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

 


Nats’ offer document misleads on Mighty River risks

5 April 2013

Nats’ offer document misleads on Mighty River risks

The Mighty River Power offer document release by the National Government today fails to adequately spell out the risks for Kiwi mums and dads of investing in Mighty River, Green Party Co-leader Dr Russel Norman said today.

The offer document lists risks including the Tiwai Point smelter closing, regulatory changes, and Treaty claims but makes no attempt to quantify these risks or assess their likelihood.

“National has been pushing Kiwis to invest their savings in Mighty River, so it has a duty to properly inform them of the risks,” said Dr Norman.

“There is a very real danger that the closure of Tiwai Point, Treaty claims, and reforms by a future government will reduce the value of these shares significantly but National has failed to give potential investors an estimate of the size of those risks.

“A bland summary of risks that leaves it up to the investor to gauge their size might be adequate for professional investors but it is not good enough when National is trying to lure thousands of ordinary Kiwi families into the sharemarket for the first time.

“Bill English has been telling Parliament that these assets are risky for the Government to own but he seems to have no qualms about asking Kiwi families to invest in them blindly.

“This is a another bungle in an asset sales process that National has mishandled from start to finish,” said Dr Norman.

National also announced a 1 for 25 bonus share giveaway for retail investors who hold on to their shares for two years. If all shares were bought by retail investors, the maximum cost of that giveaway is $77 million at the top issue price of $2.80. In the sale of QR National by the Queensland Government, the bonus share giveaway cost $30 million.

“The National Government is promising to giveaway up to $77 million worth of shares to the few people who can afford to buy and hold them. That’s a straight transfer of wealth from the vast majority of Kiwis who can’t afford to or don’t want to buy shares in Mighty River to the small percentage of people who will,” said Dr Norman.

“It’s another instance of National splashing taxpayer cash around to try to increase the popularity of a policy that Kiwis don’t want and that our country doesn’t need,” said Dr Norman.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news