'Imitation' or 'perfect solution' - Labour's KiwiSaver policy

Labour has been "ankle tapped" by National on KiwiSaver according to the managing director of Simplicity, but the wife of Sir Michael Cullen, who got the scheme going, says the party's found the "perfect solution."It comes as Nicola Willis calls the policy a "watered-down version" of National's.Labour announced on Sunday it would up employer contributions to 6 percent, in line with National's proposal, but wouldn't make employee contributions compulsory to ease the pressure during a cost of living crisis.Anne Collins, wife of Sir Michael and lifetime Labour member, said she was "absolutely delighted" with the result, after "a lot of" discussion about KiwiSaver during party conferences."This is just a perfect solution because it's such a very, very successful policy," she told RNZ, but noted the current government had "repressed our wages", referencing public sector job cuts and keeping minimum wage below keeping up with inflation."So people's wages are not where they should be."It's making it hard for people to save for their future, which is so important."This policy was a solution because Labour would "love to have made it mandatory", she said, but the party realised making payments at a time when people were struggling was "too ideological.""It's just not practical enough. And Michael was always very pragmatic. I mean, he has great ideals, but he wanted things that would work for people."She still wasn't sold on total compulsion, and described Sir Michael as incentivising the scheme when he brought it in."Everyone got given $1000, and then they got a good tax rebate, and the employers got a good tax rebate. So there was a lot of incentive, not just straight compulsion."National's Nicola Willis said the policy was just a "watered-down" version of her own party's announced in June.RNZ/Nick MonroCollins said Labour's policy would re-incentivise people after a range of cuts and changes to the scheme because they will see their employer's contribution growing, their own fund growing, and be encouraged to get in and "help it when they can."She said Sir Michael would be "disgusted" with what's happened to wages and to working people in New Zealand at the moment."He would want everything to be done to help them."But Simplicity KiwiSaver managing director Sam Stubbs, said National had "ankle-tapped" Labour on its own policy."This is the policy that Michael Cullen invented, and I would say that National at this stage seem to have a slightly more comprehensive set of policies for Kiwis rather than Labour do."Stubbs said he was pleased with most of what Labour was proposing, but that he was expecting the party to do more."I was actually sort of personally disappointed that their policy wasn't everything that National have promised and a little bit more."He said KiwiSaver was Labour policy, and the history of National has been "nothing other than chipping away at it.""But now, to be honest with you, National sort of ankle tapped Labour on the KiwiSaver policy."He described moving toward compulsion as "good", along with employer only contributions, and getting rid of total remuneration contracts where employer KiwiSaver contributions are included in the salary rather than an additional sum.But he said the overall amount Labour wants Kiwis to save for their future was "not going to be nearly enough." And the "real disappointment" he added was a lack of policy for children."They need to seriously look at kids. We should be having KiwiSaver accounts at birth."Both New Zealand First and National are proposing compulsory contributions for all workers, but have also both announced policies that would automatically enrol babies and children.On Sunday, Labour leader Chris Hipkins explained automatic enrolment wasn't something Labour was currently considering."Right now we have to make different choices, and we made different choices."National's Nicola Willis said the policy was just a "watered-down" version of her own party's announced in June."While imitation is a sincere form of flattery, their attempt falls short. It's less ambitious than National's and won't help Kiwis saving for their future anywhere near as much."New Zealand First used the same line in June about National's policy, having already proposed automatic enrolment in May."Imitation is the most sincere form of flattery. It is New Zealand First's policy, both with respect to the start up. We say $1000 per child birth, they're saying $1500," Winston Peters said at the time.