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

 

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>

ALSO:

Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>

ALSO:

Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news