by Rob Hosking
The office had funding for its education programmes cut in 2001 from $2.8 million to $1.688 million.This was despite rhetoric form Finance Minister Michael Cullen and other ministers about the need to encourage greater levels of saving amongst New Zealanders.
The commission this year bid for a return to the former level papers show. Not only within the commission, but in the wider financial services industry, there was an expectation that the larger continued government surpluses would provide room for at least some increase in the commission’s promotional budget.
The commission over the past couple of years spent $1.8 million on advertising, mostly because of underspend funds from previous years. This was used to promote the commission’s web site, Sorted, which has become a resource for people planning their savings.
The commission wanted an extra $1.125 million this year and each of the following three years to continue to promote this.
However, the Treasury recommended that budget bid be declined, even though, as the papers show, it conceded that “without a high level of advertising there is a risk that use or awareness of the site could fall and the investment in the development of the web site could be undermined.”
However Treasury officials advised that the commission still had funding for $945,000, and that this “would seem appropriate.”
Ministers went along with Treasury advice, and the Commission’s budget this year was - despite record government surpluses and growing focus on the retirement savings area – kept at the same level as previous years. The Commission’s overall budget is just over $3.7 million a year.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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