web analytics
The Standard
Advertising

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.

Important links

Recent Comments

Recent Posts

  • Recognizing Palestine: The European Parliament Votes
    Last week I wrote a blog drawing attention to Sweden’s formal recognition of the state of Palestine (the second Western state to do so after Iceland).  That move has created ripples throughout the international community. In recent months the parliaments… ...
    GreensBy Kennedy Graham MP
    3 days ago
  • Recognizing Palestine: The European Parliament Votes
    Last week I wrote a blog drawing attention to Sweden’s formal recognition of the state of Palestine (the second Western state to do so after Iceland).  That move has created ripples throughout the international community. In recent months the parliaments… ...
    GreensBy Kennedy Graham MP
    3 days ago
  • Recognizing Palestine: The European Parliament Votes
    Last week I wrote a blog drawing attention to Sweden’s formal recognition of the state of Palestine (the second Western state to do so after Iceland).  That move has created ripples throughout the international community. In recent months the parliaments… ...
    GreensBy Kennedy Graham MP
    3 days ago
  • Minister has work to do over Xmas
    Red flags raised in a multi-agency review into how Phillip Smith was able to flee the country highlight the inadequacies of those very same agencies not having red flags in place that would have notified them of his plans, says… ...
    3 days ago
  • Minister has work to do over Xmas
    Red flags raised in a multi-agency review into how Phillip Smith was able to flee the country highlight the inadequacies of those very same agencies not having red flags in place that would have notified them of his plans, says… ...
    3 days ago
  • Minister has work to do over Xmas
    Red flags raised in a multi-agency review into how Phillip Smith was able to flee the country highlight the inadequacies of those very same agencies not having red flags in place that would have notified them of his plans, says… ...
    3 days ago
  • Gerry Brownlee’s revolving airport door story
    A new report shows Gerry Brownlee is the latest Cabinet Minister to have contracted the infectious tell-porkies-until-you-are-caught disease, Labour’s Chief Whip Chris Hipkins says. “A Civil Aviation Report out today shows that despite being an extremely recognisable figure, Gerry Brownlee… ...
    3 days ago
  • Gerry Brownlee’s revolving airport door story
    A new report shows Gerry Brownlee is the latest Cabinet Minister to have contracted the infectious tell-porkies-until-you-are-caught disease, Labour’s Chief Whip Chris Hipkins says. “A Civil Aviation Report out today shows that despite being an extremely recognisable figure, Gerry Brownlee… ...
    3 days ago
  • Govt spend on transport out of step with reality
    The National Government is planning to allocate ever increasing amounts of taxpayer funding to build expensive new motorways despite record numbers of New Zealanders flocking to buses and trains, said the Green Party. The Government released its Government Policy Statement… ...
    GreensBy Julie Anne Genter MP
    4 days ago
  • Govt spend on transport out of step with reality
    The National Government is planning to allocate ever increasing amounts of taxpayer funding to build expensive new motorways despite record numbers of New Zealanders flocking to buses and trains, said the Green Party. The Government released its Government Policy Statement… ...
    GreensBy Julie Anne Genter MP
    4 days ago
  • Solar homes stymied by Govt inaction
    Government inaction is allowing the big power companies to discourage the nascent solar power sector, the Green Party said today. Green Party MP Gareth Hughes launched a petition today calling on the Government to empower the Electricity Authority to act… ...
    GreensBy Gareth Hughes MP
    4 days ago
  • Foreign buyers for iconic island must add value
    Labour will look very closely at any Overseas Investment Office application to purchase Pakatoa Island if it is not bought by a Kiwi, says Labour’s Land information Spokesperson Stuart Nash. “Pakatoa is an iconic island in the middle of Hauraki… ...
    4 days ago
  • Way opening for April Sun in Cuba
    The United States of America’s President’s historic announcement yesterday to restore diplomatic ties with Cuba should be applauded by the New Zealand Government. The announcement marks a turning point in more than five decades of hostility between the two countries… ...
    GreensBy Kennedy Graham MP
    4 days ago
  • Minister ducking for cover over ‘Diplomat Case’
    Apparently the Ministerial Inquiry into what now seems to be being referred to as ‘The Diplomat Case’ ( I have a few other names for it) has been completed and is in front of Foreign Affairs Minister McCully. Initial Reports seem to… ...
    GreensBy Jan Logie MP
    4 days ago
  • Energy users need answers on Vector share plans
    Energy Minister Simon Bridges needs to stop ducking for cover about whether or not the Government will support plans to nationalise and then privatise $2.1 billion of shares in the Auckland Electricity Consumer Trust, Labour's Energy spokesperson Stuart Nash says. “It… ...
    5 days ago
  • Turning up the heat on working conditions
    A “Jobs That Count” campaign has the full support of Labour, the party’s Labour Relations spokesperson Iain Lees-Galloway says. Organised by the Meat Workers Union, the campaign aims to put the spotlight on job insecurity in the meat processing industry. ...
    5 days ago
  • Biosecurity it’s everyone’s responsibility
    Biosecurity costs New Zealand millions of dollars in attempting pest eradication and much more in ongoing management of pests in farming, horticulture, beekeeping and conservation, as well as in our own backyards and recreation areas. More work must happen at… ...
    GreensBy Steffan Browning MP
    5 days ago
  • Failure to diversify puts prosperity at risk
    Beyond the news that a long-promised surplus is unlikely, further embarrassment is hidden in the fine print of the half year economic and fiscal update, Labour says. "National’s failure to rebalance the economy is further exposed in projections from its… ...
    5 days ago
  • Ombudsman probe targets Ministerial integrity
    John Key is on notice that the entrenched cynical and manipulative abuse of official information requests by his Government will no longer be tolerated, Labour’s Open Government spokesperson Clare Curran says. “The announcement by the Ombudsman of a wide-ranging review… ...
    6 days ago
  • Bill English’s face is redder than his books
    The Government owes New Zealanders an apology for failing to deliver the surplus it spent four years and two election campaigns promising, says Labour’s Finance spokesperson Grant Robertson. “Bill English’s face is redder than the Crown accounts. This is the… ...
    6 days ago
  • Is the Health Minister accountable to the public? He doesn’t seem to thin...
    Lately I’ve been involved in a sort of farcical standoff with the Health Minister, who seems to be under the illusion that I have no right to ask questions about conflicts involving Health Promotion Agency Board member Katherine Rich, and… ...
    GreensBy Kevin Hague MP
    6 days ago
  • Minister closes down dissent on climate change
    Minister closes down dissent on climate change In a threatening letter to Maori leaders, Minister for Climate Change Tim Groser says he will be requiring future international delegations to toe the party line, Labour’s Climate Change spokesperson Megan Woods says.… ...
    6 days ago
  • Haere Rā 2014
    We’ve almost reached the end of the Parliamentary year so I wanted to take a moment to reflect on some of my highlights of the term in this blog post. It’s been an absolutely hectic year juggling an election campaign… ...
    GreensBy Gareth Hughes MP
    1 week ago
  • A welfare system for the 21st Century
    Today Child Poverty Action Group released a background paper on ‘The complexities of ‘relationship’ in the welfare system and the consequences for children.‘ The report includes 16 recommendations to modernise our welfare system which is no longer fit for the… ...
    GreensBy Jan Logie MP
    1 week ago
  • NZ should formally recognise Palestine
    New Zealand should follow the lead of Sweden, and now recognise Palestine as a separate state On 30 October, Sweden’s new government formally recognised the state of Palestine, only the second Western country to do so, after Iceland. Down here… ...
    GreensBy Kennedy Graham MP
    1 week ago
  • James Shaw’s adjournment speech on behalf of the Green Party
    It is a great honour for me to speak on behalf of the Green Party in this adjournment debate. I thank my colleagues for the privilege. I became a MP only 12 weeks ago, a period of time that seems… ...
    GreensBy James Shaw MP
    1 week ago
  • Government can’t rely on geothermal to grow itself
    While Electricity Authority figures showing geothermal has risen from the fourth to the second highest source of power generation are a promising sign for a geothermal renaissance, there can be no cause for complacency, Labour’s Energy spokesperson Stuart Nash says.… ...
    2 weeks ago
  • Big bickies for bosses despite subpar performance
    While public service workers are experiencing Grinch-like wage increases state sector bosses have pocketed early Christmas presents in the form of whopper pay hikes, Labour’s State Services spokesperson Kris Faafoi says. “Unbelievably State Services Commissioner Iain Rennie got an additional… ...
    2 weeks ago
  • Consent should come before research grants for phosphate mining
      The Government’s decision to make a grant by Callaghan Innovation to Chatham Rock Phosphate is highly questionable, says Labour’s Science spokesperson David Cunliffe.  “The fact is that the company still has to get a marine consent to mine the Chatham… ...
    2 weeks ago
  • A Tale of Two Farms
    Pig farming has yet again been thrust into the public view with two programmes this week on Campbell Live highlighting the very different conditions for pigs on two very different farms. The first programme exposed the awful conditions on… ...
    GreensBy Mojo Mathers MP
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere