Latest news with #CraigRenney
Otago Daily Times
02-07-2025
- Business
- Otago Daily Times
Opinion: regressive Super step
The debate over raising the New Zealand Superannuation (NZ Super) age has sparked widespread concern and for good reason. While proponents argue it's necessary for fiscal sustainability, evidence shows such a move would be deeply unfair and regressive, disproportionately harming vulnerable communities. This concern has been expressed to me by constituents in South Dunedin, Green Island and in Mosgiel, where a large portion of the population includes retirees and workers from physically demanding industries. Raising the superannuation age would have a particularly harsh impact. Economist Craig Renney highlights the human cost behind the numbers. Raising the super age to 67 would mainly benefit wealthier, predominantly Pākehā New Zealanders, who hold the largest KiwiSaver balances and accumulated wealth. In contrast, Māori, Pasifika, and those in physically demanding, lower-paid jobs — with fewer savings— would suffer the most. The disparity is stark: a Pākehā male might lose about 15% of expected superannuation, but a Māori male, facing shorter life expectancy, could lose 25%. This is not just a financial issue but one of equity and social justice, as raising the retirement age would worsen inequalities by penalising those who have worked hardest and lived shortest. Much of the talk about NZ Super's "unaffordability" is overstated. Treasury data shows we currently spend about 4.4% of GDP on superannuation, much less than countries like Germany (10%), France (13.4%), or the OECD average (7.7%). Even with an ageing population, projections suggest only a modest increase of about 1% of GDP by 2050. This indicates no fiscal crisis demanding drastic cuts or raising the super age. Instead, it reflects a manageable cost aligned with the commitment to dignified retirements for all New Zealanders. NZ Super is more than a payment; it's a social insurance policy preserving dignity and choice for seniors. While means-testing might seem appealing, it introduces inefficiencies and administrative burdens, especially as seniors' needs grow more complex. Universal superannuation effectively addresses rising pensioner poverty, soaring housing costs and the reality that many seniors rent or struggle with energy bills. Targeted support risks missing those in need or arriving too late. Te Pāti Māori's call to lower the super age for Māori reflects real disparities in life expectancy and work conditions. Although Labour opposes different super ages by ethnicity, raising the age would disproportionately harm Māori and Pasifika communities. Acknowledging these disparities is essential to crafting policies that reduce inequality. Raising NZ Super's age is a regressive policy that would deepen inequality and hurt the most vulnerable. As a society, we must decide whether to support seniors who have contributed throughout their lives or penalise them for circumstances beyond their control. This debate must ensure NZ Super remains a cornerstone of social justice.
Scoop
18-06-2025
- Business
- Scoop
Economic Growth Still In The Hole Dug In 2024
Data released by Stats NZ today shows that the economy grew on a quarterly basis by 0.8% but fell on an annual basis by 1.1% said NZCTU Te Kauae Kaimahi Economist Craig Renney. 'This is positive data for the first quarter of this year, but the fact that the economy is about the same size it was in March 2023 tells you that essentially we have had almost zero economic growth (0.3%) over the past two years.' 'GDP per capita ($52,872) is now lower than it was in March 2022 ($53,100). It took another fall on an annual basis of 2.4%. There were falls in 11 of the 16 sectors of the economy annually – led by construction (-9.3%), wholesale trade (-3.6%) , and business services (-2%). Both goods producing industries and service industries saw contraction this year.' 'The data shows that workers incomes aren't keeping up with profits. Stats NZ shows that compensation of employees rose 1.5% this quarter before inflation. Gross operating surplus and gross mixed incomes (a broad measure of profit) rose 2%. Employee compensation was revised down in the December quarter to -0.2%.' 'The lack of business confidence in the economy is present in the business investment data. Business investment fell this year. Non-residential building investment fell 2.9%. Transport equipment purchases fell 6%. Households are feeling it to, with purchase of durable goods being lower than they were in December 2023,' Renney said. 'This data shows us how far we fell over the past year in economic terms. The growth in GDP this quarter is welcome – but the economy is still smaller than at the election in real terms. With more recent data suggesting that the economy is struggling to grow, there is a real danger that we return to slow, no, or negative growth.' 'It's time for the Government to realise that its economic growth plan isn't working. There are 23,000 more people on Jobseekers this year. 48% of workers in New Zealand got a pay cut in real terms. Business and consumer confidence are at levels associated with recessions. One quarter of data shouldn't blind the government of the need for change.'
Scoop
30-05-2025
- Business
- Scoop
NZCTU Release Detailed Budget 2025 Analysis
Press Release – NZCTU This Budget is funded above all by the gutting of the pay equity system, the halving of the governments contribution to peoples Kiwisaver accounts, and other cuts that will disproportionality impact women, welfare recipients, and working households, … The New Zealand Council of Trade Unions Te Kauae Kaimahi has today released a report with detailed analysis of Budget 2025. It covers the major decisions made at this Budget, and how they might affect workers. 'This Budget is funded above all by the gutting of the pay equity system, the halving of the government's contribution to people's Kiwisaver accounts, and other cuts that will disproportionality impact women, welfare recipients, and working households,' said NZCTU Economist Craig Renney. 'None of the choices the government has made were inevitable. The government could have funded its spending initiatives by raising new taxes on the wealthiest New Zealanders. It could have not decided to give billions away to those who already have much, while cutting services for those with real and pressing needs. 'Budget 2025 also leaves New Zealand's most significant structural challenges unaddressed. There is no meaningful movement on closing the infrastructure deficit; no solution to our health workforce shortage; no willingness to reduce child poverty or to address the housing crisis; and absolutely zero investment made in decarbonisation and climate adaptation. 'The coalition government continues to kick the can down the road on the most pressing challenges we face, all while making life steadily more difficult for New Zealanders who have the least,' said Renney.
Scoop
30-05-2025
- Business
- Scoop
NZCTU Release Detailed Budget 2025 Analysis
Press Release – NZCTU This Budget is funded above all by the gutting of the pay equity system, the halving of the governments contribution to peoples Kiwisaver accounts, and other cuts that will disproportionality impact women, welfare recipients, and working households, … The New Zealand Council of Trade Unions Te Kauae Kaimahi has today released a report with detailed analysis of Budget 2025. It covers the major decisions made at this Budget, and how they might affect workers. 'This Budget is funded above all by the gutting of the pay equity system, the halving of the government's contribution to people's Kiwisaver accounts, and other cuts that will disproportionality impact women, welfare recipients, and working households,' said NZCTU Economist Craig Renney. 'None of the choices the government has made were inevitable. The government could have funded its spending initiatives by raising new taxes on the wealthiest New Zealanders. It could have not decided to give billions away to those who already have much, while cutting services for those with real and pressing needs. 'Budget 2025 also leaves New Zealand's most significant structural challenges unaddressed. There is no meaningful movement on closing the infrastructure deficit; no solution to our health workforce shortage; no willingness to reduce child poverty or to address the housing crisis; and absolutely zero investment made in decarbonisation and climate adaptation. 'The coalition government continues to kick the can down the road on the most pressing challenges we face, all while making life steadily more difficult for New Zealanders who have the least,' said Renney.
Scoop
30-05-2025
- Business
- Scoop
NZCTU Release Detailed Budget 2025 Analysis
The New Zealand Council of Trade Unions Te Kauae Kaimahi has today released a report with detailed analysis of Budget 2025. It covers the major decisions made at this Budget, and how they might affect workers. 'This Budget is funded above all by the gutting of the pay equity system, the halving of the government's contribution to people's Kiwisaver accounts, and other cuts that will disproportionality impact women, welfare recipients, and working households,' said NZCTU Economist Craig Renney. 'None of the choices the government has made were inevitable. The government could have funded its spending initiatives by raising new taxes on the wealthiest New Zealanders. It could have not decided to give billions away to those who already have much, while cutting services for those with real and pressing needs. 'Budget 2025 also leaves New Zealand's most significant structural challenges unaddressed. There is no meaningful movement on closing the infrastructure deficit; no solution to our health workforce shortage; no willingness to reduce child poverty or to address the housing crisis; and absolutely zero investment made in decarbonisation and climate adaptation. 'The coalition government continues to kick the can down the road on the most pressing challenges we face, all while making life steadily more difficult for New Zealanders who have the least,' said Renney.
