1. SUE BRADFORD (Green) Link to this
to the Minister of Finance
What, if any, are the current market values of holdings in Sky City Entertainment Group held by the New Zealand Superannuation Fund, the Accident Compensation Corporation, the Earthquake Commission, the National Provident Fund, and the Government Superannuation Fund, and how, if at all, have these holdings changed since 31 July 2006?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
The Earthquake Commission does not invest in New Zealand shares, for fairly obvious reasons, I think. The remaining entities hold around $115 million worth of shares, or about 5 percent of the total Sky City Entertainment Group shares on offer. This has reduced by around $10 million since 31 July 2006.
When will the Government divest its shares not only in Sky City Entertainment Group but in Exxon Mobil, which is into climate change denial; United Technologies, Northrop Grumman, Finmeccanica, BAE Systems, Boeing, and EADS, which are involved with nuclear weapons; and L-3 Communications, Lockheed Martin, and Raytheon, which make cluster bombs?
Hon Dr MICHAEL CULLEN Link to this
The Government does not direct the Crown financial institutions where, how, and when to invest in particular companies. They are subject to statutory constraints. If we had the opposite situation then no doubt these institutions would be subject to political whim from day to day, which would then detract from their primary purpose.
Does the Minister agree that investing in Sky City Entertainment Group is unethical, given that this is Government money profiting from the harm done to problem gamblers and their families, and when will the Government get rid of those investments?
Hon Dr MICHAEL CULLEN Link to this
As I said, that is up to the individual Crown financial institutions, subject to their statutory requirements. Sky City Entertainment Group is a publicly listed company that acts in conformity not only with general law but also with specific law around the operation of casinos. It contributes to the problem-gambling levy.
Can the Minister assure the House that the new KiwiSaver funds will not be invested in Sky City Entertainment Group or other gambling companies, given his Budget commitment the other day to ethical investment?
Hon Dr MICHAEL CULLEN Link to this
We are working on a series of guidelines and reporting against socially responsible investment requirements. It would not be for the Government to direct where KiwiSaver funds should be invested. That is not the role of Government in this respect.
In that case, will the Government be making matching contributions proportional to the size of its profits from investing in Sky City Entertainment Group, thereby offsetting the harm caused by gambling, given that Skycity Casino is now talking openly in Auckland about aggressively targeting local gaming customers in the Asian community?
Hon Dr MICHAEL CULLEN Link to this
No. Sky City has indicated that there has been a substantial increase in the Asian population in Auckland—perhaps others realised this somewhat earlier—and therefore it is marketing that particular audience.
Rodney HideDoes he accept that if the New Zealand Superannuation Fund was rolled into the KiwiSaver scheme, every adult of working age not only would get an endowment of $8,000 and a genuine stake in New Zealand but could actually choose the KiwiSaver scheme that met his or her ethical concerns, including those of the Greens?
Hon Dr MICHAEL CULLEN Link to this
Destroying New Zealand superannuation is not necessary to allow people to choose which KiwiSaver scheme they want to save into. They will be able to choose which KiwiSaver scheme they want to save into anyway, and, indeed, they will be able to change their KiwiSaver provider, although not more than once a year. So if the member wants to set a scheme up, then he can do so.