Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Mallard To Wipe Millions Off Value Of Assets

Mallard To Wipe Millions Off Value Off Taxpayer Assets

Friday 1st Dec 2000 Richard Prebble Media Release -- Economy

The coalition could wipe millions off the value of taxpayer owned assets if Trevor Mallard gets cabinet approval to meddle with State Owned Enterprises, said ACT Leader and first Minister of State Owned Enterprises (SOEs), Hon Richard Prebble.

State Services Minister Trevor Mallard indicated in a National Business Review story today that the Government may try to use SOE balance sheets to pay back central government debt.Documents obtained under the Official Information Act in September showed that the Government plans to take up to $180 million in “special dividends” from key SOEs to boost rapidly disappearing cash reserves. The SOEs targeted include Transpower, Meridian Energy, Genesis Power, NZ Post and TVNZ

“Mr Mallard’s announcement is that of a Minister whose Government is concerned revenue targets may not be met. Mr Mallard’s comments will fuel growing financial market concern that the Labour government’s stated proposals will undermine SOEs commercial independence.

“SOEs have to perform in a competitive marketplace. Ministerial interference in management decision-making jeopardises the ability of an SOE to perform, and places the value of taxpayer owned assets at great risk.

“Trevor Mallard stated in September that the SOE “cash-grab” had been well signalled in the Budget. The Budget comment contained in the Budget Economic and Fiscal Update was ‘The Government is considering reviewing the capital structure of state-owned enterprises (SOEs) to align with best commercial practice. An increase in private sector funding may result in return of capital to the Crown which will decrease Crown net debt.



“While the cash extracted may appear as a balance sheet ”dividend”, the Government is basically exposing each SOE to higher levels of debt and therefore greater risk, and is the Government being a prudent investor when it can borrow money cheaper than any SOE?

“The only time an SOE should leverage debt is to meet sound strategic objectives, like commercial expansion, that the management team have approved. Capital appropriation by ministers is further proof that government’s cannot be trusted not to play politics with national commercial assets.

“The power of ministers to interfere in the running of SOEs, with no accountability to shareholders or directors, must be removed, said Hon Richard Prebble.

ENDS

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

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


Gordon Campbell: On Trump’s Open White Nationalism

At one level, this has been the week that the Republican Party of Abraham Lincoln – which once led a civil war that ended the slave economy of the South – has now defined itself openly as being the party of white nationalism.

By telling those four elected, American born and/or raised women of colour to “go home”, US President Donald Trump’s racist agenda has come out of the shadows. More>>

 

RNZ: Trades Hall Bombing Case Re-Opened, Evidence Released

The cold case has been reopened and the police have recently revealed more details about the bomb's components - including that it was wrapped in a 1977 edition of The Evening Post. More>>

Safety: Govt Targets Fewer Deaths On The Road

“Most roads deaths and serious injuries are preventable and too many New Zealanders have lost their lives or been seriously injured in crashes that could have been prevented by road safety upgrades,” said Associate Transport Minister Julie Anne Genter. More>>

ALSO:

Pay Rise Delay: Teachers Unions Plan Legal Action Against Novopay

Both of the teachers unions - NZEI and the PPTA - have confirmed they will be taking legal action against Novopay. More>>

ALSO:

Emission Statement: 'Consensus Reached' On Agriculture

Today the Government launched a consultation document, informed by the work of the Interim Climate Change Committee (ICCC), on how to bring agriculture into the emissions trading scheme, a key part of the Government’s plan to tackle climate change and reduce New Zealand’s emissions. More>>

ALSO:

Gordon Campbell: On What’s Wrong With Wellington

For many Wellingtonians, it hasn’t been the normal hardships – the workings of central government and the lousy weather – that have recently pushed their tolerance into the red zone. It has been the inability of local government to maintain even the basics. More>>

ALSO:

$1m Compensation Paid: First Gun Ban Event In Christchurch

The Police Minister says the first ever firearms collection event in Christchurch over the weekend was a huge success. But Stuart Nash had concerns about whether the participation reflected the number of weapons in the region. More>>

ALSO:

The Kids: Youth Parliament 2019 Event Kicks Off

120 Youth MPs and 20 Youth Press Gallery members have gathered in Wellington to attend the two-day Youth Parliament event ... More>>

ALSO:

Friends Like These: Foreign Minister To Visit USA

Deputy Prime Minister and Foreign Affairs Minister Winston Peters will travel to Washington D.C. today for talks with senior members of the US Administration, and to attend the Ministerial to Advance Religious Freedom. More>>

ALSO:

Gordon Campbell: On The Aussie Banks’ Latest Fee Hike Excuse

When the Reserve Bank sought feedback on its plans to require the country’s major banks to raise their capital reserves then you might have expected the banks to whine and complain. And so they have. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels