O'Rourke Denis: Subordinate Legislation (Confirmation and Validation) Bill — First Reading 
Text is incorporated into the Bound Volume 
O'Rourke Denis: Subordinate Legislation (Confirmation and Validation) Bill — First Reading 
[Sitting date: 11 September 2012. Volume:683;Page:5077. Text is incorporated into the Bound Volume.] 
DENIS O’ROURKE (NZ First) 
: 
 New Zealand First also supports this year’s Subordinate Legislation (Confirmation and Validation) Bill. Amongst other things as we know the bill would validate this year’s New Zealand superannuation rate order which would increase the rate of New Zealand superannuation as set out in Part 2 by approximately 2 percent overall. For people living entirely on New Zealand superannuation this will even at almost 2 percent be very welcome. But I think it is hardly enough really for a reasonable retirement income these days when you take into account rates of increase in power the quite significant increases in local authority rates that we have seen in recent times significant increases in insurance for reasons that will be fairly obvious and many other basic living expenses. It seems to me highly unlikely that an increase of almost 2 percent would realistically cover all of that and a lot more. 
In fact over many years successive Governments have whittled away the New Zealand superannuation entitlement one way or another. As we know Labour wants to increase the age of eligibility from 65 to 67. The Government has not really shown its hand about what it plans for New Zealand superannuation in the future and as a result there is much speculation about what will happen to New Zealand superannuation in future years. One way or the other I think baby boomers are going to get a bad deal whichever of the major parties succeeds in 2014 and beyond. I consider that to be something of a breach of a social contract. We were told decades and decades ago that there was this social contract in the form of a taxation-based system whereby we would all pay our taxes over our working lives and we would get an entitlement to New Zealand superannuation from tax sources in the future. 
The point about this is that that is an undertaking that I think has been breached. It does not matter what people from Labour or National say people in the community know that it has been whittled away over time and that they can expect the same to happen in the future. In fact they also know that there is only one party New Zealand First which can be relied upon to keep the age of eligibility at 65 years with no reduction in the rate and the way it is calculated. When possible New Zealand First would increase the rate by at least 1 or 2 percentage points in relation to the average wage to recognise the hardship that we all know that people who are living entirely on New Zealand superannuation are suffering. We think as distinct from the other parties that this is affordable if priorities are well ordered by the Government and if we get real growth in the economy. I think that is also a priority that both parties have not done very well on. It can be done should be done and must be done. 
But in fact much more is needed too and there has been a huge silence about some of the main issues surrounding New Zealand superannuation. For example the issue of overseas pensions and eligibility for immigrants needs to be addressed and needs to be addressed urgently. Immigrants resident in New Zealand for at least 10 years still get full New Zealand superannuation whereas they may have made little or no contribution to the New Zealand economy. Then there is the New Zealand diaspora: a million people with half a million in Australia. It is a silver tsunami which may return to New Zealand at an unknown rate of arrivals in the future. Many of those even though they may have spent most of their working lives overseas may qualify and become entitled to 100 percent of New Zealand superannuation. 
On the other hand there are people who are bringing into New Zealand—and are entitled to bring into New Zealand—an overseas pension that they have earned overseas only to have it deducted under section 70 of the Social Security Act from their New Zealand superannuation even if it is a contributory scheme that they have earned overseas whereas KiwiSaver in New Zealand does not get deducted from New Zealand superannuation. So there are many anomalies—those and many more—and too much unfairness surrounding all of those issues especially for immigrants and expatriates returning to New Zealand which were not addressed by Labour and are not being addressed by National. That unfairness needs to stop. 
Those however are detailed issues for another day but they are urgent. For today’s purposes New Zealand First is happy to support the bill to validate the superannuation increases which are so sorely needed and I just regret that we cannot do more for people who are living solely on New Zealand superannuation. As many of them know New Zealand First wishes to improve the SuperGold card and other benefits that go with New Zealand superannuation. They cannot rely on either of the main parties to do any of that. Only New Zealand First really looks after people who are reliant on New Zealand superannuation. However for today’s purposes New Zealand First will be happy to support the bill.