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


Harvard Business Review Slams Cullen Super Fund

Harvard Business Review Slams Cullen Super Fund

ACT Finance Spokesman Rodney Hide today said that the prestigious Harvard Business Review was quite right in slamming the Cullen Super Fund for its sloppy accountability.

The article appears in the November Harvard Business Review pp. 52-62 and is titled "Arm yourself for the Coming Battle Over Social Security". The article is by Robert Pozen who is the John Olin Visiting Professor at Harvard Law School, a member of President Bush's Commission to Strengthen Social Security.

Mr Pozen writes (p.62):

More systematically, the World Bank has done a comparative analysis of countries investing pension assets directly through a government agency versus countries that allow citizens to invest through personal accounts. Its analysis, published in 2001, shows that returns from government investing have been significantly lower than returns from personal investing. The culprit is politics.

New Zealand, for example, recently established an independent board to invest its Social Security assets in a manner consistent with "maximising return without undue risk to the Fund as a whole". However, because of legislative pressures, the board was simultaneously directed to invest these assets according to another standard that no one can define: "avoiding prejudice to New Zealand's reputation as a responsible member of the world community".

This nebulous second standard will make it impossible to hold the board accountable for inferior financial returns; it can always attribute its underperformance to protecting New Zealand's reputation.

"Mr Pozen is quite right - as was pointed out to Mr Cullen at the time. New Zealanders should be most concerned at the sloppy accountability inherent in the management of the Super Fund. They would do far better if Michael Cullen simply trusted New Zealanders with their own money," Mr Hide said.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


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>>


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>>


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>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news