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

 


Asset sales led to higher directors’ fees and higher prices

4 April 2013

Asset sales led to higher directors’ fees and higher power prices

The cost of National’s asset sales has risen again with Mighty River Power’s board receiving extravagant pay rises, and it’s Kiwi households and businesses who will pay through higher power prices, Green Party Co-leader Dr Russel Norman said today.

The National Government has announced that it is giving Mighty River board members a 73 percent pay rise to $85,000 a year and a 53 percent raise for the Chair to $150,000 a year. A further $85,000 will be allocated for additional fees to directors for committee work. National’s justification for these increases is to match private directors’ rates ahead of the sale of Mighty River.

“National’s asset sales mean higher pay packets for electricity company directors, which will have to be paid for through higher power prices for Kiwi families and businesses,” said Dr Norman.

“So much for the promise that privatisation would deliver cost-efficiencies and savings. Mighty River isn’t even on the market yet and privatisation is already pushing up its costs.

“This is emblematic of the high cost/high profit model of privatised electricity companies, which sees private power companies charge consumers 11 percent more on average than publicly-owned ones.

“These latest costs come on top of the hundreds of millions dollars of taxpayer money that National is wasting on its asset sales agenda.

“The claim that extravagant pay packets for directors are necessary to get better performance out of Mighty River is rubbish. As an SOE, Mighty River won the Overall Energy Company of the Year and the Innovation in Electricity Award at the most recent Deloitte Energy Excellence Awards, beating out private sector competition with more expensive directors.

“Asset sales equal higher costs and higher power prices. Contact confirmed as much this week when it called for higher power prices so it could pay larger dividends to its private owners.

“New Zealanders don’t want asset sales and we can’t afford them. National should put its asset sales agenda on hold until the referendum is held and listen to the will of the public,” said Dr Norman.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Spy Update: Appointment Of GCSB Acting Director

GCSB Chief Legal Advisor Lisa Fong will become the Acting Director of the Government Communications Security Bureau (GCSB) from 15 February 2016, Minister Responsible for the GCSB Christopher Finlayson announced today. More>>

Protests Close Roads: TPP Signed In Auckland

“TPP was signed by Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Viet Nam.” More>>

ALSO:

Emails Behind 'Diplomatic Immunity' Case: Whitehead Report Released

“As previously indicated the conclusions reached by Mr Whitehead’s investigation are not unexpected but they are very disappointing,” Mr Mccully says. “At the heart of the matter is a single email, along with procedural shortcomings, which gave Malaysian officials the impression it would be acceptable for Mr Rizalman to return to Malaysia." More>>

ALSO:

Gordon Campbell: On The Treaty/TPP Overlap, And Iowa

The fears about the ISDS provisions in the Trans Pacific Partnership deal are well-founded. The reality is that there is a sharp uptick in the occurrence of ISDS litigation in developed countries, and even the right wing likes of The Economist have been souring on the process for some time. More>>

ALSO:

Christchurch Red Zone Offers: Fresh High Court Proceedings

Grant Cameron, Solicitor for the Quake Outcasts said “the action seeks judicial review of the Crown’s recent decision to make a fresh offer to purchase properties from uninsured property owners in red zones. More>>

ALSO:

PM's Post-Cabinet Press Conference: Waitangi And TPP

Prime Minister John Key on Tuesday said his office has received an invitation for him to visit the Lower Marae on Waitangi Day, but was waiting for a meeting of the Te Tii Marae Trustees. More>>

ALSO:

Flagged: 'Wrong Colour' Bridge Flag To Change

NZ First: Only 13 days after National trumpeted its legally questionable flag on Auckland Harbour Bridge, it is now coming down because it is the wrong colour... “Mr Key’s latest flag fiasco is another waste of taxpayers' money. Given it is coming down, down is exactly the location where it should remain. More>>

ALSO:

School's In: Children Head Back To School

“Across the whole of this year we expect 61,820 five year olds will begin their primary schooling for the first time,” says the Ministry of Education head of sector enablement and support Katrina Casey. More>>

ALSO:

Dog & Lemon: FBI Disagrees With NZ Government Over Police Chases

Multiple studies, quoted by the FBI, show that once suspects realise they're no longer being chased; they tend to slow down to normal driving speeds and therefore become far less of a risk. The FBI report also categorically rejected the argument that abandoning police chases meant ‘giving in’ to offenders. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news