24 July 2002

Sharemarket Upheaval Shows Risks Of Cullen Fund

The dive in the international sharemarket this month reinforces the risk of the Cullen fund, says National Leader Bill English

"If the $600m currently in the fund had been invested in the US and UK sharemarkets, it would have lost $100m in the last four weeks. Dr Cullen simply can't justify putting taxpayers money at risk in this way.

"If the same money had been invested in those markets when they were at their peak this year, the fund would have lost $165m. This would be simply irresponsible.

Dr Cullen must explain why he thinks investing $2 billion a year of taxpayer funds into overseas sharemarkets is better for growth than if that money was invested here.

"The best way to secure future superannuation entitlements is to implement a plan to raise the sustainable growth rate of the New Zealand economy. Investing billions of tax payer funds in other economies is not the answer," Mr English said.

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