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

 


Mighty River Sale Leaves $2.3m a Week Hole In Govt Books

Mighty River Sale Leaves $2.3m a Week Hole In Government’s Books

Mighty River Power’s financial results show that National has increased the Government’s net deficit by $2.3 million a week by selling a profitable public asset, even after accounting for the reduced cost of Government debt, Green Party Co-leader Dr Russel Norman said today.

Today’s financial results show that Mighty River Power recorded a shareholder equity gain of $167.7 million and issued dividends of $168 million in the 2012/13 financial year. Total Shareholder Return is the change in shareholder equity plus dividends, which equates to a 11.1% return for MRP. Yet the average Government 5-year bond borrowing rate was only 2.9% for the same year. Thus, the net position of the Government, accounting for reduced Crown borrowing costs, as a result of selling 49% of Mighty River is $2.3 million a week worse, or $121.7 million for the full financial year.

“So much for the supposed business acumen of the National Party; they sold an asset that’s returning four times the Crown’s cost of borrowing,” said Dr Norman.

“Today’s result show that Treasury was right: asset sales increase the Government’s fiscal deficit. The Government is losing over $2.3 million each week on foregone net profits due to the Mighty River sale. That’s on top of the $66 million that the sale process itself cost the taxpayer.

“The cruel irony is that those New Zealanders who listened to National’s expensive ad campaign and invested in Mighty River have also lost money as the share price has fallen.

“The only people who seem to be profiting from National’s asset sales are the stock-brokers, the lawyers, and the ad-men who are clipping the ticket, and the big institutional investors.

“Asset sales just don’t add up. That’s why the overwhelming majority of New Zealanders are so strongly against them.

“National could save whatever remains of its tattered economic credibility by listening to New Zealanders and cancelling the remaining asset sales,” said Dr Norman.

Additional information:

Mighty River Power return$m
Shareholder equity, 30 June 2012$       3,014.0
Shareholder equity, 30 June 2013$       3,181.7
Equity return$          167.7
Equity return %5.6%
Dividends$          168.0
Dividend return %5.6%
Total Shareholder Return$          335.7
Total Shareholder Return %11.1%
Average 5-yr bond rate 2012/13 (source: Treasury)2.9%
Net TSR %8.2%
Net TSR$        248.29
Net TSR on 49%$        121.66
Net TSR on 49% per week$            2.33

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Parliament Kicks Off: Carter Re-Elected Speaker

The 51st Parliament held its commission opening today with MPs sworn in and David Carter elected Speaker.

The day began at 11am with the three Royal Commissioners – the Chief Justice, the Court of Appeal President, and the Chief High Court Judge – declaring the new Parliament open.

After the Commissioners left the Chamber the swearing in of MPs took place in alphabetical order. Unlike some previous openings all MPs managed to swear on the bible or affirm their oath without any hiccups... More>>

 

Labour: Review Team Named, Leadership Campaign Starts

Labour’s New Zealand Council has appointed Bryan Gould as Convenor of its post-General Election Review. He will be joined on the Review Team by Hon Margaret Wilson, Stacey Morrison and Brian Corban.

ALSO:


Roy Morgan Poll: National Slips, Labour Hits Lows

The first New Zealand Roy Morgan Poll since the NZ Election shows National 43.5% (down 3.54% since the September 20 Election). This isn’t unusual, National support has dropped after each of John Key’s Election victories... However, support for the main opposition Labour Party has crashed to 22.5% (down 2.63% and the lowest support for Labour since the 1914 NZ Election as United Labour). More>>

ALSO:

In On First Round: New Zealand Wins Security Council Seat

Prime Minister John Key has welcomed New Zealand securing a place on the United Nations Security Council for the 2015-16 term. More>>

ALSO:

TPP Leak: Intellectual Property Text Confirms Risk - Jane Kelsey

The US is continuing its assault on generic medicines through numerous proposed changes to patent laws. ‘These are bound to impact on Pharmac if they are accepted’, according to Professor Kelsey... Copyright is another area of ongoing sensitivity... More>>

ALSO:

RMA: Smith Plans Reform To Ease Urban Development

Newly appointed Environment Minister Nick Smith has announced Resource Management Act reform to foster urban development, where high land prices and expensive resource consents are blocking efforts to provide affordable housing. More>>>

ALSO:

Gordon Campbell: On New Zealand getting involved (again) in other people's wars

Apparently, the Key government is still pondering how New Zealand will contribute to the fight against Islamic State. Long may it ponder, given the lack of consensus among our allies as to how to fight IS, where to fight it (Syria, Iraq, or both?) and with whose ground troops, pray tell? More>>

ALSO:

Gordon Campbell: On child poverty, and David Shearer’s latest outburst

The politicisation of (a) the public service and (b) the operations of the Official Information Act have been highlighted by the policy advice package on child poverty that RNZ’s resolute political editor Brent Edwards has finally prised out of the Ministry of Social Development. More>>

ALSO:

Gordon Campbell: On the government’s review of security laws

So the Key government is about to launch a four week review of the ability of our existing legislation to deal with “suspected and returning foreign terrorist fighters, and other violent extremists.”

According to its terms of reference, the review will consider whether the SIS, GCSB and Police are sufficiently able right now to (a) investigate and monitor suspected and returning foreign terrorist fighters… More>>

ALSO:

Labour Davids: Lisa Owen Interviews David Shearer

David Shearer still mulling whether to stand for Labour leadership but says his family doesn’t think it’s a good idea. Declares that it will be “incredibly divisive” for the Labour caucus if David Cunliffe returns to the role of leader. More>>

ALSO:

Taser Use & False Evidence: Timaru Officers "Failed To Follow Good Policing Practice"

The Authority found that even if Mr Reuben’s contact with the officer was deliberate it amounted to only a minor assault. While it found the use of the OC spray was justified, the use of the Taser was not a proportionate response... More>>

ALSO:

Little Surprise: Andrew Little To Contest Labour Leadership

I have decided to contest the Labour Party leadership. There are three immediate issues to deal with: creating greater cohesion across the caucus, rebuilding the relationship between caucus and the Party and, most importantly getting the process under way to listen to the voters who have abandoned us... More>>

ALSO:

Two Fewer Votes In Recount: "Positive Result" - Harawira

When I applied for a recount of the votes from the Tai Tokerau election, I made it clear that this application was not aimed at overturning the election result, but ensuring that all votes cast by Maori were treated with due respect, regardless of whether those votes are for Labour, Maori Party or MANA. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news