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


Key broke promise on asset sales cost

25 August 2013
Key broke promise on asset sales cost
John Key spent twice as much as he promised he would on the sale of Mighty River Power, Green Party Co-leader Dr Russel Norman said today.
Newly released figures show that Treasury spent $28 million on the sale of Mighty River Power, the company itself spent $12.8 million, and bonus shares cost a further $25 million. That brings the total cost to $65.8 million, or 3.9% of the sales proceeds. That's twice the 2% cost that John Key and his ministers promised.
Also the latest update from Treasury brings the total cost of the asset sales so far to $115 million, not including the interest-free loans to Meridian buyers (see table below).
"John Key has blown the budget on asset sales. The privatisation of Mighty River cost twice as much as he promised,” said Dr Norman.
“The Prime Minister wasted over $65 million of public money on selling Mighty River. That was 4% of the sales proceeds; twice the 2% that Mr Key promised. Only 2% of the population bought shares; the rest of us had to pay.
“All up, National’s asset sales programme has cost $115 million and the bill keeps climbing every day. That money should have been spent on important public services, not wasted on brokers’ fees, lawyers, and ad men.
“The question is why is National spending money on asset sales at all? They don’t make economic sense, they permanently increase the government’s deficit, and they put upward pressure on power prices.
“Kiwis don’t want to sell our assets. National needs to listen and stop wasting our money,” said Dr Norman.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Police Authority: Use Of Taser Was Disproportionate And Unjustified

The Independent Police Conduct Authority has found that an officer’s second use of a Taser on a mentally unwell Hokitika man was disproportionate and unjustified. More>>


Gordon Campbell: On Holidays, Hekia Parata And Badlands

Hekia Parata, adieu. Reportedly, she’s been ‘passionate’ about education. She has “bravely’ led the charge on the government’s education reforms. In the past week , many of the postscripts to Hekia Parata’s career as Education Minister have sounded like a schoolteacher desperately trying to find some reason why a D student can be marked up to C minus. More>>


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>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news