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


Slumping Markets Show Folly Of Cullen Fund

16 July 2002

"Recent downward spiralling activity in international sharemarkets shows the absolute folly of Labour playing investor with billions of taxpayers dollars through the Cullen Fund," says National's superannuation spokesman Gerry Brownlee.

Mr Brownlee says Budget tables show that Labour has already set aside $600 million of taxpayers' money for the Cullen Fund.

"These funds will have taken a major hit from being invested in overseas sharemarkets where - by its own regulations - the Government has to place most of this fund.

"Since the end of June, the United States' Dow Jones Index has fallen by 6.7% and London's FTSE Index has slumped by 14%."

Mr Brownlee says if the Government had placed the $600 million Cullen Fund in either of these markets, taxpayers would have lost $40 million and $85 million respectively in the last month alone.

"The volatility of the last few months doesn't look like it will go away with most international commentators suggesting we could be in for a long-run bear market.

"Dr Cullen needs to explain why he wants to - every year for the next generation - put $2 billion of taxpayers' money into these risky markets, when there are urgent needs in our own health and education systems crying for attention right now.

"National advocates that the best way to secure New Zealanders' future superannuation entitlements is to implement economic policies that ensure long-term sustainable growth can be achieved, and not gamble their hard earned taxes on the fickle nature of international sharemarkets," Mr Brownlee says.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


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>>


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>>


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>>


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>>


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>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news