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


Wellingtonians will lose as strategic asset sold

28th April 2008

Wellingtonians will lose as strategic asset sold to Hong Kong

It is tragic that yet another strategic asset, Wellington's lines company, has fallen into foreign control, meaning Wellingtonian's can only loose out, Green Party MP Sue Kedgley says.

"I predict even more expensive power bills for Wellingtonians as the new foreign owners - Cheung Kong Infrastructure - seek to make a profit on their $785 million investment.

"I expect the new Hong Kong based owners will run down Wellington's electricity network, suck out profits for their offshore shareholders with minimum maintenance for the end users - Wellington residents, and use the network as a cash cow.

"I also predict they will sell it off again in a few years time for a hefty profit.

"Our electricity lines are a key monopoly asset bought and paid for by ratepayers. Wellington City Council should never have sold our lines company, Capital Power," Ms Kedgley says.

Ms Kedgley points out that lines companies are permitted to earn a profit, and so a high price for the sale of our electricity lines will almost inevitably result in increased electricity charges for Wellingtonians.

"If someone pays a high price for the asset, this entitles them to raise prices."

Ms Kedgley says that power prices have already gone up by 600 percent in the past decade with no actual investment in new infrastructure in that time.

"We have been victims of a commercial game of pass the parcel ever since, with the lines company changing hands at least three times since then.

"Why is our Superannuation Fund not bidding for ownership of New Zealand strategic assets like our electricity lines, rather than investing in companies which make cluster bombs? Surely it's in the National interest to own our energy networks, not allow them to fall into foreign control?"


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Back Again: Government Approves TPP11 Mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>




Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>


Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>


Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>


Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>


Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>


(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>






Featured InfoPages

Opening the Election