Selling Down Assets the ‘Ministerial Approach’
Clayton COSGROVE
Spokesperson for SOEs
20 May 2012
MEDIA STATEMENT
Selling Down Assets the ‘Ministerial
Approach’
National’s Local Government
Minister David Carter’s appearance on TVNZ’s Q+A this
morning proved beyond doubt central government’s intention
to see Canterbury’s assets sold off, says Labour’s State
Owned Enterprises spokesperson and Canterbury MP, Clayton
Cosgrove.
When asked about the pressure central
government would put on local councils to keep on top of
debt, the Minister said that rationalising some assets, such
as shares in the Christchurch Airport would be the preferred
approach of the National Government.
“We have
known for some time that the National government is backing
local councils into a corner on this issue- but this
confirms it,” Clayton Cosgrove said.
“What this
is really about, is the National Government trying to put
pressure on the local authority in order to wiggle out of
responsibilities that it has.
“This issue was
raised over a year ago when the CERA legislation was before
Parliament. This was not a part of the deal. The
Minister’s rationale - that councils should sell down
infrastructure to survive - is ludicrous.
“These
are revenue generating assets which have sizable returns for
the whole community. Selling these off to fulfil
National’s agenda is foolish.
“This is a
nationwide issue. Selling revenue generating highly
profitable assets which are providing a solid rate of return
at a local level is about as logical as National’s plan to
sell our revenue generating state-owned
assets.
“Canterbury’s profitable assets have
kept local rates in check. To hear the Minister say that he
would rather give up that revenue stream to pay for the
disaster that has befallen our City makes a mockery of the
Government’s commitment to Canterbury’s
recovery.
“New Zealanders have rejected the sale
of state-owned assets and the rate payers of Christchurch
will reject this,” Clayton Cosgrove
said.
ENDS