Real incomes will never catch up with Australia if the government contribution to Kiwisaver is slashed .
The superfund that Australians enjoy is a major part of every citizens income. The exodus of New Zealanders to Australian will only continue to increase if the benefits of Kiwisaver are reduced.
The Australian funds provide a major contribution to Australia sovereign funds and investment within Australia including industry, infrastructure and jobs We may be nuclear free but true independence is only achieved if your country is economically independent.
Kiwisaver, the New Zealand Superannuation Fund and Kiwibank are essential for our long term security and development .
The lack of development funds in New Zealand is detrimental to our national interest. The Kiwisaver funds which are invested by private fund managers provide not only retirement funds for every member but also have benefits for the local capital markets. The government also gets some income from this market.
If governments inter fare with this scheme than people will want to get out of it. This may affect over time the viability of the scheme and our new saving culture.
As employers we have encouraged all our staff to join Kiwisaver. They are not highly paid, have had no benefits from tax cuts but Kiwisaver provided a foundation for their aspirations . Cutting the government contribution for them will be another bitter pill.