4 December 2009 Media Statement

Bill English decisions on Super and ACC continue to be short-sighted

Continuing strong investment performances by the New Zealand Superannuation Fund and ACC prove yet again how short-sighted Government policies are, says Labour Finance spokesperson David Cunliffe.

David Cunliffe said Finance Minister Bill English’s folly in deferring Government contributions to the Super Fund for a decade and in casting doubt on the future viability of ACC was shown in sharp relief by the Treasury’s release today of the Government’s Financial Statements for the four months ended 31 October.

“The financial statements show that both the Super Fund and ACC reported higher-than-forecast investment returns --- $1.3 billion in the case of the Super Fund and $0.6 billion in the case of ACC.

“These gains highlight the flaws in Bill English's repeated attempts to undermine confidence in ACC and the Super Fund.

“The Government’s books would be in far worse shape if it wasn’t for these strong performances, and it is a mystery why Bill English refuses to shift his position, and admit he has got it badly wrong.”

David Cunliffe said Bill English was still preaching the false message that National inherited government books that were in trouble. “Nothing is more wrong. He inherited net debt at zero and gross debt halved.

“Today’s financial statements reinforce the fact that National has no plan to help hard-working Kiwis emerge from the global recession, and, worse than that, his actions in undermining assets like the Super Fund and ACC are actually retarding our recovery.”

ENDS

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