RICHARD PREBBLE: The Future Never Comes
New Zealand First’s big promise this election is a Future Fund.
The Future Fund looks like a recycled version of the Provincial Growth Fund, but this time on steroids.
The Provincial Growth Fund was to be a $3 billion fund for “regional development”. Regional development turned out to include refurbishing 347 marae.
It also included $52 million for the loss-making Whakatōhea mussel farm in Ōpōtiki.
The Auditor-General questioned the administration and evaluation of the fund and expressed doubt about whether taxpayers would get value for money.
This time the promise is not $3 billion but up to $100 billion for “infrastructure”.
Infrastructure is apparently whatever Peters says it is.
The first promised “infrastructure” investment is to buy BNZ and merge it with Kiwibank, How reducing the number of banks increases competition is yet to be explained.
BNZ has about $12.5 billion of tangible ordinary equity. ANZ’s purchase of Suncorp Bank was at about 1.3 times tangible book value. On that basis, BNZ is worth about $16 billion.
But NAB, which owns BNZ, does not want to sell. It could demand well over $20 billion.
With the Government running a deficit of around $11 billion, where is the $100 billion coming from?
Apparently from ACC, the Super Fund, borrowing by issuing government bonds and private investors.
Why would any investor, including ACC, that can obtain a share of BNZ by buying NAB shares, pay perhaps twice as much by investing via a fund run by politicians?
Why is New Zealand First not being laughed at?
Is it because the promise is so absurd that no one takes it seriously?
Or is it because we think Winston will be safely overseas?
But the media reports that in the next government Peters wants a domestic role.
We cannot afford to keep Winston Peters at home.
Richard Prebble is a former Minister and ACT Party leader who writes at I've Been Thinking
NZ First. Greens, Pati and others including Peters, Jones and Willis are all in parliament because of MMP. They are unelected without electroate offices. Should they hold portfolios?
Peters unelected canned the dogs and cancelled the ferries.
Great point 347 marae upgrades why is is nobody is asking about the ROI on Shane Jones personal chequebook. Every other project requires a study but these preferential and essentially private venues get zero scrutiny.
Prior to every election Peters has contested he comes out with promises and policies that for many reasons never stack up. He considers and is probably correct that most NZ people have little interest in politics and only at election time do they take notice of what each Party is saying they will do if elected. His “Father Christms goodies for all “ approach does win votes and he keeps using it!
Good questions Richard. I had always harboured doubts about lots of taxpayer funds linked with Mr Jones, and the latest ideas from NZF aren’t improving my impressions.
In fact, the political landscape in this country seems less stable by the week, whilst most folk in the productive sector are doing their best to get on with their lives, and collectively support New Zealand as a consequence.
With that demand to buy the BNZ Bank would not wash well with ACT Party or National party and that idea may get thrown in the bin. I wonder the position of Shane Jones on this or Michael Laws ?