Super Fund Costs NZ $68,000 A Week

Thu, 29 Aug 2002

The Green Party says Dr Cullen's super fund is costing taxpayers $68,000 per week, even before it is "invested" on the global share market.

The Finance Minister has announced that the super fund has now reached $805 million and is being held by Treasury's Debt Management Office, where the rate of return is the Official Cash Rate of 5.75 per cent.

"At the same time Dr Cullen is borrowing money to fund capital projects at the current 10 year bond rate of 6.19 per cent," said Green Finance Spokesperson, Rod Donald.

"The difference between what the super fund is earning and what the same level of borrowing is costing the country amounts to $68,000 per week."

The Green Party believes the best way to meet the future costs of superannuation is to invest in our young people by, among other things, properly funding our health and education systems.

"At least there's one silver lining from hoarding the super fund: Dr Cullen has missed out on being able to 'invest' it in Enron and WorldCom."

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