The news behind the smoke and mirrors
Parliament had it all on super yesterday: Smoke and mirrors, flip-flops, Tottenham Hotspurs and Michael Cullen and Don Brash walking off into the sunset hand in hand. The real news was that the NZ Super Fund got an extra $1 million in funding.
Tuesday, November 30th 2004, 8:54PM
CLAYTON COSGROVE (Labour—Waimakariri) to the Minister of Finance: Has he received any reports on attitudes toward the New Zealand Superannuation Fund?
Hon Dr MICHAEL CULLEN (Minister of Finance): Yes. I have read that it is a “serious mistake” and “nothing more than financial smoke and mirrors”. Despite these comments from Dr Brash, I welcome his flip-flop that he is now saying National will support the fund. This proves the truth of the old saying “If you can’t beat them, join them.”
Clayton Cosgrove: What further reports has the Minister seen on this issue?
Hon Dr MICHAEL CULLEN: It is clear that this flip-flop has been welcomed on the grounds that we get greater stability in policy in the long term on retirement income, but of course if the contributions to the fund are going to be maintained, then substantial tax cuts are possible only if spending is cut elsewhere, or debt allowed to balloon out.
John Key: Will the Minister approve the $1 million budget increase requested by the Guardians of the New Zealand Superannuation Fund, so that they have the capability to assess opportunities in New Zealand infrastructure and New Zealand venture capital; and if he is now going to get to his feet and tell the House that he has miraculously approved this $1 million increase, does it mean it takes the National members to sign up before he gives the guardians the tools to do the job properly?
Hon Dr MICHAEL CULLEN: No, the approval was given some few days ago in terms of the decision being taken, and I am happy, if it is required, to have a full royal commission of inquiry to establish that fact if that is what National is demanding now. I am not subject to the member’s blandishments as much as Dr Brash is. I congratulate him on convincing Dr Brash of the sanity of supporting the fund.
Peter Brown: In the reports he has on National’s change of heart on the Superannuation Fund, is it clear whether it is because they have not got their game plan together, something like Tottenham Hotspurs, or has he been inspired—
Mr SPEAKER: I am not having people interjecting while the question is being asked. Please be seated or the member will be out. He knows full well he cannot interject. I will judge the question when I have heard it—I have not yet heard the whole question—I want to hear the question.
Peter Brown: In the reports he has on National’s change of heart on the Superannuation Fund, is it clear whether it is because they have not got their game plan together, like Tottenham Hotspurs, or does he share our view that the National leader has been inspired by the Rt Hon Winston Peters and his merry band of four-sided MPs who voted for the Superannuation Fund four years ago?
Mr SPEAKER: Well I do not think there is any ministerial responsibility in that question.
Rodney Hide: Is there any new information since Don Brash said: “The Cullen Fund is nothing more than financial smoke and mirrors. It does not change the overall cost of superannuation one bit”, and is this new-found agreement yet another example of the two old parties holding hands, hoping that national superannuation is sustainable, when the real answer to superannuation is strong, consistent growth with New Zealanders saving in their own accounts?
Hon Dr MICHAEL CULLEN: On the latter point no, because many people would never be able to save enough to give them a retirement income equivalent to New Zealand Superannuation. The failure to secure New Zealand Superannuation would lead to large numbers of elderly people living in poverty. As for the notion of Dr Brash and I walking off into the sunset hand in hand, I hope we will do that on the Civil Union Bill in a similar context.
Hon Peter Dunne: Is the Minister now prepared, in the light of the National Party’s policy announcement, to resuscitate negotiations for a new multiparty accord on superannuation, to provide certainty and security into the future; and if not, why not?
Hon Dr MICHAEL CULLEN: I accept the sincerity of the member’s position, but in my view the basis for an accord is already there because the superannuation Act provides the capacity to sign up to Parts 1 and 2 of that Act. United Future is signed up to both parts; the Labour Party is; the Progressive Party is; the Greens are signed up to Part 1, and presumably National will now sign up to both Parts 1 and 2. So in my view it already establishes a very substantial accord, with any other party being able to sign up to either part in the future.
Hon Peter Dunne: In the light of that answer, does the Minister therefore consider that the mere act of signing up, or making policy announcements, provides the level of security and certainty required for the future, and if he does consider that, what sanctions are in place to effectively ensure, other than I guess the public will, that those parties keep those policy commitments?
Hon Dr MICHAEL CULLEN: At the end of the day the sanctions are political as we saw in 1999 when the accord was broken with National lowering the floor on New Zealand superannuation, and that undoubtedly contributed to that party’s loss at the next election.
This is an uncorrected transcript of proceedings in Parliament today. It is subject to correction and further editing.
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