Hughes Darren: Social Security (Entitlement Cards) Amendment Bill — Second Reading 
Hughes Darren: Social Security (Entitlement Cards) Amendment Bill — Second Reading 
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DARREN HUGHES (Labour—Otaki) 
: 
 I rise to speak in support of the second reading of the Social Security (Entitlement Cards) Amendment Bill. This is legislation that the Labour-Progressive Government was very pleased about and we were excited to be able to work with New Zealand First on it as part of the confidence and supply agreement that we have. We have a lot of hope and optimism that the SuperGold card will be something that older New Zealanders will be able to use and get benefit from in their thousands in the years ahead. 
It is time for us to have one central card for older New Zealanders that makes clear not only the range of Government services that are available to them but also through negotiation some of the commercial benefits that may be available. It is time to have those things on one card: the SuperGold card. 
Obviously the age demographic of New Zealanders over 65 is about half a million—about 540000 New Zealanders are in that age bracket—so they are quite a significant purchasing group if we choose to think about it in that way. They want to buy things in a number of areas that are conducive to their being able to have in effect a discount card—a SuperGold card—that reflects the contribution they have made to New Zealand over many many years. Of course it is also very handy when the Government is so busy doing so many things to try to make life a little easier for our superannuitants that a card can exist in a form that makes it very clear which services and benefits are available. This is one of the things that central government does to try to help older New Zealanders out after their long working lives after long lives spent raising families and after their having served New Zealand in times of conflict. 
Anzac Day provided us with another reminder that every year there are fewer and fewer of the World War II generation still with us but they are still a very important part of our country’s history. That is one of the reasons I understand that the SuperGold card has been pushed for—to be able to give tangible recognition to those 540000 people who are over the age of 65 and receiving New Zealand superannuation or a veterans pension. 
Hon Parekura Horomia 
: Hear hear! 
DARREN HUGHES 
: I hear the Minister of Maori Affairs call out: “Hear hear!” but I think he has quite a few years to go before he will be in receipt of this SuperGold card. 
Hon Parekura Horomia 
: 15. 
DARREN HUGHES 
: By then we will really have it in place so I say to the Minister that it will be really cranking by then. There will be businesses lined right up by then and quite a lot of people will be able to benefit from it. 
The thing about this SuperGold card that we are bringing in is that it is another reminder of the coordinated effort we are trying to make for our older New Zealanders. Just a month ago today on 1 April New Zealand superannuation—an entitlement under the parent legislation that we are debating the amendment to this afternoon—was increased by $40 per fortnight for a couple. We pay our pension out every fortnight so per payment it is $40 extra for a married couple and $26 a fortnight—or $26 per payment—for a single superannuitant. That is a significant increase. Members have to recall that just last year New Zealand superannuation went up as well—by $20 a payment. That reflected the confidence and supply agreement that the Labour-Progressive coalition Government has with New Zealand First. We raised the minimum base of New Zealand superannuation for married couples to 66 percent of the average wage. 
I am sad to say that this commitment we have has not always been shared by all parties in the House. We all remember the terrible time when Bill English was the Minister of Finance in this country and New Zealand superannuation was cut. We heard that member say today in question time that he thinks the Government spends too much money. That is news to my constituents because they want extra Government money spent on electrifying railway lines building the Western Link Road and getting Transmission Gully up and running. We want Government spending in these areas yet the National finance spokesperson—the same man who cut New Zealand superannuation in the 1990s—used question time today to say that the Government spends too much money. I am very disappointed that that is his view because putting a $40 per payment increase for married couples into New Zealand superannuation makes life a little easier for our pensioners. That is a real Labour-Progressive Government achievement. 
We are working with New Zealand First as part of our agreement to ensure that that kind of increase which comes along from the general money we get together through our taxation makes a big difference for those New Zealanders for whom it is a bit of a struggle to make ends meet when they are on a low fixed income. To hear that increase being criticised and opposed by the Opposition is a shame because that is an entitlement under the Social Security Act. 
This card is a reflection of a lot of the services that are available to older people. I think particularly of the rates rebate scheme which had a massive increase last year—up to a $500 maximum rebate for our senior citizens and the level at which it starts to abate out or reduce increased massively by up to $20000. A lot of senior citizens think that if they earn over $20000 they cannot get a rates rebate but that is not right. They can still apply for one. The amount of the rebate is reduced according to how many extra dollars they earn over $20000. That has been a great policy that a lot of superannuitants have been able to take up to try to help pay their rates bill. Obviously our councils are spending a lot of money on infrastructure and generational assets such as that. If superannuitants can get some assistance from central government by way of a rates rebate then that will be important. 
The Government made important changes for drivers over the age of 80 which came in last year. That is another service for older people that is available from the Government. We got rid of the previous National Government’s—and Maurice Williamson’s—really savage compulsory test for all drivers over the age of 80. It was not a fair test to have. We now have a medical “fitness to drive” test that has been welcomed by organisations like Grey Power. Such organisations have also welcomed the SuperGold card that we are debating at the moment. 
Of course the Government provides all sorts of services that might be able to be worked in conjunction with this card which provides people with the ability to use Government services and businesses as well. One of the areas that I think of immediately is the phase-out of asset testing that the Labour-led Government has commenced over the last few years. On 1 July this year funding in that area will increase by another $10000—and up to $170000. 
The other thing the Labour-Progressive Government has been busy doing is rolling out the primary health organisation strategy to reduce the cost of going to the doctor and paying for pharmaceuticals. 
Hon Jim Anderton 
: A very busy Government. 
DARREN HUGHES 
: It is a very very busy Government as the Hon Jim Anderton says. We are flat out around here. We are trying to do as many things as we can for old people. We are trying to get this card to be the best that it can be and trying to make a real effort in that regard to give a tangible benefit to our older New Zealanders which is such a crucial thing. For older New Zealanders the cost of picking up a pharmaceutical has now fallen to $3 for subsidised medicines. In a number of areas the cost of going to the doctor has about halved. Every year we used to see doctors’ fees going up. We know that older people go to the doctor in large numbers and they access health services so that policy has been important as well. 
The Government is making a great contribution by putting aside a slice of the surpluses we are running today—from the economic prosperity we have today—into the New Zealand Superannuation Fund so that this country can afford to pay for an ageing population as the baby-boom generation comes into retirement. Those people deserve to have dignity in their old age as well. So one of the big drivers from the Government service point of view which we are debating in respect of the card has not been to talk about just the 540000 people in our country who are retired and will be eligible for this card when it comes in in August but also about the New Zealanders who are yet to retire. The New Zealand Superannuation Fund is a very important part of that because that is a case of the Government saving for its own future. Now we have to try to encourage ordinary workers to be able to save out of their wages and salaries as well. I know that is hard because a lot of families are struggling to get by—they are just keeping their heads above water. Despite the fact that there has been an increase in the minimum wage and the introduction of Working for Families tax credits it is still hard to put aside money for savings. 
It is my real hope that from 1 July this year when KiwiSaver comes in we will get a real focus in our country again on savings so that it is about the Government saving for the future with the Superannuation Fund not being irresponsible with the surplus and frittering it all away. That is what the National Party wanted to do at the last election when it proposed $11 billion of tax cuts. To fund those tax cuts it was going to borrow half of that figure from offshore. We will not go down that path. Instead we are using the surpluses from today to be responsible and to build up the Superannuation Fund so that our country can afford to pay that guaranteed rate to those aged 65—to pay at least 65 percent of the average wage to married couples. 
So we can begin to see how important this bill is in respect of the SuperGold card because it involves the real bringing together of the two areas. The Government is doing its bit to try to help out older New Zealanders and to make life a little easier for them and to help working families that are coming into retirement. Also the business and private sector can offer their goods services and products at a lower cost to our pensioners thereby recognising the fact that there are 540000 of them and they are a significant buying group. 
I welcome this card. The Labour-Progressive Government is very pleased to be supporting it this afternoon. We know how important it could be in the future for people going forward. I welcome the second reading of this bill and I thank the Social Services Committee for the work its members have done. I also thank the Minister in charge of the bill the Rt Hon Winston Peters.