Swain Paul: Questions for Oral Answer — Questions to Ministers 
Swain Paul: Questions for Oral Answer — Questions to Ministers 
[Volume:649;Page:17753] 
2.  
Hon PAUL SWAIN (Labour—Rimutaka) 
 to the  
Minister of Finance 
: What action has the Government taken to restore and increase the level of New Zealand superannuation? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 One of the first things the incoming Labour-led Government did after the 1999 election was to restore the level of New Zealand superannuation to 65 percent of the average wage for a married couple. It had been cut of course by the previous National Government in which Mr English was a Minister of Finance. Since then and subject to the agreement with New Zealand First that floor has been lifted to 66 percent of the average wage. We have also set up the New Zealand Superannuation Fund to ensure the affordability of New Zealand superannuation into the long-term future. 
Hon Paul Swain 
: Has he seen any reports indicating support for the current superannuation system? 
Hon Dr MICHAEL CULLEN 
: Yes I have seen a report stating that Mr Key has pledged to resign if there are changes to superannuation policy in the unlikely event of a National Government. That of course is reminiscent of Dr Lockwood Smith’s famous 1990 promise to resign if we did not remove tertiary fees which then of course were massively increased. And of course there was the famous “no ifs no buts no maybes” promise to remove the superannuation surcharge which was then increased in the subsequent Budget by the National Government. But perhaps as Dr Smith said this is one of those “bloody dead fish you have to swallow” in order to do “some useful things that way that may not be policy right now.” 
Hon Jim Anderton 
: Can the Minister confirm that if we do not continue to save money through the New Zealand Superannuation Fund taxes on the current generation of young New Zealanders will have to increase in order to keep superannuation payments at the same level that they are at today or conversely if we cut savings in the Superannuation Fund and we do not increases taxes superannuation payments will have to be cut in the future? 
Hon Dr MICHAEL CULLEN 
: Yes. One of the great ironies would occur if a potential National Government reduced contributions to the Superannuation Fund in order to pay for tax cuts because the long-term effect of that would be to increase the tax rates that have to be paid in order to support New Zealand superannuation. 
Hon Paul Swain 
: Has he seen any reports on the desirability of the current levels of New Zealand superannuation? 
Hon Dr MICHAEL CULLEN 
: Yes I have seen reports from the Hon Bill English that describe the current provision of retirement income as “too generous” and speculate about the need for Australian-style income or asset testing. That is not surprising. Mr English is the man who cut the level of New Zealand superannuation— 
Hon Bill English 
: That’s not true. 
Hon Dr MICHAEL CULLEN 
: It is not true that Mr English cut the level of New Zealand superannuation in 1998-99? He has forgotten the legislation that cut the floor for superannuation payments to 60 percent of the average wage for a married couple down from 65 percent. He has forgotten he was part of a Government that froze New Zealand superannuation for 3 years out of 9 and that in only 6 of the 9 years gave an increase in superannuation payments.