Turei Metiria: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeTurei Metiria: Oral Questions — Questions to Ministers[Sitting date: 26 May 2015. Volume:705;Page:3933. Text is incorporated into the Bound Volume.]1.METIRIA TUREI (Co-Leader—Green) to the Prime Minister: Does he stand by all his statements?Rt Hon JOHN KEY (Prime Minister):Yes.Metiria Turei: Does he stand by his reported statement that no one had been disadvantaged by the move to scrap the $1000 KiwiSaver kick-start payment?Rt Hon JOHN KEY: The member might want to table the source for that because I cannot recall it.Metiria Turei: Has the Prime Minister seen that New Zealand ranks 22nd out of 24 countries in the OECD for savings and will his removal of the $1000 KiwiSaver kick-start contribution make this poor savings record better or worse?Rt Hon JOHN KEY: Firstly savings records have improved under this Government. Secondly there are multiple ways of measuring those things. And thirdly the removal of the $1000 kick-start contribution will not make a blind bit of difference to the number of people who join KiwiSaver.Metiria Turei: What evidence does the Prime Minister have that the sign-up rates for KiwiSaver will not be affected?Rt Hon JOHN KEY: That is the formal advice from the Inland Revenue Department and it is supported by the view that the people who are joining KiwiSaver are essentially doing so because it is now well organised within the workplace. Some of the big scheme providers are extremely well organised. We have got about 15000 to 20000 people joining in a month. I would be very very surprised if it changes at all as a result of this.Metiria Turei: Does the Prime Minister agree with the Service and Food Workers Union which said that low-paid workers said that they would be the hardest hit by his decision to axe the kick-start?Rt Hon JOHN KEY: Definitely not. The lowest-paid workers will be supported by the fact that the Government increased the Working for Families contribution by $12.50 a week. They will also be supported if they were ever on a benefit by the increase of $25. But overall I do not think the removal of $1000 that people would get in 40 years’ time will be that material.Metiria Turei: Has the Prime Minister seen that savings in New Zealand are currently concentrated in the top one-fifth of all income earners and will his removal of the $1000 KiwiSaver kick-start make saving for those in the bottom four-fifths of income earners easier or harder?Rt Hon JOHN KEY: Well it is logical actually—and I suspect consistent around pretty much every OECD country—that those who earn the most technically save the most because savings of course is forgone consumption. It is one of the very reasons why this political party will never be means testing New Zealand superannuation as Labour is now promoting.Metiria Turei: Does the Prime Minister understand that wealth inequality in New Zealand is twice as large as income inequality and will his removal of the $1000 KiwiSaver kick-start strengthen or weaken the incentives for all New Zealanders to build wealth through savings?Rt Hon JOHN KEY: I think it is important to remember that KiwiSaver is a scheme where after you put in your 3 percent contribution employers put in 3 percent and the Government puts in the member’s tax credit. If you look at all of those numbers over the normal sort of 45-year working period for most people $1000 is immaterial.