Parliament

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

 

South Australia's Budget Blown By Big Super Loss

16 July 2002

Green co-leader Rod Donald today told a Christchurch Rotary Club that Green opposition to the Government's superannuation fund has been vindicated, with news that the South Australian Government's Superannuation Fund is facing long-term losses of almost half a billion dollars.

Plunging world stockmarkets have caused the loss with preliminary end-of-financial-year figures showing the fund lost $30 million this year, delivering a minus four per cent result instead of the forecast profit of 7.5 per cent.

"The South Australian decision to invest its superannuation funds in offshore markets has been a disaster and is the bluntest warning yet to our own Government not to make the same mistake," said Mr Donald.

The South Australian Government now has a seriously crippled budget with Treasurer Kevin Foley scrambling to cut $30 million of spending to counter the losses and warning the public to expect 'a very, very hard State budget'.

Meanwhile Rod Donald told the Rotary Club that if Dr Cullen had invested the first $600 million of the superannuation fund on July 1 2001 in stocks listed on the UK FTSE and the US Dow Jones 30, they would have lost around a third of their value, and be worth only $399 million. The $600 million is still sitting in the Debt Management Office.

The Dow Jones has dropped 18.6 per cent during the last year and the FTSE has collapsed 30 per cent in the same period. However because the New Zealand dollar has appreciated 19.4 per cent against the US dollar and 7.8 per cent against the UK pound, anyone selling their Dow Jones and FTSE shares would take an exchange rate loss on top of the loss on their shares.

"Right from day one the Greens have warned the Labour / Alliance Government that it is foolish in the extreme to invest billions of taxpayers dollars on the global sharemarkets.

"It is just plain crazy to gamble public money on the casino economy because, as we are seeing right now, the risks are all too real.

"It is not too late for the Labour Government to agree with the Greens and invest instead in our own young people and our own economy."

A full copy of Rod's speech is available on request.

Ends


© 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