Finance Minister Bill English is rejecting suggestions by Labour that he has been short-sighted in suspending Government contributions to the Superannuation Fund.
The criticism comes after the Government's financial statements revealed that investment returns from the fund were $1.4 billion higher than forecast.
The Crown operating balance recorded a deficit of $175 million for the first quarter of the fiscal year. There was a dramatic drop in corporate and personal tax but it was offset by a recovery in the performance of the Accident Compensation Corporation and the New Zealand Superannuation Fund's investments.Mr English believes he was right to suspend payments to the Superannuation Fund.
"The New Zealand Super Fund is a long-term fund. It's going to have its ups and its downs. The reason we're not contributing is because at the moment we have a $10 billion cash deficit so we don't have any surplus cash to put into it."Mr English says when the Government does have the money it will resume contributions.
