Tremain Chris: Taxation (Urgent Measures and Annual Rates) Bill — In Committee Third Reading 
Tremain Chris: Taxation (Urgent Measures and Annual Rates) Bill — In Committee Third Reading 
[Volume:651;Page:240] 
CHRIS TREMAIN (National—Napier) 
: 
 I would like to bring the debate on Part 4 back to where Dr Cullen was going with it. He talked about the real world which he likes to speak about although I am not too sure he inhabits it. It is certainly not a world he inhabits on the campaign trail—that is for sure. When we were out on the campaign trail in provincial towns like Napier KiwiSaver was one of the key things that hard-working Kiwis wanted to ask about. They wanted to know what National’s position on it was. I visited many many businesses such as Reinforcing Steel and Mesh Brebner Print Napier Engineering and Contracting and AllBrite and talked to lots and lots of employees at the coalface. 
First and foremost before touching on that I congratulate the 800000 people who have signed up to KiwiSaver. I think that is a good start to the scheme. Congratulations and well done! But Mr English is correct. The count is out as to how successful it will be. On a number of occasions when in Opposition I asked written questions of the Minister of Finance. I wanted to know how many of the 800000 people who are in the scheme are on $50000 or less a year. 
Hon Annette King 
: About half. 
CHRIS TREMAIN 
: Oh rubbish! Half are on $50000 or less? How many are on $40000 or less? I asked written questions of the Minister but I did not receive any replies. He could not give me any answers. 
Hon Annette King 
: You can have those answers. 
CHRIS TREMAIN 
: Can I? There were no answers to those questions. 
When I was on the campaign trail I was out in the real world talking to hard-working Kiwis. Guys at AllBrite for example are on $12.50 an hour $13.50 an hour or $14 an hour. They are hard-working Kiwis working 50 to 55 hours a week. It is hard out there. I asked in the canteen how many of them were in KiwiSaver. Only one or two out of 20 put up their hand and said that yes they were in KiwiSaver. I asked whether it was the 4 percent contribution that had put them off. Most of them said that yes they cannot afford it. People on $30000 $35000 or $40000 cannot afford to contribute 4 percent of their income. When I asked them whether they would join up at a 2 percent level not everyone in the canteen said yes—that would be exaggerating—but certainly a significant number above two or three said they would be interested. 
Why it is important that those guys at that end of the income scale get into KiwiSaver? Because right now they are missing out on that tax advantage. Right now they are missing out on the $1040 that Labour is saying we are trying to cut out from under their feet. Actually we are giving them access to it. 
Darien Fenton 
: Rubbish! 
CHRIS TREMAIN 
: Rubbish? I say to Ms Fenton that one has to be in the scheme to get access to the credit. She should understand that. If one is not in the scheme one does not get access to the credit. What we are doing is helping hard-working Kiwis to get into the scheme and get that tax break. 
Hon Annette King 
: What a load of rubbish! 
CHRIS TREMAIN 
: Rubbish? People have to be in the scheme to get the credit. Unlike the Labour Government we are out there trying to help hard-working Kiwis. On the campaign trail it was clear that Kiwis want the opportunity to be in KiwiSaver. People on under $40000 want to be in it and now we are delivering that opportunity. Just 32 days after the election we are in the House giving those Kiwis the opportunity to get into the scheme at 2 percent— 
Hon Darren Hughes 
: So why isn’t the Government budgeting for an increase in savings? 
CHRIS TREMAIN 
: They can voluntarily put in 4 percent of their income I say to Mr Hughes. They can go up to 8 percent—so can the employer. They will get access to the credit. Employees around the country on low income levels will get a significant tax break. That is great. I am proud of what we are doing here today. We are delivering what we said we would. We were totally transparent throughout the election process about what we would do. Now we are delivering on our promises going forward. Thank you Mr Chair.