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

 


NZ First, Alliance back National, sell out support

13 June 2001

The Green Party has accused NZ First and the Alliance of selling out their supporters by voting to allow the public service pension fund - the GSF - to be invested on the international sharemarket.

"I can't believe NZ First and the Alliance are prepared to vote against their principles by supporting public servants' savings being gambled on the global casino economy," said Green co-leader Rod Donald.

"NZ First claims it puts New Zealanders first and that it's committed to building our country's economy yet it is voting for billions of dollars of Kiwi savings being invested off shore instead of at home.

"The Alliance, particularly the Democrats, talk about providing government funds at low interest to build strategic infrastructure and strengthen our social fabric yet they are also voting for the massive shift away from investing in the public sector and towards playing the share market.

"Meanwhile National can't believe their luck that Labour and their allies have implemented their policy to privatise the investment and administration of public servant's savings," he said

Only the Green Party opposed the Government Superannuation Fund Amendment Bill which has just been reported back from the Finance Select Committee.

The Bill sets up a Crown entity with the power to invest $3.4B of public servants' superannuation savings in the sharemarket. The fund had been administered by the Ministry of Economic Development and could only be invested in Government bonds and other debt securities.

As at 30 June 2000, $2.229B (65% of the fund) is invested in NZ Government Bonds, $242 million (7%) in SOEs and Crown entities and $330 million (9%) in other bonds and securities. The current rate of return (after tax) on these investments is 3.75%, down from 5% in previous years.

"We oppose this bill because it is neither prudent nor desirable to change the present model for investing the savings of public servants. While the current rate of return is low, this is balanced by the fact that the Government will end up paying higher interest costs as the fund stops investing in government bonds.

"The fact that fund managers 'achieved' a 9.4% negative rate of return on their investments in overseas stocks for the March year demonstrates the risks of the Government's proposed investment policy.

"The Government is obliged to fund from taxation the difference between public service pension payments and the Fund's income. It would therefore be forced to cut spending in other crucial areas or raise taxes or increase borrowing to fund any shortfall in expected revenue, let alone an outright loss, as a result of the volatile sharemarket."

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news