Tuesday, 12 April 2005

Blair retreats on pensions revamp

New Labour are to postpone plans for making employers pay pension contribtions to a fourth term in office. The move may enrage and 'infuriate' trade union leaders who, when meeting with Labour politicians, demanded the change.

The Confederation of British Industry has been lobbying ministers to reject the case for compulsory contributions, warning it would add unacceptable costs to business.

I have to concur with the CBI. Such a move would increase business costs, hence leading to greater regulation, red-tape and bureaucracy. Greater regulation is the reason why the big Continental economies have been growing slowly for the past ten years. It's also a major factor in why several Western companies 'outsource' their operations to other countries.

Ultimately, people should save for their own retirement. If the income tax could be repealed, then people would possess more money to save for their retirement. The government should maintain no role in providing pensions as welfare requires governmental force (against the private property of the citizen) in order to operate.