More on Super Fund

The Herald canvasses the parties on whether there should be a freeze on contributions:

Should the Government suspend contributions to the NZ Super Fund?
* National: Won’t rule it out.
* Labour: No
* Greens: Yes
* Maori Party: No policy
* Act: Yes
* United Future: No
* Progressives: No

The best argument for common sense comes from Russel Norman:

But Greens co-leader Russel Norman said last night that in the present context, New Zealand should suspend its contributions.

“We are borrowing in order to invest in pretty uncertain financial markets at a time when the Government’s fiscal position is rapidly deteriorating and it’s really worried about its gross debt level.

The scond stupidest statement is from Phil Goff:

Labour leader Phil Goff strongly opposes any suspension of contributions of about $2 billion a year.

“The pensions of tomorrow need to be protected today.”

So Phil thinks borrowing today, which will need to be repaid tomorrow, will protect he pensions of tomorrow. That has to win some prize for stupidity.

Then we have Jim:

Progressives leader Jim Anderton said that “raiding the piggy bank today means there is less in the piggy bank when it is needed”.

Jim thinks you can fill up a piggy bank by borrowing money for it. This is like telling your child that even though they did not have any left over pocket money, they should go borrow some money, and stick that borrowed money in a piggy bank, so they will think they have saved some money.

UPDATE: Whale calls Labour’s borrow to save plan as their “Blue Chip” plan for our future. That’s a good way to look at it. I mean think if a finance company did what Goff and Anderton did, and said we will secure your future by borrowing money you don’t have, to save money for you. The SFO would be talking to those directors in very quick time!