Smith Nick: KiwiSaver Budget Measures Bill — First Reading Second Reading In Committee Third ReadingText is incorporated into the Bound VolumeSmith Nick: KiwiSaver Budget Measures Bill — First Reading Second Reading In Committee Third Reading[Sitting date: 21 May 2015. Volume:705;Page:3865. Text is incorporated into the Bound Volume.]Hon Dr NICK SMITH (Minister for the Environment)on behalf of theMinister of Revenue: I move That the KiwiSaver Budget Measures Bill be now read a third time. As KiwiSaver approaches its eighth birthday it is now time to let the scheme be more about people saving for their own retirement and less about Government top-ups. This bill therefore proposes to remove the incentive payment of $1000 paid by the Government to all new enrolees in the scheme and thereby improve the value for money of the scheme. In short we want the Government’s support to be not for opening an account but rather actually for people saving. This change took effect at 2 p.m. on the date the Budget was read on 21 May. People enrolled in the scheme before this will as a matter of fairness receive their $1000 kick-start contribution. There is always that 3-month wait period and that will still apply.There have been some pretty ridiculous comments from members opposite that somehow this bill should not have been put through with a Budget measure. That is about as sensible as saying that tax changes or increases in alcohol taxes or other such measures should not take effect. We all know what that would do. It would result in a sudden rush of people simply taking the opportunity of having forward knowledge.Dr David Clark: Hang on. The argument was this has no effect.Hon Dr NICK SMITH: The contribution from Dr Clark actually just shows how inadequate he is for Government. If you give people forward notice of rules changing then people simply take short-term advantage and that is not to anybody’s advantage. I sat in this Parliament through nine Budgets under Labour where such changes were made and put through as a Budget measure.The KiwiSaver Budget Measures Bill does not affect other aspects of the scheme and KiwiSaver members will continue to receive employer contributions and the Government-provided member tax credits of $521 per year. That is the Government is going to continue to subsidise KiwiSaver schemes to the order of $640 million each year. As always I am grateful for the efforts of those who have contributed towards the passage of this bill. I want to thank the officials for their work on the policy development. I thank the drafters. This is a bill that is about making choices in a Budget. There is a certain irony that members opposite always want to vote for measures like hardship help for children but they are not prepared to vote for the other changes that make those measures financially sustainable and that is why it is an important part of the Budget.The last point I wish to make in this debate is about the most telling part of the debate. In the last 48 hours there have been these very powerful nine words that will ripple shock through my electorate of Nelson amongst the 700000 receivers of national superannuation and I want to conclude with these words—the words of Andrew Little yesterday: “I cannot commit to keeping New Zealand superannuation universal.” Those simple nine words speak volumes about what the members opposite want to do to the security of the retirement arrangements for hundreds of thousands of New Zealanders.Grant Robertson: He voted for asset testing. He was there. He voted for it.Hon Dr NICK SMITH: I have to say to Mr Robertson that those nine words from Mr Little will guarantee me increased support in my Nelson electorate at the next election. I already have received emails from Grey Power members who are terrified by what those nine words mean and I just simply say to members opposite that when they are dealing with the issue of superannuation they should state very clearly whether they agree with Mr Little’s statement yesterday: “I cannot commit to keeping New Zealand superannuation universal.” That is an answer I am looking forward to hearing in this third reading debate.