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

 


Selling 3 Energy Companies In A Year Is Economic Negligence

Clayton
COSGROVE
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.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

17 Year Sentences In Baby Moko Case: Attorney General On Plea Bargain

“The Crown’s decisions in this case, including the decision to accept the manslaughter pleas, were motivated by the need to secure convictions for this horrendous killing and to avoid the significant risk that either of the defendants could escape such a conviction because of evidential issues.” More>>

ALSO:

No Rail For New Harbour Crossing: National Giving Up On Rail In Auckland

The National Government’s decision to scrap two planned rail lines in Auckland shows it is giving up on a city-wide rail network in Auckland, and on thousands of commuters who sit in traffic jams every single day, the Green Party said today. More>>

ALSO:

Gordon Campbell: On The Ombudsman’s Verdict On Paula Rebstock And Ian Rennie

Unfortunately, the brave and damning report by Ombudsman Ron Paterson on the “flawed” and “unfair” inquiry conducted by Dame Paula Rebstock into events at MFAT pulls back the veil on a far wider issue. More>>

ALSO:

Charities' Report: Stressed Families - Overstretched Services

“Like so many of the whānau and families they serve social service organisations are under huge financial stress. The support demanded from desperate people in communities is far outreaching the resources available.” More>>

ALSO:

Detention: Wellingtonians Protest Treatment Of Refugees

Peace Action Wellington (PAW) and around 50 Wellingtonians blockaded the Australian High Commission, creating a symbolic detention centre to protest the Australian Government's policy of mandatory offshore detention for refugees and asylum seekers. More>>

ALSO:

Diver's Alarums: Breach Means Training Provider Must Repay $1.47 Million

The New Zealand School of Outdoor Studies is to repay $1.47 million (GST-exclusive) to the Tertiary Education Commission (TEC) following an investigation which showed that some student enrolments between 2009 -2014 could not be validated and that courses were under-delivered against their agreement with the TEC. More>>

ALSO:

Education: Government Plans Suggest Bulk Funding Return

Plans by the Government to return to bulk funding are likely to see increased class sizes and schools most in need missing out on much-needed resources, Labour’s Acting Education spokesperson Grant Robertson says. More>>

ALSO:

Interim Report: Auckland Looks Long Term To Pay-Per-Km Road Pricing

Aucklanders can expect to be paying variable rates per kilometre to travel on the city's most congested roads under an emerging transport strategy being formulated by the government and the Auckland Council. More>>

ALSO:

Despite Promises: Government Extends Iraq Deployment

Cabinet has agreed to extend New Zealand’s contribution to the joint New Zealand-Australia mission to train Iraqi Security Forces until November 2018. More>>

ALSO:

On The 'Terrorism' Card:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news