Cunliffe breaks Rule Number one

David Cunliffe is whining today. In doing so he is breaking rule number one.

National’s Associate Finance Minister and election campaign manager Steven Joyce yesterday attacked Labour’s savings package on the grounds it would increase the Government’s net debt by almost $7 billion over the five years to 2015-16.

Labour wants to raise the age of eligibility for NZ Superannuation from 65 to 67, resume contributions to the NZ Superannuation Fund and make KiwiSaver compulsory for all workers.

The most financially significant of the three policies is the resumption of Superfund contributions which Mr Joyce said would add $6 billion to the Crown’s net debt over four years.

“Labour wants to borrow billions more at precisely the time when the world is saying no to more debt.”

However, Mr Cunliffe said the effect on the Government’s books of resuming those contributions was neutral because money borrowed for that purpose was offset by the corresponding increase in the value of the fund.

“It has no impact whatsoever on net debt because net debt quite legitimately includes the increase in the Superfund … If anything, it would reduce net debt because the rate of return is higher than the Crown’s cost of capital.

“It’s dishonest to focus on the liability and ignore the asset.”

What is dishonest is Labour borrowing to put money int he bank. That is exactly what they are doing. You don’t go and increase your mortgage so you can put the money in your savings account in your household finances. Only stupid people would do that or South Canterbury Finance investors.

By borrowing money to put into savings you are creating your very own Ponzi scheme, expecting future taxpayers to cover the debt incurred to fund your retirement.

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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.