Green Party wants more NZ fund spending

Jeanette Fitzsimons
Jeanette Fitzsimons
Two likely Labour Party coalition partners might force a rethink of how Finance Minister Michael Cullen views the money being accumulated by the New Zealand Superannuation Fund.

Green Party co-leader Jeanette Fitzsimons yesterday announced the Green economic policy which would require the fund, also known as the Cullen fund, to invest more of its funds in New Zealand.

However, the Greens wanted the fund to provide capital for New Zealand businesses, not to build roads which would not yield a return, she said.

But that could open the way for a finance minister to spend the money on a rail network, something the Greens supported in the economic policy.

Dr Cullen has been scathing of the National Party's plan to set a target of investing at least 40% of the super fund in New Zealand.

National said the range of investment opportunities available to the fund included New Zealand listed equities, government bonds, high-quality commercial paper, local government fixed-interest securities, private equity and property, infrastructure, forestry and commodities.

A National-led government would amend the legislation to allow the minister of finance to give a direction to the fund guardians on how much was to be allocated to New Zealand.

Dr Cullen said the whole purpose of making the fund independent of the government was to ensure investment decisions were made by professionals.

"This is a fund to support the provision of universal superannuation to all New Zealanders in the years ahead. This is not the finance minister's piggy bank to raid for pet projects."

New Zealand First leader Winston Peters said in a speech yesterday National's policy imitated a longstanding NZ First policy put in place when the fund was started.

And he confirmed the party's policy for New Zealanders to be first when it came to owning the country.

"We will continue to warn of the dire consequences of growing foreign ownership."

The fund could provide a way of meeting NZ First's requirements to repurchase some assets owned by overseas interests or stop more assets being sold internationally.

NZ First deputy leader Peter Brown said that for the long-term security of superannuation, it was absolutely essential the fund maximised its return and sight must not be lost of that objective. However, there could be a good case put to the Government to borrow for roading needs, KiwiRail or Ontrack.

"If there is a sound case made, and it is agreed to by the Government, the super fund could be the first port of call for such funds. Under this method, roading or rail is advanced and the super fund gets its required return and remains free from government dictate."

If Labour is in a position to form the government after the November 8 election, its two likely coalition partners may combine to force a rethink by Labour on use of the fund.

• Other economic policy announced by the Greens yesterday included investment in insulating and upgrading houses to improve health and reduce power bills; building better public transport systems rather than unneeded motorways; a government commitment to local purchasing of New Zealand goods and services to support local businesses and jobs; and conditions around the deposit guarantee that ensure it does not encourage irresponsible lending in the future.

Miss Fitzsimons said the party wanted to reform the tax system so everyone paid less income tax, "clean" businesses were rewarded and wasters and polluters paid more.

She advocated the first $10,000 of income tax being tax-free from 2011, giving every taxpayer about $20 a week more than Labour's 2011 tax proposals.

 

 

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