More Government spin on Kiwislaver

KiwiSaver ‘bad news’ for small business – 27 Nov 2007 – NZ Herald: New Zealand Business and Personal Finance News

BusinessNZ has poo-poohed the report from the finance and expenditure select committee that compulsory employer contributions to KiwiSaver are unlikely to impose significant financial strain on small or newer businesses.
[quote]Business NZ chief executive Phil O’Reilly said he could not understand how the committee could come to the conclusion that small businesses would not be significantly affected.

“Employer contributions will be particularly onerous for small businesses as it will put their labour costs up.”

He said businesses like cafes would be faced with higher costs which would have to be passed on either through lower wage increases or by being passed on to the end customer.

He said Business NZ had been highly disappointed at the lack of consultation before the May announcement and was now feeling frustrated by changes that the Government was having to bring in to clarify the initial legislation.

O’Reilly said Business NZ would continue to work with the Government to make the best of the situation but he predicted further complications as the Government rushes to get the legislation for KiwiSaver mark two in place before the end of the year.[/quote]

This is exactly what Adolf and I predicted would occur. Kiwislaver will be nothing more for workers than their pay rise they can access when they turn 65. When people start to realise this it will further diminish Labour’s parlous poll results.

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