Parliament

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

 

DEFU Shows Increased Debt and Increased Risk

DEFU Shows Increased Debt and Increased Risk

Tuesday 18 Dec 2001 Rodney Hide Press Releases -- Economy

ACT Finance Spokesman MP Rodney Hide said today that the December Economic and Fiscal Update (DEFU) showed a Government borrowing ever more, exposing taxpayers to increased commercial risk.

"The Government is borrowing $10.6 billion over the next five years - $1.5 billion more than just six months ago. The increase is due to Air New Zealand, increased student loans, and refinancing District Health Boards. The blow-out is completely policy driven.

"Increased borrowing means increased risk for taxpayers.

"Of the $10.6 billion in borrowings, $7.9 billion for Cullen's Super scheme. Michael Cullen's biggest fiscal risk is the very scheme that is supposed to give security in retirement. He is borrowing every one of the $7.9 billion that he is putting aside for our future pensions. This fact is made plain in Table 3.2. The strategy is very risky - it's just like mortgaging your house to play the stock market in the hope of striking it lucky.

"The table on page 68 of the DEFU reveals just what a financial wizard Michael Cullen thinks he is. The table shows he is planning to borrow at 6.2 percent to invest on world share markets, to return a hoped for 9.4 percent. That is true financial wizardry. Michael Cullen believes that he can make $32 million a year for every billion he borrows and invests on behalf of taxpayers.

"It sounds too good to be true - and it is. Michael Cullen has no track history in investing his own money let alone anyone else's and here he is borrowing billions to play the world's financial markets. It's nuts. The best security for the future would be to cancel the scheme and drop the borrowing.

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

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election