By Duncan Garner
Labour is about to announce a hugely controversial policy. It agrees with the Retirement Commissioner that the age of eligibility for National Superannuation should rise to 67 by 2033. It will announce it at 2pm today.
The policy sees the retirement age rise two months every year until 2033.
It really throws the cat amongst the political pigeons.
Labour's approach is now very, very clear. It will be big and bold, risky and realistic. Phil Goff and his team certainly aren't going down without a fight.
By doing this, Labour pulls John Key into a debate he simply can't have. Key has promised to resign if he raises the age of National Super. So he's out of this debate. It's smart from Labour. It brings Key to the table to debate an issue he can't. He has to change his tune. But he can't.
It's a policy aimed at those in their 30s and 40s who know the future cost of National Superannuation is unsustainable. That's me. I don't expect to get a National Super cheque at 65. I know it has to be later. So let’s debate it. Sure it's risky from Labour. It will alienate some voters.
But it's bold. It shows Labour is prepared to debate the big issues. I congratulate Phil Goff and his team for that. Their collective heads are above the sand. Others are buried below it.
National Superannuation is currently costing about 4% of GDP but it will rise to 8% within twenty years. It is the biggest expenditure item for any Government. The warnings about the cost of super have been around for decades. It's come to a head. And Labour's now responsible for popping the cork.
Just two days ago the PREFU highlighted the cost of National Superannuation had risen by $500 million just in the past 12 months. That's because more people are retiring.
The only problem with this for Labour is Winston Peters. If he's around, he will go into Government with Labour, because Key has ruled him out.
But I would have thought he would rally against this new policy with all his remaining energy. His is a party for the oldies. So what does that mean? Does Labour's policy mean it's ruling out Peters? Does it mean Peters would have to sit on the cross benches and support a Labour Government anyway?
And what do the Greens think of this? Who would know, because on their website they don't even have a superannuation policy? Why not? I'm sure they will by 6pm tonight.
So Labour has lifted the lid on a policy area previously seen as taboo. The issue that can't be discussed. Good on Goff. Good on his team. It needs to be debated, it needs to be discussed. It's very clever politics from Labour. It knows Key is hamstrung by his promise to resign. It fits perfectly into the narrative that Labour wants to debate the hard issues, and Key won't.
Labour is taking a risk.
But it's a calculated, clever and cunning plan. Don Brash will agree with it. And any other right wing or centrist politician should have the balls to front up and support Labour in this debate.
It makes economic sense - we can't afford not to debate this. Even John Key knows that.
source: newshub archive
