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

 


Massive uncertainty hangs over MRP sale

Clayton Cosgrove
SOE Spokesperson

5 April 2013

Massive uncertainty hangs over MRP sale

The Government is flouting the golden rule of public offerings with Mighty River – clear up the uncertainty before listing, says Labour’s SOEs spokesperson Clayton Cosgrove.

“With Rio Tinto threatening to walk away from Tiwai Point the electricity market potentially faces major turmoil. The Government has admitted that risk in today’s offer documents, but somehow National still thinks it is a good time to list an electricity company.

“Almost 15 per cent of the electricity market is in flux and power stations may be closed. To list Mighty River now is financial mismanagement on an epic scale.

“The May deadline for the sale plays right into the hands of Rio Tinto. National must cancel the sale so the time pressure is removed and a cool-headed approach to negotiations can be taken. Otherwise investors will expect a discount, and taxpayers will lose out.

“John Key knows it is a bad time to sell these assets. That’s why he is bribing his much-vaunted ‘Mum and Dad investors’ with a loyalty scheme – a scheme that conveniently expires a few months after next year’s election.

“The loyalty scheme unveiled today will cost taxpayers tens of millions of dollars, maybe as much as $50-million. If the Government’s got to spend that much money to convince Kiwis to keep these shares then it must be worried.

“I urge New Zealanders thinking of investing in Mighty River to take a long hard look at this offer document,” says Clayton Cosgrove.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Arming Police: Frontline Police To Routinely Carry Tasers

"In making the decision, the Police executive has considered almost five years worth of 'use of force' data… It consistently shows that the Taser is one of the least injury-causing tactical options available when compared with other options, with a subject injury rate of just over one per cent for all deployments." More>>

ALSO:

Gordon Campbell: On D-Day For Dairy At The TPP

While New Zealand may feel flattered at being called “the Saudi Arabia of milk” it would be more accurate to regard us as the suicide bombers of free trade. More>>

ALSO:

Leaked Letter: Severe Restrictions on State Owned Enterprises

Even an SOE that exists to fulfil a public function neglected by the market or which is a natural monopoly would nevertheless be forced to act "on the basis of commercial considerations" and would be prohibited from discriminating in favour of local businesses in purchases and sales. Foreign companies would be given standing to sue SOEs in domestic courts for perceived departures from the strictures of the TPP... More>>

ALSO:

"Gutted" Safety Bill: Time To Listen To Workplace Victims’ Families

Labour has listened to the families of whose loved ones have been killed at work and calls on other political parties to back its proposals to make workplaces safer and prevent unnecessary deaths on the job. More>>

ALSO:

Regulators: Govt To ‘Crowd-Source’ Regulatory Advice

A wide-ranging set of reforms is to be implemented to shake up the way New Zealand government agencies develop, write and implement regulations. More>>

ALSO:

Board Appointments: Some Minister Appoint Less The 3 In 10 Women

“It’s 2015 not 1915: Ministers who appoint less than 3 in 10 women to their boards must do better, they have no excuse but to do better,” said Dr Blue. More>>

Gordon Campbell: On The 1990s Retro Proposals For Our Health System

As we learned yesterday, the reviews propose that the democratically elected representation on DHBs should be reduced, such that community wishes will be able to be over-ridden by political appointees. In today’s revelations, the reviews also propose a return to the destructive competitive health model of the 1990s. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news