National's policy fine for big earners: Cullen

National’s policy of abolishing the New Zealand Superannuation Fund in favour of private tax incentives is fine for those able to save enough for a secure retirement but will mean misery for many New Zealanders," Finance Minister Michael Cullen says.

He said the government wanted people to save more and supported some form of voluntary savings incentive.

"We have simply ruled it out for the present term as there is not enough room in the coming budget to pay for it. These things are not cheap. Treasury costings range from $50 million a year at the most modest end of the scale to $171 million a year.

"Presumably National plans to find the money by cutting New Zealand super as it has explicitly ruled out maintaining current entitlements except for the presently retired and those soon to retire.

"What it has yet to tell us, and what the voters are entitled to know, is where it would cut and how deep.

"We are getting tired of these half baked announcements from National. If we are to have a proper debate we need policies to be fully detailed and costed. We also need to know what the spending priorities are as it is already evident that National is promising more than it could possibly afford.

"What would come first, Mr English? Tax cuts? Roads? Laptops? Fighter planes? And at what cost to the vital social services on which many low income people rely?"

This is a press release from finance minister Michael Cullen.

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