It is the timewhen the body doesn't move quite as fast as it used to, whenthe mind doesn't work quite as well as it used to and whereboth of these facts don't matter quite so much anymore.

For most of us it is a time which will inevitablyarrive -- but which if it is not planned for can be adifficult and less than golden time.

We have justrecently completed another census.

One of the manydemographic trends which is sure to emerge from this censusdata is the fact that we -- like almost every other developednation -- have an aging population.

This has significantimplications that cannot be ignored by governments andpolicy planners.

And the implications run far deeper thanthe raw demographics.

On the surface it is the sheervolume, particularly in relation to the rest of thepopulation, of those entering or currently in their goldenyears which presents the most daunting challenge.

Butbehind these raw figures lies the attitudinal shifts,particularly among those of the post war baby boomergeneration.

This generation, which is currently on thebrink of reaching retirement and is colloquially referred toin some circles as "generation Jones", is quite differentfrom those generations that have gone before.

They havedifferent expectations -- different world views.

For thisgeneration, unlike the generation before them, expectationabout quality of life will matter far more.

And with thisthe expectations of what quality of life actually means willalso change.

This too has implications for policy makersworking with those in their golden years.

So what is thegovernment doing to respond to these challenges and how willthis impact on your industry.

This speech is anopportunity to wear two hats -- one as Associate Minister ofSenior Citizens and the other as the Leader of New ZealandFirst.

Given the nature of the supply and confidenceagreement between New Zealand First and the government,there is a significant degree of overlap in these two rolesas they relate to policy for those in their goldenyears.

The topic you have given today is "addressing theneeds of senior citizens".

So who are we talkingabout.

In simple terms we are talking about 500,000 NewZealanders who are over 65 years of age.

They make uptwelve percent of the total population.

But it would befalse to treat 'seniors' as a homogenous group.

58% aremarried, with 27% single and 15% living in sharedrelationships.

There are nearly 25,000 more women than menamong seniors.

Well over 4000 of them are caring fortheir grandchildren.

Not all of our seniors are relianton superannuation. Around 7% receive a veterans pension, aspecial benefit or no superannuation at all.

Over 10% ofour seniors remain in paid employment and they make up theoverwhelming number of those in our voluntary sector.

Geographically, they are spread right across the entirecountry.

While Auckland is the most populated centre forseniors, this demographic is spread very differently fromthe general population, with regions such as the Bay ofPlenty, Canterbury, the Kapiti Coast and the south of theSouth Island all containing disproportionately high numbersof seniors,

They have come from a variety of differentbackgrounds.

One thing though is certain in relation tothose we affectionately label seniors as alluded topreviously.

This group is getting bigger and they arenot going anywhere fast.

So how do we address theirneeds?

The first thing we need to establish is thatmeeting the needs of seniors is not the responsibility ofany one group.

The government certainly has a role to playin addressing the needs of seniors.

But so do seniorsthemselves, the wider community -- including family groups -- and also the corporate sector, particularly groups such asyourselves which provide services for this community.

The point here is that we in a collective sense have arole to play in ensuring that our senior citizens are indeedable to live in a way which befits their golden age.

Buttoday's focus is on what the government is doing to fulfilits role.

It is worth making the point here, wearing a NewZealand First leader's hat, that as a party we have alwaystaken the plight of our seniors seriously.

We have forsome time believed that we can do much more to alleviatemany of the circumstances seniors find themselves in.

This is what made the outcome of our supply andconfidence agreement with the government so important.

Itis true that we did not achieve all we wanted, but we wereable to secure significant gains.

And it is important tonote that these policy successes for New Zealand First arenow in effect government policy priorities.

With NewZealand superannuation the primary source of income -- andtherefore the primary factor in determining the standard ofliving for seniors -- we wanted to see an increase in thebase rate of payment.

While there are supplementarypayments available for those who face higher than usualcosts for accommodation or as a result of a medicalcondition, disability or some other special need, it is thebase rate of New Zealand superannuation which dictates thebasic living standards of the vast majority of our seniors.

We knew from those within the seniors community that evena modest increase in super -- as small as 5 to $10 a week -- actually makes a significant difference to the livingstandards of those on a fixed income.

We were able toachieve this through supply and confidence which lifted thebase payment for married couples from 65% of the net averagewage to 66% of the net average wage.

I am pleased toannounce today that from 1 April the rate of New Zealandsuperannuation and the Veterans' Pension will increase by$12.44 from $393.56 to $406 a week.

This will see the NewZealand superannuation rate for married couples set at 66.12of the net average wage -- meeting the requirements of thesupply and confidence agreement.

The rate ofsuperannuation for single persons living in sharedaccommodation will increase to $243.60 a week and the ratefor single person living alone to $263.90.

As I notedbefore -- these are not huge increases -- but for seniors theyare meaningful.

Another facet of the supply and confidenceagreement was the proposal to develop a dedicated seniorscard which was able to be used to identify the holderseligibility for all public sector entitlements andnegotiated commercial discounts.

New Zealand Firstproposed this last year when we launched our Golden Age Cardas the cornerstone of our seniors' policy.

It wasimportant that the government recognised the inherent valuefor our seniors in having a dedicated card whichincorporates both the entitlements which government provideswith many of the discounts available from commercialentities.

Work is already well under way on developingboth the policy and the practical considerations forimplementing the card.

At this stage we expect it to be inplace by mid 2007.

When fully implemented it willcreate a type of one stop shop for the many different publicsector entitlements -- avoiding much of the unnecessaryduplication which currently exists.

There are otheradvantages to the card as it is currently beingdeveloped.

It will have the capacity for additionalbenefits to be added as they are negotiated in thefuture.

It will also provide a much more definitive linkbetween seniors and the information they require to get themaximum benefit from the services already in place.

Itis disappointing that in our day and age that a lack ofawareness or access to information can be a barrier toseniors receiving their full range of entitlements. We hopethat this card will go some way to remedying this.

Butthe card is more than simply the sum of all the benefits itwill provide.

It is a symbol to our seniors that we valuethem, that we recognise their contribution to our countryand that we will do our best to ensure that they can livewith dignity in their golden years.

New Zealand First alsosecured several other policy concessions for seniors in thesupply and confidence agreement.

The government has agreedto look at ways to improve the options for those who may beeligible for foreign pensions as well as New Zealandsuperannuation.

This is a significant issue for thousandsof our seniors and the government already has significantwork underway to address this issue.

There is alsoagreement to investigate the best way to recognise veteransof active overseas service. Again the government is makingprogress in this regard.

The 2006 budget will also seeseveral issues within the eldercare sector addressed as amatter of priority.

In addition to those things containedin the supply and confidence agreement, the introduction ofa greatly enhanced rates rebates system from 1 July willmake a tangible difference for many seniors.

With themaximum amount increased from $200 to $500 and the basicincome threshold lifted from $7,400 to $20,000 a year thenet of eligibility will be significantly wider.

Theseare all significant developments for seniors.

Indeed onemight conclude that there has never been a better time inour recent history to be a senior.

But while these changesrepresent real and tangible progress there remains asignificant gap between what the government can and willprovide and the expectations of those who are now reachingtheir golden years.

We began this afternoon noting theattitudinal difference between those currently retired andthose about to enter that stage of their lives.

This isactually an important consideration for groups such asyourselves.

Those who are currently retired spent theirworking lives in an era where by and large there was anaccepted social contract between themselves and thegovernment that they would be looked after by the governmentin their retirement.

Their expectations are generallymodest, but most importantly, a large number of them had notput any real additional funding away for theirretirement.

For this group New Zealand's provision of auniversally available taxpayer funded superannuation scheme,that is adjusted according to the average wage and CPI, anddoes not have an extensive residency requirement iscritical.

For this generation to truly have a goldenage then the government will carry much of the cost.

Thoseabout to retire have far greater expectations of theirretirement and the proportion of this generation which havemade their own personal provisions is far greater.

Theobligation for individuals to take responsibility for theirown level of retirement income beyond New Zealandsuperannuation really increases as the age group getsyounger.

The government has begun the process of settingaside additional funding, colloquially called the 'Cullenfund', to offset the future cost of delivering New Zealandsuperannuation.

But this will only ever deliver on thebase rate of New Zealand superannuation.

Extra income inretirement to meet greater expectations will have to comefrom retirement savings.

The government has taken thelead on this front by establishing the Kiwi saver scheme -- avoluntary work-based scheme aimed at building a savings basewhich is woefully lacking.

To wear a New Zealand FirstLeader's hat one would add that we as a party believe thatcompulsory superannuation savings is in fact the onlylasting solution to resolving the concurrent problems of ourpoor savings record, our lack of domestic capital investmentand meeting the costs of retirement income.

However, thekey is to find the appropriate mechanisms to increase oursavings base and to educate those moving toward retirementof the need to prepare now to ensure their income can matchtheir expectations.

One final issue to address today isthe matter of home equity release schemes.

These schemeshave been marketed as means for those who are retired tofree up some of their home equity to enhance their standardof living. For some it is about meeting a large unexpectedcost, while for others it is about supplementing theirincome.

There are a variety of schemes available, but mostare based on the principle that the capital advances, andthe interest on them, are accumulated and do not have to berepaid until the home owner dies.

However, what is clearfrom both the industry here and overseas experience, is thatthe cost and benefits of such schemes are not always fullyunderstood or appreciated.

With retirement nowincreasingly a 20 year plus part of our likely lifespan, theimplications of such schemes, particularly the interestbearing component over that period of time, needs to befully explored.

The government is working to establishstandards for such schemes through the development of a codeof practice.

Overseas experience and our own growing bodyof New Zealanders utilising these schemes highlights mixedexperiences from these schemes.

The government is workingto ensure that the interests of our seniors are protected asmore and more New Zealanders utilise these schemes.

Inconclusion, there is a commitment to improve the lot ofseniors in New Zealand.

It was William Shakespeare whosaid, "The golden age is before us, not behind us".

Itshould remain our ambition to make this so.

Thank you.

ENDS

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