Super Fund contributions must restart on surplus

National must restart contributions to the Super Fund when it gets the books back into surplus as the government books would be $2.2 billion better off if contributions had not been stopped, says Labour’s Finance spokesperson David Parker.

“New figures show that the Super Fund – one of the great successes of the last Labour Government – continues to go from strength to strength.

“But it could have been much better. The Guardians of the New Zealand Super Fund say that as of 30 June 2013 the NZ Super Fund was $10.8 billion smaller than it would have been if contributions had continued, with $2.2 billion of foregone investment gains.

“The fund returned $4.51 billion in the past twelve months at a rate of over 21 per cent. That is half a billion more than the National Government raised from its failed asset sales programme.
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Rail Link in 2020? SOE sale cash gone by 2017

The money raised by asset sales is due to be spent by 2017 – making a mockery of John Key’s claim that the City Rail Link will be paid for from SOE sale proceeds, says Labour’s Finance spokesperson David Parker.

“Bill English said in 2011 that the proceeds from assets sales – dubbed the Future Investment Fund – would finish by 2017[1].
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Asset sales cash is the new printing money

National is setting future generations of New Zealanders up for a borrowing binge while they mislead New Zealanders with claims asset sale funds can be spent over and over – in a new take on printing money, says Labour’s Finance spokesperson David Parker.

“John Key is playing New Zealanders for fools. He keeps promising the earth from asset sales proceeds but knows that there is no way the money will cover all his promises.

“It’s printing money, National Party-style.

“National’s senior ministers are in an unseemly rush to grab the proceeds of SOE sell-offs for themselves.

“John Key told us asset sales are necessary to ‘avoid a credit downgrade’, months before New Zealand suffered a downgrade. Tony Ryall said that asset sales are necessary to pay down debt.
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Rail Link: Asset sales funds gone by 2020

National’s claim that asset sales will fund the City Rail Link is yet another false attempt to justify their SOE sell-off, as that money will be long gone by the 2020 start date, says Labour’s Finance spokesperson David Parker.

“National has milked the asset sales funds to cover almost everything it does, depending on what its polls say. They seem to think the money can be spent time and time again like it grows on trees.
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