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

 


Labour must abandon cronyism if SOEs are to expan

John Key MP
National Party Finance Spokesman
Katherine Rich MP
National Party SOEs Spokeswoman
2 June 2006

Labour must abandon cronyism if SOEs are to expand

Labour must abandon its policy of rewarding cronies by appointments to State Owned Enterprise boards if they are to succeed in expanding, says National Finance spokesman John Key.

Economic Development Minister Trevor Mallard today said the Government was giving SOEs wider latitude to expand to help promote growth.

“Any extension in the role of SOEs will inevitably come with more risk, particularly if they diversify offshore,” says Mr Key.

“If this is going to happen, Labour will have to abandon its current policy of using SOE board appointments as a payback for political favours.

“The role of corporate governance is crucial to the long term success of any corporation, but never more so when they venture into uncharted territory, as the Minister now seems to be giving them the green light to do.

“There are dangers in letting SOEs expand when they are stacked with Labour Party appointments. If state businesses are to expand successfully - especially offshore - they need competent and commercially-experienced boards.

“Having Ministers sign off on expansion proposals is totally irrelevant, because it’s the boards that put the proposals to the Ministers and taxpayers’ investment will be in jeopardy if a board’s not up to it.”

National’s SOEs spokeswoman, Katherine Rich, says the devil’s in the detail of the announcement.

“You have to question whether this announcement is just spin. SOEs currently have the ability to expand. One only needs to look at Meridian’s successful investment in Southern Hydro.

“I would also like to see expansion overseas rather than in New Zealand, where there is a danger that it might crowd out the private sector.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news