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

Supreme Court: Worksafe Decision On Whittall Pike River Prosecution Unlawful

The question in issue on the appeal was whether WorkSafe New Zealand acted to give effect to an unlawful agreement of this nature when it offered no evidence on charges against Peter William Whittall for breaches of the Health and Safety in Employment Act 1992...

The Supreme Court... has found that the decision to offer no evidence was made under an unlawful agreement to stifle prosecution. It has granted a declaration to that effect. More>>


Cullen To Chair: Tax Working Group Terms Of Reference Announced

Finance Minister Grant Robertson and Revenue Minister Stuart Nash today announced the Terms of Reference for the Tax Working Group and that the Group will be chaired by Sir Michael Cullen. More>>


Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them. More>>


Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>


Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. More>>


Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>


Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>




Featured InfoPages

Opening the Election