Campaign blog: 16 October - Rt Hon John Key

14 Comments
16 October 2008
Campaign blog: 16 October

Click to watch this video

In Christchurch yesterday I unveiled an important economic initiative I believe will help drive New Zealand's growth. [Watch video of the announcement and the following presser.]

National will put a greater portion of the large capital pool sitting in the New Zealand Superannuation Fund into the New Zealand economy.

Our plan is to amend the law to let the Finance Minister direct the allocation of the fund - and we will set a target that at least 40% be invested in New Zealand.

In every other way, the guardians of the NZ Super Fund will continue to invest as they do now. They'll make decisions on a prudent, commercial basis.

But I believe that having more of that Fund's money - now amounting to almost $14 billion - invested in New Zealand can only have positive spinoffs for the country, both in the short-term and long-term.

The range of investment opportunities are large - they include shares, government bonds, high-quality commercial paper, private equity and so forth.

While the guardians of the NZ Super fund will determine the appropriate rate by which to increase their investment in New Zealand, I want to see that pool of capital back New Zealand.

In the short term, in a world where capital will be more tightly held and closely guarded, our plan will help ensure we have funds to help get us out of recession and into a period of solid and sustainable growth.

It's a central message of National's campaign that we want the economy to grow - and I believe yesterday's announcement will add another layer to the economic management plan I unveiled last week.

John Key

Superfund policy announcement and ensuing presser

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#1 - Clunking Fist said:
2008-10-16 10:42 - (Reply)

Nnnnoooooo!!! At least you've made Muldoon and the unions smile. What next, mandating what my KiwiSaver funds can be used for?

#2 - Kevin Lindsay 2008-10-16 10:43 - (Reply)

Hi John "we will set a target that at least 40% be invested in New Zealand." YES and the addage 'charity starts at home' is the way to go. PS Excellent effort in the debate. You looked relaxed and on it. Most of all you came across as REALLY careing about us (NZ) doing better and appearing as though YOU can make a difference with the right leadership. Thanks again. Good luck Kevin Lindsay

#3 - Jenny Hawker 2008-10-16 10:45 - (Reply)

*Well done*great move.....NZ is a nation of middle class hardworking people of all ethnic backgrounds - many in small businesses where economic stimulus has been lacking. Good to see you keeping the focus on the economy and the need for change.

#4 - maarten bangma 2008-10-16 10:46 - (Reply)

i have always felt that oinvesting in the sharemarket is like going to the casino. Im not sure of the returns on the Cullen fund since its inception but nz govt bonds could hardly offer a worse return. when a family is in financial strife no one would suggest that they invest in the share market and then borry money as well, so why should we as a country

#5 - Owen McShane 2008-10-16 10:53 - (Reply)

This and similar policies will be to no avail as long as our local authorities are fining anyone who wants to build our way out of depression. The provisional tax benefits to companies and anything else I can think of are trivial compared to the impact of Development Contributions. A Maori couple here bought a motel in good faith and then found it had not been permitted under the RMA. Probably had exisisting use rights but would take an Environment court case to prove it so they decided to upgrade it to get a consent.. Then when they got their resource consent for the four rooms (which had been operating as a motel for about ten years) they also got a bill for $64,000 for roading contriibutions to pay for the “extra load” generated by the “extra four units”. They had no idea they would be hit with this. They applied for the consent before the Council adopted its roading contribution policy and it never occured to anyone that getting a consent would add to the load on the roads. They cannot pay it and may well just walk away from the whole thing. So if we want to build our way out of depression we had better scrub development contributions - everywhere – unless there is the common law nexus.

#6 - Gordon.Stern 2008-10-16 14:22 - (Reply)

I have a problem with the question of the maori party seats and Peter Sharples one of you is mistaken this needs clearing up urgently with a statement from both parties

#7 - John Buckley 2008-10-16 15:59 - (Reply)

John, why only 40%? My private super was used to make low interest loans to local bodies and other NZ funds when I joined the scheme. BUT, into the 1990's the incoming govt forced changes to the scheme. My scheme was closed off to further contributors, the trustees were forced to make changes investing in O/seas shares and much more. This is not the scheme I joined 34 years ago!! After all the changes made during the 1990's the scheme has let me down very badly and the funds have on occasion resulted in the trustees warning me that there were insufficient funds to ensure the sustainability of the fund. For the tenth year in succesion my pension has not increased no annual adjustments the conditions originally claimed would be given. The earnings for '97/98. (after tax & expences) Cash 8.7% Fixed interest 8.4% Property -9.7% NZ shares -13.0% O/seas shares -5.2% What will National do to improve on this dismal performance??? John Buckley

#7.1 - ronald lonie said:
2008-10-16 18:01 - (Reply)

bring it home where our money should be. and just imagine how many millions could be saved and used to develop our country if we stop paying out huge amounts (some for the second and third time,) for maori "claims", where the money seems to disappear into thin air without much help to them, or us! I support one people one nation just as the treaty says.

#8 - Steve 2008-10-16 16:12 - (Reply)

Great idea Mr Key. I think this is a huge step in the right direction. From watching the media spin last night though I think that it needs to be made clear that the money isn't being pinched from the fund - just invested onshore instead of offshore.

#9 - Tom Clark 2008-10-16 16:30 - (Reply)

No thank you. I am not in favour of having one person directing where our super funds will be invested. There is absolutely no safety guarantee that the funds will be secure in one person's hands if the guardians of the Super Fund have no authority to act on the people's behalf. Regards....

#9.1 - Margaret Murray 2008-10-16 17:51 - (Reply)

This one will do, for me to get on the page. I tend to agree with Tom Clark. I am surprised that a National Party leader would suggest directing the Fund's Trustees to invest 40 per cent in local matters, this seems a very socialistic method, and one typical of leadership over the past Socialist years. If the Public Utilities like Water and Power were made into public companies in which we could have shares/stock rather like Monopoly, there might be some benefit. I have not the deeper economic comprehension to argue what is best. However, presumably something must be reliant on the Global banking and investment situation, and with the 1944 Bretton Woods finance system now coming in for radical overhaul, it is hard to know which form of ideological drive is of benefit to ordinary people. The trouble is that Public Works which will give jobs for the 'average' worker who was done out of them by the removal of the Railways and the Ministry of Works is funded again by the taxpayer, so there is bound to be a rise in Government spending. People in proper work are happy to feel part of society, can feed their families, and have a dollar to spend on 'pocket money', but what to do with the incurably ignorant, damaged by drugs and glue? More Government spending to keep them in Homes, and even growing gardens to feed themselves (and others) requires Paid keepers - not Charity givers for sure. All the best for success anyway, MM.

#9.2 - Rodney King 2008-10-16 20:32 - (Reply)

Tom Clarke's comment is spot on. This suggestion of 40% investment in NZ holdings or whatever is the thin end of the wedge. When the Government begins to intervene in this fund, for whatever good political motive, expect other interventions to follow. Keep politicians out of this!! - And let the experts in charge of making these investments do the best job they can.

#10 - Steve 2008-10-16 17:27 - (Reply)

Something that will be common place 5 years from now - how fantastic it would be if NZ was on the ground floor and invested in this science - www.23andme.com Serie Brin's (co founder of Google) wife is involved - it has to be the way forward!!

#11 - John Buckley 2008-10-17 09:57 - (Reply)

My earlier comment relating to my private super I made an error. The years were 2007/2008, not 97/98. The fact is I have earned more from my term deposits over the last 10 yrs. See the latest Consumer. Be warned!

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