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

 


Meridian sale a failure with 62,000 investors

Clayton COSGROVE

SOE Spokesperson

23 October 2013    MEDIA STATEMENT

Meridian sale a failure with 62,000 investors

John Key and Bill English’s asset sales are officially a farce as Meridian was sold off for $1.2 billion less than they promised and attracted just 62,000 investors, says Labour’s SOEs spokesperson Clayton Cosgrove.

“I don’t know how John Key and Bill English can look the taxpayers of New Zealand in the face. They have they sold half of a valuable long term asset for $1.2 billion less than they told the public they would sell it for in 2011. And just 62,000 retail investors, including institutions, bought shares.

“John Key and Bill English threw everything they could at making this sale a success, even offering a Suzanne Paul-style buy now - pay later scheme. Despite offering everything but a free set of steak knives just 62,000 people wanted to buy in.

“The number of investors in Meridian is half that of Mighty River, which was half that of Contact Energy when the National Government sold it in 1999. At this rate of success they will be paying people to buy Genesis Energy shares.

“This is a $1 billion blow out. It is almost impossible that the asset sales will bring in the $5b to $7b John Key promised New Zealanders.

“New Zealanders have realised they have been sold down the river.

“The only winners are the 62,000 retail investors who can afford to buy these shares. That’s just 1.4 per cent of the population.

“That’s a failure by any definition.

“The Government should use the upcoming referendum on asset sales as a face-saving exercise. The result will give the government the reason it desperately needs to stop the programme,” says Clayton Cosgrove.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On Tomorrow’s Speeches By John Key And
Andrew Little

The Key government has already kicked off the political year on a stridently ideological note, with Environment Minister Nick Smith choosing to lay all manner of sins at the door of the Resource Management Act.

Tomorrow, the government will wheeling out its best salesman – Prime Minister John Key – to sell its plans for state housing, which happens to be another of the government’s most contentious, most ideologically-driven policy packages. Presumably, Key will be trying not to double down on the rhetoric, and thereby leave room for Labour leader Andrew Little to sound like the centrist voice of reason.

Key will have his work cut out, though. More>>

 

Transport: Auckland Looks To Light Rail

The Board of Auckland Transport has called for an investigation into a light rail network, which could relieve traffic congestion on some of the region’s busiest roads. This stems from work in 2012 (the City Centre Future Access study) which responded to a government request to develop a robust and achievable solution for access to the CBD. More>>

ALSO:

RMA: Smith's Claims Don't Match Evidence - Greens

The Motu group’s research into the impacts of planning rules looked at the costs related to housing development but not the benefits of environmental protections and does not recommend significant changes to the RMA to reduce the cost of new house builds. More>>

ALSO:

Gordon Campbell: On The Similarities Between John Key And David Cameron

For years now, David Cameron has been the closest available thing to a mentor/analogue to our Prime Minister, such that Key watchers could be interested in an analysis of Cameron that appeared in the British press over the Christmas break. More>>

Gordon Campbell: On Ian Fletcher Resignation & GCSB’s New Role

It may well be that after being shoulder-tapped in Queensland for the GCSB job, three years of living in Wellington has been enough for Fletcher and his family, given that the pending review of the GCSB would have required an even longer commitment from him. Three years of Wellington’s weather is enough for anyone... More>>

ALSO:

Ian Apperley: $10m Or $100m For New Wellington Council IT System?

I feel a Tui Billboard coming on. I commented the other day that it looked like the Council’s Ninth big project was a potential $100 million plus... The Mayor has responded: “I am reassured by the Chief Executive and by Anthony Wilson that the proposed budget is in the region of $10 million.” More>>

ALSO:

Southern Ocean:
Navy Intercepts Illegal Fishing Vessels

Foreign Minister Murray McCully today put illegal fishing vessels operating in the Southern Ocean on notice and vowed to take action against their owners. “As part of a multi-agency operation, the HMNZS WELLINGTON has intercepted two vessels claiming to be flagged to Equatorial Guinea, fishing illegally in the Southern Ocean.” Mr McCully says. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news