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


The monster fund will eat all other priorities

Bill English

National Finance Spokesperson

Wednesday 11 October 2000

The monster fund will eat all other priorities

Cabinet papers show that pre-funding superannuation will put pressure on health, education and other priorities, National Finance spokesperson Bill English said today.

"In Parliament today Dr Cullen did not explain just what other policies would be affected by his super scheme.

"There is no free lunch with taxpayers' money. If we want to find $2 billion each year to put into the fund, then we need to know what we are trading off to find it.

"Dr Cullen's own Cabinet paper warned that 'other spending policies' would face greater risks and could be compromised if the Government commits billions each year to superannuation. (See 'Pre-Funding New Zealand Superannuation: Funding Arrangements,' page 5)

"I hope the Government has investigated thoroughly just where the risks are, because those pressures will start next year when the first contributions are put into the fund.

"Surpluses are essential to achieve the certainty the Government seeks. To pre-fund superannuation to the level Dr Cullen is proposing we need large surpluses, and the records show governments have seldom done that in the past. (See attached chart.)

"Today in Parliament Dr Cullen pointed to the 1999-2000 surplus, which National produced, as evidence that surpluses can be achieved in the future. In fact, recent years show vividly the risks of assuming that surpluses will keep coming. The Asian crisis saw big surplus forecasts crash to a barely-balanced budget in reality.

"The current Government will not be able to meet the contributions it is planning, despite forecasts of good surpluses, and the scheme sets very tough targets for future governments," Mr English said.


© 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