Cunliffe David: Debate on Crown Entities Public Organisations and State Enterprises — In Committee 
Cunliffe David: Debate on Crown Entities Public Organisations and State Enterprises — In Committee 
[Volume:654;Page:3797] 
Hon DAVID CUNLIFFE (Labour—New Lynn) 
: 
 It is a pleasure to take a brief call on the Retirement Commissioner because of course the Retirement Commissioner is charged with helping New Zealanders prepare for their retirement. It is particularly important to draw attention to this matter in Budget week because here we have the coming together of two great objectives: providing for our senior citizens’ future and making sure that we have enough savings in our economy. 
It is a matter of amazement to the Labour Opposition that this Government is toying with the irresponsible idea of suspending contributions to the New Zealand Superannuation Fund. At a time when credit-rating agencies are saying that the No. 1 problem facing New Zealand is our external deficit—not our Government debt—and that a key part of that deficit is actually our savings gap which those payments help address why on earth would we suspend payments? The argument that is put up by members opposite of course is that we would have to borrow money to put money into the New Zealand Superannuation Fund. Well here is some news for those members: the Government has a borrowing plan across the whole of the Government Budget. It is totally arbitrary and totally illegitimate to say that that borrowed money goes on any one component. 
The Government should take the advice of the chief executive of the New Zealand Superannuation Fund who said in front of the Social Services Committee that this was a once-in-a-lifetime opportunity to buy assets when assets are cheap. It is ironic—is it not—that this Government is led by a former financial trader. Traders typically seek to buy low and sell high; this Government is seeking to buy high and sell low. It is absolutely ridiculous. The bottom line is one that Bill English has often reminded Parliament about. [ 
Interruption 
] Craig Foss is a smart guy and he knows it: there is no free lunch. If we stop paying money in now we will have to do one of a number of things. Either we will have to stop paying out at the same rate later which means raising the age of entitlement or cutting the benefits or we will quite simply have to pay in more later or fund it by some other means. There is no free lunch. 
Paul Quinn 
: That’s an Alan Low quote. 
Hon DAVID CUNLIFFE 
: Members opposite know that there is no free lunch and Paul Quinn knows it too. I know that it is a long time since that member has seen the inside of a gymnasium: he knows that it is easy to stop going to the gym and hard to start again. That is exactly what the Government is doing with this policy. Paying into the New Zealand Superannuation Fund is a form of financial fitness for the Government. Once the Government stops doing that it gets loose and flabby like that member is getting. It is very very important that we maintain this programme for the sake of the Retirement Commissioner and for the sake of our senior citizens. 
What is most amazing about this idea is not how ridiculous the policy is but how National has tried to get away with so much double-speak around it. During the election campaign John Key said: “National is committed to continuing the New Zealand Superannuation Fund in its current form and”—wait for it—“with its current contribution rate.” That was before the election when the only thing National was going to cut was taxes. John Key then said on Television One’s  
Agenda 
 programme just 2 weeks before the election that the fund was an investment in our future and that along with having a strong economy we need “to ensure … we pre-fund that liability of the ageing of the population.” He was right then. What has changed now? Only one thing has changed: it is now after the election. There are some things one says when one is trying to get into office; there are other things one says because they are convenient once one gets there. One cannot have it both ways. There is no free lunch. We do not pre-fund superannuation. 
Paul Quinn 
: Cliché after cliché! 
Hon DAVID CUNLIFFE 
: When that rapidly ageing member is about to draw his superannuation there will not be any left for him. David Carter is worried because he is closer to retirement than that member and he is a damned sight closer to it after the pig fiasco of last week. 
The voters are about to retire him for his double-speak. But that double-speak pales in comparison with John “a buck each way” Key who lauded the value of the fund before he got elected and then chose to trash it once he was in office. It makes no economic sense; it does not even make any political sense. The reason I am a bit uptight about the fund is that I know it is causing great worry to the many thousands of senior citizens in New Zealand and to people approaching retirement age like David Garrett. The poor man will be out of here with barely a brass razoo to feed his family.