Govt promotes its own super fund
THE New Zealand Government has decided to use $1 million of taxpayers' money to promote its multi-billion super fund.
The fund is being established to help pay some of the future costs of the state pension. This year the Government plans to put $600 million into the fund and that commitment is budgeted to increase to $2 billion annually.
Finance minister Michael Cullen says the campaign will inform the public on the structure and purpose of the proposed New Zealand Superannuation Fund.
He says the fund is one of the biggest and most significant policies enacted by the New Zealand Parliament in many years.
"It carries big implications for fiscal management, and for the level of security New Zealanders can expect in retirement. It is important people know what is involved," he says.
Opposition parties aren't happy with the campaign and National is saying it will unwind the fund if it wins the next election.
The National Bank rubbished the fund in a recent report saying it has little to offer on economic grounds and may be a drag on growth.
—Phil Macalister
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