web analytics

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

  • NZ announces a third P-3 deployment in support of UN sanctions
    The Government has deployed a Royal New Zealand Air Force P-3K2 Orion (P-3) maritime patrol aircraft to support the implementation of United Nations Security Council (UNSC) resolutions imposing sanctions against North Korea, announced Minister of Foreign Affairs Winston Peters and Minister of Defence Ron Mark. “New Zealand has long supported ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Pacific trade and development agreement a reality
    Pacific regional trade and development agreement PACER Plus will enter into force in 60 days now that the required eight countries have ratified it. Trade and Export Growth Minister David Parker welcomed the announcement that the Cook Islands is the eighth nation to ratify this landmark agreement. “The agreement represents ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Securing a pipeline of teachers
    The Government is changing its approach to teacher recruitment as COVID-19 travel restrictions continue, by boosting a range of initiatives to get more Kiwis into teaching. “When we came into Government, we were faced with a teacher supply crisis,” Education Minister Chris Hipkins said. “Over the past three years, we ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Border exceptions for a small number of international students with visas
    The Government has established a new category that will allow 250 international PhD and postgraduate students to enter New Zealand and continue their studies, in the latest set of border exceptions. “The health, safety and wellbeing of people in New Zealand remains the Government’s top priority. Tight border restrictions remain ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • First COVID-19 vaccine purchase agreement signed
    The Government has signed an agreement to purchase 1.5 million COVID-19 vaccines – enough for 750,000 people – from Pfizer and BioNTech, subject to the vaccine successfully completing all clinical trials and passing regulatory approvals in New Zealand, say Research, Science and Innovation Minister Megan Woods and Health Minister Chris Hipkins. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • International statement – End-to-end encryption and public safety
    We, the undersigned, support strong encryption, which plays a crucial role in protecting personal data, privacy, intellectual property, trade secrets and cyber security.  It also serves a vital purpose in repressive states to protect journalists, human rights defenders and other vulnerable people, as stated in the 2017 resolution of the ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ministry of Defence Biodefence Assessment released
    The Ministry of Defence has today released a Defence Assessment examining Defence’s role across the spectrum of biological hazards and threats facing New Zealand. Biodefence: Preparing for a New Era of Biological Hazards and Threats looks at how the NZDF supports other agencies’ biodefence activities, and considers the context of ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020
    New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020 Hon David Parker’s response following Thomas Piketty and Esther Duflo. Good morning, good afternoon, and good evening, wherever in the world you might be. I first acknowledge the excellent thought provoking speeches of Thomas Piketty and Esther ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Kaipara Moana restoration takes next step
    A Memorandum of Understanding has been signed today at Waihāua Marae between the Crown, local iwi and councils to protect, restore and enhance the mauri of Kaipara Moana in Northland. Environment Minister David Parker signed the document on behalf of the Crown along with representatives from Ngā Maunga Whakahī, Ngāti ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand and Uruguay unite on reducing livestock production emissions
    Agriculture Minister Damien O’Connor and Uruguayan Minister of Livestock, Agriculture and Fisheries Carlos María Uriarte have welcomed the launch of a three-year project that will underpin sustainable livestock production in Uruguay, Argentina, and Costa Rica.  The project called ‘Innovation for pasture management’ is led by Uruguay’s National Institute of Agricultural ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • 3100 jobs created through marae upgrades
    Hundreds of marae throughout the country will be upgraded through investments from the Provincial Growth Fund’s refocused post COVID-19 funding to create jobs and put money into the pockets of local tradespeople and businesses, Regional Economic Development Minister Shane Jones and Māori Development Minister Nanaia Mahuta have announced. “A total ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Health volunteers recognised in annual awards
    Health Minister Chris Hipkins has announced 9 teams and 14 individuals are the recipients of this year’s Minister of Health Volunteer Awards.  “The health volunteer awards celebrate and recognise the thousands of dedicated health sector volunteers who give many hours of their time to help other New Zealanders,” Mr Hipkins ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community COVID-19 Fund supports Pacific recovery
    The Minister for Pacific Peoples, Aupito William Sio says a total of 264 groups and individuals have successfully applied for the Pacific Aotearoa Community COVID-19 Recovery Fund, that will support Pacific communities drive their own COVID-19 recovery strategies, initiatives, and actions. “I am keen to see this Fund support Pacific ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community benefits from Māori apprenticeships
    Up to 50 Māori apprentices in Wellington will receive paid training to build houses for their local communities, thanks to a $2.75 million investment from the Māori Trades and Training Fund, announced Employment Minister Willie Jackson today. “This funding will enable Ngāti Toa Rangatira Incorporated to provide its Ngā Kaimahi ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Training fund supports Māori jobseekers
    Rapidly growing sectors will benefit from a $990,000 Māori Trades and Training Fund investment which will see Wellington jobseekers supported into work, announced Employment Minister Willie Jackson today. “This funding will enable Sapphire Consultants Ltd. to help up to 45 Māori jobseekers into paid training initiatives over two years through ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ruakura Inland Port development vital infrastructure for Waikato
    The Government is investing $40 million to develop an inland port at Ruakura which will become a freight super-hub and a future business, research and residential development for the Waikato, Urban Development and Transport Minister Phil Twyford, and Māori Development Minister Nanaia Mahuta announced today. The funding has been has ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Appointments made to Defence Expert Review Group
    Defence Minister Ron Mark announced today the establishment of an Expert Review Group to review a number of aspects of the New Zealand Defence Force’s (NZDF) structure, information management and record-keeping processes.  The Expert Review Group’s work arises out of the first recommendation from the Report of the Government’s Inquiry ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • No active community cases of COVID-19
    There are no active community cases of COVID-19 remaining in the country after the last people from the recent outbreak have recovered from the virus, Health Minister Chris Hipkins said today. “This is a big milestone. New Zealanders have once again through their collective actions squashed the virus. The systems ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Clean energy upgrade for more public buildings
    More public buildings will be supported by the Government to upgrade to run on clean energy, the Minister for Climate Change James Shaw announced today. Minister Shaw announced that Lincoln and Auckland universities will receive support through the Clean-Powered Public Service Fund to replace fossil fuel boilers. Southern, Taranaki, and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Schools back donations scheme for the second year
    More schools have opted in to the donations scheme for 2021, compared to 2020 when the scheme was introduced. “The families of more than 447,000 students will be better off next year, with 94% of eligible schools and kura opting into the scheme,” Education Minister Chris Hipkins said. “This is ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Ruapehu cycle trails gets PGF boost
    The spectacular Mountains to Sea cycle trail in Ruapehu District will receive $4.6 million in funding from the Provincial Growth Fund for two additional trails, Regional Economic Development Minister Shane Jones announced today. “This is an exciting development for the local community, and one that will provide significant economic opportunities ...
    BeehiveBy beehive.govt.nz
    3 weeks ago