Bayly Andrew: KiwiSaver Budget Measures Bill — First Reading Second Reading In Committee Third ReadingText is incorporated into the Bound VolumeBayly Andrew: KiwiSaver Budget Measures Bill — First Reading Second Reading In Committee Third Reading[Sitting date: 21 May 2015. Volume:705;Page:3811. Text is incorporated into the Bound Volume.]ANDREW BAYLY (National—Hunua):It has been a perverse couple of days I have got to say. We announced a policy of providing $790 million to families in need—and it is a great thing to do for New Zealand families—and yet we have got an Opposition saying: “No we do not want to support that.” Then we have got an Opposition that says: “We should not be removing this $1000 subsidy for the KiwiSaver.” and that it wants to support other people. Then at the same time we have got an Opposition saying that we need to be in surplus. The reality is I just cannot see how the Opposition can make those numbers work. What we are doing is actually focusing on the people who really need it. That is why we are putting $790 million into a scheme that is going to support the people whom normally the Opposition wants to support. We are the ones who want to care for them. We are the ones who want to respect them. It is not only a financial package; it goes with all the other things that we are doing such as the free doctors visits for children under 13. It is also about providing better housing for those families in need. It is about getting better outcomes for the children from those families in need and that is why this Government is so focused on it. I just cannot understand why this Opposition wants to stop all of these good measures that support these families in need. It is disappointing; it is actually illogical.I just actually want to now turn to the KiwiSaver issue itself. As our colleague before just spoke of the original target was to get 700000 people into KiwiSaver. Luckily and with good management and with setting the right parameters we have got 2.5 million people in this KiwiSaver scheme—2.5 million New Zealanders who have invested in it. That is a fantastic thing and I think that we should be celebrating that. But what people do not understand is that there are still very strong incentives to continue to invest in KiwiSaver and to want to join that scheme. I point to the $521 per annum that will be paid automatically by this Government into everyone’s KiwiSaver account when they turn 18 or when they get a job—$521 per annum every year until they retire. The second thing is that there is now another strong incentive for people to want to join this scheme and that is because we have introduced this package of housing measures—the KiwiSaver HomeStart grant package—which means that people should invest in KiwiSaver because they can access more money to get the first deposit to buy their first home. That is why there are still incredibly strong incentives to be involved in this KiwiSaver scheme.I now just want to turn to some advice we received from the other side of the House. I heard these strange figures. If you invested $1000—and I presume that is from when you are born—due to compounding interest I think the figure was that you would get to $140000. I sat down before and did just a couple of little calculations and I am just struggling to make it work. Let us assume that from year zero to 65 years old we are averaging say a 5 percent per annum return. I realise that because of the wonderful management of the New Zealand Superannuation Fund we are achieving 10 percent but I have used the figure for the long-term run average of 5 percent. Actually if you used discount rates and things you are normally work about 6 percent but anyway at 5 percent do you know what the figure is? It is certainly not $140000. If you invested the $1000 at day one it would actually be worth about $23600 over 65 years. That is just a far cry from what I heard from over on the other side.Look the reality is what we are doing with that $1000 is diverting it to the people who we believe need it most. I just cannot understand why anyone in this House would want to sit there and shout out and decry what this Government is doing. This is about a Government that cares about families and that has done concrete things to make it achieve those things that will improve the lifestyle of these people create jobs and give them the dignity and the respect that they deserve. I commend this bill.