09/05/2007
Finance Minister Nick Minchin seems to have forgotten
his promise on March 26 2007:
‘Certainly this year’s surplus and next year’s surplus will
be going into the Future Fund’
His claim that the Government’s $5 billion Higher Education Endowment
Fund (HEEF) is not effectively drawn from the Future Fund does not withstand
scrutiny.
Without this one off contribution to the HEEF, the Future Fund would now have
an additional $5 billion to assist in meeting its target of fully funding public
service superannuation liabilities by 2020. Respected commentator Terry McCrann
makes this clear in today’s Herald Sun.
According to the Treasurer, drawing down on $2.7 billion of Telstra shares
which the Future Fund holds but cannot sell until November 2008, to build a
national high-speed broadband network is “shameful economic vandalism”.
Yet to take $5 billion, that was previously promised to the Future Fund to
invest in higher education is a “visionary initiative”.
The Government’s initiative has destroyed its claim that Labor’s
$2.7 billion draw-down would jeopardise the Future Fund’s ability to
meet its 2020 target. Within weeks of making this claim, it has effectively
taken $5.6 billion from the Future Fund’s ongoing funding.
9 May 2007
