Parliament

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

 

Govt Creates Confusion Over Superfund

The Government is cooking the books to create confusion over whether Dr Cullen's flawed super scheme will pay out 10 cents or 25 cents in the dollar of future superannuation costs, National's Bill English said today.

"The fact is that, on average, Dr Cullen's scheme will pay out just 10 cents in the dollar of the cost of future superannuation. It is absurd for the Government to suggest that Dr Cullen's scheme will make future provisions secure, when 90 cents in the dollar will still need to be met by future taxpayers.

"Dr Cullen claims his proposal makes superannuation 100 percent certain. In fact, it leaves it 90 percent uncertain.

"Helen Clark and Michael Cullen are also both now claiming the scheme will pay out 25 cents in the dollar. This is a nonsense, which is not supported by Treasury or Budget documents.

"Treasury documents, and their official advice to the Finance Select Committee confirmed the 10 cent figure, with a peak contribution of 14 cents in 60 years time. There is no reference at all to 25c.

"The figures I have cited come directly from the Treasury model of the scheme which is posted at: http://www.treasury.govt.nz/release/super/

"It appears that Dr Cullen is using an accounting trick. He is double counting the tax proceeds from the fund.

"Treasury advised the select committee that the fund is not really generating any extra tax revenue at all. If the money was in taxpayers' pockets, instead of the fund, it would still generate the same amount of tax.

"The money generated from tax on the fund is going into the general taxation pool, not the fund. The tax on the fund's earnings is not tagged back to the fund or to super. It goes into the general pool along with income tax, tax on alcohol and GST.

"Of course Dr Cullen could tax the Superfund less, or even not tax it at all and that would increase the growth rate of the fund and enable it to contribute more than 10c in the dollar to superannuation. However, this would reverse his current policy and he can't have it both ways.

"The smoke and mirrors act he is trying to pull, coupled with the problems inherent in Dr Cullen's scheme, clearly indicate it hasn't been built tough or smart, and it won't prove durable," Bill English said.

Ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On How National’s ”New” Welfare Plan Resurrects A Past Failure


Sam Uffindell’s defenders keep reminding us that he was only 16 at the time of the King’s College incident, and haven’t we all done things in our teens that, as adults, we look back on with shame and embarrassment? True. Let's be honest. Haven’t we all at one time or another, joined a gang and beaten a smaller, younger kid black and blue with wooden clubs? In that respect, Uffindell’s defenders on the streets of Tauranga risk sounding a bit like the psychiatrist Kargol played by Graham Chapman on Monty Python. Some of the media commentary has also noted how the Uffindell saga has taken the shine off National’s good poll results and distracted us all from the unveiling of an important welfare policy at the recent National Patty conference. OK… So let's put the spotlight back on that welfare policy...
More>>




 
 

National: Food Prices Climb Taking Kiwis Backwards
Kiwi families continue to battle runaway food prices, National’s Finance spokesperson Nicola Willis says... More>>



Transport & Infrastructure: Have Your Say On The Future Of Inter-regional Passenger Rail In New Zealand

The Transport and Infrastructure Committee has opened an inquiry into the future of inter-regional passenger rail in New Zealand. The aim of the inquiry is to find out what the future could hold for inter-regional passenger rail... More>>


National: Sam Uffindell Stood Down Pending Investigation
Tauranga MP Sam Uffindell has been stood down from the National Party caucus pending an investigation into further allegations about his past behaviour, says National Party Leader Christopher Luxon... More>>



Government: Tax Break To Boost Long-term Rental Supply
The Government is encouraging more long-term rental options by giving developers tax relief for as long as the homes are held as long-term rentals, the Housing Minister Megan Woods has announced... More>>


National: NZ Migrant Arrivals Hit Lowest Mark Since 1990s
Today’s net migration figures show that Labour has failed to deliver the desperately needed skilled migrants they promised, meaning labour shortages will persist into the future, National’s Immigration spokesperson Erica Stanford says... More>>


Green Party: Abuse Revelations Leave No Choice But To Overhaul RSE Scheme
The Green Party is calling on the Government to overhaul the Recognised Seasonal Employers scheme in the wake of revelations of shocking human rights violations... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels