18 May 2011

National committed to KiwiSaver in long term - English

1:18 pm on 18 May 2011

Finance Minister Bill English says he wants to reassure voters that National is committed to KiwiSaver in the long term, as he prepares to make cuts to its members' entitlement in Thursday's budget.

Mr English made his comment on Wednesday at the traditional pre-Budget photo opportunity beside the printing press in Petone which produces the budget documents.

A main feature of the budget will be cuts to KiwiSaver and Working for Families, and changes to interest-free student loans.

Mr English says the changes are needed to get the Government's books back into surplus.

He won't rule out further modifications to the KiwiSaver scheme, but says it wouldn't be anything major.

He said he expected that as the economy improves, governments would be more likely to look at increasing rather than decreasing incentives.