KEY POINTS:
Prime Minister Helen Clark today vowed that the New Zealand superannuation scheme would remain in place despite the introduction of Kiwisaver.
She accepted there will be people who won't be able to afford to participate in the new saving scheme and said: "I'm absolutely committed to a good universal New Zealand superannuation scheme set at a level on which people can live in dignity, that should never change."
From July, Kiwisaver will offer incentives to workers to save for retirement, including tax breaks and employer contributions.
Speaking on TV One's Breakfast programme Miss Clark said a National Government had previously proposed replacing it with a compulsory saving scheme.
"Well that's just not on. You've got to have your good basic pension," she said.
"Now there will be people however who could save with a bit of an incentive and that's what Kiwisaver is all about.
"If you've got the ability to save Kiwisaver makes it very easy for you to save."
That fact that some people couldn't save was no reason not to offer a scheme to those who could, Miss Clark said.
She also said the Working for Families scheme would help the poorer group.
On TV One's Agenda programme on Saturday, National Party deputy leader Bill English said he was concerned about the requirement for businesses to contribute 1 per cent of a worker's gross salary, rising to 4 per cent in 2011-2012, and it was something the party would look at.
"I think particularly small businesses felt ambushed by the compulsory contributions," he said.
Mr English said bigger firms often already offered schemes but small businesses and groups such as charities would be hard hit.
National Party leader John Key also talked about what National would do in power, in a speech yesterday to the Canterbury-Westland regional party conference.
He criticised Finance Minister Michael Cullen's budget, saying taxpayers were missing out on relief and would pay more through fuel taxes.
Mr Key said: "I know I am safe in saying this -- you will never get a personal tax cut while Michael Cullen is Finance Minister.... In Bill English's first budget you will get a tax cut."
- NZPA
