Budget to include savings plan

Finance Minister Michael Cullen says his May 19 budget will provide details of initiatives to encourage people to save.

"We believe the workplace is the ideal context in which most New Zealanders can arrange long-term savings, and so we will have a set of measures aimed at rebuilding strong work-based superannuation schemes," he said in a speech prepared for a financial services symposium in Sydney today.

"This will include mechanisms through which the Government will encourage participation amongst employees and minimise the transaction costs for employers."

Dr Cullen said the Government was focusing on a range of measures aimed at changing the savings culture, creating better infrastructure for saving, and ensuring that the retail savings industry delivered good results.

"A number of initiatives have already been signalled, and this year's budget in May will provide more detail," he said.

He indicated that ways to help people buy first homes would also feature in the budget.

"We introduced a mortgage insurance pilot in September 2004 as a first step toward assisting people into homes," he said.

"We are looking at further cost-effective ways of assisting home ownership among New Zealanders who would otherwise struggle to get these important first runs on the savings board."

- NZPA