Government plans to spend up to $400m more on asset sales
Government plans to spend up to $400m more on asset
sales
The time has come for the National
Government to be up front about the cost of providing a
so-called ‘loyalty bonus’ to purchasers of shares in its
asset sales programme, Green Party Co-leader Russel Norman
said today.
On Q+A this morning, Tony Ryall joined
John Key in expressing support for a loyalty scheme, such as
the 1 for 15 bonus share that was offered to retail
shareholders in Queensland Rail National who held their
shares for two years, but would not offer any information on
how much it would cost.
On a $6 billion sales
programme, a 1 for 15 share bonus would cost the Government
up to $400m. This would be on top of the $120m that the
Government has indicated it expects to spend on middleman
such as investment bankers and advertising companies, and
the $100m annual increase to the Government’s deficit due
to foregone profits.
“It is ludicrous that the
Government is just a couple of months away from selling the
first of our energy companies yet it still won’t tell the
public how much it would cost”, said Dr
Norman
“Either they are trying to hide the truth
from New Zealanders or, just as worryingly, they don’t
know themselves.
“It is becoming clear that there
are huge undisclosed costs that further undercut the
economic case for asset sales.
“A loyalty scheme
could cost as much as $400m, on top of sales costs that the
Government conservatively estimates at $120m. That’s half
a billion dollars spent on selling assets that Kiwis want to
keep!
“Additionally, Budget 2012 shows the net
loss of profits cutting a $100m a year hole in the
Government’s books.
“The plain truth is that
asset sales don’t make sense for New Zealand. That’s why
the vast majority of New Zealanders want the Government to
drop this ideologically-driven policy,” said Dr
Norman.
ENDS