If National wins ...

[macduffy]

They could have funded all this, and more, if they'd resumed putting cash into the Cullen fund shortly after the GFC.

I'm afraid you lost me at this point, eZ. At this early stage of its life, the Cullen fund is another expense for the govt, not a source of funding for current govt expenditure. The purpose is to help fund national super into the future.

[elZorro]

I'm afraid you lost me at this point, eZ. At this early stage of its life, the Cullen fund is another expense for the govt, not a source of funding for current govt expenditure. The purpose is to help fund national super into the future.

My mistake, absolutely correct Macduffy, it's an asset, not an income stream at this point.

I was scratching around for examples I think. MBIE was also in the news today, and while I thought they'd implode from a lack of funds, the ministry which seems synonymous with Steven Joyce, has been spending big.

http://tvnz.co.nz/national-news/excl...y+29+June+2015

[Daytr]

BP, very long bow you are drawing there. What EZ is relaying has no comparison to the Greek situation.
The closest thing to the Greek tragedy is National increasing debt by multiples and Key lying to the nation on multiple occasions, just as the Greek government did to Europe re their budget deficit.
You opened the door... :-)

Lol - you mean something like Greece, do you? Government made sure they get great wages (in their heydays some of the best in Europe), early retirement and a hard left government run by academics. Paradise ... I guess just fair that others have to mop up the mess

[Daytr]

Macduffy, I would argue that the expense was already there as in there is a growing liability to fund retirements that has been under funded for some time (decdes). We cannot keep putting this off, it needs to be the responsibility of all governments, otherwise it just makes the problem bigger & harder down the track. Pension funding is a major problem around the Western world & Japan due to the same short termism we are seeing from Key's National government. Reform is required, however is political suicide for any party. It would be nice to see people thin king of the greater good for a change & that those who don't need a pension don't get one. I would like even to see a voluntary scheme where people can opt out of the pension.

I'm afraid you lost me at this point, eZ. At this early stage of its life, the Cullen fund is another expense for the govt, not a source of funding for current govt expenditure. The purpose is to help fund national super into the future.

[macduffy]

No argument there, Daytr. Just that, as eZ acknowledges, keeping up the funding of the scheme at this point wouldn't help the country pay for other current outgoings. Sooner or later we are going to have to face up to the problem of a growing expenditure on national super for a growing retired cohort, politics notwithstanding.

[BlackPeter]

BP, very long bow you are drawing there. What EZ is relaying has no comparison to the Greek situation.
The closest thing to the Greek tragedy is National increasing debt by multiples and Key lying to the nation on multiple occasions, just as the Greek government did to Europe re their budget deficit.
You opened the door... :-)

Greeks national debt level being at current something like 175% of GDP, New Zealand's debt level something like 35% of GDP. So yes - National increased our debt levels (and there have been some good and probably some not as good reasons for it), but I think they still have some headroom to go ...

Anyway - we might have similar view's on the integrity of our beloved PM, but not sure whether he stacks up that bad compared to some of the (as well so called Honorable) left politicians I could think of. It is dirty politics everywhere, no matter into which direction you look.

And hey - I never said that the National government is good for NZ - I just believe that it is less damaging than a backwards looking Left government would be (given the current line up of Left parties and politicians).

[Daytr]

Yea but lets not use that headroom huh & its a closer Greek scenario than the one you tried to draw. ;-)
And where is the plan to pay it off? Or will that be left up to a newly elected government.... again .
I would say Key stacks up better than many in his own party as well, not that is saying much, (pull ponytail), but he's the one that selects them as his cabinet, even if he does sin-bin them once & awhile.
Remind me. What committee did Mike Sabin chair just before he disappeared off the political scene?

[elZorro]

From NZResources today, as we wait to see what happens with the Greek banking crisis:

29/6/2015 — General
Low dairy exports hit May quarter figures
By Simon Hartley
A halving of dairy exports has contributed to the 4.7% or $214 million decline of total goods exported to $4.4 billion for May, compared to a year ago.
However, the trade balance between exports against imports in May - respectively $4.36 B and $4.01 B - left a $350 M trade surplus.
This, said Statistics New Zealand (SNZ), was ahead of most expectations and the fifth month in a row of surpluses.
SNZ international statistics manager Jason Attewell said at dairy's peak it made up two-fifths of total goods exports, but for May they accounted for one-fifth of total goods exported.
“Milk powder, butter, and cheese exports led the fall, down 28%, or $346 M,” Attewell said.
The decline in milk powder, butter, and cheese exports was led by whole milk powder, down 37%, with quantities down 6.9%, and while whole milk powder export values to China have been low compared with last year, values to other countries remained “fairly stable.”
Fruit exports rose $107 M to $445 M in May, the highest monthly value ever.
Goods imports fell $300 M, or 7%, to $4 B in May, intermediate goods fell $259 M, led by crude oil, capital goods fell $80 M, while consumption goods rose $4.8 M.
For the year ended May, the annual goods trade deficit was $2.6 B.
ASB rural economist Nathan Penny said the headline balance, of a $350 M surplus, was ahead of both ASB's and market forecasts.
“Most of the surprise was due to lower import values relative to expectations,” he said.
On a seasonally adjusted basis, dairy exports posted a small 0.3% monthly gain, reflecting the earlier and temporary strength of February prices. Nathan Penny noted the fortnightly global dairy auction prices did not come through in trade data until three months later.
Westpac senior economist Michael Gordon said the $350 M surplus was $100 M ahead of his expectations, and the market's expectations of a deficit.
“This was actually an improvement on the $246 M surplus recorded in May last year.
Consequently, the annual trade balance improved for the first time in nine months,'' Gordon said.
He said excluding fuel, imports were down 2.6%, with a particularly sharp drop in imports of capital equipment.
“This is not a positive sign for the economy's near-term growth prospects,” he said.
Gordon reiterated that weakness in business investment was a factor in the weak gross domestic product data, earlier this month, covering the March quarter.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.

Tradies might still be busy in Auckland and Christchurch, indirectly boosting an impression of busy-ness in other cities, but capital items are not being imported as heavily as they were. Our population is expanding but exports are dropping in value, and we have an annual trade deficit as per usual.

[macduffy]

......... and look, the sky's falling!

[winner69]

......... and look, the sky's falling!

just for you macduffy .... don't think the young ones will get it

https://www.youtube.com/watch?v=NRLXp3R7uZY