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


Selling 3 Energy Companies In A Year Is Economic Negligence

SOEs Spokesperson

20 December 2012 MEDIA STATEMENT

Selling 3 Energy Companies In A Year Is Economic Negligence

The Government’s plan to sell three energy companies next year will flood the market and depress demand which will lead to low share prices and a bad deal for taxpayers, says Labour’s SOE’s spokesperson Clayton Cosgrove.

“National is now so desperate to sell its SOEs after the debacle of 2012 that it wants to foist all three onto the market next year. That is economic idiocy.

“The Government knows that there are only two windows to sell companies - that’s after the half-year and annual reports. Selling two major energy companies at once will flood the market.

“There simply isn’t the demand for three energy companies in the share market. Low demand means low share prices, which means the companies are sold off for a pittance. This is basic economics.

“With issues such as the future of the Tiwai Point aluminium smelter, the biggest electricity user in the country, up in the air, investors are already wary of the SOEs.

“The experts are dubious too. In September Brian Gaynor said: "It's a lot of shares in the same industry, you could probably do it if it was different industries, if it was an airport, if it was a port company, and if there was an electricity generator [to be partially-sold]."

“Selling our SOEs is a terrible idea in the first place. But flooding the market because your self-imposed timetable has slipped through your own incompetence is an insult to New Zealanders who take pride in their SOEs.

“Polls show 80% of New Zealanders are against the sales and over 300,000 people have signed the petition calling for a referendum. The Government must listen to the people and hold a referendum on asset sales.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Key In NY: Prime Minister Addresses United Nations

    Prime Minister John Key has addressed the United Nations General Assembly in New York, focusing on a call for action in Syria and on other conflicts, reform of the veto process and on the UN’s Sustainable Development Goals. More>>.


    Gordon Campbell: On The Lack Of Accountability Over Philip Smith

    In New Zealand, accountability is an exotic creature rarely glimpsed at ministerial level, or among senior management. The flight to Rio by the paedophile /murderer Philip John Smith/Traynor is no exception. More>>


    More On Corrections

    Gordon Campbell: On Putin’s Diplomatic Coup Over Syria

    There’s a simple historical precedent for what is occurring in Syria. During WWII, the Allies joined forces with a known butcher and tyrant – Joseph Stalin of the Soviet Union – in order to defeat a greater evil, Nazi Germany… More>>


    Key 'Didn't Know': Brownlee Seeks Pandas In China

    While Defence Minister Gerry Brownlee is in China pushing a taxpayer funded deal to bring two pandas to New Zealand, the country’s military look set to be hit with a pay freeze, Opposition Leader Andrew Little says. More>>


    Scoop Business: GCSB Willing To Extend Cyber-Attack Programme To Local ISPs

    The Government Communications Security Bureau’s ‘Cortex’ cyber-security programme has been successful in helping identify and mitigate a series of cyber attacks since its introduction and an extension to cover local internet service providers is still on the cards... More>>


    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news