Thursday, June 17, 2021
Times of Georgia
HomePoliticalGovernment's KiwiSaver Interference Will Hammer Savings

Government’s KiwiSaver Interference Will Hammer Savings



The Government’s announcement that default
KiwiSaver funds will be
forced
to boycott fossil fuel investments
will
reduce savings, says the
New Zealand
Taxpayers’ Union.

Union
spokesman Louis Houlbrooke says, “The last thing KiwiSaver
members need is for politicians to micromanage their funds.
KiwiSaver providers are meant to make independent investment
decisions in order to maximise returns. Politicising these
decisions will ultimately result in lower rates of
return.”

“Once the Government starts sticking its
nose in, where does it stop? Will KiwiSaver providers be
barred from investing in, say, meat production? Alcohol?
GMOs?”

“The Government already manages carbon
emissions at the macro level – take the Emissions Trading
Scheme – which has a flow-on effect on KiwiSaver
investment decisions. Diktats on the micro level are
unneeded.”

“This move won’t even affect total
carbon emissions. Any move to cut emission below the cap set
by the Emissions Trading Scheme creates a ‘waterbed
effect’ which frees up credits to produce emissions
elsewhere.”

© Scoop Media

 



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