9 May 2013

Key Govt transfers wealth to those at the top

Mighty River Power’s shares have been transferred from all New Zealanders to corporates and a small minority of already well off New Zealanders, Green Party Co-leader Dr Russel Norman said today.

Finance Minister Bill English last night revealed that only 113,000 individual New Zealanders bought shares in the Mighty River Power offer with an average purchase of $8220 worth of shares. The Government claimed over 440,000 New Zealanders had pre-registered to buy shares.

“There aren’t too many mum and dad investors with the ability to put down $8,220 on a share portfolio,” said Dr Norman.

“The latest data shows that the median household has just $1,700 in the bank. Clearly, most families don’t have thousands for a punt on the stock-market.

“Only the wealthiest two or three percent of New Zealanders have stumped up to buy shares in Mighty River Power.

“The Key Government’s privatisation of our state owned energy companies is seeing a transfer of wealth from all New Zealanders into the hands of a few.

“Also profiting from this failed privatisation will be the brokers and advertising agencies hired by the Government to implement their flawed policy,” Dr Norman said.

“Now is time for the Key Government to tell the public of New Zealand just how much this sale has cost.

“The public deserve to know how many tens of millions of dollars will be transferred to the brokers and advertising agencies profiting from the sale of our state owned assets.

“John Key’s asset sales program has always been a con.

“The truth is now coming out. This is a policy that transfers wealth to private investors and does nothing to assist ordinary New Zealanders.

“The Green Party’s NZ Power plan will lower power prices for Kiwi families and businesses.

“The public now have a clear choice between National, which represents the interest of a few wealthy investors, or the Greens, who offer solutions for all New Zealanders,” said Dr Norman.
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