John Key MP
National Party Leader

6 May 2008

Labour hands $235 million windfall to Toll

National Party Leader John Key says Labour has gifted an Australian corporation with a huge windfall at taxpayers’ expense, at a time when households are finding it difficult to make ends meet.

“In a desperate stampede to buy themselves a train set, Labour has been prepared to deliver the Australian shareholders of Toll a quarter of a billion dollar windfall at the expense of struggling New Zealand taxpayers.

“A clear sign of this was the massive surge in Toll’s value yesterday as the market recognised just how much of a ride Kiwi taxpayers had been taken for.

"Toll’s value on the Australian stockmarket rose by a quarter of a billion Australian dollars off the back of the sale news.

“The irony won't be lost on thousands of Kiwi mum and dad investors of Auckland Airport who lost out because of Labour’s hamfisted intervention.

"Labour was prepared to sacrifice Kiwi shareholders of AIA, but hand Toll’s Australian shareholders a massive windfall.

"And this is only the start of taxpayers paying for this move.

"Labour says hundreds of millions beyond the overly inflated purchase price will have to be spent upgrading the rolling stock.

"Labour could have achieved its goals on rail by negotiating a proper subsidy with Toll.

"Instead, Labour is wasting up to a billion dollars so Helen Clark and Michael Cullen can have a train set.

“After being asleep at the wheel for years when it comes to New Zealand’s infrastructure deficit, Helen Clark and Michael Cullen have made exactly the wrong move, with the wrong asset, at the wrong time.”

ENDS

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