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


No excuse for poor super fund performance

No excuse for poor super fund performance

Green co-leader Rod Donald today called for a change in investment strategy for the Government Superannuation Fund following massive losses on the international sharemarket.

The first year report for the Government Superannuation Fund Authority, which controls the savings of current and former public servants, show the fund has lost $240 million in its overseas share dealings for the eight months to June.

This represents a 2.55 per cent pre tax loss for the period October to June, compared to a 3.1 per cent profit for the previous four months when the fund was still invested in New Zealand fixed interest bonds.

"The net effect of the Government's gamble is that the fund is now worth $207 million less than it was at the start of the year and $248 million less than the Government was forecasting," said Mr Donald.

"This is the first time in the history of the GSF that it has lost money. The justification in the report that the losses were less than the losses of other major superannuation funds is a poor excuse.

"This fund was invested on the share market after September 11, Enron and WorldCom - when all the other funds were pulling back. I want the Government to tell us how long it will take to recover these losses, let alone reach the projected returns of 9.6 per cent," he said.

"Now is not the time to be sinking public money into fragile global markets. Yet incredibly the authority that controls this fund wants to lift its holding in international shares from 33 per cent to 52 per cent.

"I urge the Government to say enough is enough, admit their mistake and reinvest this money back into the New Zealand economy before it loses any more."

© 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>>


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>>


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>>


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>>


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>>


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>>





InfoPages News Channels