Parliament

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

 

Investor confidence rocked by Telecom move

John Key MP
National Party Finance Spokesman
09 May 2006

Investor confidence rocked by Telecom move

The Government’s hamfisted unbundling announcement and threat to separate Telecom into lines and retail operations has ramifications way beyond the company, says National Finance spokesman John Key.

“This has put real jitters into the New Zealand sharemarket. The economy has already slowed and this clumsy threat has investors worried it will extend to other sectors, like energy.

“The proposed accounting separation of Telecom, with the veiled threat that the Government will eventually split the company up, has sent a shiver down investors’ spines.

Cabinet papers on the unbundling direct officials to ‘commence investigation into whether Telecom NZ should be subject to structural or operational separation (for example, into wholesale and non-wholesale businesses) taking into consideration Telecom’s cooperation in meeting the Government’s broadband objectives…’

“Protracted uncertainty is unhelpful and overt threats like this are the domain of schoolyard bullies. This was a time for the Government to act with great clarity,” says Mr Key.

“For the Labour Government to leave up in the air for the next year and a half whether Telecom is split up, is irresponsible and sends all the wrong signals to both foreign and domestic investors.

“Labour doesn’t care about what investors think, of course. Labour has little understanding of capital markets and the vital importance that confidence plays in their healthy operation.

“But New Zealanders should be very concerned about how the Government has handled this issue. Investors are the ones who provide the capital that effectively employs hundreds of thousands of Kiwis.

“The Government’s Budget bungle and its schoolyard threats have made investors worried about what else is around the corner and whether other sectors – like energy – should be nervous as well.

“And the message to foreign investors from Labour is: don’t bother with New Zealand – it’s all too hard.”

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election