Faafoi Kris: KiwiSaver Budget Measures Bill — First Reading Second Reading In Committee Third ReadingText is incorporated into the Bound VolumeFaafoi Kris: KiwiSaver Budget Measures Bill — First Reading Second Reading In Committee Third Reading[Sitting date: 21 May 2015. Volume:705;Page:3845. Text is incorporated into the Bound Volume.]KRIS FAAFOI (Labour—Mana):To speak to clause 3 of this bill: it is a very narrow debate and it does focus around the Act that this bill amends the KiwiSaver Act 2006. I think it would be useful to look at the purpose of that Act if I can have some time from the Chair to read that out because I think what we may have here as a situation is where what is being amended in this bill does not necessarily match with the purpose set out in the principal Act. If I can quote from the purpose section of the KiwiSaver Act 2006 which reads: “(1) The purpose of this Act is to encourage a long-term savings habit and asset accumulation by individuals who are not in a position to enjoy standards of living in retirement similar to those in pre-retirement. The Act aims to increase individuals’ well-being and financial independence particularly in retirement and to provide retirement benefits.” As I said that is the purpose as set out in the KiwiSaver Act 2006. The main function of the bill in front of us now is to remove the $1000 kick-start payment to anyone who wants to join KiwiSaver. One of the arguments on this side of the Chamber around the amendments to the KiwiSaver Act 2006 is that it will no longer allow youngsters to sign up to KiwiSaver and get that $1000 kick-start—Hon Ruth Dyson: From when? From next week?KRIS FAAFOI: Not from next week but backdated to 2 p.m. on 21 May. I would like to ask the Minister in the chair how taking away that $1000 kick-start matches with encouraging “a long-term savings habit and asset accumulation by individuals”. Because I do not think what the Government is doing in this bill and the purpose of the principal Act being amended match up. KiwiSaver was set up by Dr Cullen in the last Labour Government to do as the purpose says—to encourage long-term savings. Not by people of age but across the range and as has been said in this Chamber many people have taken up that opportunity. The $1000 kick-start was seen as one of those cherries for people to sign up. But as of 2 p.m. on Thursday 21 May 2015 as is amended in this bill Kiwis will no longer be able to do that. One of the Supplementary Order Papers that I have to clause 5 is to amend the bill in its current form—The CHAIRPERSON (Lindsay Tisch): We are not on clause 5.KRIS FAAFOI: —but which will change obviously this KiwiSaver Act 2006 to continue to encourage that long-term savings habit that is set out in this piece of legislation. I would ask the Minister in the chair—and I do appreciate that he has taken some calls before—to try to explain to those at home who might have young children as to why before 21 May at 2 p.m. it was a good incentive for them to sign their children up to KiwiSaver with a $1000 kick-start but now it is not. Or is this simply a measure to raise revenue to use for other things? Because that is what this seems like because the principal Act as it stands is pretty clear about what the purpose is and what the Government of that day was trying to achieve. That is long-term savings habits. I would think that starting saving from birth until 65 is pretty long-term. But now this Government is taking away the ability for Kiwi families to do that.On my Facebook site over the lunch break people have commented about how it was a really good thing that when we had a child the $1000 incentive was there to make it an even better incentive to join up to KiwiSaver. But now under the amendment of the KiwiSaver Act 2006 that is no longer there. I want to know from this Government why it does not think it is a good thing for Kiwi parents to start their kids saving from the very earliest of ages. Because that is essentially what this is doing. Many parents have taken up the opportunity to get their kids started almost from birth and this Government is taking that opportunity from them.