web analytics
The Standard

Double Dipton’s doublethink

Written By: - Date published: 12:48 pm, October 17th, 2013 - 41 comments
Categories: superannuation - Tags:

Bill English praised the Cullen Fund on its 10th anniversary yesterday: “The New Zealand Superannuation Fund is recognised as one of the best-structured sovereign wealth funds in the world”. He noted it has achieved an average return of 8.84%, well above its target. He failed to mention that he opposed the Fund being created and that he suspended contributions to the Fund at the worst possible time.  And he still doesn’t want to resume them for 7 years.

41 comments on “Double Dipton’s doublethink”

  1. tc 1

    Love it when they load the gun like that. Bill fancies his chances after Shonkey then does he.

  2. ghostwhowalksnz 2

    Bills had second case of deja-vue in addition to the Cullen Fund.

    Back in 2012 he was daring Labour to “buy back” the power company shares if they opposed asset sales !

    • ghostwhowalksnz 2.1

      Au contraire, investment funds like this are normally best if you keep contributing.

      You will never be able to time the market, if thats what you are suggesting.

      But of course buying low is allways a winning strategy

    • Rogue Trooper 2.2

      lol at the “buy back”.

  3. tamati 3

    To say he ended the contributions at the worst possible time is pretty harsh. Investment decisions are very easy with the benefit of hindsight.

    • richard 3.1

      So you agree that ending the contributions was a bad decision?

    • ScottGN 3.2

      Where’s the hindsight? English was told what would happen when he suspended contributions to the fund and that is exactly what has happened.

      • tamati 3.2.1

        The hindsight is that stock markets have had an extremely good run over the past 4 years and when English suspended the contributions that was far from certain.

        • Lanthanide 3.2.1.1

          Yip. It’s quite possible the stock markets could have just sat around and not risen at all, or just bumped around.

          Things could easily have been very different if the Eurozone issues were handled differently or had a different outcome, or if the US had gone over the fiscal cliff, etc.

          • tamati 3.2.1.1.1

            A prudent investor continually invests small amounts over time, when they can afford to do so. He was right to suspend the contributions when he did, we have far more important things to invest in. It should be priority number one when we return to surplus.

            • Saarbo 3.2.1.1.1.1

              Average return 8.4%. What are our borrowing costs???

              • Tamati

                Our borrowing costs are the cost of capital each taxpayer forgoes when they pay tax. Not the treasury bond yield.

                Average return is the past, who knows what it will be in the future.

          • Lightly 3.2.1.1.2

            unless you believed that capitalism was coming to its end, then the sharemarkets were always going to recover long before the Cullen Fund had to start paying out. Sure, the last 4 years have been stronger than people would have thought but they were always going to pick up at some point before 2030.

            Buy low is the first rule of investing and as a multi-generational investor, the Cullen Fund has the luxury of time on its hands.

            • Tamati 3.2.1.1.2.1

              “Buy low, sell high” isn’t investment, it’s speculation.

            • Rogue Trooper 3.2.1.1.2.2

              just on the subject of multi-generational investment, one of the new local mayor’s arguments is that rates should be held at present levels or reduced, as ” future generations “will be getting a free ride” on amenities and infrastructure developed now. Yep, he’s a Boomer, got where he is today through shear merit and his Post Office Savings account.
              Time stands still for some cohorts!

      • Rodel 3.2.2

        What surprises me is that among many people there is still the feeling that English is competent..How can that be?

    • Saarbo 3.3

      http://en.wikipedia.org/wiki/Dollar_cost_averaging

      Refer to the above Tamati. Its not hindsight, its basic financial strategy/theory.

      • tamati 3.3.1

        I know what dollar cost averaging is.

        As I said before, we had more important this to invest in at the time so it was prudent to suspend contributions.

        • Saarbo 3.3.1.1

          No it wasn’t, it was another decision that proves that this National government has no idea how to get the most out of the economy. English runs the economy like cow cocky’s run their farms, in hard times they hide the cheque book…we need a government with a bit more sophistication than that.

          • Tamati 3.3.1.1.1

            Christchurch needed water, sewerage and electricity more than an 8.4% return on investment.

            • wtl 3.3.1.1.1.1

              And the rich needed those tax cuts. To buy fancy cars, mansions, overseas holidays and shares in our SOEs.

            • Rob 3.3.1.1.1.2

              Well Tamati that puts a whole load of reality around this.

              • McFlock

                Fucking bullshit – the nats suspended payments in 2009 to (inadequately) finance their personal tax cuts.

                Tamati is essentially claiming that key and blinglish have the power to predict earthquakes. That might sound like reality to the cheerleaders on planet key, but really it’s just hiding behind corpses to justify a spectacularly wrong decision.

                Tories swimming deeper in the sewer…

                • Tamati

                  I not claiming that Bill English can predict earthquakes or that John Key can walk on water. All I’m saying is that there were better investments to make throughout the 2009-2013 period than making contributions to the super fund. Rebuilding Christchurch was an example. We we return to surplus we should promptly resume contributions.

                  • McFlock

                    Try an example that they had any chance of knowing about when they cancelled a major investment in our future, then.

                  • One Anonymous Knucklehead

                    Um, no. They voluntarily slashed their revenue and spun a bunch of policy gobshite to justify it.

            • ScottGN 3.3.1.1.1.3

              What are you talking about? Are you suggesting that English cancelled contributions to the Cullen Fund in 2009 in anticipation of the 2010 earthquake?

            • Saarbo 3.3.1.1.1.4

              Then borrow it at 3% and bank the differential.

              Dont ever forget Tamati, Cullen left New Zealand with one of the strongest Balance Sheets in the developed world.

              • Colonial Viper

                Not entirely true. What Cullen did in essence was move debt from the Government balance sheet to the private sector balance sheet.

                Govt debt went low, private sector debt (especially mortgage debt) skyrocketed.

  4. Dv 4

    AND is this morinngs Stuff? He is saying the economy needs planning!!!!
    Theyve only had 5 years!!!

  5. geoff 5

    When are we going to hear something from David Parker?

  6. finbar 6

    Listening to the Dipton dipper yesterday reminded me of his dipping into the public purse to the tune of almost $400,000,rental rort that he got sprung on.How much did the dipper pay back $40 0dd thousand.

  7. tricldrown 7

    Tamati tax cuts to those who are well off.
    Short term thinking from greedy selfish retards.
    The bulge of baby boomers coming the taxpayers way is going to cost a lot more if wr leave it to the last minute.
    Not only do we get the compounded interest but all those investments pay tax to the govt as well a win win.
    Without Cullens foresight this govts books would look very sick.

  8. greywarbler 8

    I was, stupidly, amazed to hear Dippy state that private could do things better than public and how it was a good idea that the government didn’t have any elderly beds and that Ryman did it so well and of course better than government.

    Mad. And the profit for Ryman comes from grinding down the poor and responsible women and men workers. They take responsibility for doing the personal care of the helpless and the shells of people, for below living wages. They do an unpleasant job with impossible demands of standards and duties, and for which they will be villified if they can’t do everything, get driven to distraction and do something wrong.

    Especially hard is to work with the violent and perhaps drivelling, incontinent, out of their brain ‘clients’ with senility. These workers are privately taking what should be a nationwide responsibility.

    But in Ayn Rand’s world commitment to charity and self sacrifice comes with its own reward and therefore money isn’t needed. In fact in that topsy-turvy world, the less committed you are to doing a good job and the people you should be cognisant of, the more you get paid. The Red Queen, was it, who believed six impossible things before breakfast. Lewis Carroll did us a favour when he created his analogous weird worlds.

    But Bill English considers that responsible and effective social care. Pay them as little as possible and shout that as a triumph of efficient capitalism done in the modern way. It’s just so 19th century Bill.

    And he waxes euphoric that the modern way now is the private public partnership. These NACTs are dangerously addicted to alliteration I think.

Recent Comments

Recent Posts

  • Report highlights National’s poor funding decisions
    The Government’s poor coordination between its transport strategy and the needs of the regions has been highlighted in a new report by Local Government New Zealand, Labour’s Transport spokesperson Phil Twyford says. “Local Government was forced to write its Mobilising… ...
    9 hours ago
  • Government wakes up to Opotiki Harbour
    John Key is expected to finally announce Government support next week for the Opotiki Harbour development, says Labour Economic Development spokesperson David Clark. "While it is astonishing that it has taken seven years for the Government to commit to this… ...
    12 hours ago
  • New figures show speculators rampant
    New figures released by the Reserve Bank show there’s been an explosion in mortgage lending with most of the growth going to property investors, Labour’s Housing spokesperson Phil Twyford says. Reserve Bank data shows mortgage lending was up 6 per… ...
    1 day ago
  • Spring is here – not pollen your leg
    It’s the first day of spring, and many people will be thinking about getting stuck into the weeds in the garden ready for planting. This year September is also Bee Aware Month. While there is a lack of movement from… ...
    GreensBy Steffan Browning MP
    2 days ago
  • Government must do more to help global refugee crisis
    John Key must urgently increase our refugee quota and let New Zealand play its part in helping address the tragic humanitarian crisis unfolding around the world, Opposition Leader Andrew Little says. “The refugee crisis in countries like Lebanon and Austria… ...
    2 days ago
  • The latest equal pay case – Go the Midwives
    ...
    GreensBy Jan Logie MP
    2 days ago
  • Key’s threat to veto premature
    John Key’s threat that he might use a financial veto against the Bill that will introduce 26 weeks Paid Parental Leave is premature and based on inflated costings, says the bill’s sponsor, Labour ‘s Sue Moroney.  “The Government keeps saying… ...
    2 days ago
  • Reflections on the plastic bag tour
    After a marathon public tour around New Zealand that took me to 29 different places around New Zealand from the far north of Kaitaia to the deep south of Invercargill to talk about phasing out plastic bag use, I wanted… ...
    GreensBy Denise Roche MP
    2 days ago
  • Labour celebrates Tongan language and diversity
    Tongan Language Week is a timely reminder of the importance and beauty of our Pacific culture, identity and language in New Zealand, says our first Tongan born, Tongan speaking MP Jenny Salesa.  The theme for Tongan Language Week in 2015… ...
    3 days ago
  • Privatising CYF about ideology not care
    John Key’s suggestions today that Child Youth and Family could be privatized will be a terrifying thought for New Zealanders already dealing with the mess created in private prisons and plans to sell our state houses to Australians, Opposition Leader… ...
    3 days ago
  • Govt must make most of Jetstar competition
    Government agencies should pledge to always buy “the best fare of the day” to maximise competition between Jetstar and Air New Zealand and ensure savings for taxpayers while boosting services to regional New Zealand, Labour’s Transport Spokesperson Phil Twyford says.… ...
    3 days ago
  • Time for inquiry into petrol margins
    It’s time for an inquiry into petrol companies as margins are once again at the high levels that prompted concerns late last year, says Labour's Energy Spokesperson Stuart Nash. "Over the December January holiday period, petrol importer margins jumped to… ...
    6 days ago
  • More talk as Auckland congestion worsens
    The main impact of the Government’s agreement with Auckland Council today will be simply to delay still further decisions needed to relieve the city’s traffic congestion, says Labour’s Auckland Issues Spokesperson, Phil Goff. “Government has been aware for more than… ...
    6 days ago
  • Serco inquiry extended
    A two month delay to the Government investigation into prison fight clubs shows the extent of problems within the Serco circus, says Labour’s Corrections spokesperson Kelvin Davis. “My office received a tsunami of complaints so I’m not surprised the terms… ...
    6 days ago
  • Truck Shops ignore consumer laws
    A damning Commerce Commission report out today highlights the failure of the Government to protect poor and vulnerable families from unscrupulous truck shops, says Labour’s Consumer Affairs Spokesperson David Shearer. “The report found that 31 out of 32 firms it… ...
    6 days ago
  • Taihoa at Ihumatao says Labour
    Labour’s housing spokesperson Phil Twyford has called on the Government to rethink its controversial Special Housing Area in Māngere. Auckland Council is today meeting to discuss the development which borders the Otuataua Stonefield Historic Reserve. This project is to get… ...
    7 days ago
  • Figures suggest National deliberately excluded farming
    Figures showing the dairy industry would be categorised as high risk if there were a further five severe injuries within a year, strongly suggests National designed its flawed system to deliberately exclude farming, Labour’s spokesperson for Labour Issues Iain Lees-Galloway… ...
    7 days ago
  • Bleak report on the state of our children
    A damning conclusion by the Children’s Commissioner today that ‘we don’t know if children are better off as a result of state intervention, but the indications are not good’ should make fixing CYFs a top priority for this Government, says… ...
    7 days ago
  • Dodgy data used to justify axing KiwiSaver kickstart
    National’s agenda to run down KiwiSaver has become even clearer from a scathing critique of the Government’s justification for axing the $1000 kickstart, says Labour’s Finance spokesperson Grant Robertson. “Since National came to power they have not only continually undermined… ...
    7 days ago
  • Unsecure website risks Ashley MoBIEson hack
    Experts have raised security concerns that vulnerabilities in MoBIE’s half million-dollar website could lead to a possible Ashley Maddison-style hack, says Labour’s Economic Development spokesperson David Clark. “The real issue here is not what data is immediately available, but what… ...
    1 week ago
  • Democracy still the loser in Canterbury
    The Government has demonstrated once again how arrogant and out of touch it is in denying Cantabrians the same democratic rights as the rest of the country, says Labour’s Environment spokesperson Megan Woods.  “The Environment Canterbury Bill which has been… ...
    1 week ago
  • Waiver cost still a mystery
    The Government still has no idea what it’s going to cost community and voluntary groups to get a waiver from the fees police will charge to carry out checks on their staff and volunteers, says Labour’s Community and Voluntary spokesperson… ...
    1 week ago
  • China exports fall 27 per cent in a year
    Exports to China have fallen by 27 per cent over the last 12 months - showing that the looming economic slowdown should have been expected by the Government, says Labour’s Economic Development Spokesperson David Clark. “The Chinese economic slowdown should… ...
    1 week ago
  • National should support all families for 26 weeks
    Families with multiple babies, and those born prematurely or with disabilities, are the winners from moves to extend paid parental leave to 26 weeks but the Government must give all babies the same head start in life, Labour’s spokesperson for… ...
    1 week ago
  • National’s health and safety shambles puts school camps at risk
    Reports that schools are considering scrapping student camps and tearing out playgrounds highlights just how badly National has managed its health and safety reforms, Labour’s Education spokesperson Chris Hipkins says. “Schools have been left completely in the dark about the… ...
    1 week ago
  • National’s asset stripping agenda hits schools
    National’s fire-sale of school houses and land is short-sighted, mean-spirited, and will have huge unintended consequences that we will pay for in years to come, Labour’s Education spokesperson Chris Hipkins says. Documents obtained by Labour show the Ministry of Education… ...
    1 week ago
  • Takahe massacre supposed to get all New Zealanders involved in conservation
    The Minister’s claim that a  botched cull of one of New Zealand’s rarest birds was a way of getting all New Zealanders involved in conservation is offensive and ludicrous, Labour’s conservation spokesperson Ruth Dyson says.  “An email from Minister Maggie… ...
    1 week ago
  • Serco circus rolls on with revelations of fight club practice
    Further revelations that a Serco prison guard was coaching inmates on fight club techniques confirms a fully independent inquiry needs to take place, says Labour’s Corrections spokesperson Kelvin Davis. “The Minister’s statement today that a guard was coaching sparring techniques… ...
    1 week ago
  • Government targets put ahead of students’ education
    The Government must urgently reassess the way it sets NCEA targets after a new report found they are forcing schools to “credit farm” and are undermining the qualification, Labour’s Education spokesperson Chris Hipkins says. “A PPTA report released today says… ...
    1 week ago
  • ER patients in corridors as health cuts bite
    Patients are being forced to wait for hours on beds in corridors as cash strapped hospitals struggle to keep up with budget cuts, says Labour’s Health spokesperson Annette King. “People coming to the emergency room and being forced to wait… ...
    1 week ago
  • Not too late to fix Health and Safety for New Zealand’s workers
    The Government and its minor party supporters are showing an arrogant disregard for workers’ lives by not agreeing to a cross-party solution to the botched Health and Safety bill, Opposition leader Andrew Little says. “Yesterday I wrote to the Prime… ...
    1 week ago
  • Speech to the New Zealand Council of Infrastructure Development
    Tēnā Kotou Katoa. Thank you so much for having me along to speak today. Can I begin by acknowledging John Rae, the President, and Stephen Selwood, the chief executive of the Council for Infrastructure Development. ...
    1 week ago
  • Reserve Bank points finger at Govt inaction
    In scathing criticism of the Government’s inaction, the Reserve Bank says Auckland housing supply is growing nowhere near fast enough to make a dent the housing shortage, Labour’s Housing spokesperson Phil Twyford says. Reserve Bank deputy governor Grant Spencer today… ...
    1 week ago
  • Chickens come home to roost on climate change
    The Government’s gutting of the Emissions Trading Scheme has caused foresters to leave and emissions to rise, says Labour’s Climate Change spokesperson Megan Woods. “The release of the Environmental Protection Agency’s Facts and Figures Report for 2014 on the ETS… ...
    1 week ago
  • Website adds to long list of big spends at MBIE
    The Ministry of Business, Innovation and Employment’s $560,000 outlay on its new website is further evidence of excessive spending by Steven Joyce on his pet project super ministry, Labour’s Economic Development spokesperson David Clark says.  “Hot on the heels of… ...
    1 week ago
  • Brownlee warned over EQC repairs but ignored them
    Gerry Brownlee was warned that EQC’s underfloor repairs weren’t being done properly by industry experts, the cross party working group and in public but he arrogantly ignored them all, says Labour’s Earthquake Commission spokesperson Clayton Cosgrove.  “Today’s apology and commitment… ...
    1 week ago
  • Serco wants in on state house sell off
    The Government must keep scandal plagued outsourcing company Serco away from our state housing after their disastrous record running Mt Eden prison, Labour’s Housing spokesperson Phil Twyford says. "Today it has emerged that at the same time Serco was under… ...
    2 weeks ago
  • Come clean on Pasifika education centre
    Minister Peseta Sam Lotu-Iinga needs to come clean and tell the Pasifika communities if he’s working to save the Pasifika Education Centre or shut it down, Labour’s Pasifika spokesperson Su’a William Sio says.  “I’m gutted the Pasifika Education Centre funding… ...
    2 weeks ago
  • Time for NZTA to work on alternatives to flyover
    The High Court decision rejecting the New Zealand Transport Agency’s attempts to build the Basin Reserve flyover must now mean that NZTA finally works with the community on other options for transport solutions in Wellington, Grant Robertson and Annette King… ...
    2 weeks ago
  • Shiny new system leads to record truancy
    Record high truancy rates shows the Government’s much-vaunted new attendance system is an abysmal failure, Labour’s Education spokesperson Chris Hipkins says. “Data released today shows truancy rates have spiked more than 15 per cent in 2014 and are now at… ...
    2 weeks ago
  • Woodhouse wrong about quarries
      The Minister for Workplace Relations and Safety Michael Woodhouse was wrong yesterday when he said limestone quarries were covered by the farcical Health and Safety legislation, says Labour’s Associate Labour spokesperson Sue Moroney.  “He said he ‘understood’ limestone quarries… ...
    2 weeks ago
  • Taxpayers money spent on culling one of our rarest birds
    It beggars belief that four endangered takahe were killed by incompetent cullers contracted to the Department of Conservation and the Minister must explain this wanton destruction, says Conservation spokesperson Ruth Dyson. “It must not be forgotten that there are only… ...
    2 weeks ago
  • Housing NZ must immediately move family
    Housing New Zealand must immediately move a Glen Innes family whose son contracted serious and potentially fatal health problems from the appalling condition of their state house, Labour’s Housing spokesperson Phil Twyford says. “Te Ao Marama Wensor and community workers… ...
    2 weeks ago
  • No understanding of the value of overseas investment
     The Government has now admitted it has absolutely no idea of the actual value of foreign investment in New Zealand, says Labour’s Land Information spokesperson Stuart Nash.  “It is crucial that the Government starts to understand just what this overseas… ...
    2 weeks ago
  • Another bridges bribe from Simon Bridges
    Simon Bridges is embroiled in another bridges-for-votes controversy after admitting funding for a replacement bridge in Queenstown is “very much about… the 2017 election”, Labour’s Transport spokesperson Phil Twyford says. “The Transport Minister is today reported as telling Queenstown locals… ...
    2 weeks ago
  • Saudi tender process reeks of SkyCity approach
    The tender process for the $6m investment in a Saudi sheep farm reeks like the SkyCity convention centre deal and once again contravenes the government’s own procurement rules, says Labour’s Export Growth and Trade spokesperson David Parker. “The $6m contract… ...
    2 weeks ago
  • Maori Party should stand up for workers
    The Government’s proposed Health and Safety Reform Bill does not go far enough to protect those in specific industries with the highest rates of workplace deaths, says Maori Development Spokesperson Nanaia Mahuta. “We are told that Maori workers are more… ...
    2 weeks ago
  • Minister must explain budget blowout
    Māori Development Minister Te Ururoa Flavell must explain a budget blow out at Te Puni Kokiri, after the organisation spent more than 2.5 million dollars over their budget for contractors, says Labour’s Associate Māori Development spokesperson Peeni Henare.  “For the… ...
    2 weeks ago
  • Successful effort to raise the issue of GE trees in proposed standard
    Many thousands of people submitted on the proposed National Environmental Standard –  Plantation Forestry (NES-PF).  A vast majority of the public submissions were particularly focussed on the NES having included GE trees in its mandate. People want these provisions removed,… ...
    GreensBy Steffan Browning MP
    2 weeks ago
  • Fair Share Friday – Thoughts and Reflections
    As part of our Fair Share  campaign, Green MPs have been doing a series of visits to community groups across the country to have conversations about inequality in New Zealand and what communities are experiencing on the ground. I visited… ...
    GreensBy Denise Roche MP
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere