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

 

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Post Cab Presser: Inquiries And Consciences

    This afternoon the Prime Minister John Key announced that his cabinet had drafted terms of reference for the Havelock North water contamination inquiry... In response to questions on the Shop Trading Hours Amendment Bill, the Prime Minister said he didn't think allowing National MPs a conscience vote was warranted. More>>

    ALSO:

    Statistics, Homelessness, Privacy: Auckland City Mission Data Joins Govt Research Database

    For the first time, data from an agency outside government, Auckland City Mission, will be included in Statistics New Zealand’s vault of information for researchers. Data from the Auckland City Mission is going into the “Integrated Data Infrastructure” or IDI. More>>

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news