Parliament

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

 

Greens reveal country's biggest problem gambler


Greens reveal country's biggest problem gambler

The Government Superannuation Fund has lost at least $315 million dollars as a result of a failed gamble on the overseas sharemarket, Green Party Finance spokesperson, Rod Donald said today.

The information is revealed on page 12 of the Government Financial Statements.

"It is sadly ironic that the troubles of the Problem Gambling Foundation have been dominating media headlines while the GSF losses have gone unreported," Rod Donald said.

"The Foundation is rightly concerned about how $280,000 of its money was spent, but multiply that figure 140 times and you get some idea of the size of Dr Cullen's own gambling problem."

The Greens were the only party to oppose the change to the rules that allowed the Fund - to which more than 75,000 current and former public servants contribute or receive benefits from - to be invested in New Zealand and overseas sharemarkets.

Despite September 11, WorldCom and Enron more than 44 per cent of the $3.5 billion fund was earmarked for international equities.

"Nice timing, Dr Cullen: in the three months to June the crash in international share prices and the rise in the New Zealand dollar cost the fund $315 million," said Rod Donald. "That amounts to a loss of at least 20 per cent of the funds staked offshore.

"If those assets had only been invested in Government bonds securities they would have earned $25.5 million in interest, based on the average 10-year bond rate of return over 2001-2002. Similar safe, prudent investment helped achieve a 7.57 per cent return last year, which was a higher return than the Government Bond index.

"In fact, before the reckless decision to invest on overseas stocks the Fund had never lost money in its 46 years. The total loss could be even higher, with the GSF report due out in the next few days.

"The Government must learn from its mistakes, before squandering any more super funds on volatile, unsound markets

"New Zealand money should be invested in New Zealand, to the benefit of all," said Rod Donald. "It should not be left to ride on the roulette wheel of the global casino economy."

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

KiwiBailed: KiwiBuild Head Officially Resigns

The head of Kiwibuild, Stephen Barclay has officially resigned from the role. In a statement issued on his behalf, it was announced that he would step down from today [Friday].

Housing Minister Phil Twyford's office said he would not be commenting on Mr Barclay's resignation as it was an employment matter. Last month, Mr Twyford confirmed that Mr Barclay had not been at work for a number of weeks. More>>

 

Welfare Stats: Rise In Hardship Numbers Shows Income Inadequacy

The latest Ministry of Social Development quarterly report show that a record number of people have received hardship assistance from work and income, with an additional 40,000 hardship payments made between September and December 2018, compared to the previous quarter of the same year... More>>

ALSO:

DHBs "Prepared": Junior Doctors Strike Again

The needs of acute patients will be met during tomorrow's junior doctor strike, a DHB spokesperson says... Almost 3000 junior doctors are expected to walk off the job, which will affect all DHBs apart from West Coast District Health Board. More>>

ALSO:

Gordon Campbell: On MBIE’s Social Media Scam

Given the ambit of MBIE’s work, almost any form of social activity could qualify as being part of MBIE’s brief, so the privacy threats posed by this training programme are extensive. The current oversight safeguards seem threadbare to non-existent. More>>

ALSO:

JusTrade: New Campaign For A 21th Century Trade Agenda

‘Critique is no longer enough. If anything is to really change, we need to step away from the existing framework and take a first-principles approach to rethinking what will work for the 21st century.’ More>>

Earlier:

Gordon Campbell: Thompson + Clark Are The Tip Of The Iceberg

How can we tell where and how any lines are being drawn? Oversight is not exactly robust. If it were, Thompson + Clark would have been out of contention for state security work ten years ago. More>>

Trainers: Taratahi Institute of Agriculture In Interim Liquidation

Taratahi employ 250 staff and this year has provided education to over 2500 students. Taratahi owns and manages 8 farms throughout the country. More>>

ALSO:

IPCA Report: Complaints About Deputy Commissioner Wallace Haumaha

The Authority has found that DC Haumaha acted improperly by approaching staff and others to provide information to support him to refute the allegations about his 2016 conduct, or solicited other staff to do so on his behalf... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels