22 March 2005

Buy Back New Zealand’s Assets – New Zealand First Policy

Rt Hon Winston Peters is welcoming the Government’s belated recognition of a need to make better use of its Superannuation Fund currently valued at $5.75 billion.

This follows the announcement by the Guardians of the New Zealand Superannuation Fund today of their revised strategic asset allocation includes; increasing the weighting to alternative assets such as infrastructure, private equity, commodities, forestry, property, and reducing the fund’s weighting to global listed equities.

“New Zealand First announced at its annual convention last year, that if elected, it would direct the guardians of the New Zealand Superannuation Fund to prioritise the purchasing of shares in local infrastructure companies,” said Mr Peters.

“The aim is to build a solid base of New Zealand ownership of these assets.

“Today’s announcement gives no guarantee of reversing a trend that saw $10 billion dollars in profit from foreign owned infrastructure leave our shores last year alone.

“There is no promise that investing in New Zealand’s key infrastructure will be a priority. It was a Labour Government that sold Telecom to the tune of $4.2 billion in 1990, and that Telecom has made over $7.3 billion dollars in profit since.

"There are a significant number of economically viable assets in New Zealand which would offer a substantial return to the Government, whilst addressing current infrastructure shortages.

“What a pity the fund managers had to have the latest jolt in the current account deficit, now to the excess of $9 billion, to wake up to the soundness of some fundamental economics,” said Mr Peters.

ENDS

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