Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Cullen’s Feel-Good Super Scheme A Cruel Hoax

Thursday 9th Mar 2000
Rodney Hide
Media Release -- Social Welfare

Michael Cullen’s super scheme hinted at in yesterday’s Budget Policy Statement is being labelled a ‘cruel hoax’ by ACT Finance Spokesman Rodney Hide who says the money today’s taxpayers pay in for their retirement in good faith will be paid straight out again to today’s elderly.

“New Zealanders have been deceived time and time again by politicians promising to save their taxes to ensure their security and dignity in retirement. It is the cruellest of political hoaxes and Dr Cullen wants to inflict the same deception on not just the baby boomers, but the younger New Zealanders who will pay their taxes into his fund.

“To make it worse Labour’s policy of high taxes penalises New Zealanders who are trying to save for their own retirement.

“Michael Cullen’s scheme is no solution to the country’s pension problems.

“Dr Cullen’s scheme is a Ponzi scheme – named after Charles Ponzi – because the dedicated tax does not stay in the fund but goes straight out again to fund existing pensions. If anyone other than the Government was planning to hawk such a scheme they would go straight to jail for fraud.

“The other problem is one of simple financing. Michael Cullen proposes building up the fund instead of paying off government debt.. This is like a householder saving for their retirement while servicing an expensive mortgage.

“The interest cost on the Government’s debt is 7.5%. It’s hard to see Cullen’s appointed guardians earning such a return on the state-super fund. The result is a net destruction of wealth.

“The best thing Dr Cullen can do with any surplus cash is to pay off existing debt,” said Rodney Hide.


For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>


Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>


Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news