web analytics
The Standard

Killing the Cullen Fund’s costing us

Written By: - Date published: 7:58 am, January 8th, 2013 - 45 comments
Categories: superannuation - Tags:

You may have missed it, but David Shearer recently picked up National’s policy of not contributing to the Cullen Fund until 2017/18 because the Government’s in deficit.

Of course, there is nothing fundamental about being in deficit that alters the case for investing the Cullen Fund any more than there is for transport investment or any other capital spending. It makes as much sense to say you shouldn’t put money in the Cullen Fund when there’s a deficit as to say you shouldn’t unless the surplus is over $5,691,000,000 – zero is an arbitrary and meaningless point. As long as the return exceeds the Crown’s cost of capital, it’s worthwhile.

So, how much have the canned contributions cost us so far? $1.2 billion.

If the contributions had continued at $180m per month and National hadn’t made that weird one-off $250m payment at the end of the 2008/09 year (if investing in the Cullen Fund was so crazy as they claimed, why did they finish with an extra big payment?), we would now have $8.6b more in the kitty to pay for our future superannuation costs and gross government debt would be $7.4b higher – net government debt would be $1.2 billion less than it is now.

(all the data for working this out is here)

And, because, the returns are compounding, the lost gains in the last three years will get exponentially larger (even if returns only keep up with inflation) over time.

Since the contributions were cancelled, the fund has averaged a return of 1.18% a month versus the average Crown borrowing cost of 0.22% per month. 5.5 times. Over its full life, including the big losses in 2008/09, the Cullen Fund has exceeded its goal of beating the Crown’s cost of capital by 2.5%.

Cancelling the Cullen Fund contributions may end up being the costliest mistake this National has made. Because the contributions and the lost gains on them will have to be made up later. See, there’s a legislative requirement that there is a certain amount of money in the Fund (roughly $100b) when it begins to pay down at the end of next decade. The Fund is currently $20.5b when it would be $29.1b if the contributions had continued, and that gap get exponentially wider every year the contributions are suspended.

The legislation has a formula that works out the amount of contributions needed each year to get to that $100b target.

To try to make up the lost ground, when contributions resume in 2017/18, Treasury’s model says we’ll have to put over $2 billion a year in, whereas, if we kept the contributions up the whole time, it would be $1.5b. And the lost time means we’ll never close the gap – in 2030, the Fund will be worth $96b if the contributions only resume in 2017/18, but if they resumed today, there would be $110b.

By failing to invest early, we’re losing tens of billions in the long-run. Tens of billions that would pay for our superannuation when the time comes and would right now be reducing our net debt to the rest of the world.

But that’s National for you, short-termists and failures to the end.

45 comments on “Killing the Cullen Fund’s costing us”

  1. Colonial Viper 1

    By failing to invest early, we’re losing tens of billions in the long-run. Tens of billions that would pay for our superannuation when the time comes and would right now be reducing our net debt to the rest of the world.

    But that’s National for you, short-termists and failures to the end.

    You didn’t mention Labour in your conclusion, even though they have copied this exact same National policy for the exact same National reasons?

    • mike e 1.1

      CV with out the 20 billion in the Cullen fund National would be making cuts similar to Camoron in the UK!?

      • Colonial Viper 1.1.1

        National would have to borrow an extra $45M per week to keep contributing to the Cullen Fund, but that borrowed money would have been paying itself back even faster as the fund gained.

        Having said that, I remain extremely dubious of the safety of these monies invested in the casino financial markets.

  2. Lightly 2

    which is why it’s good to see the Fund actually doing direct investment in assets, buying up large interests in strategic assets (even if one of them is a petrol station chain), not just trading in shares

    • Colonial Viper 2.1

      :) sure, its important to follow the clue of the banksters mafia in Europe. Buy up ports, airports, farms, power generation and grid, and other productive assets.

  3. DH 3

    Well I for one hope that the left parties don’t drag this up again. It’s a fools gambit.

    James the risk free rate of return quoted in the fund workings is not the cost of Crown borrowing. That’s the 90day bill rate. Interest on Govt debt is considerably higher than that 0.22% and if they’d borrowed more to pay into the fund it would likely be higher again.

    Any gains would have been negligible, much less than $1.2b, and offset against the reduced cashflow from interest payments on the borrowing.

    • Lightly 3.1

      long-term govt bonds are now going at less than 3%. The 90 day Bill is at 2.5%.

      “Any gains would have been negligible, much less than $1.2b, and offset against the reduced cashflow from interest payments on the borrowing.”

      care to do the numbers, or are we just supposed to believe you?

      • DH 3.1.1

        The argument is stupid. The high returns from the fund since payments were cancelled are primarily due to the value of existing investments bouncing back after the big losses in 2008/2009. It doesn’t follow that new money invested would have returned the same kind of sums.

        The long run return from the fund is 2.62% above the risk free rate of return. Even if Govt borrowing cost was the same that’s a gain of $26.2million for every $1billion invested, which wouldn’t come close to $1.2billion in four years.

        Whatever the gains it would also have resulted in a cashflow loss to the Crown of a greater sum, since the cost of Crown borrowing is higher than 2.62%. With the Crown running a deficit they’d have had to borrow the interest as well, which would compound Govt debt further.

        The intended purpose of the Super fund is to take the burden of Super off future generations. Well borrowing won’t do that will it, future generations will instead be paying off similar sums of Govt debt & be no better off.

        • Colonial Viper 3.1.1.1

          Borrowing to put into the Cullen Fund would have left the country better off today, by $1.2B.

          I agree that past performance does not necessarily indicate future performance however (a premise you would do well to stick to yourself).

          • TightyRighty 3.1.1.1.1

            CV, the cheertator has pronounced, therefore it must be so!

            No matter that DH may have a point should he wish to love it himself, this is not a cheerocracy, this is a cheertator ship. All hail CV!

            Why not just Kim Jong-un it and say that labour would have been responsible for the extra 1.2b if national had continued with the payments?

            • Colonial Viper 3.1.1.1.1.1

              but Labour wouldn’t have continued with the payments. Labour and National think the same way and both have said they wouldn’t continue the payments.

        • mike e vipe e 3.1.1.2

          DH you have got your accounting wrong the 2.62% is the difference between borrowing costs and return i.e. profit.

  4. Here is a link to an interesting chart.

    Max Keiser alludes to it because of the minute amounts of gold owned by your average sovereign wealth fund but it also shows that most sovereign wealth funds invest ridiculous amounts of money in other things. The Cullen fund was recently given the price for being the most innovative SWF. They even beat the Kazakhstan oil fund.

    What that meant according to the website is they had a good system for deciding what to buy and invest in. The Cullen fund has some interest in Dairy, Forest and other real world assets but the GAAP changed one or two years ago allowing them to deny us to find out what kind of derivatives they have on their books, most especially which ones are currently losing money.

    My guess is that with a Merrill Lynch derivatives and wealth specialist on the first of the board of guardians in 2002 when they started trading and a Goldman Sachs banker on the current board of Guardians it is reasonable to presume that the Cullen fund is chockablock with new fangled Financial Products, collateral debt swaps and other derivatives which will evaporate into thin air when the global Financial System collapses under the weight of the derivatives bubble.

    • tc 4.1

      ‘GAAP’ Generally Available Avoidance Policy, so much for IFRS and other tomes from the international beannies board etc etc protecting people by providing transparency so they can make informed decisions.

      There’s a reason why they don’t want you to see the smoke and mirrors.

      • Colonial Viper 4.1.1

        Goldman Sachs bankers get bonuses based on how much money they can rip off from their clients.

        GS is not called the “Vampire Squid” of the investment banking cartel for nothing.

  5. alwyn 5

    There is one major reason for the Government NOT putting any further money into the Cullen Fund.
    NO politiciann, in any party, can be trusted to keep their grubby little paws off the investment policy, at least in the long run. As the fund was set up it was meant to be kept well clear of the political desires of the hack politicians in our Parliament. Unfortunately, because of the Constitutional rules that prevent any Parliament binding its successors we can’t rely on that continuing indefinitely.
    National, for example, proposed in 2008 that the fund should invest 40% of the funds in New Zealand. I don’t know whether they forced it to happen or not but it was certainly a proposal.
    The Green party have been the worst offenders. If one reads through their policy they have very definite proposals for what the fund should do. Basically they will decide what they think is desirable and then order the Fund to invest in their fantasies. I am quite sure they will, if they ever get into power ORDER the fund to invest in any rail project that is proposed, regardless of the economic merits. They will also insist it invests in any form of “renewable” energy that is suggested.
    I would suggest that there won’t be any fund to pay for Super in the future. It will all be frittered away on political grand-standing.
    Labour and Green policies will also prevent the money ever becoming available to pay for Superanuation.
    After all the fund is state owned and therefore anything it owns must be a state-owned asset. However to obtain the funds to pay Super the assets will have to be sold, and these parties policies forbid any such sale.
    Will the funds ever become available? Not a chance. They will just be an enormous slush fund for economic illiterates, like Russel Norman, to blow on their favourite fantasies.

    • Colonial Viper 5.1

      Countries with major sovereign wealth funds like Singapore, Norway and Russia seem to do quite well.

      However, I am concerned that our funds are invested in productive assets as much as possible, and not financialised casino instruments.

      And you don’t have to be worried about politicians wasting the money; the bankers are more likely to steal it first.

      • alwyn 5.1.1

        I don’t know anything about the operations of the Russian Fund. Given much of the activities of the Putin regime I would however worry about its soundness.
        One thing to note about the Singapore and Norwegian funds is that they do not invest at all in their own countries. This is not the case in New Zealand and would become even less likely if the Green party had any influence. Investing exclusively outside the country enables one to cash up when it becomes time to spend the money. Investing inside your own country will mean, in practice, that when the state requires the money, as the Cullen fund is meant to be needed, it will mean the only practical buyer of the assets will end up being a foreign purchaser, which is something the Labour and Green parties are sworn to oppose.
        The worst thing that a fund such as the Cullen fund could do would be to invest the money in NZ Government bonds or such like. Then the state would owe the money to itself and when it was needed for paying Super it would have to be done from current taxation. In practice there would be no fund at all.

        • Colonial Viper 5.1.1.1

          But the Cullen Fund doesn’t need to “cash up” productive assets, that’s why they are called productive assets: they generate a strong income stream eg dairy farms and hydrodams.

          One thing to note about the Singapore and Norwegian funds is that they do not invest at all in their own countries.

          Not true. For example, Temasak invests in a lot of Singaporean companies.

          • alwyn 5.1.1.1.1

            To your first comment about not having to cash up. This illustrates what I was saying about the way that the design of the Cullen fund will be manipulated to achieve other aims. (Note I am not suggesting that you are a politician who is going to do it). I am only saying that the design of the system will be changed.
            The fund was intended to receive positive contributions from the state until 2029 and then to be run down from that date. The peak of the assets would be achieved in about 2050 and the fund was then expected to SHRINK from about that date.
            I refer to http://www.nzsuperfund.co.nz/index.asp?pageID=2145879268

            You are right about Temasek Holdings. Singapore has two Sovereign Wealth Funds. Temasek Holdings is the smaller. The other, The Government of Singapore Investment Corporation, is about 50% bigger. It was that one I was thinking about when I said they did not invest in Singapore. In total about 12% of Singapores funds are invested in Singapore companies.

            • Colonial Viper 5.1.1.1.1.1

              12% internal investment is probably a deliberate target by the Singaporean authorities. More than that and the nature of their geography (tiny island nation) would present too much of a risk. For instance, a tsunami causing massive damage to Singapore would end up causing massive damage to their sovereign wealth fund in just one hit, exactly when they needed it.

              In NZ, I suspect that we could have up to 20%-25% internal investment in NZ and still achieve a relatively good risk profile (e.g. no one tsunami or earthquake could take out all NZ investments in one hit).

    • millsy 5.2

      And what is your problem with rail?

      Your concerns (however unfounded they are), will be addressed by having the nation building activites that you deride with such scorn being the filthy neo-liberal scum you are, be the responsibility of a seperate fund.

      You beloved nats, with their Future Investment Fund, has provided such a vehicle, but they, with their obsession with neo-liberalism, are too blind to see it. DS, is probably as well., but he apparenltly has expressed interest into looking into whether a study is possible as to whether we might think about adopting Singapore’s Temasek Holding model.

      • alwyn 5.2.1

        I only just noticed this comment.
        My, you were grumpy when you wrote it weren’t you.
        “You beloved Nats” you say. I don’t know whether you mean “YOU”, in which case you are wrong as I am certainly not a member of that party, or “YOUR”, in which case you are wrong as I certainly don’t think much of them.
        You did notice I said “No politician, in any party, can be trusted to keep their grubby little paws off the investment policy …”. Does that sound like someone who loves a party?
        I distrust the activities of ALL politicians. They are, as a general rule, in it for the power they can over the rest of the populace.

        • millsy 5.2.1.1

          I did a search for your comments. You tend to slant to the right.

          • alwyn 5.2.1.1.1

            I would agree with that. It’s just that I don’t trust po;iticians
            Actually it was the phrase “being the filthy neo-liberal scum you are” that I thought was just a tad harsh.

  6. Rogue Trooper 6

    interesting. a long-standing, well read socialist that I am friends with argues that the “Greens” are “idealists” :) and do not see the people clearly, except Julie, mmmwha

  7. Tiresias 7

    It must be remembered, too, that National’s friends in the finance industry do very much better out of KiwiSaver than they do the Cullen Fund.

  8. infused 8

    There is equal chance we could have lost that much money. What would your headline be then? Either way National is fucked, but less fucked this way.

    • Colonial Viper 8.1

      There is equal chance we could have lost that much money.

      Best to invest it in houses and property instead

      • TightyRighty 8.1.1

        No, big budget movies seem the way forward.

      • alwyn 8.1.2

        You are aware of what the primary cause of the banking liquidity crisis in 2008 was are you?
        All those people putting ever larger amounts of money into houses and property and then when the bubble burst the whole thing fell apart.
        Now repeat after me, “House prices can fall as well as rise”.

        • Colonial Viper 8.1.2.1

          The thing is that your answer covers investment asset prices, and implies that it wasn’t actually a liquidity crisis in 2008. Never was of course.

  9. TightyRighty 9

    But for 67 million the country for got 1.5 billion back. That’s ROI

    • mike e vipe e 9.1

      tighty almiighty we didn’t get 1.5 billion the film co got that before expenses that just the takings at the door.All up between the hobbit and LOR the govt has pumped nearly $400 million and NZ has benefited by $400 million Zero profit!
      The Hobbit is not doing any where near as well in door sales down considerably on the LOR !

      • TightyRighty 9.1.1

        At the risk of another incoherent rant, source please for your claim that $400m went in, and that NZ only saw $400m worth of benefit.

        I think you are full of it to be honest. The film companies spent more than that all these films in NZ. So should we just ignore the marketing and tourism spin offs?

        • mike e vipe e 9.1.1.1

          Between council and govt hand outs since the Clark govt started funding the LOR i think you will find from last years hobbit fiasco figures published here on the standard thats roughly the sum stumped up by us the tax payer!

      • TightyRighty 9.1.2

        At the risk of another incoherent rant, source please for your claim that $400m went in, and that NZ only saw $400m worth of benefit.

        I think you are full of it to be honest. The film companies spent more than that on all these films in NZ. So should we just ignore the marketing and tourism spin offs?

        • mike e vipe e 9.1.2.1

          These film companies might have spent more on these films but not all in NZ!

  10. tracey 10

    One drawback is that having bought shares when prices were high we have lost the opportunity to buy in when they are low. Key would know this from his trading days. The one thing he has some knowledge of hes fucked up

  11. tracey 11

    Tightright cld you post your source for the statement that the coubtry has received 1.5b from the hobbit?

  12. mike e vipe e 12

    Tight arse almighty show me the real figures they Don’t look any where as good as you portray!
    The feel good factor maybe but no real increase in tourism no real increase in jobs!
    The Americas cup on the other hand has built a $2 billion a year boat building industry!
    When the hobbits have finished thats if they are the film industry will bugger off to Estonia!

  13. irascible 13

    I would contend the biggest balls up any Government of NZ has made was the Muldoon decision to axe the 1972-75 Labour Governments contributory superannuation scheme followed by the KeY-English decision to prune the Labour Government (Cullen) fund. In both cases short term self interest has won out over long term investment in the country and thus encouraged the “flog off the assets to foreign corporates” policies we now see being enacted in the name of “saving the country (by destroying it)”.

    • millsy 13.1

      Very little chance the NZ Superannuation Corporation would have made it beyond the 80’s (rather like disco really). It would have been chopped up and farmed out to Wall St.

  14. irascible 14

    Agrred. Richardson would’ve been in there boots & all ready to privatise and gut the NZ Superannuation Corporation in the quest for “private enterprise efficiencies.”
    I doubt if Douglas would’ve attempted to dismantle what was, in 1975, his policy and creation. Then, again, that is supposing that Douglas didn’t undergo the same sort of road to Damascus revision that lead to his leaving Labour and creating ACT.

    • millsy 14.1

      ” doubt if Douglas would’ve attempted to dismantle what was, in 1975, his policy and creation. ”

      You never know with Douglas….

Recent Comments

Recent Posts

  • Minister makes meagre effort to fix big problem
    Today’s announcement by Health Minister Jonathan Coleman that Budget 2015 will include $98 million for elective surgery over three to four years should be seen for what it is – a drop in the bucket in an effort to appease… ...
    5 hours ago
  • Treasury forecasts a deficit for next year too
    National has tried to get the bad deficit news out of the way before this year's Budget but Treasury’s warned next year’s books could also be in the red despite Bill English's panicked spending cuts late last year, Labour’s Finance… ...
    7 hours ago
  • OIA chaos in the Ministry of Social Development
    So it turns out yesterday’s story about WINZ cuts to dental care loans was wrong, and through no fault of Radio New Zealand who ran it. The Ministry of Social Development (MSD) has today corrected the Official Information Act release… ...
    GreensBy Jan Logie MP
    8 hours ago
  • First state house sell-off will achieve little
    The first tranche of the Government’s state house sell-off will do nothing to fix the housing crisis or better the lives of vulnerable families, Labour’s Housing spokesperson Phil Twyford says. The Government has just announced the transfer of 1600 state… ...
    8 hours ago
  • Job figures show many missing out
    New Zealand’s “rock star” economy is failing to deliver either a surplus, real wage increases or job growth with unemployment stuck at 5.8 per cent,” Labour’s Leader Andrew Little says. “The Government trumpets the 3 per cent growth rate and… ...
    10 hours ago
  • Secret moves could undermine education system
    The Government must explain why it is pushing to open doors to multinational private education providers through a controversial international free trade agreement, Labour’s Education spokesperson Chris Hipkins says. “Documents leaked today show our Government is one of a handful… ...
    11 hours ago
  • Spotless must now end all zero-hours contracts
    New Zealand’s largest contractor of food, cleaning and hospital staff, Spotless, must now take action to end all zero-hour contracts, Opposition leader Andrew Little says. “Yesterday Labour asked questions of Parliamentary Service and the Speaker after we revealed nine parliamentary… ...
    14 hours ago
  • Are we even talking about welfare anymore?
    I’ve worked with children in the slums in India and that experience confirmed my sense of luck that I live in a small, naturally abundant country, which many years ago made the decision to share those resources so everyone had… ...
    GreensBy Jan Logie MP
    1 day ago
  • MPs warned off celebrations for fear of upsetting Chinese
    A leaked email that reveals the Government is warning MPs not to attend Falun Gong celebrations and that China will be spying on people who do has no place in a free society, Labour’s Foreign Affairs spokesperson David Shearer says.Advice… ...
    1 day ago
  • Labour stands behind Solid Energy miners
    Solid Energy miners will not be surprised at the company’s announcement today of further restructuring but any more job losses will be a shock for West Coast communities, Labour’s MP for West Coast-Tasman Damien O’Connor says. “I have my fingers… ...
    1 day ago
  • TPK unable to deliver on Whanau Ora
    The Auditor General’s report on Whanau Ora highlights what many people knew – Te Puni Kokiri was never designed to be a service delivery agency, said Labour’s Maori Development Spokesperson Nanaia Mahuta and Whānau Ora spokesperson Adrian Rurawhe. “In the… ...
    1 day ago
  • Too many Kiwis waiting on waiting lists
    Waiting lists to get on waiting lists are the new norm for thousands of New Zealanders living with chronic health problems, Labour’s Health spokesperson Annette King says. “The Government’s underfunding of the health sector is forcing district health boards to… ...
    1 day ago
  • Delays in spending damage Whanau Ora
    Criticism from the Auditor General that a greater proportion of Whanau Ora funds could have been directed to families rather than administration is something that needs to be investigated thoroughly, says Social Development Spokesperson Carmel Sepuloni.  “To quote the report… ...
    1 day ago
  • Walking the talk on sexual violence
    Te Tai Tokerau MP Kelvin Davis is putting election campaign promises into action, organising a hīkoi to raise awareness around sexual violence. The 17-day MASSIVE (Men Against Sexual Violence) walk – from the electorate’s southern boundary to the northern tip… ...
    1 day ago
  • Govt dumps infrastructure costs on Akld ratepayers
    The Government’s failure to invest in infrastructure to service its Special Housing Areas is dumping massive costs on Auckland ratepayers, Labour’s Housing spokesperson Phil Twyford says. Auckland Council has declined to approve three new Special Housing Areas on the city… ...
    1 day ago
  • Labour reforms encourage bad employers to be bullies
    The Government’s changes to labour laws have created a climate that allows bad employers to bully their workers, Labour’s spokesperson for Labour Issues Iain Lees-Galloway says. “Tauranga worker Bertie Ratu was threatened by her employer Talley’s for asking her local… ...
    1 day ago
  • Parliament workers on zero-hour contracts
    The Government must take urgent action and insist the contractor who employs workers at Parliament on zero-hour contracts end these unfair work arrangements, Labour Leader Andrew Little says. “Speaker David Carter has confirmed in his reply to questions from Labour… ...
    1 day ago
  • RMA: We need to know
    Environment Minister Nick Smith needs to spell out to New Zealanders what they can expect from his substantial reform of the RMA, says Labour’s Environment spokesperson Megan Woods.  In an open letter to the Minister, Megan Woods has urged him… ...
    2 days ago
  • He Aituā! He Aituā!
    “Papā te whatitiri! Hikohiko te uira! Ka wāwāhia ki runga o Hikurangi maunga, o Waiwhetū kainga. “Kua katohia e te ringa kaha o Aituā i tetahi pou whakarae o te reo Māori. Nō reira kei hea taku manu tui… ...
    2 days ago
  • Stratoil – Iwis do what National will not
    Tomorrow, Far North tribal representatives for the Te Hiku o Te Ika tribes will be travelling to the head office of Statoil to discuss the opposition to its oil exploration program in Te Reinga Basin. Statoil have decided to begin… ...
    GreensBy Gareth Hughes MP
    2 days ago
  • Mana whenua head North to oppose oil drilling
    It was good to hear the news that a mana whenua delegation is heading north, a long way north, to make their views known about the proposed  oil drilling off the Northland coast. The roopu will be representing iwi and hapu… ...
    GreensBy David Clendon MP
    2 days ago
  • Ministers must act on 111 failure
    Lives are being put at risk if the company contracted to manage emergency 111 calls can’t cope with increased numbers, Labour’s ICT spokesperson Clare Curran says. “Saturday’s situation where people calling the emergency services were unable to get through and were… ...
    2 days ago
  • People trying to save lives don’t deserve abuse
    WorkSafe New Zealand staff trying to save lives on farms shouldn’t be subjected to a tirade of verbal abuse from a Member of Parliament, Labour’s spokesperson for Labour Issues Iain Lees-Galloway says. “Chester Borrows has labelled WorkSafe New Zealand officials… ...
    2 days ago
  • Action on laws needed in Privacy Week
    The Government must speed up promised law changes to reassure the public their private information is in safe hands as the country marks Privacy Week, Labour’s associate Justice spokesperson Clare Curran said today. “The previous Justice Minister Judith Collins announced… ...
    3 days ago
  • Māori Caucus call on iwi leaders support
    Labour’s Māori caucus has sent an open letter to iwi leaders around the country seeking their support for meat workers currently in employment negotiations with Talleys.  “We are aware that when Talleys locked out workers for a period of 89… ...
    3 days ago
  • National still splashing cash on charter school experiment
    New figures confirming that charter schools are still being funded at up to four times the rate of their state school counterparts shows just how desperate the National Government is to make its experiment a success, Labour’s Education spokesperson Chris… ...
    4 days ago
  • Regions pay price for inaction on housing
    New figures put the cost of an average Auckland home at $800,000 and show large parts of the country facing stagnant or falling property values, Labour’s Housing spokesperson Phil Twyford says. “The QV data released today shows residential property values… ...
    5 days ago
  • Regions pay price for inaction on housing
    New figures put the cost of an average Auckland home at $800,000 and show large parts of the country facing stagnant or falling property values, Labour’s Housing spokesperson Phil Twyford says. “The QV data released today shows residential property values… ...
    5 days ago
  • PPP schools not at expense of community groups
    The Government must guarantee community groups will not be the losers out of its signing of a $298 million deal for four more public private partnership (PPP) schools, Labour’s Education spokesperson Chris Hipkins says. “Community groups will find it more… ...
    5 days ago
  • Surplus: The biggest broken promise ever
    Bill English has failed to deliver on his double-election campaign promise of a surplus by this year, instead delivering seven deficits out of seven budgets, says Labour’s Finance Spokesperson Grant Robertson. “The Government spent seven years and two election campaigns… ...
    5 days ago
  • McDonald’s serves up some McHappiness
    Unite Union and McDonald’s have given New Zealand a perfect way to celebrate May Day by reaching a settlement that strikes another blow against zero-hour contracts, Labour spokesperson for Labour Issues Iain Lees-Galloway says. “Earlier this week it looked like… ...
    5 days ago
  • Justice delayed and delayed and delayed
    Today we found out that the case of the prominent New Zealander  charged with indecent assault will retain name suppression until the case goes to court in about a year. Putting aside the appropriateness or not of granting name suppression,… ...
    GreensBy Jan Logie MP
    6 days ago
  • No golden age for books
    The ‘indefinite’ postponement of an initiative designed to encourage people to read Kiwi books will be a major blow to local authors, publishers and booksellers, Labour’s Arts, Culture and Heritage spokesperson Jacinda Ardern says.News that the annual NZ Book Month… ...
    6 days ago
  • Cracks showing in economy of milk and houses
    Fonterra’s latest cut to its forecast farmgate payout confirms that an economic black hole of $7 billion is opening up that will seriously affect the regions, says Labour’s Finance spokesperson Grant Robertson. “The cut confirms the long term trend of… ...
    6 days ago
  • Human Rights – An Issue for Everyone
    This week, the issue of human rights has been everywhere in the news. We have seen John Key prioritise a free trade agreement with Saudi Arabia over all else with no guarantee of human rights clauses being included. We have… ...
    GreensBy Catherine Delahunty MP
    7 days ago
  • Govt inaction on housing keeping rates high
    The Government’s failure to rein in the housing crisis means the Reserve Bank Governor cannot lower interest rates despite inflation being at 15-year lows, says Labour’s Finance spokesperson Grant Robertson. “Inflation is below the target band and the economy has… ...
    7 days ago
  • What do our refugee policies say about us?
    It is my pleasure to share with you a blog from Hester Moore who is currently interning with the United Nations High Commission on Refugees in Cairo, after graduating from the Univeristy of Canterbury. Sometimes, as a nation it is… ...
    GreensBy Denise Roche MP
    7 days ago
  • Tamaki state housing transfer risky and desperate
    The Government’s transfer of 2800 state houses to the Tamaki Redevelopment Company -- to be announced at 9am today -- shows it's desperation to off-load state houses and show some kind of action against Auckland's out of control housing crisis,… ...
    7 days ago
  • Tamaki state housing transfer risky and desperate
    The Government’s transfer of 2800 state houses to the Tamaki Redevelopment Company -- to be announced at 9am today -- shows it's desperation to off-load state houses and show some kind of action against Auckland's out of control housing crisis,… ...
    7 days ago
  • Woodhouse should close work visa loophole
    The Immigration Minister must revoke the work visas of temporary Chinese engineers working on KiwiRail trains and close the loophole that allows their employers to avoid New Zealand employment laws, says Labour’s spokesperson for Labour Issues, Iain Lees-Galloway. “New Zealanders… ...
    1 week ago
  • Job losses show folly of Chorus’ copper cuts
    Chorus and the Government are neglecting the copper broadband network, leading to 145 potential job losses at Transfield Services as well as poor services in the regions, says Labour’s Broadcasting Spokesperson Clare Curran. “Steven Joyce and Amy Adams have made… ...
    1 week ago
  • National quietly ditches its surplus promise
    National has quietly dropped its long-promised return to surplus by this year by removing the date it will get the books back in the black from its online campaign material, says Labour’s Finance Spokesperson Grant Robertson. “National’s pledge to reach… ...
    1 week ago
  • Even cheap houses now unaffordable
    New housing affordability data show that now even the cheapest houses in Auckland are unaffordable for first home buyers, says Labour’s housing spokesperson Phil Twyford.  “The AMP360 Home Loan Affordability Report reveals Auckland's lower quartile house price has leapt to… ...
    1 week ago
  • Key’s careless chatter tips off Arabic media
    John Key has shown a frightening lack of judgement in disclosing to an Arabic media outlet that Kiwi troops are in the UAE awaiting deployment to Iraq, Labour’s Foreign Affairs spokesperson David Shearer says. “At the same time the Prime… ...
    1 week ago
  • Child poverty will not be solved by vouchers
    New Zealand has debilitating levels of child poverty, entrenched violence against women and children, and the ongoing effects of colonisation on Maori are brutalising communities. When we dwell on the statistics – which mostly we don’t because it all seems… ...
    GreensBy Jan Logie MP
    1 week ago
  • Simon Bridges spent over $6500 on Northland
    Transport Minister Simon Bridges spent over $6519 on travel and flights to Northland for the by-election – spending around $1000 a week, Labour’s Acting Leader Annette King says. “Simon Bridges’ desperate dashes to Northland got him in political hot water.… ...
    1 week ago
  • Firing squad deaths deplorable
    The execution of eight men by an Indonesian firing squad is deplorable, Labour’s Foreign Affairs spokesperson David Shearer says. “New Zealanders do not support the use of the death penalty under any circumstances. ...
    1 week ago
  • Aged care workers need more than talk
    Yesterday AUT released the New Zealand Aged Care Workforce Survey 2014. The conditions of aged care workers are important for many reasons. We have an ageing population and people are going into care/requiring care later than before, so it’s critically… ...
    GreensBy Jan Logie MP
    1 week ago
  • Aged care needs urgent attention
    The Government must stop neglecting older New Zealanders and the people who care for them and give urgent attention to a sector that is in dire straits, says Labour’s Associate Health Spokesperson Iain Lees-Galloway. “The lead author of the New… ...
    1 week ago
  • Passing the buck a disaster in the making
    Moves to overhaul the social services sector are nothing more than privatisation in drag and are a potential disaster in the making, Labour’s Social Development spokesperson Carmel Sepuloni says. “A report from the Productivity Commission supports the Government’s push for… ...
    1 week ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere