The report that Finance Minister Penny Wong has plans to withdraw hundreds of millions of dollars from the Future Fund is most disturbing. There appears to be no reason for such plans safe to keep intact Labor promise for a surplus budget in 2012. This appears to be wanton and reckless behaviour that tells us our worries that Labor Governments are more fiscally irresponsible are not astray.
When Peter Costello set up the fund, the understanding was that no withdrawal can be made unless actuarial advice is that the liability arising from public sector superannuation obligations would be fully funded. This advice has yet to be given in fact the current advice is that for the 2012 budget, the liability would not be funded.
So why is Penny Wong and her boss the discredited and unwanted Julia Gillard, so hell bent on this course of action? Australians should be up in arms and say to this government to stop messing with our future. First the carbon tax to wreak uncertainty on the economy, now this banditry of a raid on our future fund.
While not every one of us has a direct interest in this fund, undermining the future fund would do serious damage to the government’s sovereign financial rating which would in turn send our country down the Grecian path with similar tragic outcomes. Hands off the future fund!
- Swan risking seats in Sydney: O’Farrell (news.theage.com.au)
- Costello on Carbon Tax and National Income (godsmustardseed.com)
- Fed Funds Futures Start to Push Rate-Hike Expectations Toward 2014 (blogs.wsj.com)
- Gillard inching closer to Najib Razak (godsmustardseed.com)
- Gold Bets Help Hedge Funds Weather August Global Market Rout (businessweek.com)