Air NZ: Gullible Governments Do Still Exist

Thursday, September 13 2001 Stephen Franks Press Releases -- Commerce

"As a shareholder I can only thank heaven that gullible Governments still exist," ACT Commerce Spokesman Stephen Franks said.

"However, as a citizen I have to be appalled by an inexperienced anti-business Government taking a half billion dollar risk without requiring the benefit of shareholder upside by way of option, or proper return when the rescue works. If the Government money is not effectively as risky as shareholder investment, why could the company not have got it from its bankers?

"The 'rescue' leaves or even increases the control of shareholders who may be responsible for the debacle. Tinkering with board consultation and approval requirements just means the Government will share more blame if the rescue fails and doesn't tell us that the source of the bad decisions has been rooted out.

"Michael Cullen's media statement makes no reference to ordinary shareholders. It talks about board appointees of existing controllers as if elections or any other acceptance that these foreign companies were not supposed to be in control anyway. Does the Government just assume that shareholders will approve any changes to the constitution," Stephen Franks said.

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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