October 16

In Christchurch yesterday I unveiled an important economic initiative I believe will help drive New Zealand's growth. [Watch video of the announcement and the ensuing presser.]

National will put a greater portion of the large capital pool sitting in the New Zealand Superannuation Fund into the New Zealand economy.

Our plan is to amend the law to let the Finance Minister direct the allocation of the fund - and we will set a target that at least 40% be invested in New Zealand.

In every other way, the guardians of the NZ Super Fund will continue to invest as they do now. They'll make decisions on a prudent, commercial basis.

But I believe that having more of that Fund's money - now amounting to almost $14 billion - invested in New Zealand can only have positive spinoffs for the country, both in the short-term and long-term.

The range of investment opportunities are large - they include shares, government bonds, high-quality commercial paper, private equity and so forth.

While the guardians of the NZ Super fund will determine the appropriate rate by which to increase their investment in New Zealand, I want to see that pool of capital back New Zealand.

In the short term, in a world where capital will be more tightly held and closely guarded, our plan will help ensure we have funds to help get us out of recession and into a period of solid and sustainable growth.

It's a central message of National's campaign that we want the economy to grow - and I believe yesterday's announcement will add another layer to the economic management plan I unveiled last week.

John Key

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