Latest news with #Swarbrick
NZ Herald
26-05-2025
- Business
- NZ Herald
Prime Minister Christopher Luxon, Finance Minister Nicola Willis to speak post-Budget in Auckland
'I think there are some benefits with universal superannuation … and if you are to make any change to that area we have to phase it in over a large period of time," she said. National previously campaigned on increasing the superannuation age gradually over many years, but the party's policy platform for the 2026 election has not yet been decided. Willis also confirmed yesterday that government departments and agencies were assessing the potential cost of the decision to phase in increased employer contributions to KiwiSaver. The default rate will reach 4% by 2028. She told RNZ any cost could be met with new spending in next year's budget, or be covered through cuts. Her comments came after the Green Party claimed the additional cost of potentially $700 million had not been accounted for in this year's Budget, which Willis deemed 'ludicrous'. Green Party co-leader Chlöe Swarbrick claimed the Government had failed to account for what could be $633m-$714m in additional costs. 'If she's honest with New Zealanders, that means the Government has intentionally hidden more than half a billion dollars extra in public service cuts to come,' Swarbrick said of Willis. The potential financial burden for the Government is referenced in the Treasury's Budget Economic and Fiscal Update, but it did not come with a cost estimate. Willis claimed Swarbrick's numbers were 'out of whack' and 'quite ludicrous' but acknowledged Crown agencies were currently assessing the 'potential implications'. 'They'll then provide advice to the Government. If additional funding is required, I expect it would have to take the form of a pre-commitment against next year's budget operating allowance,' Willis said. However, she later told RNZ it was possible any costs could be satisfied by cuts, while noting it was 'far too soon to say'. 'It may be that we say this needs to be met with additional funding, it may be that we say there's something we can reprioritise elsewhere.' Willis said she expected all government contractual obligations, including those regarding KiwiSaver, to be met and suspected employer contributions would form part of future pay round negotiations. She acknowledged the Government had 'limited visibility' of what its KiwiSaver obligations were. Swarbrick predicted the Government would cut spending from essential public services to make up the extra cost. 'If the Government doesn't front up with the funds between now and April next year when the first set of changes come into force, Christopher Luxon and Nicola Willis will be forcing immediate cuts directly to frontline services in health, education and social services to pay for their fiscal hole.'
NZ Herald
25-05-2025
- Business
- NZ Herald
Budget 2025: More cuts possible to cover Govt's extra KiwiSaver costs
The Government also halved its contribution to $260 for people earning less than $180,000 and scrapped it entirely for those earning more. Across the next four years, it would give the Government almost $2.5 billion in savings and more than $500m in expected revenue. In a statement this morning, Green Party co-leader Chlöe Swarbrick claimed the Government had failed to account for what could be $633m-$714m in additional costs. 'If she's honest with New Zealanders, that means the Government has intentionally hidden more than half a billion dollars extra in public service cuts to come,' Swarbrick said of Willis. The potential financial burden for the Government is referenced in the Treasury's Budget Economic and Fiscal Update, but it did not come with a cost estimate. Willis claimed Swarbrick's numbers were 'out of whack' and 'quite ludicrous' but acknowledged Crown agencies were currently assessing the 'potential implications'. 'They'll then provide advice to the Government. If additional funding is required, I expect it would have to take the form of a pre-commitment against next year's budget operating allowance,' Willis said. However, she later told RNZ it was possible any costs could be satisfied by cuts, while noting it was 'far too soon to say'. 'It may be that we say this needs to be met with additional funding, it may be that we say there's something we can reprioritise elsewhere.' Willis said she expected all government contractual obligations, including those regarding KiwiSaver, to be met and suspected employer contributions would form part of future pay round negotiations. Swarbrick predicted the Government would cut spending from essential public services to make up the extra cost. 'If the Government doesn't front up with the funds between now and April next year when the first set of changes come into force, Christopher Luxon and Nicola Willis will be forcing immediate cuts directly to frontline services in health, education and social services to pay for their fiscal hole.'
Otago Daily Times
25-05-2025
- Business
- Otago Daily Times
Greens claim $700m 'uncosted hole' in Budget
By Susan Edmunds of RNZ The government could face an unbudgeted hole of hundreds of millions of dollars in increased KiwiSaver contributions for public sector workers, the Green Party says. As part of the Budget last week, the government announced that the default KiwiSaver contribution for employees and employers would lift to 4 percent, in stages. But the Green Party said the government had not accounted for that increase for its own employees in its books, and over the Budget forecast period it could add up to $714 million in costs. Co-leader Chloe Swarbrick said last time the government increased the compulsory employer contribution, it set up a fund to help cover its costs. The increased cost to government as an employer was highlighted in the Budget Economic and Fiscal Update and in the KiwiSaver reforms regulatory impact statement. "What we've found is what we believe to be a hole in the government Budget, an uncosted hole of anywhere from $633m to $714m over the forecast period," Swarbrick said. "The Crown is obviously an employer of thousands and thousands of people with billions and billions of dollars in wage bills. If we're to project from the base line of around 72 percent of the population... at the default rate which is increasing, the Crown will have an increased liability to meet those employer contributions." She said the government either did not spend enough time working it out, or was "intentionally hiding or obscuring what I'm sure the minister will say are going to have to be new cuts that agencies and ministries will be forcing departments to make to account for the increased contributions". Finance Minister Nicola Willis's office said the potential cost had been noted. "Crown agencies as employers will assess the potential implications for agency budgets. If any additional funding is required, it would count against the Budget 2026 operating allowance." But Swarbrick said it was not being sufficiently upfront. She said it seemed the government did not want to be seen to be being "mean" by just halving the member tax credit, to $260 a year, and so had to increase contributions at the same time. It should have happened as part of more consultation and a full review of retirement settings, she said. "This will be an additional cost as soon as the changes come into effect." Employers who offer total remuneration packages to employees will dodge some of the increase but Swarbrick said it was clear that the government would not be able to shift people on to that arrangement to avoid the increase in a way that reduced their take-home pay. Craig Renney, policy director at the NZ Council of Trade Unions and a member of the Labour Party Policy Council, said it was an issue for the government as an employer. "It would be good to know what calculations they have made themselves as to their additional remuneration costs. Is the Crown going to force workers to eat the increase themselves? It would set a very bad example for the rest of the market." He said good employers should see the increase as an opportunity to improve employees' retirement outcomes. "The risk is that for some employers they might view the 'total remuneration' of their employees as a single package. That would mean they would expect any increase in KiwiSaver to come from the same money. That would mean lower real pay increases for employees and less cash in hand. "Given that we have very weak demand in the economy, there are probably limited opportunities for employees to get a different job - especially with unemployment forecast to keep rising. Ultimately, that would mean that the government has set up a system where employees end up paying for increased employers contributions to their own KiwiSaver. "There are some industries where there might be a simple pass-on to the consumer for these costs, but again, in a subdued market these are probably fewer than you might expect. These are probably also higher income earners, so the likelihood is that lower income earners will be more likely to face that 'total remuneration' issue. That will simply compound existing income adequacy problems in New Zealand." Employees will be able to opt to return their contribution to 3 percent, matched by an employer's 3 percent. Renney said there was a risk some people could face pressure to do so. "Again, it is likely to low paid/lower market power employee who face this challenge. Secondly, if we make it easier to become a contractor - where this is not an issue - this move will encourage employers to pretend that their employees are contractors. The current proposed changes by government in that regard might drive more of that behaviour, putting workers at a significant disadvantage."
Scoop
21-05-2025
- Politics
- Scoop
Greens Must Reject ‘Tokenism' To Connect With Marginalised Communities
'People are right to be frustrated,' the co-leader tells Guyon Espiner. But she says 'tokenism' isn't the answer. , Producer – 30′ with Guyon Espiner Green Party co-leader Chlöe Swarbrick says her party must confront the uncomfortable reality that it continues to struggle with support from lower-income New Zealanders, despite advocating policies aimed squarely at economic and social justice. In a wide-ranging interview on RNZ's 30 With Guyon Espiner, Swarbrick said the Greens were committed to engaging beyond their traditionally urban, affluent voter base, but acknowledged it was a 'big issue we have to crack open'. 'Lower-income people tend to not vote, and that is a really big issue,' she said. 'We haven't got there yet, but that's why we need to keep going.' Swarbrick admitted the Greens have work to do to be more 'present' with marginalised New Zealanders, conceding the left has not always earned trust. Swarbrick said building trust means 'actually listening to people and understanding what their issues are, and working with them to create solutions'. 'We need to have quite a lot of humility in building rapport with communities who do not engage with politics at all. Identity politics – 'People are right to be frustrated' Swarbrick also addressed claims both from political opponents and parts of the left that 'progressive' identity politics have contributed to a global backlash enabling the rise of right-leaning populist figures like Donald Trump. Former Labour finance minister David Parker recently criticised the political left's 'obsession' with identity issues to the detriment of meaningful progress during his valedictory speech. In response, Swarbrick argued that representation initiatives and material outcomes for society are not mutually exclusive. But she also noted the missteps of superficial diversity efforts that fail to shift power. 'Anything other than material redistribution is tokenism.' 'People are right to be frustrated,' she said. 'But some of these self-styled strongmen are punching down, scapegoating minority groups instead of confronting the systems that caused inequality in the first place.' She pointed the finger instead at other political leaders inflaming culture wars. 'If we're going to talk about who's inviting this inflammatory culture war, it's the deputy prime minister deciding to bicker about what bathrooms people can use.' Greens' Wealth Tax: 'We've shown people our hand' Swarbrick also defended her party's proposed wealth tax, a 2.5 percent annual levy on net assets over $2 million, as a necessary structural change. She addressed criticism that such a tax could hurt asset-rich, income-poor homeowners. When asked how the Greens could justify making a widow living on the pension in a family home pay an annual wealth tax of $25,000 or more, Swarbrick was unapologetic, noting the policy includes a deferral mechanism. 'If they don't have income at the time, the tax can accumulate against the property.' 'This is about the top 3 percent,' she said. 'It unlocks the resources necessary for all of us to live better lives.' Swarbrick also backed a wealth transfer tax on large inheritances and gifts, framing it as a matter of fairness. 'That income hasn't been earned, it's been passed on. We all belong in this country and have a responsibility to support it.' The tax platform is central to the Greens' alternative budget and is expected to be a key issue in the next election campaign. 'We've shown people our hand,' Swarbrick said. 'If we want to have the country that all of us ultimately deserve, we are going to radically need to turn this economy around.' Would work with National – but only on Greens' terms While stopping short of confirming openness to a National coalition, Swarbrick said the Greens could work with 'anyone' who supports meaningful action on climate and equity. Pressed on whether the Greens would consider governing with National, Swarbrick replied: 'Sure. If the National Party were to completely U-turn on their callous, cruel cuts to climate, to science, to people's well-being.' She noted some cross-party work on climate adaptation legislation but was critical of National's wider climate approach. 'Right now they are knowingly shredding climate action,' she said, referencing the party's emphasis on carbon capture technology. Her comments hint towards a more pragmatic stance compared to previous Green leaders, though she made clear any cooperation would require a 'demonstrably different' National Party. 'The Green Party has always stood for both environmental and social justice,' she said. 'These were never separate issues.'
Scoop
21-05-2025
- Politics
- Scoop
Greens Must Reject 'Tokenism' To Connect With Marginalised Communities
, Producer - 30' with Guyon Espiner Green Party co-leader Chlöe Swarbrick says her party must confront the uncomfortable reality that it continues to struggle with support from lower-income New Zealanders, despite advocating policies aimed squarely at economic and social justice. In a wide-ranging interview on RNZ's 30 With Guyon Espiner, Swarbrick said the Greens were committed to engaging beyond their traditionally urban, affluent voter base, but acknowledged it was a "big issue we have to crack open". "Lower-income people tend to not vote, and that is a really big issue," she said. "We haven't got there yet, but that's why we need to keep going." Swarbrick admitted the Greens have work to do to be more "present" with marginalised New Zealanders, conceding the left has not always earned trust. Swarbrick said building trust means "actually listening to people and understanding what their issues are, and working with them to create solutions". "We need to have quite a lot of humility in building rapport with communities who do not engage with politics at all. Identity politics - 'People are right to be frustrated' Swarbrick also addressed claims both from political opponents and parts of the left that "progressive" identity politics have contributed to a global backlash enabling the rise of right-leaning populist figures like Donald Trump. Former Labour finance minister David Parker recently criticised the political left's "obsession" with identity issues to the detriment of meaningful progress during his valedictory speech. In response, Swarbrick argued that representation initiatives and material outcomes for society are not mutually exclusive. But she also noted the missteps of superficial diversity efforts that fail to shift power. "Anything other than material redistribution is tokenism." "People are right to be frustrated," she said. "But some of these self-styled strongmen are punching down, scapegoating minority groups instead of confronting the systems that caused inequality in the first place." She pointed the finger instead at other political leaders inflaming culture wars. "If we're going to talk about who's inviting this inflammatory culture war, it's the deputy prime minister deciding to bicker about what bathrooms people can use." Greens' Wealth Tax: 'We've shown people our hand' Swarbrick also defended her party's proposed wealth tax, a 2.5 percent annual levy on net assets over $2 million, as a necessary structural change. She addressed criticism that such a tax could hurt asset-rich, income-poor homeowners. When asked how the Greens could justify making a widow living on the pension in a family home pay an annual wealth tax of $25,000 or more, Swarbrick was unapologetic, noting the policy includes a deferral mechanism. "If they don't have income at the time, the tax can accumulate against the property." "This is about the top 3 percent," she said. "It unlocks the resources necessary for all of us to live better lives." Swarbrick also backed a wealth transfer tax on large inheritances and gifts, framing it as a matter of fairness. "That income hasn't been earned, it's been passed on. We all belong in this country and have a responsibility to support it." The tax platform is central to the Greens' alternative budget and is expected to be a key issue in the next election campaign. "We've shown people our hand," Swarbrick said. "If we want to have the country that all of us ultimately deserve, we are going to radically need to turn this economy around." Would work with National - but only on Greens' terms While stopping short of confirming openness to a National coalition, Swarbrick said the Greens could work with "anyone" who supports meaningful action on climate and equity. Pressed on whether the Greens would consider governing with National, Swarbrick replied: "Sure. If the National Party were to completely U-turn on their callous, cruel cuts to climate, to science, to people's well-being." She noted some cross-party work on climate adaptation legislation but was critical of National's wider climate approach. "Right now they are knowingly shredding climate action," she said, referencing the party's emphasis on carbon capture technology. Her comments hint towards a more pragmatic stance compared to previous Green leaders, though she made clear any cooperation would require a "demonstrably different" National Party. "The Green Party has always stood for both environmental and social justice," she said. "These were never separate issues." Watch the full conversation with Chloe Swarbrick and Guyon Espiner on 30 With Guyon Espiner.
