National puts back decision on NZ Super fund

Now Key says the paper needs a bit more work.

“Superannuation touches on a large number of issues,” he told Good Returns, and he wants to present a more integrated approach.

“I can’t say when, but in one to three months we should see something,” he says.

He would not be drawn on the likely direction of his thinking on the issue.

Key is however known to be more relaxed about keeping the New Zealand Superannuation Fund than some of his colleagues – including Brash. This thinking suggests the party accept the “Cullen Fund” as a fait accompli and move the debate on to other issues such as encouraging New Zealanders to make private savings, and – more sensitively – raising the entitlement age of NZ Super.

Key has hinted at accepting the Cullen Fund but tweaking its investment objectives to allow for more investment within New Zealand, especially on infrastructure projects.

That would be quite a shift from the last election, when National’s policy was to scrap the fund and hand the money back to taxpayers.

The fund will have accumulated more than $6 billion by this time next year – when the next election is due.

Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.

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