The Government’s announcement that default KiwiSaver funds will be forced to boycott fossil fuel investments will reduce savings, says the New Zealand Taxpayers’ Union.

Union spokesman Louis Houlbrooke says, "The last thing KiwiSaver members need is for politicians to micromanage their funds. KiwiSaver providers are meant to make independent investment decisions in order to maximise returns. Politicising these decisions will ultimately result in lower rates of return.”

"Once the Government starts sticking its nose in, where does it stop? Will KiwiSaver providers be barred from investing in, say, meat production? Alcohol? GMOs?"

“The Government already manages carbon emissions at the macro level – take the Emissions Trading Scheme – which has a flow-on effect on KiwiSaver investment decisions. Diktats on the micro level are unneeded.”

“This move won’t even affect total carbon emissions. Any move to cut emission below the cap set by the Emissions Trading Scheme creates a ‘waterbed effect’ which frees up credits to produce emissions elsewhere.”

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