What factors were taken into account when determining the size of the recently announced increase in New Zealand superannuation?
ANSWER: In October 1999, the-then National government chose to break the Superannuation Accord by dropping the wage floor to 60 percent. National’s intention was that NZ super would steadily lose value relative to wages. The restoration of the 65 percent floor has reversed this decision and in doing so fulfilled a key election commitment by both coalition partners. We have ensured retired New Zealanders remain in touch with mainstream NZ society. Grey Power has said this policy has put smiles on the face of NZers. Charles Waldegrave said this has saved 200,000 New Zealanders from falling below the poverty line. Michael Cullen’s mum is very happy.
Q6. RODNEY HIDE to the Minister of Finance:
What is Treasury's estimate for a married couple's pension, set at 65% of the average wage, on 1 April 2003 using the old average wage measure, and what is its estimate using the new average wage measure announced at the beginning of this year?
ANSWER: Using the new average earnings measure Treasury estimates the net married couple rate for NZ Super to be $367 per week on 1 April 2003. There is no way to confirm what the result under the old earnings measure would have been, as that series is no longer being produced. What I can confirm, is that the married rate under the old National-ACT bloc policy would have been a little under $346 a week or over $21 a week less.
Q7. GRANT GILLON to the Minister for Industry and Regional Development:
What is the expected effect on regional development of the Government's $21.42c a week increase in the base rate of New Zealand superannuation?
ANSWER: The increase in superannuation will pump money into local economies. Northland will get another $29 million over four years, the East Coast will get $35 million, 48,821 superannuitants in the southern region will get $97 million. Overall an extra $684 million will be spent in local economies by superannuitants. That has a very significant effect in promoting regional development. In Rakaia, 6075 superannuitants are better of under this government than last century’s government lead by the member for Rakaia.
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