the accord and consult other signatories to that accord. 
The second change has been the introduction of the New Zealand Superannuation Act in 2001. That Act provides for current entitlements to New Zealand superannuation and creates the New Zealand Superannuation Fund. Schedule 4 of the Act allows political parties to indicate support for either or both parts of the Act. This provides a new opportunity for political parties to indicate their support for retirement income policies and supersedes the need for the accord provisions currently set out in the Retirement Income Act. [ 
Interruption 
] I do acknowledge the support of the Labour junior whip in this matter; he has just been away increasing his erudition in Europe and I see he has brought it to bear early on his return. 
Finally the continued need for 6-yearly periodic reviews has also been questioned. The most recent periodic report was completed by the 2003 periodic report group. This group recommended the establishment of an ongoing work programme to replace the 6-yearly periodic reviews. The periodic report group considered the 6-yearly policy reviews were too infrequent to adequately inform retirement income policy. The Government agrees with the removal of the 6-yearly review. Removing the requirement for periodic reports will ensure that the monitoring and development of retirement income policies is more flexible and responsive. Accordingly the bill removes the requirement for 6-yearly periodic reports. 
As a consequence of the changes I have outlined the Retirement Income Act should be repealed. The provisions relating to the Retirement Commissioner will be transferred to the New Zealand Superannuation Act. Any reference to the accord or the requirement for 6-yearly periodic reports on retirement policy will not be transferred. 
The bill also makes some changes to the existing functions powers and appointment of the Retirement Commissioner. This reflects the Government’s new framework for Crown entities as set out in the Public Finance (State Sector Management) Bill that is currently before the Finance and Expenditure Committee. These changes will provide a consistent framework for the governance and operation of all Crown entities including the Retirement Commissioner. 
In addition there is an implication for the term of office of the current Retirement Commissioner caused by the removal of the requirement for 6-yearly periodic reports. Under the Retirement Act the Retirement Commissioner’s term of office ends on the day on which a copy of the first periodic report prepared following his or her appointment is laid before the House of Representatives. It is therefore necessary to include in the bill a provision to fix the term of office of the current Retirement Commissioner to expire on 16 January 2010. This is based on the latest date that the next periodic report would have been presented to the House under current provisions. 
Consistent with the consultation requirements in the New Zealand Superannuation Act I wrote to the leaders of the other parliamentary parties advising them of the introduction of the bill and proposed amendments. Some parties replied in agreement and others sought briefings. As required by section 73 of the New Zealand Superannuation Act the Minister of Finance has provided a statement about the consultation process and its outcome. The statement is contained within the bill’s explanatory note. 
The amendments contained in the bill will ensure that the retirement income policy framework more closely reflects the current environment. It will allow for a more flexible and responsive environment for retirement income policy. The bill will also consolidate key retirement income policies under one Act the New Zealand Superannuation Act. My understanding is that all members of the House and all parties in the House are aware of the changes in this bill and are aware of the common-sense nature of them. I therefore look forward to no doubt debate but also agreement as this legislation moves its way through the House. I commend the bill to the House and to the debate.