KEY POINTS:
People looking at signing up to KiwiSaver are unlikely to know before it starts whether it would remain the same if there is a change of Government next year.
The retirement savings scheme took centre stage in last week's Budget, receiving an overhaul that included a requirement for
employers to contribute money and a payment boost from the Government.
The employer contribution took many by surprise, including the National Party, which has not yet said whether it would keep KiwiSaver the same if it wins the next election.
Asked yesterday if the party would reveal its position before July 1 so savers joining the scheme would have some certainty of its future, finance spokesman Bill English said that was unlikely.
He said National had given an indication of certainty when it earlier said it would keep KiwiSaver in its original form, but it was not consulted on the "significant" changes and had not yet been able to assess them.
National is in an awkward position politically as it mulls over what to do with KiwiSaver should it win power.
The economic environment the party will be working in next year is not clear yet, and the costs of the scheme changes outlined in the Budget will affect how much money is available for National to offer in personal tax cuts.
National is also likely to want time to gauge public opinion and to attack the Budget rather than swiftly endorse its showpiece.
But by refusing to outline its position on KiwiSaver until next year, it runs the risk of seeing thousands of savers start pouring money into the scheme who would be angered if it was watered down.
Mr English blamed the uncertainty for potential savers on the Government suddenly bringing in changes.
He said the only way savers could have certainty would be if National gave some kind of "unequivocal tick off" to KiwiSaver before July 1, and "that's highly unlikely".
On the Agenda television programme at the weekend, Mr English said National was concerned about the compulsory employer contribution, which many small businesses felt "ambushed" by.
Yesterday, he said only that the employer contribution had generated by far the most negative reaction of all the changes.
Asked if the Government's changes made delivering personal tax cuts harder, Mr English said National was committed to lower taxes.
A spokesman for Finance Minister Michael Cullen said National's unwillingness to state its position on KiwiSaver suggested "this is yet another Labour policy that they're going to adopt, just like they adopted interest-free student loans".
"They're not being honest with voters, just as they aren't willing to say what public services they'll cut to fund their tax cuts."
Prime Minister Helen Clark yesterday moved to assure voters that KiwiSaver was not a replacement for New Zealand Superannuation payments. She said the scheme was supplementary to superannuation.
