FSC urges Hipkins to take another look

FSC chief executive, Richard Klipin says he welcomes incoming Prime Minister Chris Hipkins and Deputy Prime Minister Carmel Sepuloni’s commitment to focussing on the cost of living and inflation.

“While there are a number of policy areas to focus on, the FSC and its members believe deferring the New Zealand Income Insurance Scheme, an expensive and complex policy which adds costs for businesses and employees alike during a cost-of-living crisis, should be near the top of the list.”

Last year FSC research found that only 18% of New Zealanders have appropriate levels of income protection. Klipin says while the FSC supports the vision as New Zealanders are under-insured and there is a need for a safety net, the policy development has been rushed with a lack of sector engagement. He adds that the scope has crept from the original proposal to include income issues that are not related to protection, thus driving more costs.

“Deferring the implementation would allow for more time to get the details right and protect workers and employers from additional costs at this difficult time,” says Klipin.