State Super Uncertain as Tripodi Struggles to Explain 
|
| Tuesday, 14 October 2008 | ||||||
|
At Budget Estimates hearings, Finance Minister Joe Tripodi demonstrated his Government’s lack of time or inclination to explain the State’s finances when questioned about unfunded superannuation liabilities, Shadow Finance Minister Mike Baird said today. “Minister Tripodi struggled to explain how the State’s unfunded superannuation liabilities were calculated and didn’t deny that old accounting standards were used to reduce the contribution required in the last two Budgets,” Mr Baird said. “If current accounting standards were used, the State’s unfunded super liabilities would peak at $19 billion instead of $12 billion. “This means in last year’s Budget, the NSW Labor Government avoided putting aside hundreds of millions of dollars* to ensure superannuation is available for the State’s public servants when they retire. “While super for the State’s public sector workers is crashing through the floor, the Finance Minister is refusing to go into the ‘ins and outs’ of what the NSW Labor Government is doing to make sure super is available to them when they retire.” Recent figures revealed annual losses of close to $1 billion in the public sector super fund, First State Super**. "Most NSW public servants lost 6.8% of their super over the past year*** – worse than the industry average of 6.4%****. For anyone closing in on retirement this is an awful blow and the Labor Government’s budget tampering only adds to concerns. "In a management practice not out of step with corporate cowboys, the NSW Labor Government has decided to ignore current conservative accounting standards to reduce its contributions to unfunded superannuation. "This is the time for prudent financial management and if the Finance Minister can’t explain why his government is manipulating superannuation to balance the books then NSW has more to fear as the global credit crisis continues to worsen,” Mr Baird said. MEDIA: Lisa Harrington - 0406 726 880
** 6.8% of First State Super’s $15 billion in assets equal losses of more than $1 billion: www.firststatesuper.com.au *** FirstState Super annual performance: http://www.firststatesuper.com.au/OurPerformance/AnnualInvestmentPerformance Add to:          Write Comment
|
||||||
