O'Rourke Denis: Subordinate Legislation (Confirmation and Validation) Bill — Second Reading In Committee Third ReadingText is incorporated into the Bound VolumeO'Rourke Denis: Subordinate Legislation (Confirmation and Validation) Bill — Second Reading In Committee Third Reading[Sitting date: 04 December 2012. Volume:686;Page:7112. Text is incorporated into the Bound Volume.]DENIS O’ROURKE (NZ First): New Zealand First supports this year’s Subordinate Legislation (Confirmation and Validation) Bill. Amongst other things the bill would validate this year’s superannuation rate order. This will confirm an automatic increase in the rate of New Zealand superannuation as set out in schedule 2 of the Social Security (Rates of Benefits and Allowances) Order.For people living entirely on New Zealand superannuation in New Zealand this will of course be welcome but it is in fact hardly enough for a reasonable retirement income for people these days. The rates of increase in power charges council rates insurance premiums and many other basic living expenses indicate that New Zealand superannuation is simply not keeping up with the cost of living. Over the years successive Governments have in fact whittled away the New Zealand superannuation entitlement one way or the other. And now I see that Labour wants to increase the age of eligibility from 65 to 67 which is not something that New Zealand First would ever support and which I am sure baby boomers and those looking forward to retirement at the age of 65—especially those who actually need to retire at 65—would not support.The Government of course has not shown its hand on this issue or on superannuation issues generally and as a result there is much speculation in the community about what will happen to superannuation in the future. Baby boomers are likely to get a bad deal whichever of the major parties succeeds in 2014 and I and New Zealand First believe that that amounts to a breach of the social contract. This system is based on taxation and it is based on superannuation being available at 65 and at a rate that equates to at least two-thirds of the average wage. We in New Zealand First do not want to see either of the major parties or the New Zealand Government generally resile from that social contract. We think that that is wrong.In fact New Zealand First is the only party that can be relied upon to keep the retirement age at 65 with no means testing. You certainly could not rely on those people opposite when it comes to superannuation. The Government has not shown its hand but that means only that it is not being upfront about what it really wants as far as superannuation is concerned.New Zealand First is absolutely certain about 65 years being the age of eligibility and no means testing. And when possible New Zealand First would increase the rate of superannuation by 1 or 2 percentage points in relation to the average wage to recognise the hardship that people living entirely on superannuation are now in from the age of 65. We believe that it is affordable well into the future if priorities are well ordered and there is real growth in the economy but we do think much more is needed.The issues of overseas pensions and eligibility for immigrants need to be addressed. Immigrants resident for at least 10 years get full New Zealand superannuation even though they may have made little or no contribution to the New Zealand economy whereas people who work 45 years in New Zealand will get exactly the same. That does not seem right to us. And then there is the issue of returning expatriates—what is called the silver tsunami—those 1 million people living overseas half a million of whom live in Australia. Even if a relatively small percentage of those people come back to New Zealand the impact on the New Zealand superannuation liability is going to be very significant.To address these issues I have a member’s bill in the ballot system which is entitled the New Zealand Superannuation and Retirement Income (Pro Rata Entitlement) Amendment Bill and I would encourage the Government and all members to have a look at it. It means that migrants and expatriates would get New Zealand superannuation only according to their period of residence in New Zealand and that is something that I think needs to be urgently addressed in this country. By addressing those issues relating to the entitlement rates for migrants and returning expatriates we can make a major contribution to assist with the economic sustainability of New Zealand superannuation we can therefore improve the rate of New Zealand superannuation for those people who rely on it entirely and especially we can retain the age of 65 years for eligibility for the future permanently and with no means testing.New Zealand First does support this bill but also encourages a much more comprehensive review of New Zealand superannuation than simply confirming schedule 2 of the order which confirms the automatic increase for superannuation this year.