Burns Brendon: Taxation (GST and Remedial Matters) Bill — In Committee Speaker Recalled In Committee Procedure Third Reading 
Burns Brendon: Taxation (GST and Remedial Matters) Bill — In Committee Speaker Recalled In Committee Procedure Third Reading 
[Volume:669;Page:16153] 
BRENDON BURNS (Labour—Christchurch Central) 
: 
 Here we are debating Part 5 clauses 94 to 100 of the Taxation (GST and Remedial Matters) Bill. Again I note with some disdain the fact that part of the Minister of Revenue’s 70-page Supplementary Order Paper 187 relates to clause 94 of Part 5. The comment I will make relates to the need for very great care to be taken with matters involving superannuation. We deal with issues that traverse generations when we make changes to superannuation. Of course KiwiSaver is the basis for saving introduced by the last Labour Government and this legislation amends the original 2006 Act. The signals are that this is probably a technical amendment but the Government does need to tread very carefully in respect of superannuation given its track record which is poor to say the very least. It dates back to Sir Robert Muldoon’s change to superannuation in 1975 changing from a contributing scheme to a “pay as you go” scheme for national superannuation. This was a retrograde step that ended a contributing scheme that would have seen New Zealand as a much wealthier nation today if it were still in place. It continued through to Jim Bolger’s “no ifs no buts no maybes” on the surcharge which was rapidly overturned as soon as National got into Government. It was followed in 1995-1996 by the Shipley administration taking national superannuation from 65 percent of the average wage back to 60 percent of the average wage. That was also regarded by New Zealanders as wholly inappropriate and that Government was judged in large part in 1999 on the basis of that leading to a change in Government.  
So this Government needs to tread very warily when it comes to making changes to superannuation. That is why when debating Part 5 of the bill and noting that we have a Supplementary Order Paper introducing new clause 94B without any consideration other than this rapid debate in the Chamber under urgency 2 weeks before Christmas Labour members have to express very real concern because superannuation is something that stretches from teenagers—in fact even further than that. We have a number of children who have been enrolled in KiwiSaver with parents starting a saving regime obviously encouraged and sparked by the Government contribution. I say that is fine if it gets the saving habit established. The Government contribution was introduced in the KiwiSaver Act 2006 which is amended by the Part 5 of the bill most of which I acknowledge came through the select committee in the appropriate process but we do have the 70-page Supplementary Order Paper from the Minister which has come out of nowhere as far as Labour is concerned in the last 48 hours. It has a new clause that is making changes without any opportunity for input or consideration other than the very narrow window of opportunity provided here in the Committee stage and in the third reading of the bill. We have to note considerable concern about that.  
Supplementary Order Paper 187 makes changes in respect of those receiving payments such as accident compensation or parental leave payments who are not deemed to be in new employment. This may well be a technical change but as experience has shown over the years when it comes to tax legislation and most especially when we see tax legislation that affects superannuation we need to proceed with great caution. Obviously this debate is ongoing. We received the report of the Retirement Commissioner just this week which suggested changes to the age of eligibility for superannuation. Obviously those are issues that Parliament may have to consider at some point. But at the moment what we as a Parliament have in front of us in this Committee is a change introduced by Supplementary Order Paper to the legislation.  
I note that there are always good ideas about superannuation. When we were debating KiwiSaver back in 2006 there were a host of things. It is appropriate that good ideas are given consideration by Parliament. It may be that Supplementary Order Paper 187 is introducing a change that is well considered worthy and makes the appropriate changes but it does need to be aired properly through the parliamentary structure and through the select committee process.