Prime Minister John Key is making a mockery of his promise to seek an election-day mandate on changes to KiwiSaver, says Labour’s Finance spokesperson David Cunliffe.
“The Government’s contributions to KiwiSaver are effectively paid a year in arrears,” David Cunliffe said. “John Key has now confirmed that the payment at the end of June 2012 will be at half the rate --- $521.43 per member instead of $1042.86 --- that currently exists.
“In other words, the Government has already budgeted on a 50 per cent reduction in its contribution before it goes to the electorate for a mandate.
"If there was any doubt that the Prime Minister had lied about seeking a prospective mandate for KiwiSaver, it was removed by the legislation he had passed through Parliament under urgency last week.
“Part 2, Clause 7 (4) says the clauses relating to the reduced tax credit ‘apply for calculating a tax credit for the year starting on 1 July 2011 and later years’.
“If that’s what seeking a mandate means, it’s a farce,” David Cunliffe said.
“John Key also says he is seeking a mandate on asset sales. If his KiwiSaver promise is already shown up to be so fraudulent, how much faith can Kiwis have in what he’s saying about selling off New Zealand-owned power companies?
“Kiwis can take it for granted that while he claims piously for the rest of the year that he will seek a mandate from New Zealanders to sell off what Kiwi Mums and Dads already own, that work will be going on behind the scenes to prepare the assets for sale,” David Cunliffe said.
“John Key needs to front up and tell Kiwis what his definition of mandate is. It’s not one that will be found in any dictionary I know.”