12 November 2009
Media Statement

Super audit an “own goal” for Bill English

The strong thumbs-up for the New Zealand Super Fund in a review carried out by global investment consultant Mercer underlines just how foolish Finance Minister Bill English has been to defer contributions to the Fund for a decade, says Labour Finance spokesperson David Cunliffe.

“The ultimate irony is that this five-yearly review, which strongly praises the Fund’s management and investment practices, was commissioned by Mr English himself.

“The Government is legally obliged to commission a review every five years, but it is not surprising, given the outcome, that Mr English has released the review with no fanfare whatsoever, not even a one-line media statement noting its existence.”

David Cunliffe said that in the four months since the end of June the Government would have paid in about $420 million in Super Fund contributions if it had not decided in Budget 2009 to defer contributions for 10 years.

“Based on returns to date, this means that the decision not to pay in $420 million has cost the Fund and New Zealanders almost $32 million,” David Cunlife said.

“It is great news that Mercer has declared the Fund to be in such good heart, but it could have been in even stronger shape but for Mr English’s lack of faith in the Fund’s managers to invest wisely.

“The simple fact is that National and Bill English have never been philosophically committed to national superannuation, but this lack of commitment is now costing the Fund and New Zealanders money. No wonder he has been silent on the review’s conclusions.”

ENDS

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