Future of Super Fund on the table
Joyce says fund payments could be brought forward as negotiations loom
National's Steven Joyce says the future of Super Fund payments could depend on negotiations with Winston Peters to form the next coalition government.
Joyce made the comment after Peters criticised National for its handling of the fund, saying it would now be worth $52 billion rather than $35b had National not halted Government contributions to the fund in 2008.
Those taxes came to a whopping $1.2b over the last year.
Peters made it clear the Super Fund would be on the table for negotiations with both National and Labour — although Labour has already committed to starting contributions again immediately.
Peters accused National of robbing New Zealanders’ “nest egg”.
“To start building up a surplus by taxing something that derives from taxes is extraordinary.
“These are things we are going to have to discuss with people and hope they see common sense.”
Joyce said National always said it would restart contributions when the books were healthy enough after the Global Financial Crisis and Christchurch earthquakes — that was expected to be in 2020 “but obviously that is subject to the formation of the next Government”.
He said it could be brought forward.
“Of course it could. That will depend on the outcome of negotiations currently before politicians and all those things are in the balance until a new government is formed,” Joyce said.
He defended halting the contributions in 2008, saying it had not made sense to continue them with the short-term demands of the global crisis and earthquakes. Peters’ comments were sparked by news the Super Fund was taxed a record amount of $1.2b for the 20.7 per cent return on its investments over the past year. That boosted the fund by $5b to a total value of $35b. The fund has shown average returns of 10.2 per cent a year over the past 14 years and was set up by the former Labour Government to help fund the future cost of superannuation.
Labour would restart contributions immediately while National had proposed waiting until net debt was at 20 per cent of GDP — expected in 2020/21.
Peters has refused to talk about the process of government negotiations or what policies he might consider until after the results of special votes are declared on October 7 — but is still talking about issues that concern his party’s policies.
On Wednesday night, after refusing to discuss his policy priorities with New Zealand media, he told Australian Sky News that a referendum on Maori seats was no longer such a priority now that the Maori Party was out of Parliament.