English puts super back on the line
In what was apparently a pretty dire interview on The Nation this morning, Bill English dropped one bombshell, possible changes in superannuation. For the record I think English is right on this. For a change.
cullen fund
Kiwibank sale to NZ Super, ACC privatisation by stealth
The transfer of part of Kiwibank to the Cullen Fund will inevitably lead to its privatisation, no matter what the Government says.
Who needs $4.8 billion anyway
Yesterday a report from the NZ Super Fund (the Cullen fund) provided further evidence of National’s economic “genius”. We could have used the $4.8 billion that they just chucked away.
The retirement age debate
Labour’s current policy to gradually increase the age of retirement is a fiscally appropriate response to the pressures that will result from the baby boomer bulge in the population approaching retirement. But is it the right thing to do?
Cullen Fund earns more for New Zealand than Asset Sales
The Cullen fund is doing more for the country’s finances than selling our Assets. Who would have thunk it?
So, borrowing to save makes sense afterall…
Do you remember back in the day when Bill English didn’t want to put any money into the Cullen Fund? Remember how we were smugly told that borrowing to save was foolish? Well, since then the Cullen Fund has made a fortune and, we know learn, the government has been borrowing to build up savings for the Christchurch rebuild.
Cullen Fund cuts cost $334m
The limo issue reveals everything wrong with the Key government in microcosm: greedy, elitist, hypocritical, liars. Against the background of the failing economy, it’s one hell of a bad look. But in monetary terms, it pales in to comparison beside their decision to cancel Cullen Fund contributions, which has now cost $334 million.
Save us from Nat working groups
The same old formula has played out again: National appoints an expensive, hand-picked working group (the Savings Working Group). The working group comes up with predictable recommendations. The Nats extreme recommendations out of hand, to appear moderate, and do what they were planning to do. Here are the real savings solutions.
S&P downgrades defenceless, exposed NZ
Standard and Poor’s shock move to downgrade our credit rating caused markets to plunge late yesterday. Bill English’s reaction, predictably, is to pretend nothing is wrong. John Key says it’s about debt, even as he borrows for tax cuts. But let’s look at what S&P says is wrong with us:
Nats’ ideology costing us millions
This post isn’t about National cutting education at every level, which will damage our country for decades to come. Nor is it about how they’re cutting cost-efficient preventative medicine to fund ‘sexy’ elective surgery. It’s not even about how they’re pouring billions into holiday highways in the era of peak oil. This is about the Cullen Fund.
Killing the golden geese
National is developing an agenda for privatisation. It’s crazy. State owned assets are generating some rare bright spots in an otherwise dismal sea of poor economic news. So why would any rational government sell ACC (or other state owned assets)? Why would any rational government be cutting back on the Cullen Fund? Why are the Nats determined to kill the golden geese?
What’s the Govt’s economic vision?
To build a brighter future for New Zealand we need to invest in it. We need to build up our national savings, invest in R&D, and build a sustainable, more self-sufficient economy. National has cut savings and R&D investment, and talked down New Zealand’s potential for hi-tech manufacture. Seems they’re only interested in short term pay offs for the rich.
English & Key cost us another $18mil
The other week Vernon Small said that canceling the Cullen Fund contributions was “a dumb, short-sighted decision that has cost the fund heaps in the long run“. Hell, don’t worry about the long run just yet, Vernon, it’s been only 8 months. And the losses are accelerating. Last month the Nats cost us a further $18 million – that’s basically a million a work day.
Nat-onomics: $30 million up in flames
Vernon Small calculates that if the Cullen Fund had continued getting its monthly contributions, rather than just the one-off $250 million the government gave in July, we would be $30 million better off by now. Predictably, the financially illiterate Key apologists are having a cry about being shown to have stuffed this one up so badly.
Restart Cullen Fund payments
It’s time for the Nats to reverse what Vernon Small (with 20/20 hindsight) has labeled the “dumb, short-sighted decision” to can contributions to the Cullen Fund. We’ve already lost $25 million and Treasury says we’ll lose billions more. If we don’t make this investment now, superannuation will become unsustainable sometime after 2030. Perhaps that’s the Nats’ aim.
English should follow Bennett’s lead
Well, I’m pleasantly surprised. For once, Paula Bennett has played it straight on the benefit numbers. She hasn’t slapped herself on the back, even though last month’s benefit numbers are the best we’ve seen on her watch (in line with normal seasonal variation). If only Bill English could follow suit, rather than claiming credit for illusionary movements in the government’s books.
Key & English lose us $21mil in 3 months
Back in February, former currency speculator John Key and former Treasury adviser Bill English started talking about suspending contributions to the Cullen Fund, […]
John and Bill cost us $7 million in two months
You’ll remember that in the Budget National decided to suspend payments to the Cullen Fund, which is designed to help fund the future […]
OIA confirms: No reason to cut Cullen Fund contributions
Well, we told you so. The Nats lied for weeks that a credit rating downgrade would be imposed on us if we didn’t […]
Abandoning a winner
Government’s put out this press release: “Finance Minister Bill English has welcomed news that the Budget operating deficit of $7.2 billion for the […]
What would Key the Investor do?
Here’s a question for Mr Key but you can play along too. What if you could buy into an asset that performs well […]
Suspending the Cullen Fund
Bill English seems set to suspend the government’s contributions to the Cullen Fund. Here’s a little-known fact, one that Bill English probably doesn’t […]