Cnr Joe

I took out some words.

In Uncategorized on June 5, 2009 at 5:59 am
Key takes strong stance on shaky ground . . . the future of pensions
Friday, 5 June 2009

Most New Zealanders would have been pleased to hear Prime Minister John Key say he would resign.

It was a bold call considering the Government’s decision to make a 10-year suspension of  pension entitlements.

In last week’s Budget, Finance Minister Bill English announced ice until the Government’s books went back into surplus in 2020.

Not surprisingly, Labour has attacked the viability.

Government appears to be inevitable in the future.

The “Cullen Fund” as it was called, was set up to help.

And it certainly seemed a wise decision at the time. Nobody was hammering for a way to ease their problems.

But there is nothing like a recession to change the rules.

Today? Despite the tight economic conditions, Labour leader Phil Goff said if Labour had been in power it would have continued.

He added: “Clearly time does produce good  people going into retirement, does ease.”

We agree. All things being equal, the Cullen Fund would have achieved its objectives.

But belt-tightening is the order of the day.

National intends preserving future pension entitlements by keeping debt down and building economic growth.

It expects super to be funded out of taxes until 2030 and then the fund will make a contribution of up to 14 percent of the cost. It won’t be easy!

Story by The Gisborne Herald
Copyright © The Gisborne Herald

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