Superannuation bill hangs in the balance
Speculation is mounting that the Green party won't support the New Zealand Government's plans to partially pre-fund New Zealand Superannuation.
Voting for the bill so far are Labour, its coalition partner the Alliance and Peter Dunne's United Future which gives the government a tantalising 60 votes - one short of a majority. National and Act are likely to vote against the bill, however spokesmen from the respective parties, Bill English and Rodney Hide said last week that their parties had yet to make up their minds.
Attention is instead being focused on the Greens and New Zealand First. NZ First has indicated that although the fund isn't in individual accounts it will vote for the bill.
Greens co-leader Rod Donald says his party hasn't made up its mind.
"We haven't given our support to the bill yet," Donald says. "We haven't made a commitment."
He says the Greens are still working out their position on superannuation and will be making an announcement soon.
Speculation is mounting that the Greens will vote against the bill. (They abstained on voting whether or not to send it to the select committee).
Donald says the Greens support the first part of the bill that sets the rate for NZ Super at 65 per cent of the average weekly wage. However, it wants to see the bulk of the dedicated fund invested in New Zealand and it wants the fund to be invested in a socially responsible way. On the broader front the Greens are not sure pre-funding addresses the key issues.
Donald says the Government can't be seen to be giving special treatment to the retired. He says it has to do things for other parts of society including the sick, beneficiaries and the unemployed.
Other issues of concern are that under the fund proposal a significant portion of Government revenue is being given to the private sector to manage, the fund will be liquidated at the same time other assets are being sold to fund pensions, hence values maybe eroded. Also the Greens ask whether it is better to put surpluses into the fund or to use them to pay off Crown debt.
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