There are decent pros and cons towards a country having an investment fund. We already have one – the NZ Super Fund. Their job is to get the best returns on their assets.
Labour is proposing basically a giant corporate welfare fund, which can will either lend money to, or invest in NZ companies. Beyond doubt, they will pick favoured industries for the fund. So it will just be another version of the corporate welfare we already have.
Temasek Holdings invests around the world. It has 14 global offices from China to Mexico to the UK to France etc. Only around 27% of its investments are in Singapore.
The Government currently gets around $1.5 billion a year in dividends from various companies. These are currently used to fund health, education, police etc. Labour is promising to take that $1.5 billion and instead stick it in a corporate welfare fund. So they will need to either increases taxes by $1.5 billion a year, or borrow more for health, education, police etc.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders
Temasek Holdings invests around the world. It has 14 global offices from China to Mexico to the UK to France etc. Only around 27% of its investments are in Singapore.
The Government currently gets around $1.5 billion a year in dividends from various companies. These are currently used to fund health, education, police etc. Labour is promising to take that $1.5 billion and instead stick it in a corporate welfare fund. So they will need to either increases taxes by $1.5 billion a year, or borrow more for health, education, police etc.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders
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