Imagine another another financial meltdown and all the Local Govt Super funds are lost. My question is how much will our ratepayers be up for AGAIN to cover the total loss? Does anyone know?
Dont dismiss this possibility as this scenario is very likely in the current economic climate. In such event locals will ALSO need to chip in extra for the State Govt Super Fund AGAIN and how much extra tax will have to be raised to replace those funds.
Both Super Funds have lost substantial $billions on several occassions and ratepayers and taxpayers have had to chip in to replace those losses... its just that people forget history. I don't forget because i was involved in institutional investment in the money markets when under the Whitlam Govt interest rates rose to banks paying up to 26%pa for 4 years and as a consequence reduced the face value of bonds and other assets substantially..
The Govt Super funds were set up by acturial 'experts' giving assurances that using 'professional' investment managers the super funds would earn enough to be self funding...however the reality has been the opposite on several occassions.
This is why I am totally against the concept of superannuation being worth anything of true value for this country except for those feeding off it.
Even the Industry Super Funds are attempting to gain an advantage by meddling in the partial involvement of the Australian economic management which is the role of the Reserve Bank and the Federal Government. IMO this philosophy will fail to do justice for their members security over the life of the funds no matter how clever they think they are or how good their advertising implies the reverse.
But as far as Local, State and Federal Superfunds are concerned .... most ratepayers and taxpayers would be staggered as to the contingent liabiility overhanging ALL taxpayers which are not quantified because the liability numbers have been transfered to be only relevent to the Super Fund bodies, yet are very relevent as we taxpayers are ultimately responsible. So I ask the question AGAIN?
HOW MUCH would our ratepayers need to raise AGAIN, if ALL the Super Funds were lost by the next economic meltdown, which would also substantially reduce the ability of most ratepayers to find the money to pay.
So if the Landowners and new Candidates can understand that set of numbers, then they might realise how super protected and expensive each extra hour of each government employed person is as a local government employee and why how important it is to economise and reduce staffing levels and or convert as many full time employees to contract staff.
I challenge anyone to prove me wrong?
Also published in COLDSTREAM 3770 blog this morning.
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