KEY POINTS:
The Government is remaining silent about strong hints from New Zealand First leader Winston Peters that next month's Budget will give a tax concession for retirement savings.
Prime Minister Helen Clark was last night saying nothing about Mr Peters' comments.
She described herself as "the tightest vessel around" on Budget matters, and would not confirm or deny what Mr Peters said.
Finance Minister Michael Cullen was also silent.
Speculation that the Government might try to find a way to link a tax cut to KiwiSaver has arisen before, because Dr Cullen is wary of cutting tax in a way which could fuel inflation.
But if it were possible to have a tax cut that gave an incentive to saving and did not lead to more spending, it is thought Dr Cullen might entertain the idea.
Mr Peters said on the Agenda television programme over the weekend that what was in the Budget was a "long way in the right direction", and would benefit the "great bulk of wage and salary earners who opt to be smart" about it.
He said New Zealand First had pushed for some kind of personal tax cut for Kiwisaver contributions.
Such a move would potentially offer some relief for Labour from accusations that the party has not given workers a tax cut in more than seven years in Government.
But there is bound to be argument over whether a concession linked to Kiwisaver amounts to a tax cut.
Speculation over how a tax break could be linked to Kiwisaver is rife, and with the Government doing nothing to dampen it, several theories are emerging.
The frontrunner is one suggesting that contributions to Kiwisaver will be tax-free, or at least partially tax deductible.
