Radhakrishnan PriyancaPRIYANCA RADHAKRISHNAN (Labour): Thank you Madam Speaker and fakaalofa lahi atu in celebration of Niue Language Week. It's an absolute delight to stand and take a call in support of the New Zealand Superannuation and Veteran's Pension Legislation Amendment Bill. As the Minister said in her speech New Zealand super and/or the veterans pension is one that affects and has the potential to affect all of us and so it is I guess the responsibility of the Government to also ensure that it is sustainable. New Zealand superannuation is the envy of so many countries and so we are duty-bound to ensure that we continue to simplify the provision of retirement income here in New Zealand and also look at the sustainability of this vital income support as our population ages. As we talk about sustainability as well I just want to commend acknowledge remember Sir Michael Cullen for the work that he did to set up New Zealand super because the work that he did really was futureproofing of New Zealand super so I just want to acknowledge that as we continue our discussion about sustainability.It's also about making sure that the adjustments to the settings that reflect changes are fair. This particular bill balances sustainability with the provision of support to those who qualify. There are a few changes laid out in this bill. They are reasonably minor but they do make some tweaks and really what they do is to tidy up to simplify and to modernise this piece of legislation. So a little bit about why I'm standing in support of this bill—and I've actually mentioned the simplification the modernisation and the need to ensure that it's sustainable but it's also to balance that need as our population ages. If we look at the figures this is an important time to consider how we want superannuation to look both now and into the future as well. So the population aged 65 or over in New Zealand is projected to increase to 1.3 million by 2036—and that's 22 percent of New Zealand's population—and to 1.7 million by 2061. We also know that in future more older people will need to rely on superannuation and supplementary financial assistance really to augment their super or veterans pension particularly as the level of mortgage-free homeownership declines and has been declining for years as well. So really what this bill does is to give us the opportunity to refresh our superannuation system and also as I mentioned previously to ensure its sustainability while not compromising the support that we provide to those who qualify for it. In terms of the specific changes that we see laid out in this bill non-qualified partner closure—so that's one of the main changes proposed by this bill. In current legislation the provision allows a superannuitant—I always get this word a little bit wrong but superannuitant—to include their partner who doesn't qualify for either New Zealand super or the veterans pension which is reasonably similar in rate. They receive around $40 less each week before tax than in the case of a couple where both of them qualify. So with the change as proposed from 1 July next year it won't be possible for a superannuitant to decide to include a partner who doesn't qualify in their own right to New Zealand super or the veterans pension. I just want to point out though that although the change comes into effect if this bill is—and it looks like the bill is—supported and therefore is likely to pass in July next year it won't actually apply to those who already include their partner in New Zealand super. So that continues. I just want to emphasise the fact that there's no change retrospectively to those who include their partner but it's a prospective change so it's for those who apply to include their partner after 1 July 2020. Hon Stuart Nash: Important to note.PRIYANCA RADHAKRISHNAN: It is important to note because it's important as we clarify legislation that we actually clarify the intent of it so that people can access this legislation in a way that's fair as well. So just going back to why that provision was in place in the first instance. Times were quite different and times have changed since then. So they were different because when the non-qualifying partner (NQP) provision was introduced single-earner families were the ones that were predominantly affected by superannuation. Many married women didn't work. Expectations were different. Contexts were different back then and there was less of a societal expectation for married women to work at that time. Some workers were required to retire though by a particular age and so couldn't support their dependent spouse independently and that's why that non-qualified partner provision was written into the legislation at that point.However as I mentioned times have changed. A lot of married women do go out and work nowadays—thank God for that—and we do have the opportunities to be able to do so even if there is a gender pay gap but that's a different discussion to this bill. But because of that societal change and contextual change this particular provision no longer applies to the same extent that it previously did. So after 1 July next year if this bill passes into legislation those who were unable to access the NQP provision because they don't qualify for super in their own right will have access to a whole host of other social welfare support mechanisms other benefits—the main benefits that currently are in existence. Also I know that the Minister for Social Development intends to ensure that specifically the emergency benefit covers those who are in hardship who don't qualify once this change goes through or who can't meet the work obligations because they are caring for their superannuitant partner. So that's the NQP provision. Currently the figures that we have are that there are about 13400 recipients of either New Zealand superannuation or the veterans pension who are non-qualifying partners so that's the number potentially going forward. Just a reminder that it doesn't actually affect those 13400 because they're currently included. But going forward those are the people who are likely to be affected by this policy. However the policy change is also expected to result in an annual saving of about 1 percent of the cost of New Zealand superannuation. Now the other policy is the spousal deduction removal. So there is a particular policy within the legislation currently that is called the direct deduction policy where any Government-administered overseas benefit or pension that someone is entitled to receive is deducted dollar for dollar from their New Zealand benefit or pension entitlement. However as the Minister clarified as well in her speech I just want to emphasise—because I have funnily enough actually been approached by some groups who get things like the Central Provident Fund from Singapore who are a little bit confused as to whether a change would affect them. So I just want to clarify what the Minister has said which is that this bill resolves that inconsistency by ensuring that any part of a Government-administered overseas pension that's based on voluntary contributions won't be deducted from a New Zealand benefit or pension. If this bill passes the first reading which it looks likely to do and does go to select committee—and actually I'm on the select committee that will consider this bill the Social Services and Community Committee. I would actually like to hear from those who have come to speak to me about this issue previously particularly members from the Singapore Club—and I'm going to put that in Hansard—and for them to submit to the select committee and to come and tell us how this bill and the changes proposed are likely to affect them and whether it will affect them either adversely or positively. So there are a fair few changes. The main ones I have already highlighted in my contribution today. I am pleased to see though that we are improving the clarity and the consistency of this piece of legislation and modernising it as well. I commend this bill to the House.