Friday 11th Aug 2000

Rodney Hide

Media Release -- Economy

“Dr Cullen’s plan isn’t credible because he is expecting successive Governments to achieve what he himself cannot achieve.

“Dr Cullen is wanting Finance Ministers to set aside 6 percent of GDP for superannuation for the next fifty years when he himself is not planning to achieve that commitment even once.

“Treasury estimate that six percent of GDP has to be set aside for super a year to “smooth” the cost of superannuation over the next fifty years. Out to 2004, Dr Cullen is planning to manage only 4.2 percent, 4.9 percent, and 5.2 percent.

“Dr Cullen’s funding plan requires successive governments to run surpluses of two percent each and every year. Surpluses of that size have been achieved only eight years out of the past fifty. Indeed, for thirty-five years up until the late 1980s successive Governments ran deficits.

“His speech to the Economist Conference demonstrated that this Government has failed to provide a stable super policy for New Zealand’s aging population.

“Dr Cullen’s speech confirms a “no policy” for this government and that his is one of “Do as I Say, Not as I do,” concluded Rodney Hide.

ENDS

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

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