Sunday, April 29, 2012

Public Divided Over Retirement Age

Nearly half the country agrees with Labour's plan to raise the retirement age to 67 by 2033.

The result of the ONE News Colmar Brunton poll is a boost to Labour which went head to head with National today in a debate about who should run the country's finances.

The retirement age and asset sales were the hot issues debated between Bill English and David Cunliffe on Q+A this morning.

The poll shows the public is divided about the proposal to raise the retirement age, with 47% backing the plan and 48% opposed. The remainder didn't know.

The economy remains the core political argument as the country counts down to polling day, and with a debt crisis threatening several European economies both main parties are vowing to balance the books.

Labour is promising a capital gains tax, compulsory savings, moving the retirement age to 67 and more borrowing in the short-term.

National is planning partial asset sales but says there's no need to lift the retirement age and that it wants to cut spending rather than borrow.

Economy 'on track'

National's deputy leader Bill English told Q+A's Guyon Espiner New Zealanders are showing remarkable resilience in the face of the global finance crisis and he believes the economy is on track for growth.

"New Zealanders have been through global recessions, the earthquakes have had big impacts but they've rolled up their sleeves and got on with it," English said.

"I think they've (people) have got a sense of the direction and of course there's going to be all sorts of buffeting but this economy is now on track to growth by developed countries' standards, reasonable growth but it's vital we keep pushing in the right direction with stronger incentives, new jobs, stronger exports."

However Labour's finance spokesman David Cunliffe opted for big ideas to lift New Zealand's slumping economy.

"Part of it is solving the long-term problems holding the economy back. We (New Zealander's) don't save enough, we've got a damning external deficit and we need to get exports up and we've got a long-term fiscal crunch because of our ageing population," he said.

"Labour's got policies that sort all three out - savings - compulsory universal KiwiSaver; exports - monetary police, economic development; long term fiscal crunch - prefund super, raise the age gradually while protecting the vulnerable," he said on Q+A.

'Head in the sand'

National has ruled out raising the retirement age and Cunliffe says this shows it is a party with its head in the sand which "won't touch the age because they're worried about the politics".

Cunliffe said the fairest way to raise the retirement age is through a long and gradual transition.

And Labour is sticking by its pledge not to sell state assets.

"New Zealanders don't want the assets sold, that's very clear from many opinion polls, and for good reason, for a list of reasons.

"For one, it's not profitable; within nine years we'll be in a worst financial position than we are now so this is really stealing from tomorrow in order to paper over the cracks of today. We say let's put in place the solutions."

But English insists there are benefits to partially selling assets and pointed out that the National government intends to keep 51% of state assets.

"One, it gives New Zealanders something to invest their growing savings in, apart from finance companies," he said.

"Secondly it will get out public stock market back in action because growing jobs and exports needs formation of capital.

"It gives the government more opportunity to get more cash to invest in other infrastructure."

Source: http://tvnz.co.nz/election-2011/national-labour-poles-apart-economic-growth-4504340

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