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

 


Future Investment Fund for modern infrastructure

Hon Bill English

Minister of Finance

24 May 2012

Future Investment Fund for modern infrastructure

Schools, health, science and innovation, and transport all benefit in Budget 2012 from the Future Investment Fund set up to invest proceeds from the sale of minority shareholdings in four SOEs and Air New Zealand, Finance Minister Bill English says.

"The Government is committed to investing in modern infrastructure that helps build a faster-growing economy with more exports and more real jobs, without borrowing more from overseas lenders,” Mr English says.

“That’s precisely what the partial sale of shares is all about. The Treasury is forecasting sale proceeds of $5 billion to $7 billion over the next three to five years.

“That money will go into the Future Investment Fund and be used to pay for better public assets such as modern schools, hospitals, and transport infrastructure, while reducing the Government’s borrowing by $5 billion to $7 billion.”

Budget 2012 allocates an initial $558.8 million, including:

· The first $33.8 million of $1 billion ring-fenced for modernising and transforming New Zealand schools as part of the Government’s 21st Century Schools programme. More of this money will be allocated in future Budgets, after a review of school property management.

· A further $250 million towards the KiwiRail Turnaround Plan.

· $88.1 million for the health sector, most of which will go towards hospital redevelopments.

· $76.1 million for the creation of the new Advanced Technology Institute.

The fund is notional, like the Canterbury Earthquake Recovery Fund. Spending and receipts will be smoothed over the fund’s lifetime.

“Investing the share sale proceeds in this way will result in valuable assets that are owned by the Crown, as part of a growing asset pool, on behalf of all New Zealanders,” Mr English says.

“The SOE share sale programme is a win-win. New Zealand savers get to invest in large Kiwi companies, and the Government frees up $5 billion to $7 billion to buy new assets without extra borrowing.

“Being listed on the stock exchange will provide greater transparency and discipline for the companies.”

The Government has confirmed Mighty River Power will be the first energy SOE to be partially floated – likely to be in the third quarter of this year, subject to market conditions.

The other companies in the share offer programme are Genesis, Meridian, Solid Energy, and Air New Zealand.

“The Government expects 85 to 90 per cent New Zealand ownership after the partial share floats, including the Government’s commitment to retain a controlling stake of at least 51 per cent in each company,” Mr English says.

“Details of the structure of the Mighty River Power initial public offer and share allocation will be announced after legislation is passed later this year.”

The $558.8 million allocated from the fund in Budget 2012 builds on $4.3 billion of new infrastructure spending over the past three Budgets for projects such as schools and ultra-fast broadband, and billions of dollars more to pay for the Government’s share of rebuilding Christchurch.

In addition to Budget initiatives, the Government is investing about $12 billion over the next 10 years to improve the State highway network and $4.6 billion through Transpower over the next 10 years to upgrade the national grid.

“Well-targeted investment in infrastructure helps lift productivity which, over time, will mean better wages and higher living standards for New Zealand families,” Mr English says. “The Government’s large investment is also directly supporting thousands of jobs – and indirectly supporting many thousands more.”

Pre-Prospectus Disclaimer
The Crown is considering offering shares to the public in one or more of Genesis Power Limited, Meridian Energy Limited, Mighty River Power Limited, Solid Energy New Zealand Limited and Air New Zealand Limited. No money is currently being sought and no applications for shares will be accepted or money received until after an investment statement containing information about the relevant offer of shares is available.


ends


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

TV3 Videos: Key's Flip-Flop Over Whale Oil Texts | Slater
Reaction: Greens | More
Dim-Post Link: The Very Odd Slightly Left Of Centre

Gordon Campbell: On Government Arrogance

Right now, National is ramming anti-terrorism measures through Parliament. This legislation will grant the SIS the power to carry out 48 hour bouts of surveillance on anyone without a warrant, and will bestow on government the power to unilaterally revoke anyone’s passports and thus deny them the freedom to travel.

Ludicrously, the public has been given exactly one day to make submissions on these major infringements of their civil liberties. Despite Finlayson’s misleading signals on RNZ that these are only stopgaps until next year’s full review of our security laws, the measures in question will not, in fact, expire until 2018.

Why the insane rush? Good question. More>>

 
 

Parliament Today:

Key Texts With Whale Oil Released: PM Can’t Be Trusted Over Dirty Politics Defence - Greens

John Key’s answers to questions about dirty politics can’t be trusted, after he was forced to admit that he had misled journalists and Parliament about contact with attack blogger Cameron Slater, said the Green Party today.. More>>

ALSO:

Temporary Release Crackdown Continues: Corrections Review Of Phillip Smith Case

“The review by Corrections’ Chief Custodial Officer reveals that the plan for Smith’s series of temporary releases was overly ambitious and misinformed. He’s a highly manipulative and deceptive person who although technically eligible, should not have been considered for temporary release." More>>

ALSO:

White Ribbon Day: Govt Resumes Sexual Violence Trial Proceedings Work

Justice Minister Amy Adams has asked the Law Commission to resume work on proposals for better supporting victims of sexual violence through the criminal process. The Law Commission will revisit its previous work on alternative pre-trial and trial processes to identify options for improving complainants’ experience in court. More>>

ALSO:

"New Faces, Wise Heads": Andrew Little Announces New Labour Line Up

Labour Leader Andrew Little today announced a bold new caucus line up which brings forward new talent and draws on the party’s depth of experience. More>>

ALSO:

Gordon Campbell: On Rick Ellis As Te Papa’s New CEO

The recent appointment of former TVNZ boss Rick Ellis to head Te Papa has copped a fair bit of criticism. Much of it has been inspired by the suspicion that Ellis has been hired to pursue the same purely commercial goals as he did at TVNZ, while similarly neglecting the serious cultural side of his mandate. More>>

Passport Cancellation, Surveillance: Draft 'Foreign Fighters Legislation' Released

The final draft of the Countering Terrorist Fighters Legislation Bill contains proposals previously announced by Mr Key in a major national security speech earlier this month. More>>

ALSO:

Related

Joint Statement: Establishment Of NZ-China Strategic Partnership

At the invitation of Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae and Prime Minister The Rt Hon John Key of New Zealand, President Xi Jinping of the People’s Republic of China made a state visit to New Zealand from 19 to 21 November 2014... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news