Bill English National Finance Spokesman

18 June 2001

Borrowing for Superfund underway soon

The Government will begin the process of borrowing for the Superfund in July this year, National's Finance spokesman Bill English said today.

"The Government has a range of investing and funding activities to undertake this year. However, the Statement of Cash Flows in the Budget for the 2002 financial year shows a net increase in domestic bonds on issue of $391 million.

"Dr Cullen needs to come out of the state of denial he has lapsed into and admit the facts. If the Government didn't have to find $600 million for the Superfund he wouldn't need to increase government borrowing.

"In fact, if it wasn't for the Superfund net domestic bonds could have reduced by $209 million, a reduction in government debt.

"The facts are irrefutable. New Zealand will have higher debt next year because of the Superfund.

"The Government's borrowing programme for the year is much larger than $391 million because of routine refinancing of debt. However by the end of the year there will be $391 million more bonds on issue and debt will be higher.

"This is the same as households using their credit cards to invest on the world's sharemarkets. Dr Cullen should explain how this is prudent fiscal management," Bill English said.

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