5. Hon DAVID CUNLIFFE (Labour—New Lynn) Link to this
to the Minister of Finance
Does he stand by all his statements regarding the New Zealand Superannuation Fund?
Hon BILL ENGLISHHon David Cunliffe Link to this
Is he aware that since he suspended contributions to the New Zealand Superannuation Fund it has increased in value by over $2 billion; if so, does he still maintain that “It makes little economic sense” to contribute to the fund?
As I have explained to the member several times, the Government’s decision to not contribute was made, in fact, because the Government has no spare cash to save. It was not to do with the performance of the fund.
Hon David Cunliffe Link to this
It is always good to clarify what comes out of the Minister’s mouth.
Mr SPEAKERWe see what happens when the Speaker is not quick enough in stopping this kind of thing. The member should just ask his question.
Hon David Cunliffe Link to this
Why did he use the global recession to justify his cutting contributions to the New Zealand Superannuation Fund when all similar funds around the world were losing money; and in the light of the New Zealand Superannuation Fund’s recent gains does he accept that the decision was wrong and short-sighted?
The member clearly was not listening to the answer to the first question when I said that the decision not to contribute was based on the fact that the Government has large cash deficits. One reason for those deficits is the global recession; the other reason for those deficits is the reckless fiscal management of the previous Government. When we have surpluses we will start to contribute to the fund again.
Hon David Cunliffe Link to this
Given the Minister’s aversion to reckless fiscal management, including the $110 billion of pollution subsidies just awarded to large emitters, does he stand by his statement that future contributions to the fund will be considered annually; if so, can New Zealanders expect him to resume contributions to the New Zealand Superannuation Fund in Budget 2010 in light of those wonderful $2 billion gains in the fund this year?
We consider the contributions annually because the decisions are made under the legislation passed by his party when it was in Government, and which was supported by National. That legislation allows for the Government to suspend contributions. As I have said, this Government did not believe that it made sense to borrow at the margin of New Zealand’s credit rating in order to contribute to the New Zealand Superannuation Fund. When we have cash to save, we will save it, but I have to say that that is 8 to 10 years away.