Curran Clare: Taxation (Annual Rates Trans-Tasman Savings Portability KiwiSaver and Remedial Matters) Bill — In Committee 
Curran Clare: Taxation (Annual Rates Trans-Tasman Savings Portability KiwiSaver and Remedial Matters) Bill — In Committee 
[Volume:666;Page:13471] 
CLARE CURRAN (Labour—Dunedin South) 
: 
 I will talk a little bit about why the Labour Party is supporting the Taxation (Annual Rates Trans-Tasman Savings Portability KiwiSaver and Remedial Matters) Amendment Bill. I will also talk about the fact that this Government does not have a plan and about some of the issues to do with GST the rise in GST and its effect on ordinary working people. I will also talk about the importance of attracting people back from Australia to New Zealand. 
There is no doubt that Labour is supporting this bill. We are supporting it because it is based on work that was done by the previous Labour Government not because the National Government has somehow magically created this amazing plan that will create jobs provide incentives for New Zealanders to come back from Australia and close the wage gap between Australia and New Zealand because that is just not the case. The legislation is all based on work that was done by the previous Labour Government. 
I want to talk a bit about the provisions for retirement savings portability because I am one of those New Zealanders who came back from Australia as I know that this is the best place to be. I was really supportive when the previous Government began work on ensuring there would be retirement savings portability because I know how many New Zealanders there are in Australia who have built up savings under the industry superannuation scheme who will benefit from that provision. It certainly is a sensible arrangement. We have been told that potentially $16.6 billion is lost in contributions by New Zealanders who work in Australia and who could under this scheme come back to New Zealand. Even if a fraction of that money was to come back home of course that would have a positive impact and we certainly support that. 
Although it is one positive step for current and future New Zealand superannuitants this Government has ultimately undermined its commitment to New Zealand superannuation and to superannuitants. We had that stunning Budget 2009 decision to undermine the Superannuation Fund by suspending contributions for 10 years. The Minister of Finance has been trying to justify his short-sighted decision ever since. However the foolishness of that decision is plain with the Superannuation Fund gaining by $3.35 billion since last year’s Budget. We have heard Treasury analysis which was released the day after the Budget that showed the Minister of Finance’s plan guts the Superannuation Fund by 50 percent and it will never be able to catch up. The analysis said that the fund will be short by $35 billion. We know that Budget 2010 only made the situation for most superannuitants worse. Bill English said that we could not afford to contribute and that we would have to resume contributions when we got back into surplus. This year’s Budget revealed that we will be back in surplus in 5 years but contributions do not resume for a further 4 years after that. 
Although this bill will make it easier for superannuitants to return to New Zealand and bring their savings with them which is what we want them to do the Government’s most recent Budget will have many questioning whether the move is worth it. If I were in Australia looking at New Zealand at the moment I do not think I would be making the decision to come back right now if I thought that I would be any better off. It would be interesting to get a sense of that from some of the New Zealanders who are living in Australia and looking across the Ditch at this place. For one thing where would they get a job? How would they get a job? It is not exactly a very supportive environment to come back into especially with young children. If people have young children they would be looking at the 20 hours’ free early childhood education and thinking how long it will last and if they get a job there will be a measly tax cut but GST is going up.