25 November 2004

Cullen on National's support for NZ Super Fund

"The greater the political consensus around the New Zealand Superannuation Fund, the safer New Zealanders' long term security in retirement," Finance Minister Michael Cullen said today.

He was commenting on the decision this week of the National Party caucus to support the Fund's continuance.

"National campaigned for the abolition of the Fund in the last elections so this represents a step forward," Dr Cullen said.

"I will need to see evidence that National understands that contributions to the Fund are made out of the budget surplus and that the money that is paid into the Fund is money that is not available for spending elsewhere.

"In the last election campaign National was promising to spend every dollar three times: to cut taxes, on new spending initiatives and in faster debt repayment.

"This time, I will be insisting on a higher level of fiscal honesty," Dr Cullen said.

Dr Cullen will now write to the National Party inviting them to sign up to Part Two of the New Zealand Superannuation Act 2001. This provides for the establishment and governance of the Fund which, by the end of June; will contain $6.3 billion.

ENDS

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