Labour's finance spokesperson Michael Cullen says a Labour-led Government would invest any revenue generated from the premiums of the bank deposit guarantee schemes in the Superannuation Fund.
The Government last weekend announced it would guarantee wholesale bank deposits, following its decision in October to guarantee retail bank deposits, amid global financial turmoil.
Banks and financial institutions pay a fee to be part of the scheme.
Dr Cullen says it is important those fees are not frittered away, so they would be held in a ring-fenced account to ensure they are available to meet any liabilities under the scheme.
As those liabilities came to an end, income from premiums, which could run into the hundreds of millions of dollars, would be invested in the New Zealand Super Fund.
Dr Cullen said it makes sense to increase investment in the Superannuation Fund while markets remain weak.
He said the alternative of using the money from the scheme to fund short-term consumption would be both irresponsible and shortsighted.
