Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
[Volume:622;Page:17216] 
3.  
CLAYTON COSGROVE (Labour—Waimakariri) 
 to the  
Minister of Finance 
: Has he received any reports on attitudes toward the New Zealand Superannuation Fund? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 Yes. I have read that it is a “serious mistake” and “nothing more than financial smoke and mirrors”. Despite these comments from Dr Brash I welcome his flip-flop that he is now saying National will support the fund. This proves the truth of the old saying “If you can’t beat them join them.” 
Clayton Cosgrove 
: What further reports has the Minister seen on this issue? 
Hon Dr MICHAEL CULLEN 
: It is clear that this flip-flop has been welcomed on the grounds that we get greater stability in policy in the long term on retirement income but of course if the contributions to the fund are going to be maintained then substantial tax cuts are possible only if spending is cut elsewhere or debt allowed to balloon out. 
John Key 
: Will the Minister approve the $1 million budget increase requested by the Guardians of the New Zealand Superannuation Fund so that they have the capability to assess opportunities in New Zealand infrastructure and New Zealand venture capital; and if he is now going to get to his feet and tell the House that he has miraculously approved this $1 million increase does it mean it takes the National members to sign up before he gives the guardians the tools to do the job properly? 
Hon Dr MICHAEL CULLEN 
: No the approval was given some few days ago in terms of the decision being taken and I am happy if it is required to have a full royal commission of inquiry to establish that fact if that is what National is demanding now. I am not subject to the member’s blandishments as much as Dr Brash is. I congratulate him on convincing Dr Brash of the sanity of supporting the fund. 
Rodney Hide 
: Is there any new information since Don Brash said: “The Cullen Fund is nothing more than financial smoke and mirrors. It does not change the overall cost of superannuation one bit” and is this new-found agreement yet another example of the two old parties holding hands hoping that national superannuation is sustainable when the real answer to superannuation is strong consistent growth with New Zealanders saving in their own accounts? 
Hon Dr MICHAEL CULLEN 
: On the latter point no because many people would never be able to save enough to give them a retirement income equivalent to New Zealand superannuation. The failure to secure New Zealand superannuation would lead to large numbers of elderly people living in poverty. As for the notion of Dr Brash and I walking off into the sunset hand in hand I hope we will do that on the Civil Union Bill in a similar context. 
Hon Peter Dunne 
: Is the Minister now prepared in the light of the National Party’s policy announcement to resuscitate negotiations for a new multiparty accord on superannuation to provide certainty and security into the future; if not why not? 
Hon Dr MICHAEL CULLEN 
: I accept the sincerity of the member’s position but in my view the basis for an accord is already there because the superannuation Act provides the capacity to sign up to Parts 1 and 2 of that Act. United Future is signed up to both parts; the Labour Party is; the Progressive Party is; the Greens are signed up to Part 1 and presumably National will now sign up to both Parts 1 and 2. So in my view it already establishes a very substantial accord with any other party being able to sign up to either part in the future. 
Hon Peter Dunne 
: In the light of that answer does the Minister therefore consider that the mere act of signing up or making policy announcements provides the level of security and certainty required for the future and if he does consider that what sanctions are in place to effectively ensure other than I guess the public will that those parties keep those policy commitments? 
Hon Dr MICHAEL CULLEN 
: At the end of the day the sanctions are political as we saw in 1999 when the accord was broken with National lowering the floor on New Zealand superannuation and that undoubtedly contributed to that party’s loss at the next election.