There is a growing welfare crisis. Social welfare spending increases have been unstoppable. When I had my first vote in 1969 there were just 38,346 New Zealanders on a benefit. Thirty years later there are now 381,398 beneficiaries.
That’s one in seven adults at a cost of $13.7 billion dollars per annum- and these are just 1999 figures.
If you make a straight-line projection of the increase in benefits, you would believe that by 2020, 49% of all families will be headed by an adult on a benefit.
The figures don’t even include superannuitants – so following Cullen’s logic we should prefund the DPB.
Prefunding super from tax is one of the silliest ideas I have seen being seriously promoted. Repaying debt from surplus has got to be better than the government investing.
ACT intends entering the super debate with ideas of our own. Within the Party we have started a fundamental review of our superannuation policy ideas.
I like an idea that Len Bayliss has promoted. Let me quote him – "old people are not a burden – they are a valuable national asset already making major social contribution. They can make a much greater economic contribution, if through `Active Ageing' policies, they have the choice of actively participating in the workforce. Prefunding should be given a decent and speedy burial, so that `Active Ageing' policies can be developed within a soundly based political superannuation Accord.
This is an extract from a speech ACT leader Richard Prebble made to the Economists Conference.
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