3. Hon DAVID CUNLIFFE (Labour—New Lynn) Link to this
to the Minister of Finance
Does he support the principle of full funding of future Crown liabilities as, for example, in ACC?
Hon BILL ENGLISH (Minister of Finance) Link to this
Yes, in general. As accident compensation is an insurance scheme, then full funding is therefore appropriate.
Hon David Cunliffe Link to this
Does he support the principle of the full funding of future Crown liabilities in respect of superannuation?
As the member will know, national superannuation is not an insurance scheme. It is a “pay as you go” scheme, so it is treated differently.
Hon David Cunliffe Link to this
Does he support the full funding of future Crown liabilities in respect of carbon emission units?
The Government has made some practical decisions to put in place a moderated emissions trading system. There are ongoing consequences from that. We are happy to debate those.
Aaron GilmoreThe Government deals with some of its future liabilities on a “pay as you go” system. For instance, people on the invalids benefit are generally regarded as not being able to work in the future, but we deal with them on a “pay as you go” basis because they are on a welfare benefit. However, clear insurance liabilities or well-defined pension liabilities are fully funded, such as most of the Government Superannuation Fund is.
Hon David Cunliffe Link to this
Why does he think it is necessary to manufacture a crisis in the accident compensation scheme through the principle of full funding, when he has just rejected again the same principle in respect of climate change and superannuation?
We did not manufacture the idea of full funding. Labour was in power for 9 years with a full funding deadline of 2014 in the law. It had the opportunity to change that. Labour never changed it, and it certainly ignored the obligations that that deadline put on it to run the scheme responsibly. Labour behaved recklessly, and now levy payers are paying for that.
Hon David Cunliffe Link to this
How can he believe it is consistent, ethical, or fiscally responsible for taxpayers to meet the full cost of funding accident compensation, which runs a cash surplus of nearly $2 billion, but to load the full cost of superannuation and carbon liabilities on to our children?
The member is displaying the current confusion in Labour over its policy positions. Labour needs to decide whether it thinks that accident compensation should be fully funded or “pay as you go”. In fact, on the issue of superannuation, I say today’s workers pay all the national superannuation liabilities.