ID :
203997
Sun, 08/28/2011 - 18:18
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Shortlink :
http://m.oananews.org//node/203997
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Waratah Bonds to help rebuild NSW
A NSW government bond scheme will be a low-risk "perfect investment" for mum-and-dad investors while raising money for major state projects, the government says.
But the program has been criticised as a "stunt" by the opposition, which says the government has simply renamed NSW Treasury bonds and lowered the minimum spend.
Treasurer Mike Baird on Sunday announced the launch of the NSW Waratah Bond Program, which will allow small investors to put money into critical NSW infrastructure projects.
"The security of the NSW government-backed Waratah Bonds makes them the perfect investment for those looking for a low-risk investment opportunity, particularly in light of the recent global turmoil," Mr Baird said.
It was also important for the NSW government to diversify its funding sources and look for cost-effective ways to address the backlog of essential infrastructure across the state, he said.
"This will be critical in helping us to meet any future economic shocks, while also enabling us to get on with the job of delivering the infrastructure needed after 16 years of neglect under NSW Labor," Mr Baird said.
The bonds can be acquired with a minimum investment of $10,000, with $1000 increments after that and interest paid twice a year.
Opposition treasury spokesman Michael Daley said Mr Baird had got away with introducing a "gimmick", pointing out that NSW Treasury Bonds are already available for a minimum spend of $20,000.
"It's just a stunt," Mr Daley told AAP on Sunday.
"NSW Treasury bonds are already available to mum-and-dad investors. All Mike Baird has done is to reduce the minimum spend to $10,000.
"If I was treasurer, popped up and said I was going to start a Cockatoo bond, call it a Cockatoo bond that was the same in every respect to a Treasury bond, people would have the right to say to me, nothing's changed.
"That's what they should be saying to Mike Baird instead of hailing this as some great panacea for infrastructure."
Meanwhile, Premier Barry O'Farrell denied the scheme had been introduced because of a reluctance by many in the private sector to invest in government projects following high-profile financial disasters such as the Cross City Tunnel and the Lane Cove Tunnel.
"We are determined, as we've said with a policy that was released more than 12 months before the election campaign, to engage mum-and-dad investors in the task of rebuilding the state," Mr O'Farrell told reporters in Sydney on Sunday.
"This is debt financing of infrastructure that should have been paid for by the surpluses that Labor enjoyed, particularly in its first 10 years in office."
The first products on offer through the long-term program include two fixed-rate bonds offering a three- and 10-year maturity.
Investments over $1 million must be referred to the NSW Treasury Corporation (TCorp).
Mr Baird said more investment products would be made available in the coming months, including a NSW inflation-protected annuity bond, which will be particularly relevant to retirees.
Mr O'Farrell confirmed the bond issue had been factored into the state budget, to be delivered on September 6.
But the program has been criticised as a "stunt" by the opposition, which says the government has simply renamed NSW Treasury bonds and lowered the minimum spend.
Treasurer Mike Baird on Sunday announced the launch of the NSW Waratah Bond Program, which will allow small investors to put money into critical NSW infrastructure projects.
"The security of the NSW government-backed Waratah Bonds makes them the perfect investment for those looking for a low-risk investment opportunity, particularly in light of the recent global turmoil," Mr Baird said.
It was also important for the NSW government to diversify its funding sources and look for cost-effective ways to address the backlog of essential infrastructure across the state, he said.
"This will be critical in helping us to meet any future economic shocks, while also enabling us to get on with the job of delivering the infrastructure needed after 16 years of neglect under NSW Labor," Mr Baird said.
The bonds can be acquired with a minimum investment of $10,000, with $1000 increments after that and interest paid twice a year.
Opposition treasury spokesman Michael Daley said Mr Baird had got away with introducing a "gimmick", pointing out that NSW Treasury Bonds are already available for a minimum spend of $20,000.
"It's just a stunt," Mr Daley told AAP on Sunday.
"NSW Treasury bonds are already available to mum-and-dad investors. All Mike Baird has done is to reduce the minimum spend to $10,000.
"If I was treasurer, popped up and said I was going to start a Cockatoo bond, call it a Cockatoo bond that was the same in every respect to a Treasury bond, people would have the right to say to me, nothing's changed.
"That's what they should be saying to Mike Baird instead of hailing this as some great panacea for infrastructure."
Meanwhile, Premier Barry O'Farrell denied the scheme had been introduced because of a reluctance by many in the private sector to invest in government projects following high-profile financial disasters such as the Cross City Tunnel and the Lane Cove Tunnel.
"We are determined, as we've said with a policy that was released more than 12 months before the election campaign, to engage mum-and-dad investors in the task of rebuilding the state," Mr O'Farrell told reporters in Sydney on Sunday.
"This is debt financing of infrastructure that should have been paid for by the surpluses that Labor enjoyed, particularly in its first 10 years in office."
The first products on offer through the long-term program include two fixed-rate bonds offering a three- and 10-year maturity.
Investments over $1 million must be referred to the NSW Treasury Corporation (TCorp).
Mr Baird said more investment products would be made available in the coming months, including a NSW inflation-protected annuity bond, which will be particularly relevant to retirees.
Mr O'Farrell confirmed the bond issue had been factored into the state budget, to be delivered on September 6.
