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 or contact the ACT Parliamentary Office at

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case...

Obviously, sick people shouldn’t be being treated by doctors and nurses who are themselves sick and potentially infectious. Similarly, Police emergency calls also need to be fielded by people who’re feeling alert, and on top of their game. More>>


MPs' Computers To Be Searched: Inquiry Into Leak On Simon Bridges' Expenses

An inquiry has been launched to find out who leaked the National Party's expenses to the media... Parliament's speaker, Trevor Mallard, said a Queen's Counsel would lead the inquiry with the help of an employment lawyer and also someone with forensic IT skills. More>>


Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching. More>>


Wellington.Scoop: City Council Ends Its Support For Jackson’s Movie Museum

The Wellington City Council and the Movie Museum Limited have today announced a mutually-agreed parting of the ways for a joint project between the Council’s Convention Centre and TMML’s Movie Museum... Both parties remain optimistic for the future of their respective projects. More>>

Pay Equity: Historic Settlement For Education Support Workers

The New Zealand Educational Institute (NZEI) and the Ministry of Education today signed Terms of Settlement to address a pay equity claim for 329 support workers who work with very young children in early childhood and primary schools. More>>


Gordon Campbell: On The Stereotypes About Jacinda Ardern

Routinely, female politicians get depicted as either show ponies or battle axes, with little room for anything else in between. .. More>>

Weekend Interviews: "Discriminatory And Racist" Aussie Deportations

The former president of Australia’s Human Rights Commission Gillian Triggs says deportations have risen dramatically in Australia since 2014 when ministers and ministerial delegates were given the power to cancel visas - and half of those being deported are New Zealanders. "These are massive numbers, actually escalating dramatically."... More>>


Legal Challenge: Prisoner Has 9 Boxes Of Documents Seized

Human rights organisation People Against Prisons Aotearoa says a prisoner they advocate for has had 9 boxes of legal documents seized from him just days before his case against the Department of Corrections was to be heard. More>>

Single-Use Plastic Bags: Govt To Phase Them Out

Single-use plastic shopping bags will be phased out over the next year, Prime Minister Jacinda Ardern and Associate Environment Minister Eugenie Sage announced today. More>>





Featured InfoPages