Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill

The Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill has only two parts to it, so it is a pretty simple, straightforward sort of bill. The first part deals with amendments to New Zealand superannuation and the second part deals with the veterans pension. Part 1 deals with the substance of the changes that have been made to New Zealand superannuation. It sets out the new formula, and it sets out the new conditions that relate to superannuation and the ability for New Zealanders to choose to go and live in another country and take their superannuation with them.

The bill has received a lot of support. Although submissions were made for further amendments to this part, it was not possible for the Social Services Committee to make those changes. But I tell the Minister that I was pleased with the work that her department did, in providing to us very logical reasons why we could not alter this bill at this stage, but officials set out that there was the ability, either under the Income Tax Act or in other work that could be done by her department, to address some of those issues raised.

Many people made submissions on this part of the bill that had nothing to do with the bill, so we did not hear their submissions. But some did manage to slip in their desire for a change to be made to section 70 of the Social Security Act 1964, which relates, as the Minister knows, to the direct deduction of an overseas pension. I know that that is not part of the bill, but I put on the table that it was a serious issue raised. I think it would be good if we could have a response about whether the Government is considering addressing this issue, which has been seen by many as unfinished business.

The first changes that were made to enable people to take a pension overseas were made by the fourth Labour Government in April 1990, and that is when the 50 percent formula was first set up. The 50 percent formula has meant that people did not have enough of their pension to be able to live in another country. We are changing that now to enable people to be able to live, when they go overseas.

I think that the changes that have been made in this bill are fair. I listened to Sir Roger Douglas in his contribution, and I think that he probably has the wrong end of the stick. This legislation was not proposed to be put in place either by a Labour Government or by a National Government to give some advantage to Pacific people who come here to work so they can get a better pension. It has been a genuine attempt to try to improve the amount of money, based on a fair formula, for people to be able to take that money and go to another country. The formula is one that I think a lot of work has gone into. I know, as part of the previous Government, that we looked very hard at how we could have a fair formula that we could use in this legislation. As it works out, I believe that what we have come up with in the select committee, which the Minister and the National Government have agreed to, enables fairness to take place between New Zealanders who have worked for 40 years and paid taxes all that time and those who have been here for a lesser time, in terms of that formula.

In terms of issues raised, I wonder whether the Minister could give an indication as to whether she intends to look at some of the issues around the non-qualifying spouse. I will talk later about the veterans pension when that comes up; issues were raised about that.

Overall, we totally support this legislation. Very few changes were made at the select committee. I believe that the changes made in this part of the legislation have enhanced it, and made it better, and the Labour Opposition totally supports it.

The question was put that the amendments set out on Supplementary Order Paper 77 in the name of the Hon Paula Bennett to Part 1 be agreed to.

Amendments agreed to.

Part 1 as amended agreed to.

Part 2 Amendments to War Pensions Act 1954