Multi-party talks urged on super

By AUDREY YOUNG

National is calling for multi-party talks on the monster super fund outlined by Finance Minister Michael Cullen this week, but wants other options on the table.

The Greens want other options discussed too, and are miffed that they were not consulted earlier by Labour.

New Zealand First supports the fund in principle while Act is the only party to have totally rubbished the fund.

Dr Cullen said he was willing to engage National in discussion but only if he first got the support of Labour's coalition partner, the Alliance.

He would not accept, nor expect, to rely on National as a backstop if he failed to get enough support from the Alliance, the Greens and NZ First.

The concept of Labour's pre-funded super scheme was outlined in the books for the first time on Wednesday in Dr Cullen's pre- budget policy statement.

The fund, to start next April, would be built up out of surpluses over the next 30 years to help pay for baby boomers' pensions.

Dr Cullen was not willing to outline his timetable for consultation.

"But once I have firmed up with the Alliance, I would be quite happy to have discussions with National Party spokespeople."

Leader Jenny Shipley said National accepted it had suffered the consequences of acting unilaterally on superannuation as Labour had in the past.

"We should be learning from our mistakes, not repeating them.

"We accept that National may have to move off its historic position on super in order to find a multi-party agreement.

"The new millennium plus MMP requires political parties to attempt to do so.

"We should go back and look at a multi-party process."

Asked if National would be prepared to enter multi-party talks on the Cullen concept, she said: "We would be happy to look at this but we believe we would need to look at a range of views in order to develop a consensus in the political spectrum. Cullen has come up with one idea."

She had written to Prime Minister Helen Clark last month saying National had an open mind on super, but had not had a reply.

Greens co-leader Rod Donald said his party had an open mind on the fund and wanted more detail.

"The presentation of the new fund as the only option for super was of concern to the Green Party."

The Greens also wanted a multi-party accord.

The Coalition could get the fund through with the support of only NZ First.

But Labour wants to secure wider support than just 64 out of the 120-seat Parliament.

NZ First leader Winston Peters said his party supported, in principle, the establishment of a fund from taxes run independently of the Government.

The best way was to earmark the fund with the names of individuals as the Norman Kirk fund did, and his proposed compulsory scheme which was rejected by referendum in 1997.

"The superannuation fund would also help set up a sound savings base which this country desperately needs to avoid its reliance on foreign money and loss of economic sovereignty," Mr Peters said.

Act's finance spokesman, Rodney Hide, said the fund was a "cruel hoax."

"Michael Cullen proposes building up the fund instead of paying off Government debt. This is like a householder saving for their retirement while servicing an expensive mortgage.

"The interest on the Government's debt is 7.5 per cent."

It would be hard to see the managers of the fund earning such a return on the state super-fund.

"The result is a net destruction of wealth."