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Cullen to raid NZ Superannuation Fund

October 14, 2008

Scoopit!

According to a report on the NZ Herald website, Labour will ‘ask’ the NZ Super fund to invest more in New Zealand.

Adam had understood the intent was to grow the fund to provide an asset base from which the government of the day could then draw to assist the cost of providing pensions.

It would appear that for political motives Clark and Cullen are prepared to tamper with that objective in order to obtain funds to invest in their pet projects in NZ.

Now unless investment in New Zealand can be justified within validly established and justified independent investment criteria the fund should not have the nature and direction of investment directed for political reasons.

Further, the economics of projects should not be constrained so as to provide an appropriate return to the fund, which may mean the recorded cost is perhaps higher than it need be.

Directing the so called ‘Cullen Fund’ to invest more in NZ for political reasons is worse than National reducing Kiwisaver contributions, as at least the individual saver gets to determine their fund manager and the type of fund.

What this does is allow politicians, those valiant managers and pickers of winners that they are, to invest taxpayer money in projects they deem worthy. Cloaked of course in the guise of a request by the Minister of Finance to the Guardians of the Fund.

This proposal by Cullen seems to have eerie echoes of Rob Muldoon and think big, especially with all this talk of physical infrastructure. Marsden Point anyone!

One of the virtues of the fund to date has been the fact that it has appeared to operate at arm’s length from the regime and to make it’s decisions based on the long term needs of the country and the eventual recipients of the fund.

Adam regards moves to impart a political aspect to investment decisions as short sighted and detrimental to sound business practice.

Depending on the nature and type of investments the fund is influenced to make both capital and income may be affected, further and this will depend on the proportion of funds invested in New Zealand the percentage investment in New Zealand may well over time become less than prudent and expose the fund to loss, whilst at the same time driving up NZ investment values artificially simply because of the size of their presence in the market.

In Adam’s opinion this move by Cullen places the fund at the start of a steep and slippery slope which may have most unfortunate results.

Adam considers moves to influence or direct the Cullen Fund investment strategy by the Clark/Cullen regime to be most unwise. They risk turning the fund into a political plaything with both immediate and long term detrimental effects.

Yet again Clark and Cullen seem determined to gain short term political advantage for themselves and the Labour Party at the expense of New Zealand and the New Zealand citizenry.

Adam would hope to see very strong and rigourous questioning of this action by the MSM, but will not hold his breath. No doubt what we will see is a number of Labour’s little media helpers lauding this as yet another smart move by Clark/Cullen.

Now Clark keeps going on about trust, would you trust Clark/Cullen to look after your pension fund?

National should attack this move by Cullen hard, especially given the picture revealed by PREFU. The MSM should be provoked into exposing this move by Cullen as the huge attack upon the superannuation of new Zealand that it is.

What Cullen is proposing to do is Raid the NZ Superannuation Fund to finance election spend-ups and other boondoggles.

Trust Labour, hell no they spent $600 million to buy a rail system worth only $120 million. Trust them, when they are delivering major deficits for the foreseeable future.

Clark/Cullen must think we are all stupid. Well we will be if we let them get away with this.

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5 Comments
  1. adamsmith1922 permalink*
    October 14, 2008 6:41 pm

    Watched the news tonight no questioning of what Cullen is about! No questioning on the dodgy deposit guarantee scheme!

    media helpers for labour all the way

  2. Adolf Fiinkensein permalink
    October 14, 2008 6:03 pm

    No, no no, dear boy. Think retrospective validating legislation.

    This is a defining election issue. Nothing is sacred for these greasy pricks. Remember the Kirk superannuation fund the demise of which at the hands of (was it Muldoon? I can remember) has been widely vilified by people of all political stripes.

  3. adamsmith1922 permalink*
    October 14, 2008 5:29 pm

    This is the so called Cullen Fund, the NZ Superannuation Fund, and since when has a little thing like changing the law stopped them – think EFA

  4. Colin Lucas permalink
    October 14, 2008 5:23 pm

    I had a quick look at the enabling act for the Kiwi Saver fund. To do whar Cullen wants would require an act of parliament.

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  1. Now Key wants to raid the Cullen Fund « The Inquiring Mind

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