Labour has launched its first key election policy this term, announcing a fund which would invest in New Zealand infrastructure and businesses only.
The party is calling it the first step in its plan to “back New Zealand’s potential”, create “secure, well-paid jobs across the country”, lift productivity and ensure wealth is made and remains in the country.
A document launched alongside the new policy outlined three principles to underpin the Future Fund and the party’s “wider approach”:
- Wealth creation with purpose - directing investment to solving real problems: affordable healthcare, warm homes, higher productivity, and a zero-carbon economy.
- Partnership - working alongside business, unions and communities to shape and create new markets, providing clarity, direction and confidence to invest for the long term.
- Investing in ourselves - mobilising New Zealand’s own savings, skills and innovation to create jobs and opportunity here at home, and investing proactively to nurture new technological and industrial strengths.
Many countries have Sovereign wealth funds which are funded mainly by exports of natural resources. We export a lot of natural resources so it just makes sense that we set up a fund like most other countries do.
The question is - will we take the opportunity to fund it through natural resource taxes? (I’d guess not)
We should simply have a levy on exports of natural resources to feed the fund.
We already have royalties on mining and petroleum, though I wasn’t able to find where that money goes. I guess into the general government pool. It would be nice to send it into a fund like this, as you say.
Those are not the only natural resources we export. There is also agricultural products, milk, meat, logs etc.
Ooh I hadn’t thought of that. It feels like it would be deeply unpopular to add an additional tax to the things that voters directly produce, though.
The idea is that the natural resources belong to everybody. This would include things like trees, clean air, water etc. I suppose one could tax the water which would be passed on the agriculture sector and the lease of grazing land etc.