KEY POINTS:
The Government has been warned that it would be better to suspend payments into the Superannuation Fund than get it to invest in infrastructure projects.
A briefing to the incoming Infrastructure Minister, Bill English, outlines a response to National's plans to focus on infrastructure spending.
Officials are clearly sceptical about the Government's plans to get the fund to put 40 per cent of its assets into New Zealand investments with the hope that some of this will be spent on infrastructure such as roads.
"There is a risk that in financing infrastructure spending through the NZSF, this approach may in effect reduce the level of NZSF pre-funding [of future super payments]," said the report from the Treasury and Economic Development, Transport, Internal Affairs and Environment ministries.
"If your main objective is to provide capital for infrastructure spending, then there are a number of options available - including issuing new debt and suspending contributions to the NZSF."
- NZPA
