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

 


The latest SOE sale trick: Buy now, pay later

Clayton Cosgrove
SOE Spokesperson

20 August 2013

The latest SOE sale trick: Buy now, pay later

John Key has wheeled out his latest SOE salesman patter of ‘buy now, pay later’, in a desperate attempt to convince the 86% of Kiwis who don’t like asset sales to buy shares in Meridian, says Labour’s SOEs spokesperson Clayton Cosgrove.

“In the Mighty River Power sell-off the deal was ‘buy 25, get one free’. Now John Key is trying the old used car salesman gag of ‘buy now, pay later’. When this trick fails, what’s next? A free set of steak knives? This guy will give you anything but it’s the taxpayer who pays.

“The detail on the buy now, pay later scheme is deliberately wafer thin. But it’s likely to be yet another cost to the taxpayer. The 40 per cent of shares that investors get 18 months to pay for will have to be held by the Government.

“The Government will hold onto hundreds of millions of dollars worth of shares while investors get dividend payments for shares they don’t own. Presumably this money will have to be borrowed or will they dip their fingers into the Future Investment Fund yet again?

“John Key promised New Zealanders that the money from asset sales would go into the Future Investment Fund to build schools and hospitals. Yet we know $40 million of that fund will pay for the free shares investors got from the Mighty River Power float.

“John Key is desperate to get Kiwis to buy shares. He knows that just 14 per cent of Kiwis have any interest in buying Meridian shares, which is half the number who wanted to buy into Mighty River. That’s because Mighty River’s share price is currently 30 cents lower than when it floated.

“Kiwis know a bad deal when they see one. Despite all John Key’s skills as a salesman, he knows the only way to get buyers for Meridian is to sell it at a low price.

“John Key needs to get Meridian sold, no matter what the cost. Treasury says the float will raise $3.1 billion, but latest valuations say it’s worth just $2.1 billion. The cost is $1 billion,” says Clayton Cosgrove.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

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:

Post-Cab Press Conference: Foreign Buyers Register, TPP And Serco

At a press conference today in Wellington, John Key discussed the foreign buyers register as well as the TPP and Serco. Key was questioned on whether a stamp tax might be used as a tool to deal with foreign buyers. More>>

ALSO:

Lyndon Hood Satire: Serco To Outsource Prison To Public Sector

In response to high-profile failings, multinational omnicorporation Serco will introduce public management in its prison system. Serco's New Zealand manager, speaking on condition of anonymity, has announced plans for managers from the Department of Corrections to run the Mt Eden Correctional Facility. More>>

National Party Conference: Plans To Nudge Immigrants Towards Regions

The Government will introduce a package of immigration measures aimed at improving the spread of workers, skills and investment across New Zealand, Immigration Minister Michael Woodhouse says. More>>

ALSO:

Corrections: Serco Relieved Of Control At Mt Eden Prison, Retains Contract

Multi-national private prison operator Serco has been forced to hand back control of Auckland's Mt Eden remand prison to the Department of Corrections, which has used a 'step-in' clause in its contract with Serco following a string of increasingly serious allegations about contraband, prisoner injuries and a death. More>>

ALSO:

Other Experiments: Failing Charter School Stays Open 'For Kids'

Education Minister Hekia Parata says she has given Te Pumanawa o te Wairua in Northland a chance to continue operating because of her concerns about finding other educational opportunities for its students. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news