Politicians want New Zealanders to save this election, but can they save themselves?

By Anna Whyte*

Politicians want New Zealand to save - for retirement, a rainy day, or from taxpayer spending deemed frivolous - whatever it may be, savings are on the brain. Except, perhaps, for the people asking you to.

The Lower Hutt Events Centre was a surprising location for the National Party conference over the weekend. The skies were grey and the wind howled outside (ironically a similar scene to the inside of the Lower Hutt Town Hall - located a mere 10 metres away - where Labour held its dismal 2023 election night event).

While there, National Party leader Christopher Luxon announced there that if re-elected, National would make KiwiSaver compulsory, automatically enrol every baby along with a $1500 Baby Boost payment, and make a contribution into a parent’s KiwiSaver while they’re on paid parental leave.

The party also promised to require employers to maintain KiwiSaver contributions for employees over 65, adding to its pledge to raise combined employer and employee contributions to 12% by 2032.

Only one of those policies received a standing ovation - that was the parental leave contribution. “Women get left behind when they go on parental leave, it's as simple as that,” Luxon said. “It's just not right, it's just not fair. And so that's why we're making the changes that we are.”

KiwiSaver policies seem to be flying out faster than the flailing arms of a wacky waving inflatable tube man outside a secondhand car dealership.

NZ First has been releasing KiwiSaver policy since September, National followed in November, and Labour has signalled its own policy is on the way. NZ First already announced it wanted to increase combined contributions to 10% and make KiwiSaver compulsory from birth, with an automatic Crown contribution of $1000.

With the world the way it is with economic uncertainty rife, it is no wonder saving is on the mind of every politician.

What about MPs' perks & expenses?

But while political heads are rubbernecking at KiwiSaver and can be turned at saving a dime in the public service, their own expenses seem to generate a mere awkward glance.

Many of them may not want to talk about it, but the public very much does, with story after story raising the eyebrows of many New Zealanders outside of the Wellington ‘bubble’.

Luxon has asked officials to look into the perks of ex-MPs and former PMs. However, the probe would not look at current MP expenditure, despite stories of MPs claiming accommodation subsidies on homes they have owned for years and thousands spent on airport parking.

Luxon has consistently said the terms and conditions for MPs were decisions for the Remuneration Authority, and MPs getting "involved in setting that, that's not good."

There is logic in keeping MP pay and allowances at arm's length from Parliament - but that shield does not seem to protect them against public scrutiny.

And politicians can act under pressure. MPs and Ministers gave themselves a temporary pay cut in 2020 during the Covid pandemic as workers themselves experienced pay cuts from the economic hit many businesses faced.

Deputy Prime Minister David Seymour believes MPs should be given a set budget for travel, saying the status quo is "pretty crazy." Labour has signalled interest in looking at expenses, but some of the loudest criticism come from an unlikely combination - the Taxpayer's Union (TPU) and the Opportunity Party.

Opportunity promised if elected their MPs would not be permitted to use allowances to build private wealth, while the TPU are calling for expenses to cover "genuine out-of-pocket costs", banning MPs from renting their own properties back through accommodation allowances and to scrap Parliament's $2.50 to every $1 MP superannuation scheme.

Looking overseas, in Scotland, all claims must have a receipt, rather than bulk funding, and MPs are not allowed to submit a claim unless they are satisfied the expenses represent value for money. They also have to ensure it is not submitted in order to gain financial benefit.

Ireland’s accommodation allowances require MPs to show up to work for a particular amount of time to get the supplement. (To be fair to our MPs, most are incredibly hard working and while it could help with public sentiment, it’s hard to see that as a problem that needs fixing).

In the UK, non-London MPs can either stay in a hotel, rent accommodation, or claim associated costs of owned homes such as power, rates and internet. And while those MPs are not allowed to claim for mortgage repayments, scandals did erupt from MPs renting out their own homes while simultaneously claiming rental expenses (all within the rules).

So the answer isn’t simple.

But if 123 of the country’s most powerful people can’t come up with any ideas on how to fix an issue the public are clearly uncomfortable with, perhaps the increased scrutiny will force each MP to ask themselves: does this pass the sniff test? Either way, the public will be saving their answer for November 7.