FSC welcomes new PM and deputy

The Financial Services Council of New Zealand (FSC) has extended its congratulations to incoming Prime Minister Chris Hipkins and Deputy Prime Minister Carmel Sepuloni and welcomed their stated commitment to focus on the cost-of-living and inflation.

“On behalf of the Financial Services Council, I want to congratulate our new incoming prime minister and deputy prime minister, and I wish them all the best,” said Richard Klipin (pictured above), FSC chief executive. “We are heartened by the incoming prime minister’s comments about getting back to basics and focussing on the key issues of inflation and the cost-of-living.”

The FSC also aired its well-wishes to outgoing PM Jacinda Ardern and committed to working with her successor.

Klipin said that the FSC and its members believe that deferring the New Zealand Income Insurance Scheme should be one of the new PM’s priorities, as the scheme is an “expensive and complex policy” that results in additional costs for businesses and employees alike amid a cost-of-living crisis.

“We are supportive of the vision – New Zealanders are under-insured and it’s crucial we have robust safety nets in place to support Kiwis when they’re in need,” Klipin said. “However, the policy development has been too rushed, there’s been a lack of sector engagement, and the scope has crept from the original proposal, driving even more costs. Deferring the implementation would allow for more time to get the details right and protect workers and employers from additional costs at this difficult time.”

The FSC also pointed to KiwiSaver as another area where the government under the new PM and deputy can make progress.

“After 15 years of KiwiSaver the time is right to review, refine, and improve the scheme to ensure it can deliver more adequacy in retirement for New Zealanders,” Klipin said. “The FSC is focused on helping Kiwis grow their financial confidence and wellbeing, and we welcome further opportunities to collaborate with the government on these crucial policy areas.”