Matt McCarten on Labour’s savings plan

Matt McCarten isn’t happy with Labours super plans:

Labour’s gamble on its unpredictable superannuation policy gives it media domination for the next few days, as political pundits praise Goff’s seriousness and responsibility on fiscal management. It hopes this will put Key on the back foot and open up a fruitful line of attack for Labour for the whole campaign.

But here’s the thing: making workers stay in their jobs two years longer and forcing them to hand over a percentage of their wages to a private company to invest into large capitalist corporations for a fee is not a pro-worker policy – no matter how it’s dressed up.

What happens when these companies go bust, like many have in the United States and Europe? People over there have had their entire savings wiped out through incompetence and, in some cases, downright theft.

The government doesn’t guarantee them and these people have been left penniless.

If both major parties were honest, they would admit the actual purpose of these KiwiSaver schemes is to privatise government superannuation by stealth.

Matt might have a problem with that, I certainly don’t. Labour will though:

In proposing that KiwiSaver becomes compulsory, the Labour Party is forcing workers to pay an additional flat tax towards their retirement.