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Cullen fudges over super fund

Thursday 28th of February 2002

(Finance Minister) Michael Cullen unsuccessfully tried fudging the issue of growing Government debt and borrowings due to contributions needed for his Super Fund when appearing before (Thursday's) Finance and Expenditure select committee," National finance spokesman David Carter says.

Carter says the Finance Minister attempted to brush off queries over the super fund and refused to admit that its contributions help account for the massive $10.6 billion in required borrowings or are a significant factor in the $6.6 billion gross debt increase over the next five years.

"However, in subsequent questioning, Treasury head Allan Bollard contradicted Dr Cullen, conceding it was 'simple arithmetic' that removing the New Zealand Superannuation Fund would reduce financing requirements from $10.6 billion to $2.7 billion."

Carter says this is clearly outlined on page 53 of the Budget Policy Statement 2002 and the December Economic and Fiscal Update 2001.

"When will Dr Cullen accept what his officials, Treasury and the public already know - that he is borrowing to finance his super fund?" Carter concluded.

This is a press release from National's finance spokesman David Carter.

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