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.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Minister of Finance: Plan Shows $100 Billion Infrastructure Projects

Finance Minister Bill English has today launched the Government’s Ten Year Capital Intentions Plan (CIP) which shows a pipeline of $100.9 billion worth of infrastructure projects over the next decade. More>>


Werewolf: Safe Landings Gordon Campbell on the safety challenge to the Wellington runway extension.

The safety-related legal challenge revolves around the size of the 90 metre long Runway End Safety Area (RESA) being proposed for the runway extension. More>>


Environment Commissioner: We Need To Work Together On Climate Change And Farming

“The debate around agricultural emissions and the ETS has been polarised for too long,” said the Commissioner. “But the ETS is not the only way forward – there are other things that can be done.” More>>


NZ Super Fund: Seeking To Put A Market Price On Climate Change

Oct. 19 (BusinessDesk) - The New Zealand Superannuation Fund says it will devise a set of rules to assess investment winners and losers under climate change, a strategy that could rule out fossil fuels or producers such as current portfolio member Exxon ... More>>


Rejuvenation: Parata Will Not Contest 2017 Election

Education Minister and National List MP Hekia Parata has today announced that she will not be contesting the next election. She advised the Prime Minister of her decision earlier this year. More>>

Prisons Grow: Government Approves Plans For Increased Prison Capacity

Despite significant progress in reducing crime the number of prisoners has increased faster than projected. This is because the proportion of offenders charged with serious crimes has risen, meaning more people are being remanded in custody and serving more of their sentences in prison. More>>


Gordon Campbell: On Plastic Bag Activism, And Street Harassment

Amusing to see the Act Party experiencing another outbreak of young fogey-ism. What has aroused the ire of Act Leader David Seymour this time is the introduction of a Greens private members bill to the ballot process, calling for a 15 cents levy on plastic bags to reduce pollution. More>>


Unclear Weapons: US Navy Ship Cleared To Visit NZ For Navy's 75th

United States Navy ship, the USS Sampson, has been given clearance to visit New Zealand next month by Prime Minister John Key... “The process for considering the visit by the USS Sampson is the same as that used for all ships attending the International Naval Review." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news