Contractors’ Federation calls for ‘double whammy’

1 October 2007

New Zealand Contractors’ Federation calls for ‘double whammy’ investment in infrastructure, not super funds

The New Zealand Contractors’ Federation has called for more investment in the country’s infrastructure rather than shares, following a $716 million loss by “the Cullen Fund”.

Chief executive Richard Michael said: “The government talks about ‘spread of investment’ so why send hard-earned money offshore into volatile seas when we desperately need infrastructure investment here?

“If you look at the core performance of super funds and the ACC Portfolio, it seems clear that some of those funds would be better invested in much needed Kiwi infrastructure.

“Such investments would bring solid returns over 20 or 30 years. In hard times it also makes sense to invest in ways that create employment and in projects that provide a direct economic benefit, such as roading programmes. Such investments provide a “double whammy” of benefits for the country.”

Mr Michael said that more consideration needed to be given to how public money could be invested in these types of projects.

“There are a number of much-needed projects such as Transmission Gully and the Waterview Connection which could handle substantial amounts of debt finance.”

ENDS

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