20 Oct 2013

NZ First proposes 'Kiwifund' plan

9:58 pm on 20 October 2013

The New Zealand First party is proposing to change the KiwiSaver retirement scheme to a Government backed and managed fund called Kiwifund.

Winston Peters announcing the Kiwifund policy.

Winston Peters announcing the Kiwifund policy. Photo: RNZ

The party's leader, Winston Peters, announced the policy at its annual conference in Christchurch on Sunday and said it will be a bottom line for any coalition agreement involving New Zealand First.

Under the plan, Kiwifund would be Government-guaranteed and would invest substantially in New Zealand.

Mr Peters said over the past six years private companies had sucked more than $325 million from KiwiSaver in management and investment fees.

"Our plan is to change KiwiSaver so that it is truly Government-backed and managed retirement fund and because of the economies of scale and the elimination of hoards of ticket clipping fund managers, costs will be greatly reduced."

Mr Peters estimated that over the next 30 years those interests could take a further $22 billion in fees.

Mr Peters said the policy would be a bottom line for any possible confidence and supply agreement or coalition deal at the 2014 general election.