Clayton Cosgrove
Spokesperson for SOEs

21 February 2013

Mighty River’s dividends will go offshore

Mighty River Power’s dividend of almost $70 million to taxpayers will be halved if the Government continues to push through the sale, says Labour’s SOEs spokesperson Clayton Cosgrove.

“Mighty River is going to pay out $67 million to the Government, which is a real benefit for taxpayers. Selling a profitable business is selling out the taxpayer. Especially when borrowing costs are so low. It’s simply a stupid business decision.

“In his trading days if John Key had sold a business that rakes in tens of millions to pay off part of a 3.5 per cent loan Merrill Lynch would have fired him.

“There is no way John Key would have entered into a deal like this in the private sector. He is letting his pride and political vanity get in the way and all Kiwis are losing out.

“Selling off state assets is always a bad idea. Selling them when they are profitable and paying dividends that will be sent offshore is lunacy.

“Over 370,000 New Zealanders have signed a petition to halt asset sales. The Government needs to listen to public and economic reason,” says Clayton Cosgrove.

ENDS

© Scoop Media

Gordon Campbell: On The 2013 Budget

Among Thursday’s main talking points:

We are apparently on track for a margin-of-error $75 million surplus, now in sight for 2014/15. But this sickly creature is hobbling out of the lab on the basis of all kinds of facilitative conjuring: such as trimming by $200 million the amount of new spending next time around.

With this strictly nominal surplus in sight, the 1984-ish justification for eternal austerity will have a news talisman: namely, getting Crown debt down to 20% of GDP by 2020. More>>

Budget Report, Lockup Audio & Images: Budget Day 2013 As always and especially after the managerial mishaps of the past few weeks and months, (e.g. Aaron Gilmore, the Mighty River Power share float, the GCSB mishaps) Budget Day 2013 was always going to be a pageant of reassurance... More>>

Budget 2013 Comment: Plain Sailing, But It's No America's Cup Pattrick Smellie: Compared to the last four budgets, this year's reflects an economy moving out of recession and into calmer waters... Yet if the fastest annual growth rate we can expect over the next two years is 3 percent - with the Christchurch rebuild in full swing - then you'd have to say New Zealand's underlying low-growth problem is far from fixed. More>>

Auckland Discord: Govt’s Power Hungry Housing Approach A Threat - Labour

Last week the Government said this, ‘The Government commits not to use any proposed or existing powers ... to override the council's planning and consenting processes’. But its housing Bill says this; ‘If an accord cannot be reached in an area of severe housing unaffordability, the Government can intervene by establishing special housing areas and issuing consents for developers’. More>>

ALSO:

• NZ Govt - Housing accords legislation passes first reading - Legislation For Housing Accords, Land Supply - Housing package improves affordability, access
• Greens - Budget numbers show National’s failure on home affordability
• Auckland Chamber of Commerce - Budget 2013: Housing intervention needed
• Out-Link - Gareth Morgan: Response to housing problem limp-wristed
• Earlier, Pre-Budget - Auckland Accord announced

Extending Protest Ban, Relaxing Permit Rules: Govt Abuses Urgency To Extend Anadarko Amendment

The Government is trying to pass legislation under urgency which would make the Anadarko Amendment – which limits protest at sea – apply to an additional 1.7 million square kilometres, the Green Party said today. More>>

ALSO:

• Parliament Today - Parliament Resumes To Pass Budget Bills
• Labour - Government to extend protest ban
• Greenpeace NZ - Oil Companies Lacking ‘Expertise’ and ‘Financial Ability’ Set to Be Handed Drilling Permits
• 2010 image via: Pacific.Scoop - Media watcher gives NZ press nil score card for China oil spill coverage