25 Feb 2009

ACT urges suspension of payments to Super Fund

9:11 am on 25 February 2009

The ACT Party is calling on the Government to suspend payments into the Superannuation Fund.

The fund will be used to off-set the rising cost of universal superannuation payments from 2020. The Government's current contribution is $2 billion per year.

Prime Minister John Key says the Government has not discussed suspending contributions to the Superannuation Fund, but he has not ruled out doing so.

With the Budget now in deficit, ACT leader Rodney Hide says it does not make sense to borrow money to invest in the fund.

The Green Party is also backing suspension, while Labour and United Future argue the fund is a long-term fix for superannuation, and should not be changed.