Pressure on Super Fund to Perform
The Government’s decision to rob taxpayers of vital cash by diverting it into the New Zealand Superannuation Fund will put huge pressure on the Fund to perform, says Federated Farmers of New Zealand (Inc.) President Tom Lambie.
Friday, August 15th 2003, 12:28PM
The Government’s decision to rob taxpayers of vital cash by diverting it into the New Zealand Superannuation Fund will put huge pressure on the Fund to perform, says Federated Farmers of New Zealand (Inc.) President Tom Lambie.International evidence confirms that increased taxation tends to be associated with reduced growth while history shows us the adverse returns from Government inspired investments.
While Federated Farmers supports diversification of the fund investment into international markets given the small fund market in New Zealand, the more important point is that the money would have been better left with businesses to make their own investment decisions.
Diverting taxpayer money into building up the NZ Super Fund deprives farmers of the opportunity to invest in farm businesses, the traditional source of retirement income for many farmers.
The rural sector has made huge productivity gains over the last two decades, after being freed from the burden of Government regulation and controls. Farmers, along with other productive businesses are now required to have valuable capital siphoned off by Government to fund future superannuitants. For many, this brings back memories of "Think Big" concluded Lambie.
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