CPP serves a different and super narrow purpose. The idea is to maintain a very safe, stable portfolio that can reliably pay out pensions. We CANNOT make politically/ethically charged decisions here AT ALL.
From what I’m guessing, the SWF that’s being proposed here is something of a middle ground. Independent, but with a “let’s invest in Canada” approach. The idea doesn’t seem to be just to maximise roi, but to rather do that along with “investing in Canada”. Basically the government wanting to create/fund profit making, Canadian businesses that require large capital to get started (so mostly infrastructure projects).
Keeping it independent from parliament kinda insulates it from political nonsense. At the same time, cheaper debt for the Canadian economy as a whole.
I like it. However, I would like if the operations were cooperativezed. I’m afraid that future governments would raid the fund to promise temporary tax breaks or whatever. They can’t do that with the CPP, as this would cause massive political backlash. I hope the public is well educated enough regarding this fund, where its protection is of paramount importance to them.
The last bit is precisely the concern. There need to be guarantees that this fund can set long term goals without constant interference. Without that it risks simply becoming a slush fund that produces little tangible value.
CPP serves a different and super narrow purpose. The idea is to maintain a very safe, stable portfolio that can reliably pay out pensions. We CANNOT make politically/ethically charged decisions here AT ALL.
From what I’m guessing, the SWF that’s being proposed here is something of a middle ground. Independent, but with a “let’s invest in Canada” approach. The idea doesn’t seem to be just to maximise roi, but to rather do that along with “investing in Canada”. Basically the government wanting to create/fund profit making, Canadian businesses that require large capital to get started (so mostly infrastructure projects).
Keeping it independent from parliament kinda insulates it from political nonsense. At the same time, cheaper debt for the Canadian economy as a whole.
I like it. However, I would like if the operations were cooperativezed. I’m afraid that future governments would raid the fund to promise temporary tax breaks or whatever. They can’t do that with the CPP, as this would cause massive political backlash. I hope the public is well educated enough regarding this fund, where its protection is of paramount importance to them.
What will probably happen is
The fund builds something like a new toll highway where tolls were supposed to pay back into the fund.
Conservatives take office, and sell the highway toll rights for pennies on the dollar.
Conservatives lose office, and then trash talk the liberals for the fund not working and what a waste the highway was.
The last bit is precisely the concern. There need to be guarantees that this fund can set long term goals without constant interference. Without that it risks simply becoming a slush fund that produces little tangible value.
Can you even do that? The next majority government could just change something via law and then use it as a slush fund?
Making it cooperatively owned as wraekscadu suggested could be one approach.