Individual accounts for super a possibility
Finance minister Michael Cullen says individual accounts for the Government super fund is a possibility.
Thursday, November 16th 2000, 7:39AM
Cullen told a recent funds management conference that NZ First's request to put the fund into individual accounts was a reasonable, and one that he was prepared to discuss.
However, one caveat is that the option should only remain open for a short period of time, say one electoral term.
One of the reasons being that once the fund grows in size converting it to individual accounts would become more difficult.
Cullen says he personally is opposed to individual accounts for a variety of reasons, including the fact that it would add more cost to the fund.
Cullen told SuperTalk that he is prepared to discuss individual accounts on the basis that the money would still be managed at arm's length by the Government.
He is strongly opposed to the idea of putting the money into individual accounts and giving the individual the option of deciding how the money should be managed.
This approach, which is the equivalent of privatising the scheme, is the favoured option of Act.
Act leader Richard Prebble said this week that his party will support legislation setting up the super fund as far as the select committee stage.
He says the scheme is not perfect but it's better than the current situation.
One of his issues is that the fund could dwarf the rest of the New Zealand economy. However, research by Guardian Trust Funds Management chief executive Anthony Quirk shows it is not a monster in the local market.
Quirk estimates that by 2010 the fund will account for about 7% of the local sharemarket.
To read the full report and to learn more about Act's position GO TO
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