13 March 2008 | Media Statement

How much more transparent can we be??

National’s leaders just aren’t reading the material or listening to a thing the Government and the pastoral and food industries say on the New Zealand Fast Forward fund, Agriculture Minister and Progressive leader Jim Anderton said today

He said that National leader John Key had made such a fool of himself over the issue that deputy Bill English had had to step in and take over.

“But he’s not concentrating either and is making mistakes.

“Prime Minister Helen Clark and I have been clear – this is not a permanent fund. It is designed to last for 10 to 15 years, depending on the rate at which government and industry decide to make allocations and interest rates as well – unless subsequent governments decide to top the fund up. All the capital and interest accrued over its life will be paid out.

“I clearly said on the day of the fund’s launch that the fund’s allocations would take time to gear up, with allocations starting low and building up to larger amounts at the end [see attached interview transcript] as scientific and other capability and capacity build up.”

Jim Anderton said it was lamentable that National was determined to attack the fund purely for party political reasons.

"Mr Key risks scaring off investment in innovation in order to score cheap political points."

“I have spent the past two days visiting farmers in Manawatu, southern Hawkes Bay, and the Wairarapa, and they are all hugely supportive of the NZ Fast Forward fund."

“It is disappointing that National wants to take away from our pastoral and food sectors, the backbone of the New Zealand economy, this very real chance to make a huge leap forward.”

--

Attachment: interview transcript:
13.3.08.Natswakeup.pdf

--

The attached spreadsheet was the rough working guide used to estimate the returns that could be expected across the life of the fund. They include assumptions on how much would allocated in the first five and subsequent years; no tax; a return of 6.5% over the life of the fund. It would run out around year 14.

It is important to note that this is NOT the funding decisions for the fund. The board of the NZ Fast Forward Fund will be responsible for the management of the fund. Minister Anderton has said that he expects the first year’s allocation, for example, to be more like $20 million - $30 million.

15 Year Life
| year | capital | annual allocation | interest | Overall capital reduction
1/01/2008 | 0 | 700 | 20 | 45 | 25
1/01/2009 | 1 | 735 | 30 | 47 | 16
2010 | 2 | 757 | 40 | 48 | 7
2011 | 3 | 765 | 65 | 48 | - 19
2012 | 4 | 748 | 80 | 46 | - 35
2013 | 5 | 714 | 100 | 43 | - 58
2014 | 6 | 657 | 100 | 39 | - 62
2015 | 7 | 596 | 100 | 36 | - 66
2016 | 8 | 532 | 100 | 31 | - 70
2017 | 9 | 463 | 100 | 27 | - 75
2018 | 10 | 390 | 100 | 22 | - 80 | 11 | 312 | 100 | 17 | - 85 | 12 | 229 | 100 | 12 | - 90 | 13 | 141 | 100 | 6 | - 96 | 14 | 47 | 12 | - 0 | - 12

© Scoop Media