The government needs these two stories like I need cancer right now. They have major implications for the confidence in our economy.
The first is the loss of almost a billion dollars by the much vaunted Cullen Fund. Now there has also been some very interesting reporting or should I say spin around this announcement.
In its annual report released today, the Guardians of New Zealand Superannuation Fund – also known as the “Cullen Fund” unveiled annual returns of minus 4.92 per cent, a loss of $716.5 million.
Interesting huh? A stonking great loss is billed as a “return of minus 4.92%”, then there was this little effort;
The result represented, pre-tax, a negative return of 4.92 percent.
and this one;
Government contributions of just over $2 billion during the year meant the fund still grew from $13.1 billion to $14.1 billion, despite the fall in investment returns.
Excellent spin don’t you think, calling stonking great losses “returns.
The more important story however, which has very severe implications for the economy as a whole is the melamine scandal which has now spread to Tatua Dairy. It seems that farmers have either by been using insecticides containing cyromazine, an insecticide which breaks down to melamine in mammals and plants, or feeding dairy cows cheap imported feeds such as palm kernel contaminated with cyromazine or its metabolite, melamine.
This is massive. If both incidences are true then this melamine scandal has truly massive implications for our economy as the dairy industry tanks and farmers pay-outs dry up because Fonterra farmers will be likewise affected.
Someone has allowed the importation of cheap feeds to essentially destroy this nations livelihood.
Adolf at No minister also provides some good information on this.
