It’s nice to see the retirement funds for New Brunswick’s public service teachers and judges doing so well.
They’ve got over $100 million invested with Ontario government paper, millions invested in Verizon, Wells Fargo, Citibank – $30 million worth of Suncor Energy (at the time of these statements). Nearly $11 million invested with Siemens, $21 million with Royal Dutch Shell, $10 million with Qwest, $13 million with Pfizer, $8 million with Pepsico.
Don’t look to hard for the New Brunswick portion of the $9 billion invested because you won’t find much. They say $63 million has been invested in the province but I can’t find the list.
We have discussed this before. I don’t think that the NBIMC should be forced to invest a large part of its investments in New Brunswick. I agree with the idea that it should invest where it can get the best return on the investment for the public servants.
There are, however; two points I would make. If New Brunswick is not a good enough market for the investment of our public sector employees, that is all the more reason why we should be aggressively looking for investors who, in fact, could be interested in investing here. There continues to be skepticism in this province about efforts to attract investment even as $9 billion worth of public pension monies flow out of New Brunswick (oh, by the way, in case you are feeling a little uppity, take a look at your RRSP investments – I did this a couple of years ago and it turns out my little retirement egg is almost exclusively invested outside new Brunswick as well).
Economic development is fundamentally about business investment. Businesses invest their capital here and that capital generates labour income and taxation. If most of our surplus money is flowing out of the province, we have to find other sources to bring in.
The second point is that it is not impossible that a little more of the NBIMC funds could be used for NB investments. Quebec uses a far greater portion of its monies to invest in-province and, yes, I know this is controversial. Maybe we should ask the civil servants if some of their retirement monies should be invested in New Brunswick.
Then again, maybe guys like me should do the same with my RRSPs.